Governance and boards for founder led lower-middle market companies
This page is for founder led lower-middle market companies with 5 to 50 million in annual revenue. The goal is a board that improves decisions, opens doors, and protects value without adding noise.
Questions and short answers
Do we need an advisory board or a fiduciary board
Use an advisory board when you need targeted expertise, customer access, and flexible support without legal oversight. Move to a fiduciary board when you add outside capital, face higher risk, or want stronger discipline on strategy, capital, and succession. You can phase in fiduciary directors while keeping advisors.
Choose advisory or fiduciary board
How often should the board meet and what should be on the agenda
Quarterly meetings work for most firms with a short monthly check in for fast updates. Keep a clear agenda. Strategy progress, key metrics, major risks, capital plan, people and succession, and decisions that need a vote. Send a concise preread with one page summaries and a dashboard so meeting time is spent on decisions.
Set board cadence and agenda
What board metrics matter most for a 5 to 50 million company
Track a small set that shows health and momentum. Revenue growth, gross margin, EBITDA, cash and cash conversion, pipeline and win rate, net revenue retention, on time delivery or service level, safety or quality if relevant, working capital turns, and covenant headroom. Show actual, plan, and trend.
Pick the right board metrics
How do I recruit independent advisors who add real value
Start with a skills map that names gaps in go to market, operations, finance, or sector insight. Write a clear mandate and expected time. Target operators who have built at your stage. Run references and conflict checks. Offer simple terms with a retainer or small equity and clear outcomes. Review fit each year.
Recruit independent advisors
Related links
/strategy-and-growth
/people-and-leadership
/capital-and-deals
Last updated: August 27, 2025
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