Just been working on a talk I am giving this Wednesday on an entrepreneur’s perspective of the role of a Board of Directors. I only have 5 minutes to speak so has been a very good exercise in making it short but real. So here it is… you can have a sneak preview of my 5 minutes of fame:
The purpose of an entrepreneur is twofold:
1. To build a company with a higher purpose (think Richard Branson, Bill Gates, Steve Jobs, Anita Roddick and others such billionaires who make a difference to our world)
2. To build an exit for the shareholders (think Sam Morgan, the Trilogy sisters, Geoff Ross, Rod Drury for local heroes who have built a successful exit)
Why does an entrepreneur need a Board of Directors?
1. To challenge the strategy (to the exit and on-going)
2. To hold them to the goals and plans
3. To reality check the numbers
4. To hold the owners/management accountable
5. To support through the tough decisions
In a nutshell:
- The purpose of a business is to create wealth for its owners
- The purpose of a Board of Directors is to be true to the business (in its mission to plan and execute the exit)
That’s it… what do you think?