Ask James Phipson: Why does corporate governance matter for SMEs?
Why Every Growing UK Business Should Consider a Holding Company
James Phipson, Founder and Corporate Governance Advisor at Dragon Argent, argues that strong Corporate Governance isn't just for big corporations. In fact, it's a crucial ingredient for small businesses to thrive.
So, what exactly is Corporate Governance? It's essentially running your business well, and James breaks it down into three key principles:
Challenge Your Thinking: Great ideas often come from collaboration. A good board acts as a sounding board, where you can test your ideas and get constructive criticism in a safe and supportive environment.
Align Everyone's Interests: Effective Corporate Governance ensures everyone in your business understands their stake in the game. This is especially important for shareholders. Ask yourself:
Why did they invest in your business?
What promises did you make in return?
How are you progressing on delivering those promises?
Make Good Decisions, the Documented Way: This includes carefully considering and documenting the reasoning behind difficult choices, like employee terminations. This not only helps with internal decision-making but also demonstrates due process if ever challenged legally.
The Benefits of Good Corporate Governance
Strong Corporate Governance practices create value for everyone involved:
Shareholders appreciate transparent management and well-run operations.
Stakeholders (employees, customers, suppliers) gain a clearer understanding of your approach and goals.
Documented decisions demonstrate responsible practices, fostering trust and confidence.
The bottom line? Implementing good Corporate Governance practices leads to tangible benefits for your business and its overall value.
Get Expert Advice
Appointing an outsourced corporate governance advisor for a growth-focused business can bring several strategic benefits, enhancing the overall governance framework and driving sustainable growth.
Schedule a discovery call with one of our experts today and find out how you can implement corporate governance in your business.
Founder, Chairman & Head of Advisory
About James Phipson
James specialises in corporate governance, corporate finance and international development. Alongside his role at Dragon Argent he volunteers as a Commander in the City of London Police, where he is responsible for all volunteering, and speaks nationally and internationally on corporate governance and structures.
