1: Proper Board Stance
Before we even talk about board-meeting choreography, we must first address what we consider to be proper board stance. Proper board stance defines the underlying relationship and perception the CEO and management team has with the board. There are commonly two differing (extreme) views amongst the startup community:
The board is perceived as a ‘boss/judge’ while the executive team are responsible for running the company and keeping the board members pleased. This often leads to meetings that are more about ‘explaining’ or ‘reporting’ to the board.
The board is there as a ‘support act,’ doing what the CEO and the founders want. This often leads to passive board meetings that lack proper debate and progressive discussion.
Proper board stance is better described as a partnership. This may seem idealistic and is not always practical in reality as it requires buy-in from both parties. Nonetheless the ideal board member provides transparent, professional views on the company— wins, challenges, opportunities, and resources— working with the management team to maximize company value.
We underline the word ‘professional’ because in our experience, it isn’t wise to engage in a manner that is too ‘friendly’ or ‘personal.’ Ultimately, board members (especially those at institutional funds) have a fiduciary responsibility to their fund, not founders. Because of the inevitable Chinese Wall issue — we don’t recommend the management team sharing their darkest, deepest secrets and personal challenges— nothing that can be used as unnecessary ammunition.
2: Preparing for the Meeting
Board meetings shouldn't be about data readouts, but strategic discussions. You don’t want the tone of the meeting to be just about ‘reporting.’ A well-prepared board deck sent out in advance allows board members to review data and come prepared for strategic conversations about company-building. Here is what a deck should include— the order changes depending on what your area of focus is, and, the level of urgency/impact certain matters require:
Mission/Vision: Begin with a compelling reminder of your purpose and objectives. For instance, if your startup is building AI for autonomous vehicles, remind everyone that your ultimate goal is to revolutionize transportation and make roads safer.
Market Insights: Share your latest take on the industry and market landscape, highlighting new trends, opportunities, and even potential challenges. For example, if a new regulation is likely to boost your business, detail how it will impact your startup.
Key Metrics: Present a snapshot of key metrics, reflecting how your company is performing against its plan. A SaaS company might include MRR growth, churn rate, customer acquisition cost, lifetime value of a customer, and sales cycle length.
Highlights & Lowlights: Showcase your company's successes and challenges. Maybe you've exceeded your sales targets or received outstanding customer testimonials. On the other hand, flag top issues with a plan on how you're addressing them. Be transparent about the challenges you're facing and how you're tackling them— all while being open to feedback and input from board members.
Financials: This should include your P&L statement, balance sheet, and cash flow statement, giving a detailed picture of your company’s financial health. The financials are more for reference during the meeting, not for lengthy discussions.
Actions & Accountability: You should clearly define where you need help and which board member can provide that help. Everyone is accountable to maximizing the value of the company.
3: The Pre-Meeting Calls with Key Board Members
Often, you will want to have a short, pre-board meeting phone call with board members as a calibration exercise before the board meeting. The benefit of doing this is ten-fold:
Relationship Building: These calls can help foster stronger relationships with board members, improving communication and trust. Leading the board is just as much about how you communicate and interact with them between formal board meetings as it is about the meeting itself.
Preparation: These calls can provide an opportunity for the CEO to understand any concerns or questions board members might have, allowing them to better prepare for the board meeting.
Prioritization: This allows the CEO to ensure the most pressing issues are on the agenda and will be discussed. It also allows the board members to prepare and think about these issues in advance, which can lead to more productive discussions.
Efficiency: By understanding the board members' perspectives beforehand, the actual board meeting can be run more efficiently and effectively, reducing the risk of being derailed by unexpected issues or concerns.
In essence, these pre-meeting calls can ensure everyone comes to the meeting well-prepared and aligned, leading to more productive and efficient board meetings.
4. Continuously Sell Your Startup Story
Maintain an engaging narrative to keep board members engaged and motivated to support your startup— not just during the board meeting but asynchronously too. For example, in addition to regular reporting and board meetings, we recommend providing monthly updates to key investors summarizing some learnings, wins, key challenges (and subsequent initiatives), and how you would like them to help.
In an ideal world, an engaged board member who is more of a partner will be proactive in helping you craft and communicate your startup story. However, most board members sit on multiple boards, serving multiple companies— they will inevitably favor companies that are top of mind (recency bias) and who have low hanging fruit (easy wins). This is not a flaw— it’s just human nature.
We recommend working with human nature to your advantage because investors are more likely to tell their peers about promising startups. Their collective network is a powerful resource, and news shared within this network can boost your startup's image. Here are some ways you can share your startup story:
Reiterate the company's mission, vision, and market opportunity: Remind them of the big picture and the potential for a high ROI. Anytime the market trends continue to shift more in your favor— show the data to continually validate their investment decision.
Share proof of product-market fit: show customer testimonials or case studies alongside strong financial indicators (increased revenue, high referral rates, low churn rates) to demonstrate success.
Be transparent about big challenges but be sure to frame how you will turn them into wins or 10X opportunities even: what key learnings have you captured? What opportunities does this present? How have you de-risked more of the business with clearer strategy and execution?
Showcase big deals, partnerships, or pipeline growth: Highlight any significant contracts, agreements, or sales pipelines that will result in substantial future revenue.
Highlight consistent growth or exceeded targets: If your company has shown steady month-on-month growth or exceeded quarterly targets, emphasize these achievements.
4: The Deep Dive Session
Utilize the meeting for engaging in a deep dive on key priorities and problem areas. A strategic discussion around these will allow board members to provide valuable insights. For example, if customer churn is a problem, present your analysis on why customers are leaving and propose solutions to address this issue.
These deep dive sessions can also be closed discussions where only board members can attend, not observers. You can use these closed sessions to discuss things that require board approval or are more sensitive matters such as:
Compensation and bonus parameters.
Issuing additional equity to key personnel.
Approval to hire an executive.
Proprietary information.
5: Drive Action & Accountability
Engage board members with simple, impactful tasks that allow them to contribute to your startup's growth. This could include:
Share PR posts: If your company has just launched a new product or feature, ask board members to share this news on their LinkedIn or Twitter profiles. Better yet— ask them to engage by commenting and tagging other people and helpful resources that help keep the conversation alive.
Make Key Introductions: Board members often have extensive networks. Ask for introductions to potential partners, clients, or even employees. For example, if your company is looking to bring on an independent board member with expertise in AI, a current board member might know the perfect candidate.
Refer Key Hires: If your startup is looking to fill a crucial position, board members could recommend someone from their network, saving you time and expensive recruitment costs.