This document discusses finding and working with non-executive directors for small businesses. It provides tips on identifying needed skills and experience in non-executives, how to find potential candidates through personal networks or advertisements, conducting interviews and applications, determining compensation and time commitments, onboarding new non-executives, and announcing new board members. The overall guidance is on effectively recruiting and integrating independent advisors to provide skills, contacts, oversight and strategic counsel to small businesses.

1. Finding and working with non-executives – a small
business perspective

2. What is a non-executive?
• Christmas Bauble or Bidet?
• Independent
• Critical Friend
• Wise Counsel

3. Who do you need?
• Skills
• Contacts
• Money

4. How do you find them?
• Someone you know already
• Personal recommendation
• Head-hunters
• Advertise
• The Financial Times Non-Executive Directors’ Club

5. Applications and interviews
• Treat this application process exactly as you would any other application
process
• Draw up a list of ‘must have’ and ‘nice to have’ skills and experience and mark
each candidate against them.
• Once you’ve drawn up your shortlist, send candidates information about the
company, the role and what skills you are looking for.
• Beware of people who haven’t followed your application criteria
• Do they want to work for YOUR business
• Presentations

6. Practicalities
• How much should you pay them
• Cash versus equity
• How much time should they spend in the business?
• Engagement Letters

7. Induction
• Help your non-executive(s) get to know the business
– Give them copies of previous board minutes
– Share with them your business plan and forward strategy
– Introduce them to your accountants and any other key professional advisers
– Brief them on key customers and arrange for them to meet if appropriate
– Give them a tour of any operational sites
– Briefings with key senior staff
– Talk to them about what external training or support they might need
• The more they know, the more help they can be, but ….
Noses in, Fingers out!

8. Let the world know
• Announce it to your staff
• Do a letter to key suppliers and customers
• Draw up a press release and send it to local and trade press

9. Lesley Stephenson, Editor,
lesley.stephenson@non-execs.com