Comments on: Carnival of Small Business Issues - Edition 2

By: CA

CA — Sat, 19 May 2007 04:11:44 +0000

Thanks for your support Jack. You rightly point out that the board of directors must be involved in making the small business owner accountable. “Do we fire the president? If not, how can we support him?” is an awesome litmus test. There is no argument about. But having a board is not mandatory. Most small businesses may not have a board - at least until they seek out VC funding or any external equity financing.

Taking this conversation a bit further - most small businesses seek out external financing either as debt or equity. If a VC is involved, a board is inevitable. But debt financing - specially from banks - do not require a board.

Can the number of small business failures be reduced if we make having a board of directors mandatory?

By: Jack Yoest

Jack Yoest — Fri, 18 May 2007 20:29:09 +0000

Dear Atlantic, you wisely ask, *what if the captain is not up to the mark? Is this captain answerable to anyone? - especially in small businesses?*

This is one of the great challenges of businesses large and small — accountability. A small business must have a board of advisors — mentors that the owner would be wise to listen to.

Larger companies with a board of directors should begin every meeting with a variant of your question, “Do we fire the president? And if not, how can we support him?”

Good carnival.

Jack
Your Business Blogger

By: Be Excellentâ„¢

Be Excellentâ„¢ — Tue, 30 Nov 1999 00:00:00 +0000

Six Disciplines is featured in the Operations section of the Carnival of Small Business Issues, Edition 2, hosted by Atlantic Canada’s Small Business Blog. Check out all the great small business posts, including other operational, marketing and financial issues.

By: Good Words

Good Words — Tue, 30 Nov 1999 00:00:00 +0000

We put good words in your mouth. A Mention for MoKa House MoKa House was mentioned in the blog carnival