As I ponder a couple of non-exec director roles that came my way, I did a bit of research into the role of a director in a startup.
In early-stage startups, a well-structured board of directors is crucial for guiding the company toward success.
According to Greg Adkin, the board’s role can be encapsulated in the acronym SPIFS, representing five key areas:
1. Strategy: The board assists in defining and validating the company’s business approach, ensuring a clear path to market fit and competitive differentiation.
2. People: Board members provide guidance in assembling a competent management team, addressing personnel issues, and reflecting on the emerging company culture.
3. Image: The board plays a role in enhancing the company’s market perception and branding, leveraging their networks and experience to build credibility and visibility.
4. Finance: Establishing sound financial practices and oversight is a key responsibility of the board, including handling corporate matters like issuing stock, setting up stock option plans, and authorizing fundraising or loans.
5. Systems for Compliance: The board ensures adherence to legal and regulatory standards, implementing systems that safeguard the company against potential legal pitfalls.
