How to Recruit a Board of Directors

Posted by Blog Post on April 8th, 2021

One of the turning points in the life of the first-time software company is the creation of its board of directors. Usually, this happens when a company extends its first financial cycle. But I see no reason to wait for that event.

When thinking about building your board, start with a clear awareness of your need. Don't create a board if you don't need it. You may also need it, but you are not aware of it. So, let’s start by discussing how to recruit a board of directors.

1. Defining your needs: Hiring a board starts with realizing that you have to hire a board the way you would hire staff. Start by explaining your needs. Another way is to evaluate your skills sets as founder / CEO. Then think about the skills you lack and where the mentor can help in the role of a board member. Then think about your plans to grow the company and the role of the board member in opening the doors to strategic partnerships, be it financial or business development.
2. Put together a Role Description: Consider hiring a board member just as you would hire a senior executive. Putting down a role description on paper will help you know exactly what you want, and will simplify the hiring process.
3. Set clear expectations: When an employee is hired, it is a full-time job. However, when appointing a board member, setting the time frame and commitment to the expected role is important. There are a lot of people out there who go on board, but they don't have time for it or don't prioritize the role.
4. Hire a recruiter: Get recruiting help. You probably can’t hire a recruiter. But if you can, hire a recruiter. Again, this is a critical role. Recruiters can help you dramatically increase the scope of your search to find the right person for you. Instead of a recruiter, see if you can find someone with volunteer experience to help you. Whether it is your attorney or accountant. You need another eye collection to assist you in this process.
5. Be highly selective: Nothing hurts as much as having a bad board member (like hiring the wrong employee.) A split board member is a waste of your time and energy. A good board member can bring you great value.
6. Put your board to work: Board members should add value. But they will only do so if you ask them. Always look for the next project for each board member. If you run out of things to do, it's time to let them go.
7. Know when to let go: Board members must bring value to you and your company. If they don’t, fire them and replace those who do. You usually do not have that option with the members of the investor board. But when it comes to members of the board of directors; or independent board members you have the option to fire them.
8. Do not create anything on the board that does not add value to your business. Many founders / CEOs complain about board meetings because they think meetings are time-consuming and unprofitable. Yes, that's a bad board sign. Prepare the board first. Once you possess a good board, make sure anything you build for the board (presentations, dashboard, etc.) are things you already use for your business.
9. Expose your board to business guts. Board members can only help if they understand your market, your business, and your performance. When you feel the urge to hide things from them, you have a bad board. If you don't think they can understand your business, you have a bad board. Dismiss them and hire the right board. Then open up your business to them. Ask your top managers to go onboard for each job. Identify issues that you are struggling with. Then ask them to help you solve it. If they can't, fire them, and find members who can.

These are some ways you can recruit a board of directors. You can also hire a company that provides advisory board services to help you with the hiring.