|#514 MWAVC| — Who’s on your board?
Hi,
Welcome to MWAVC, a newsletter about finance, investing, venture capital and all that jazz. My name is Ato (more about me here and here) and I try to write every single day. Most of it is stuff I find interesting that I’d like to share and hear your thoughts on. If you’d like to sign up, you can do so here. Or just read on.
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I was involved in a conversation around how to find mentors with a couple of folks last night. The only thing I have to add to the conversation was, “You’ve got to give before you get.” And what exactly are you giving? Value. Remember that any individual who you want as a mentor must first of all, like you as a person and be willing to spend their time and energy helping you. And second, you have to bring something to the table. Bring some sort of value to them that makes their lives, businesses, circumstances easier, and then maybe they’d be inclined to help you after all. Don’t just expect someone to mentor you because you asked nicely. The world doesn’t work like that. I can’t find my notes on finding mentors today but will put them up in another post. Read Never Eat Alone by Keith Ferrazzi to learn more about networking your way to greatness.
Also, had another conversation with a client about finding board members for his companies and I was reminded of these notes I took from The Art of the Start. Basically, when you raise money from investors (or even if you don’t, but are a maturing company), you’d need “adult” supervision to help push the company’s agenda. And that’s where the board comes in. There are good and bad board members, like everything else, but here are what I found to be some key people needed on the board. Enjoy.
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With money comes responsibility. One of the blessings and burdens of taking outside investments is that you will have to create a board of directors. This mini-chapter explains the art of board management.
The first issue is the composition of the board. Your major investors will require a board seat, so some choices are already made for you. In total, you need people with two kinds of expertise: company- building and deep market knowledge. Here are the typical roles that need to be filled:
“THE CUSTOMER," This person understands the needs of your customers. He doesn't have to be a customer, but should be thoroughly versed in what your market wants to buy.
"THE TIGHT-ASS." This is the bad guy who tells you that you're full of sushi when you're lying. This person also pushes for totally legal and ethical practices.
"JERRY MAGUIRE." This is "Mr. Connections." His most important asset is his Rolodex of industry contacts and his willingness to let your organization use it. (Ahem, choose me)
"THE GEEK." This person provides a reality check on your development efforts. For example, is your technology defying the laws of physics? Even if you don't have a tech company, the question remains the same: Is your task possible?
"DAD." Dad (or Mom) is the calming influence on the board. (S)He brings a wealth of experience and maturity to help mediate issues and reach closure on problems.
FYI - Please share this opportunity with your founder network! Harvard Business School’s New Venture Competition!
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📱📱Quote of the day
“Business opportunities are like buses, there's always another one coming.” – Richard Branson.
Remember: “Until the lion learns to write, every story will glorify the hunter.”
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