Governance can be implemented and changed at all stages of a business. But startup governance is different. It is always best to start early well before any contracts are signed. But it’s never too late to get your company on the right track.
There are some differences is governance between startups and established companies so it’s best to make sure you are looking at the right type of governance for the stage your company is at.
Startup governance is different
Startups need to focus on the specific sets of challenges unique to beginning a new business and unique to their context. A startup needs to set up and implement ethics, rules and regulations in view of the future roles of founders, board members, investors and employees. Governance for startups plans can be fluid and subject to change especially in the early stages of a new company but it is very important to develop these with your companies long range objectives in mind. Startups need to the map out every area of their business governance plan from development and positioning to compliance and risk management. Startups with international operations need to understand and comply with tax residence compliance issues. New businesses are generally trying to find a business model that work well for them at this stage.
Established Business Governance
Businesses that have been operating for some time may find that their governance plan may need a little tweaking and freshen up due to changes within the company structure. In this situation the basic bones of governance will probably not need to be changed and more focus can be placed on operational roles, financial planning and global growth. Established companies are more likely to be looking to strengthen and execute their business plan than overhaul the whole thing.
Having a good governance plan in place is essential to any established company. It’s never too late to get your company in ideal operational condition, meet with your partners and investors to see how developing or re-tooling your governance plan can strengthen your business plans.
Governance for startups or governance plans for established businesses – it’s time to start yours!