Board 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?
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