Developing a Small Business 'Board of Directors.'
A good board of directors can be a strong asset to someone who is starting a business. The first thing one needs to know when creating a board of directors is: what a board of directors actually is, and why a company would need one. The Wikipedia website that is posted is great in defining many of the terms about a board of directors. A board of directors is a group of individuals that are voted on by the share holders of a certain company. This may be those that hold stock in a large company or the shareholders may even be on the board themselves. In small companies, the shareholders are usually the same as the board of directors. This is good in many ways as it will eliminate the division of power between shareholders and the board. The board will then be the body mainly in charge of the conduct and management of the affairs of the company that they represent.
It is important that the board members be able to work as a team, especially with the CEO of a company. You need to be able to get along with them as well, not just tolerate them. Many have stated that when forming a board for the first time, a small board is better. They will be more agile in carrying out decisions. They will also be easier to manage and less expensive. Choose those that are well trained in their chosen area. Having past experience will help in starting a new company. A good mix prescribed by Highland Capital Partners is to have about 6 to 7 people comprising of the CEO, the Founder (if he or she is not currently the CEO), two experienced outside directors with in depth knowledge of the industry, and no more than two professional investor representatives. It is also important to remember that certain people shouldn’t be on your board such as your entire management team, blood or marital relatives, or service providers such as company counsel.
These are good guidelines, but the main thing that will determine the size of one’s board and who will be on it is by what the company does and what they plan to do. One must judge for himself what will be needed to be done and who will be able to do it. There are three ways to staff your board. Functional staff is placing people on the board that have skills aimed towards certain goals. Diversification staffing is staffing people that have a wide range of skills and values. Representative staffing is placing people on the board whom represent large parts of the company. One must consider these different combinations of people and decide which will suite them the best. Choosing well will be the best asset that will help the company get started.
Top Online Resources:
- Free Management Library
- Board of directors - Wikipedia, the free encyclopedia
- Building and Managing a Board of Directors
Ideas that make a Floundering Business
There are many important ideas to look in order to create and maintain a business that will have continued success. There are many different people who have many different ideas that they believe will lead to a successful business. Some of the most common ideas by many people tend to be that a product or service is needed that truly is wanted by the general public, and will last for a good period of time. Another is that to start a business, you need money/assets, therefore it is important to have some savings. It is true that you will probably still need a loan, but in order to get a loan out, you still need to be worth something to be approved. You need to understand the importance of how and where you will make your profit. With an understanding of how and where a profit, can and will be made, you must make and maintain a business plan. Always remember to protect yourself and personal assets if going into a business with a partner. You should always document agreements and contracts, so that there are no problems. Hire and maintain workers with high standards and honesty. Understand the legal aspects of yourself, your company and your workers. Lastly make sure to always pay your bills and taxes on time. There are many things you must keep in mind when starting a business and maintaining your integrity. These are just a few.
The following is a real life experience that illustrates the importance of honesty: One time at this bank when he was not a vice president the company had a competition, and the winner receive a trip to Indianapolis to see the Indianapolis 500 Indy car race and also get to drive one and be taught by one of the pros. Now for this competition each employee received a book of about 10-15 pages of rules and regulations, basically the process in which one might win this event and receive the grand prize. When my friend received this, he personally was not interested in Indy cars and really didn’t care too much to win; he threw it in his desk drawer and continued to work hard as he normally would. The end of the competition arrived and he received a phone call from the C.E.O announcing to him that he needed to see him in his office because he had won the competition. When he arrived in the CEO’s office he was asked what is it that you did to win. He laughed and said the same thing I have always done and to be perfectly honest when I received the rules I threw them in my desk drawer and didn’t read them once. The CEO was really impressed. That day my friend said that he learned the importance of hard and honest work. Honesty and hard work are two of the most important things that will lead to success.
Top Online Resources:
- Entrepreneurs @ Suite 101
- Ten Tips for Starting and Running a Successful Small Business
- The Small Business Blog
Raising Money to Finance a Small Business
Starting one’s very own small business is a time of great excitement. Such an entrepreneur may be a mere novice or a time tested veteran in the world of enterprise. In many senses, a small business owner is fulfilling the coveted ‘American Dream.’ To have the privilege and freedom to begin such a business is a blessing, to have the capital and the resources are a necessity. This article hopes to provide a little bit of sound information to those venturing out into financing their business. Three websites will be provided that will be informative and beneficial to helping these individuals raise money to finance their hopes of owning a small business.
The websites that have been chosen are government sponsored and backed web pages. This has been done for the purpose of gaining an unbiased information source. Fraud in America is constantly on the rise. In this investigation, sponsored web pages have been found that gave good information, but are slanted an angle to sell a certain product or promote a specific financing plan that their ‘great’ company just so happened to provide.
Another reason government websites have been chosen is due to the plethora of federal grants and loans available to those starting a small business. The economy is actually benefited when its citizens start businesses, so the American government attempts to facilitate and encourage the process by offering incentives. The following websites will walk an individual through much of the paperwork in starting a business as well as a ‘how-to’ in raising capital to finance their operation of choice. They will share the different options in private loans or publicly owned stock, and many of the benefits of each.
Top Online Resources:
- U.S. Small Business Association
- Library of Congress
- The Official Business Link To The U.S. Government
Small Business Ideas for Teens
Today’s possibilities for teenage type employment have expanded beyond flipping burgers at the town’s local restaurant. It has been found in the past when a certain group needed to survive in the American society without employment that they turn to entrepreneurial ideas to create small businesses. This entrepreneurial spirit does not just apply to the rich and middle aged adults anymore, but is extending to young adults and teenagers.
The only advantage to being older and richer is an easier way to gain startup funds as well as having more experience as to how a business works. The internet has become a great source to find where teenagers can get free suggestions about ideas for a small business, funding start up expenses, and advice on how to allow your business to grow and develop. The following websites are very useful starting points to help find these resources.
Top Online Resources:
Starting your own business
People starting businesses can turn to the internet for help. There are many websites that can help people start a business. The following three sites have been selected as the best online sources.
Top Online Resources: