4 Best Practices for Running Productive Board Meetings for Startups

Boards of Directors are an essential part of every company, from small businesses to large corporations. However, for startups still in the growth phase, the board of directors is often an afterthought. This can lead to a lack of communication and productivity during board meetings. In this blog post, we will discuss four best practices for avoiding common pitfalls and getting the most out of your startup board of directors.

First, it is crucial to ensure that the right people are in the room during board meetings. A board that lacks the right people or has members who are consistently missing from meetings will not be productive. Ideally, a startup board of directors should have between three to five members. Too many members will make it difficult to schedule meetings, while too few members will not be effective. The CEO of the startup should also chair the board, but smaller boards should not have multiple business insiders or family members. It is essential to bring in outsiders to the business to bring fresh perspectives and improve the board's productivity and effectiveness.

Second, it is essential to improve communication among board members. Startups can move quickly, and the board of directors can easily fall behind. To prevent this, startups should seek to improve relationships among board members, so that formal meetings are just one channel of communication. Board members should make an effort to get together over coffee, meet for meals, and network together at events. In addition, informal communication channels such as text and email can also be effective.

Third, it is vital to stick to a schedule. Members of the board are typically busy people, so scheduling meetings should be a smooth and straightforward process. Meetings should be scheduled as far in advance as possible, ideally up to one year in advance, so that the board can plan accordingly. Board members should receive the meeting agenda and materials a few days in advance so they are familiar with the content being discussed. This will make it easier to run an efficient meeting and ensure that there is time for each item on the agenda.

Finally, it is essential to have a clear plan for the meeting. Nearly all board of directors meetings should follow a similar structure. The meeting should begin with a general business update from the CEO about the state of the business since the previous meeting. This part should be heavy on facts, figures, and statistics that help board members understand how the business is progressing. Next, an in-depth strategic discussion about the CEO's briefing should be held by all members of the board. Any legal decisions or votes should be discussed and made at this time. The non-executive members of the board should be able to freely discuss issues without the presence of the CEO or other company executives. Finally, the meeting should conclude with a social event such as lunch or dinner.

In conclusion, having a productive board of directors is crucial for the success of any startup. By following the best practices discussed in this blog post, startups can avoid common pitfalls and ensure that their board of directors is working effectively. By having the right people in the room, improving communication, sticking to a schedule, and having a clear plan for the meeting, startups can make the most out of their board of directors and drive their business forward.