Good boards provide insights that management do not know. If the board is well composed, it provides:
1) Strategic insights and guidance on how to solve start up challenges like access to capital -equity and or loan
2) Avoiding problems that kill most start ups like poor recruitment, lack of compliance, and a bad business model. A good board asks questions to help the start up owners reflect and fine tune their business case.
3) Strategic positioning. If a start up is lucky to have a seasoned person of high repute on their board, it gives them good visibility. Imagine having Barack Obama on your board just for visibility and market vibes! If your start up is about empowering young women into politics and leadership positions and advocacy for youth rights, you have the best board member!
Taken together, the value of the board to your start up depends on the quality of the members you bring on board!
