Far from being an expensive luxury, a non-executive director should deliver significant value to a small or medium sized company, especially when investment and growth are at the heart of the long term strategy.
Non-Exec Director Services
What are the key benefits of a non-executive director?
Objective Oversight
It isn’t always possible for the Board members of an SME to agree on everything. A strong NED can provide objective oversight and function as the casting vote for major decisions when agreement can’t be reached between the directors or shareholders. This can be particularly important when the Board are voting on an emotive issue or where the relationship between the Board members has broken down.
Corporate Governance
The Boards of SME’s are normally comprised of the entrepreneur(s) who are passionate about the business. Board meetings can often be informal and this can make it difficult when tough decisions need to be made. Appointing an NED will add professionalism and structure to the corporate governance of the business.
Brand Ambassador
An NED with an impressive CV and extensive network of relevant contacts will be able to act as an ambassador for the business within their sector or community. A strong NED will be able to impact positively on the ability of the business to attract clients, staff and investors.
Long Term Strategic View
The directors or owners of an SME can often be too embroiled in the day-to-day operations, whereas it’s much easier for an NED to take a step back and look at the long-term strategy. Where an SME is embarking on a growth journey, engaging an NED who has the experience of already taking an SME business through an expansion phase could be vital to success. The NED will be able to advise on the potential pitfalls ahead.
Critical Friend & Coach
When selecting an NED for an SME, the right personality and culture fit are essential. A strong NED will constructively challenge decisions being taken by the Board or founder through coaching and advising them.
Bridging Skills Gaps
A good NED will act as a trusted advisor to the Board and can often fill gaps in the company’s in-house capabilities. For example, we have appointed NEDs with legal, financial, business development, or marketing expertise to SME’s that do not have the necessary expertise in-house. They have chosen to invest in higher level NED support rather than more junior employees for these skillsets.
Leading Fundraising
A NED who has successfully secured investment for previous businesses will be well networked with investors and be able to advise on the process of fundraising. We have appointed many NEDs with fund raising experience to help steer businesses through the complex process of securing investment for growth.
When thinking about a NED position, I ask myself four questions:
Am I passionate about the business? Do I understand the business? Do I like and trust the people and culture of the firm?
And most importantly, can I add value?
Quarterly Board Meetings
£4,000 per annum
Non-Executive Director Packages
Bi-Monthly Board Meetings
£6,000 per annum
Monthly Board Meetings
£12,000 per annum
All non-exec director packages include the following:
Preparatory reading and critiquing of board packs, conducting pre-board discussions, attending scheduled board meetings, advising and regular communication with other board members, on-call availability for emergency board meetings or other ad hoc committee meetings, attend external team-building events and informal coffee catch-ups.
Contact Us
If you would like to learn more about our Non Executive Director services, please book a free exploratory call or leave your details below.