Top Executive Video: Kyle – CEO – USA

October 12, 2019 0 By Stanley Isaacs

Choosing the right Board of Directors in
a start-up is much more important than most people realize. Often it’s filled
with friends and employees or it’s not even there and I think we’re really
missing an opportunity that you need. It’s less about governance and it’s more
about helping the company succeed. So you know first avoid the friends and
employees they’re not going to bring any value to the company than they already
do in their current position and they don’t really properly bring proper
governance that you do need an illegal piece. What you want is to find
experienced executives, managers, industry experts, even academics who can guide you
through the pitfalls of raising capital, growing a company even just doing that
first sale. Also if you want someone who can open the door, someone who has access
to either you’re your competition clients or
customers or just really is an expertise in the space and can guide you and then
the last thing is these board of directors are giving you value so make
sure you compensate them. The general rule of thumb is a half percent stock
option or warrant every year for service two percent total four years. It’s a
pretty simple thing but the right Board of Directors can make a difference in
your succeeding and failing. Just pick the right people.