Many founders assume a board of directors is only necessary once a business reaches a certain size or takes on outside investment, when in reality a small, well-chosen advisory or governance board can materially improve decision-making at a far earlier stage. A board is not primarily a compliance requirement, it is a source of experienced perspective a founder cannot generate alone.
Discovery founder and group CEO Adrian Gore has credited his own board with meaningfully shaping the company’s growth, describing a group of experienced people willing to challenge his thinking as one of the more valuable assets a growing business can have.
A board exists to challenge thinking, not rubber-stamp it
The value of a board comes specifically from its willingness to question a founder’s assumptions and offer a different perspective, not from formally approving decisions the founder had already settled on. A board that only ever agrees with management is not adding the value a properly functioning one should.
Board composition should be chosen deliberately, not casually
Founders should be selective about who sits on a board, prioritising people who bring genuinely relevant experience and are willing to disagree openly, over people who are simply well known or easy to get along with. A board assembled for convenience rather than capability tends to add far less value than one built with real intent.
Shared vision matters as much as individual expertise
Board members need a common understanding of the company’s future direction, not only individual expertise, since disagreement about fundamental direction at board level can slow decision-making considerably more than disagreement about specific tactical choices. This alignment is worth explicitly discussing and confirming before someone joins a board, not assumed.
A board should be established well before it feels necessary
Founders often wait until a crisis or a major decision forces the issue before establishing formal governance, when the more useful approach is building a board relationship well ahead of the moment its input becomes genuinely critical. A board assembled hurriedly under pressure is far less likely to function well than one built deliberately over time.
Frequently asked questions
Does a small business really need a board of directors before taking outside investment?
Not necessarily a formal statutory board, but even a small advisory group with relevant experience can materially improve decision-making well before formal governance becomes a requirement.
What is the actual value a board of directors provides beyond compliance?
Its willingness to challenge a founder’s assumptions and offer perspective the founder cannot generate alone, which is a different and generally more valuable function than simply approving decisions already made.
How should a founder choose who sits on their board?
Prioritising genuinely relevant experience and a willingness to disagree openly over convenience or familiarity, since a board assembled for ease rather than capability adds considerably less value.
Why does shared vision between board members and the founder matter?
Because disagreement about a company’s fundamental direction slows decision-making far more than disagreement about specific tactical choices, making early alignment on vision worth confirming explicitly.
When is the right time to establish a board?
Well before it feels urgently necessary. A board built deliberately over time functions considerably better than one assembled hurriedly under the pressure of a crisis or major decision.
Further reading
Originally published in April 2017. Updated September 2026 and rewritten in house voice, dropping the interview-format framing while keeping the original board-value argument intact.
