Entrepreneurs need boards, too.

• Author: Schell, Jim
• Position: Boards of directors

Boards of directors are like breath mints: Everybody needs them, but too many of us don't partake.

Like mentors and consultants, boards of directors can provide outside perspective to us vacuum-dwelling entrepreneurs. Boards replace trial and error with experience and knowledge. They act as backboards, and feeding boards, and boards of inquiry. Boards increase our range of vision while decreasing our windows of risk. They open needed doors and close unnecessary ones. They give us a glimpse of the outside world.

Boards of directors can and will change our behavior, no minor entrepreneurial accomplishment. Previously accountable to no one, we suddenly find ourselves in a position where we are required to prepare in advance, listen, follow up, and justify yesterday's decision. We are, horror of horrors, accountable to someone. Like just about everybody else.

Boards add depth, breadth, and accountability to the entrepreneur's isolated and dictatorial world -- in an ever-changing and hostile business environment where depth, breadth, and accountability are increasingly necessary for survival.

Too many entrepreneurs and most seat-of-the-pantsers never utilize a board of directors. Excuses include:

* Too busy helping the UPS driver, opening the mail, or unloading trucks to plan board meetings.

* Board meetings require follow-up. Again, too busy.

* Good board members are hard to find. No time to look.

* Directors' insurance is too expensive.

* No outsider can tell an entrepreneur how to run his business.

The fact is, we wouldn't be so busy if we weren't correcting the mistakes we wouldn't have made had we taken the time to solicit outside advice. And we wouldn't be so busy if we used the guidance and experience that a board of directors can provide.

Twelve Tips

Here is a collection of tips on how to assemble and utilize a board of directors:

1. Directors should come from the outside, not the inside. The entrepreneur doesn't need another set of in-house heads nodding in unison at his sometimes musty ideas.

2. No close friends or relatives. They can't be tough enough.

3. Select directors from the ranks of customers, bankers, consultants, accountants, business associates, and yes, even attorneys.

4. Balance the board. If your strengths are sales and marketing, make sure the fields of finance and operations are covered as well. A director with experience within the industry could also help, especially if capable of viewing you through a customer's eyes.

5. ...