Why Hire Outside Directors When Private Companies Don’t Have To?

Abstract

Change! Break the Status Quo. Rejuvenate. You need these guys … to increase cash flow, and provide valuable guidance, contacts, growth, and credibility. Companies committed to going through significant business change need guidance. Outside directors bring an independent perspective, develop strategic thinking and planning, utilize their experience and objectivity, provide their contacts rolodex, find capital to finance the company, and guide transaction activity. Many, if not all of these benefits are absent in most companies, so the outside influence should be used to your benefit. After all, you have nothing to lose, and everything to gain by considering their advice when you make decisions that will influence your company. Remember, the key is for the CEO and management team to listen to the advice given and factor these inputs into their thinking, then make decisions. Hire that outside director. They bring about change.