Building a board is uncharted territory for most early-stage founders. To dig into what works (and what doesn’t), we turned to Eric Stone, operator, advisor, board member, and 53 Stations Wayfinder, to share lessons from his own experience as a founder turned director.

There’s no way around it: building a company from the ground up is hard. It is hard at almost every step of the way. With so many urgent priorities like product-market fit, fundraising, and hiring, it is no surprise that many first-time founders contemplate a board of directors later into the early innings of company building. The conversation usually comes up around the first round of institutional funding, and often at the request and expectation of a lead investor or group of investors.

For some founders, their only exposure to a board might be through observing tumultuous scenes in Succession, horror stories shared on podcasts, or listening to a public company CEO give an earnings report. But a board is not fiction, and it is not only reserved for large companies. Governance plays a pivotal role in the founder journey, often from very early on until you realize your dream, however you define it.

A board’s role can be instrumental, supportive, and multifaceted, all alongside the primary goal of creating enterprise value for stakeholders and mitigating corporate risk. At the same time, if not approached thoughtfully, the board can add friction at times when you can least afford it.

As someone who has sat on both sides of the table, I want to share a few observations in the hope they resonate with first-time founders who are focused not only on company building, but also on good governance and the essential fiduciary responsibility that comes along with it.

How to Build Your First Board

Most founders wait until an investor insists on a board. I believe this is a mistake. By establishing a governance structure earlier, you set the tone, rather than having it dictated to you. 

Start small: a three-seat structure works well. Two Founder seats and one Common seat appointed by the CEO, or, if you’re a sole Founder, one Founder seat and two Common seats appointed by the CEO. Maintain founder seats as long as possible, and resist expanding to five Directors until there is a real need (usually tied to new institutional investors requiring seats for their investment). Few companies through Series C or even later benefit from more than five Directors. Always make sure you have an odd number of directors to avoid tie-breaking headaches.

Be careful about who gets a fiduciary seat. Big names might look impressive on a slide, but startup governance is nuanced. The best outside/Independent directors are usually seasoned operators or former entrepreneurs who understand how to balance and navigate between the clouds and the ground. If you can add a VC investor to your Board who has previous operating or even startup experience, then you are winning! Save the halo names for Advisor roles, where they can lend credibility without slowing governance or company-building down.

A few speed bumps seem to show up again and again:

• Expanding the board too quickly and diluting its effectiveness
• Adding and/or keeping directors who are disengaged or misaligned
• Letting the board drift into management rather than governance

And remember: board chemistry is real. A single director can add a ton of value, but the wrong mix of personalities can drag meetings into unproductive rabbit holes and lead you to focusing on the wrong priorities (like Board management). Take as much care in choosing directors, and the mix of directors, as you would in making senior hires.

How to Operate a Board

Even if your company is young, set good habits early. A healthy rhythm is four to five meetings per year, spaced about ten to twelve weeks apart, with a mix of in-person and virtual. For in-person sessions, invite senior leaders to present and host a dinner to strengthen Board-Management relationships.

Pre-reads should go out at least one week in advance. Keep the main deck short, 20 to 25 slides, with an appendix for extra detail (75-slide decks reflect that you do not know what really matters in company building!) And always include a section on risks and mitigations, as this avoids unwanted surprises and encourages directors to help, not just critique. Trust is earned through transparency. A founder who hides problems will lose trust quickly, while one who shares openly builds credibility and resilience.

Do not feel pressure to have all the answers. Identify three to five topics for the agenda where you want input or debate. A great board does not expect you to command the room on every topic. They want to be a sounding board as well as a decision-making body.

Ultimately, the best boards are built between meetings. Stay in touch regularly with directors one-on-one — even quick check-ins make a big difference.

What Good Looks Like

At their best, boards are about balance. Here are the attributes I’ve seen across great boards:

• They meet regularly, communicate substantively, and bring complementary perspectives
• They engage critically on major decisions without micromanaging, respecting the line between governance and management.
• They create space for healthy tension while working toward harmony, not “us versus them.”
• They are brought along for the most exciting and most challenging parts of the business.
• They see themselves as partners and mentors to the CEO, while balancing their fiduciary responsibility first and foremost to shareholders.

Boards are not just an investor formality. They can accelerate growth, bring perspective, and help you avoid blind spots. They can also create unnecessary work, frustration, and even dysfunction if they are not built and managed intentionally. So take the time to establish your board early. It will be one of the most important arrows in your quiver for building a durable company and massive enterprise value.