Why Board Meetings are Essential for Sole Traders

Why Board Meetings are Essential for Sole TradersBoard meetings are most commonly associated with large organisations. Yet all businesses, regardless of their size should be carrying out board meetings. In fact, if you are a sole trader or run your business from home it is essential.

Why Sole Traders must hold board meetings

To create a really successful business, all business functions need to be running effectively. I am talking sales, marketing, finance, IT/technology, admin and so on. If one is under performing, it can screw up the rest of your business results.

It is essential as a sole trader to hold board meetings on a regular basis so that you are fully in control of how each business function is impacting your business results. It is important to your success that every business function is operating effectively. You can’t just pick the areas you enjoy or already have a strong skill set in – you have got to do them all.

Purpose of Board Meetings for Sole Traders

It is important to be clear on what the purpose of having board meetings is. It should provide you with sufficient information about each area of the business to allow you to make effective decisions on future action plans that will deliver your goals. It is also to allow you to spot any potential problems and take action to avoid them becoming a reality. A board meeting should include two key elements:

1. Performance review and action planning.

2. Review business strategy and direction

Each board meeting should include:

  • review the performance of key, specific business function – target v actual for previous period
  • set targets for each business function for the next set period of time
  • review the direction and strategy of each business function to ensure your business is operating effectively, coherently and will deliver the business results you want.

The point is this:

As a sole trader you have got to wear all of the hats a board of directors in a larger company would wear. You can’t be an expert in every function so get help. Hire a coach, consultant or mentor that specialises in the board functions you don’t have experience in and learn what you should be doing. Research what you should be measuring for each board role and implement. The internet can provide a lot of useful information on this.

Underestimating the importance of creating a Board of Directors as a sole trader can hold back business success. If you don’t do this I highly recommend you start.

What are your opinions and experiences on this subject?

Related posts:

1. Is your Business on Track?

2.Hiring an Expert? Buyer Beware!

3. How would a crisis impact your business success?


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  • http://designresumes.com/ juliewalraven

    Hey Ali, I wondered about board meetings when you wrote about them in another post recently. Interesting idea and you are so right. I find that this year as I look at my business with different eyes, I am now seeing it with multiple needs for marketing, accounting, and other business roles that got buried in the past. Thanks for clarifying!

  • http://alidavies.com/ Ali Davies

    I always think of it like this – if you don't know (with hard evidence – i.e. measurement) how each area of your business areas are performing how can you make choices about what tasks you should be doing, how you should be spending your time and what needs your focus? Running a business without regular board meetings is like driving a car blind folded!

  • http://twitter.com/coblyn Christine Livingston

    I remembered either this or another post of yours about this just the other day, Ali, and indeed used its thinking as I did my mid year review. I can't tell you how useful it was to think, first, about my goals, and then who the board members were that would deliver them. I figured on having a CEO, a few “delivery” directors, an directors for marketing, finance, HR, and IT. I thought about what their individual targets were and what they'd need budget- and support-wise to perform. I'd kind of used the thinking before, but never so thoroughly. I can't tell you how useful it was :)

  • http://twitter.com/coblyn Christine Livingston

    I remembered either this or another post of yours about this just the other day, Ali, and indeed used its thinking as I did my mid year review. I can't tell you how useful it was to think, first, about my goals, and then who the board members were that would deliver them. I figured on having a CEO, a few “delivery” directors, an directors for marketing, finance, HR, and IT. I thought about what their individual targets were and what they'd need budget- and support-wise to perform. I'd kind of used the thinking before, but never so thoroughly. I can't tell you how useful it was :)

  • http://alidavies.com/ Ali Davies

    So glad you found it useful Christine. It is such a simple thing yet it yields huge benefits on so many levels.

  • http://alidavies.com/ Ali Davies

    So glad you found it useful Christine. It is such a simple thing yet it yields huge benefits on so many levels.

  • http://alidavies.com/ Ali Davies

    So glad you found it useful Christine. It is such a simple thing yet it yields huge benefits on so many levels.

  • http://alidavies.com/ Ali Davies

    So glad you found it useful Christine. It is such a simple thing yet it yields huge benefits on so many levels.