As a startup advisor, I’ve seen it all - founders rushing to build a board, convinced it’s the golden ticket to legitimacy and growth, or waiting too long, letting simple challenges snowball into costly problems for their business.
The truth is, the art of building a board lies in the timing. Too soon and it becomes a burden, too late and you might miss crucial opportunities for guidance when it matters most.
Founders often believe that building a board is the logical next step, but is it? If you’re staring at a blank org chart, ask yourself: Does my startup actually need a board right now? Would informal advisors better suit this stage of growth?
Sometimes, a lone founder with a steep growth journey needs advisory input early. Other times, you might not need to consider a formal board until you’re hitting £10m+ in revenue and also factor in VC/PE at that stage wanting a seat as part of the raise. The solution isn’t one-size-fits-all. Speak to experts like my team at JD&Co to help design the right mix of skills at the right time and craft a governance approach tailored to your unique business.
For now, here are the five things you need to know before handing out board seats:
1. TOO BIG, TOO SOON 🚩
When I see a fully-formed board at the seed stage, it’s often a warning sign. Excessive governance too early can really stifle the agility startups need to make quick, decisive moves. A big board at this point can sometimes feel like strapping an anchor to a speedboat.
Consider starting lean and scaling your governance as your business grows. It’s not just about filling up chairs around a boardroom table.
2. ANGELS WITH STRINGS ATTACHED 💸
Learn from other first-time founders who have found themselves with a board too big for purpose, forced into a corner by angels who demand board seats as a condition of a relatively small investment.
These early backers often don’t have the experience or perspective you’ll need down the line, and giving them a permanent seat could block you from building the board you actually need later. Or they could be a 'big name' which makes you starry eyed initially but do they have the time to actually get involved and give you the support you really need.
3. ADVISORS VS. ANCHORS ⚓
Do you really need a board, or just advisors?
There’s a big difference between a formal board of directors and a group of trusted advisors. As a board director myself, I understand that fiduciary and legal obligations are super important, but it’s important to recognise that advisors can offer guidance without that same level of commitment and red tape.
Think of advisors as hitchhikers on your journey - helpful, knowledgeable, and easy to swap out if the fit isn’t right. Choose wisely; you don’t want a non-refundable, one-way ticket to a board with no exit strategy.
If you’re curious, check out my latest article on advisory roles for more insights.
4. SAY NO TO ONE-SIZE FITS ALL 🚫
When I speak with founders, a common theme is wanting to minimise mistakes. Fear of getting it wrong can be crippling, and building a huge board can feel like a safety net. But not every startup needs the traditional Chair-Vice Chair-Treasurer setup (complete with a Lord or Sir for good measure).
Too often, founders feel pressured to adopt ‘reassuring’ governance models instead of thinking about the kind of expertise an early-stage startup needs.
Will your board be truly aligned to your mission or are you following a one-size-fits-all approach? Don’t fall into the trap of using a governance structure from the last century.
5. BOARDS THAT GROW WITH YOU 🌱
Startups aren’t static, and your governance shouldn’t be either.
Your business will constantly pivot and evolve, and your board should scale with it. Early on you might need a sounding board (see what I did there) of quick, no-nonsense guidance rather than a formal, structured board.
As you grow, reevaluate and expand your advisory and board needs, by bringing in the right skills and expertise for each phase of your journey. Remember, flexibility is your superpower. What works now may not be what you need in five years.
It’s also worth approaching articles and research about the importance of building boards with a critical eye. A lot of these are written by big corporate advisors who want to scare you. As they say, ‘to a hammer every problem looks like a nail…’
A board can be a valuable asset, but only when built at the right time, for the right reasons, with the right people. Are you setting up your startup for success, or following a playbook that doesn’t fit?
I’d love to hear your thoughts: What’s been your experience with building or being part of boards? Have you seen any mistakes founders make that others could avoid?