A board lets you surround yourself with people you know and trust. In almost every case, the board is the governor of growth. Especially in entrepreneurial firms, where decisions are made quickly and plans are changed or scrapped daily, a steady and involved board of directors can be a source of strength for entrepreneurs. Unlike with large, established firms, directors of entrepreneurial firms often can relate to the owners' start-up struggles. In an early-stage firm, a variance is an indication of the wrong plan.
Good directors know the difference.
Reisler and others say entrepreneurs are making a mistake if they choose to forgo an official board made up of outside directors. Some entrepreneurs say they understand the concern, but still don't see a need for one. I've steered my own ship. For many entrepreneurs, there's also a fear that a board will usurp their power. Experts say a good director, though, doesn't try to overthrow management but rather sees the opportunity to serve on the board of an entrepreneurial firm as a chance to empower top management and build a business.