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List of governance issues for startups

All startups will encounter governance issues.  These can be addressed with a governance plan. While some founders of startups think they can manage without planning they will quickly find that the many “moving parts” of a startup begin to gain momentum and management without plans will be complex. There are a number of problems that can be avoided if you adhere to a governance plan.

List of governance issues that may occur.

Employee management

Many startups suffer by not being able to attract great employees, as an early stage company it is harder to project future success market leadership and the value of stock options. Often as the startup is launching, business models are inappropriate, and the situation is chaotic as everyone learns. By having strong governance practices in place you will be able to better focus management and problem resolutions. This will help attract high level applicants so you can further improve and be staffed with only the best.

Protection of investment

Most startups need to raise funds.  They need well thought out proposals and projections to show them. A good governance plan creates a basis upon which plans, business models and projections can be soundly based.

Ethical practices

Many customers avoid companies with unethical practices. Be sure your governance plan documents the desired ethics of the business and that all the employees observe them so that your customers will be comfortable.

Legal Compliance

Your startup should be aligned with legal and regulatory requirements. Your governance should have regular checks by appropriate lawyers and accountants to ensure you are following the legal outlines set forth by governmental agencies.

Future growth

If your startup is poised for growth you need to be prepared for governance issues.  Make sure that your governance plan is in place, otherwise the normal roadblocks and stumbling ground can be difficult to navigate. New employees, bigger finances and quick growth can spell disaster for the under-prepared.


Any new company trying to attract employees, investors, customers, or simply wanting to get their business on the right side of regulations and policies should implement a solid governance plan. By setting a plan and following through your startup will simplify its resolution of governance issues.


Why Small Businesses Should Implement Corporate Governance Policies





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