When entrepreneurs come up with a good idea, they are often eager to start their business and put all of their efforts into developing it. They focus on things like how to finance the venture, how to market it, and what kind of employees are needed for the operation to be successful.
Of course, these factors are essential to the success of a startup. However, in order for a company to survive in the long run, having a comprehensive set of practices, principles, and processes is of vital importance.
Inspired by Inc42’s commentary, we would like to share our own perspective on embedding corporate governance into startups and the best way to go about it.
What Is Corporate Governance?
Corporate governance is often thought of as a set of practices and leadership strategies or processes that outline the conduct of an organization. As Inc42 stated, it might include establishing a “code of conduct, ethics, risk management, compliance,” etc.
In other words, establishing corporate governance means adhering to some underlying rules and standard guidelines associated with the ins and outs of doing business. This might seem like common sense, but many entrepreneurs and founders find it challenging to focus on growth and corporate governance simultaneously. Skipping over those vital governance components can cause a lot of problems in the future.
Why Corporate Governance Matters and How to Implement It
Corporate governance is all about doing things correctly the first time around. Every strategy that is implemented by a company should be done so with due diligence and consideration for all involved parties. This helps establish a culture that every employee and stakeholder can be a part of and feel secure in, creating a solid foundation on which your startup can grow.
With that said, embedding corporate governance into an early startup venture takes a lot of dedicated effort. You need to have a good team on your side, be consistent and unrelenting with your policy implementation, and spend enough time creating policies that showcase the company’s ethics, morals, and worldviews.
Misgovernance in startups is a common problem all around the globe. Applying sustainable and effective policies and processes should be a priority from the start, and using tools and software can help founders maintain corporate governance in their business practices.
Meeting intelligence tools like Docket can help you stay on top of board meetings and keep track of essential information that might otherwise be lost. Docket allows you to record notes from each and every meeting and ensures that all board members are up-to-date with the latest developments.
Most importantly, using a tool like Docket can give you insight into your company’s day-to-day practices and helps you understand and track how your company functions as a whole.