5 Governance Questions to Transform Your SMB’s Board Meetings

Effective governance can make or break a business, yet many small and medium-sized businesses (SMBs) struggle to focus their board meetings on what truly matters. Use this guide to implement high-impact governance practices that improve decision-making and drive growth.

Question #1 - Are Our Board Meetings Focused on Strategic Decisions, Not Operational Updates?

Many SMB boards spend too much time on operational details, which can lead to wasted time and missed opportunities to address critical business challenges.

How to Address It:

• Pre-Meeting Prep: Share a concise one-page update on operational matters before the meeting. Include metrics, major updates, and key takeaways.

  
  

• Strategic Agendas: Dedicate the majority of meeting time to high-impact topics such as market opportunities, risk management, or long-term growth strategies.

Tip: Use the “80/20 Rule” for your agenda: 80% strategy, 20% operations.

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Question #2 - Do We Have a Governance Calendar for Key Milestones and Decisions?

Without a governance calendar, SMBs risk missing compliance deadlines or delaying critical business decisions.

How to Address It:

• Create a 12-month calendar outlining important milestones such as:

  
  

  • Annual budget approval

    
    

  • Financial audits

    
    

  • Strategic planning sessions

    
    

  • Tax and regulatory filing deadlines

    
    

• Share the calendar with board members and review it quarterly to stay on track.

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Question #3 - Are We Actively Reviewing Our Key Contracts and Relationships?

Contracts with vendors, partners, and key employees are foundational to your business. Yet many SMBs neglect regular reviews, which can leave them exposed to unnecessary risks.

How to Address It:

• Identify your Top 10 Contracts by business impact (e.g., major suppliers, key customers, or long-term leases).

  
  

• Schedule reviews at least annually to check for:

  
  

  • Termination or renewal deadlines

    
    

  • Compliance with terms and conditions

    
    

  • Changes in market or business needs

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Question #4 - Is Our Capital Structure Aligned with Our Growth Goals?

Your capital structure influences your ability to raise funds, attract investors, and scale effectively. SMB boards often fail to revisit these fundamentals, especially as the business grows.

How to Address It:

• Conduct a cap table review every quarter or ahead of major transactions.

  
  

• Discuss options for raising capital, such as debt vs. equity financing.

  
  

• Align your structure with upcoming goals, whether it's expansion, acquisition, or preparing for sale.

  
  

Pro Tip: Seek expert guidance to identify red flags like dilution risks or restrictive debt covenants.

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Question #5 - Are We Tracking and Discussing Metrics That Matter Most?

Boards often review too many metrics or focus on irrelevant ones, leading to analysis paralysis. SMBs should focus on 3–5 KPIs that drive real decisions.

How to Address It:

• Choose KPIs tied directly to your strategic goals, such as:

  
  

  • Customer Acquisition Cost (CAC)

    
    

  • Employee Retention Rate

    
    

  • Free Cash Flow or Burn Rate

    
    

• Include these KPIs in every board packet, with a brief analysis of trends and implications.

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Next Steps: Build Governance That Drives Success

Answering these five questions isn’t just about improving board meetings; it’s about building governance practices that empower your SMB to thrive. Start implementing these steps today to enhance decision-making, reduce risks, and create a strong foundation for growth.

Need guidance on your governance practices? Schedule a consultation today!