Agency board composition

To start with, the board can simply be the founders, even if that's just one person.

It's the act of putting on the different metaphorical hat of being a director for a few hours that helps to attain that sense of wider perspective — along with the prompts of a well structured approach to the board.

You can also involve members of your senior leadership team. But in this case, you’ll need to make extra effort to ensure that the board discussions focus at a high-level, rather than being just another management meeting.

Bringing in external members

As soon as you're able, you should expand the board, ideally with independent/non-exec directors from outside.

Fred Wilson, the highly-respected tech investor, says...

[As early as possible] the board should contain one founder (or possibly two) and at least two independent directors. I am a huge fan of independent directors to complement the founders and investors on a board. The quality of the board is highest when there are more independents on it than investors and founders. Try to get that ratio right on your board as soon as practicable.

He says the benefits of a board with external members include "advice, counsel, relationships, experience and accountability."

Entrepreneur-turned-investor Mark Suster agrees, but advises a different balance: "I highly recommend keeping a founder dominated board [at the early stage]." Though that is because the boards in VC-backed companies have real power beyond just being advisory. In a founder-owned agency, the board has a more advisory, supportive role.

So this balance is something for you to decide on, based on your circumstances and what feels like it will provide you with the best support.

In terms of how to select directors, Mark Suster says: