Part 4: The Role of Governance: How Sophie Sweet Made Better Business Decisions (and How YOU Can Too!)

So, you've got the vision, the drive, and maybe even a few loyal customers. You're building something awesome! But let's be real, as your business grows, so does the stuff. More decisions, bigger risks, and suddenly you're juggling flaming torches while riding a unicycle (and your pants are on fire!)

That's where governance comes in.

Sophie Sweet had solid strategies in place. Her business had a strong vision, a clear roadmap, and a resilient structure. But as her company grew, so did the complexity of running it. She knew she couldn’t make every decision alone—she needed strong governance to guide the way.

Forget stuffy boardrooms and complicated jargon. Governance, at its heart, is simply about how you make decisions. It's about putting systems and structures in place to ensure the right choices are made, consistently. Governance isn’t just for big business at the top end of town. It’s about how decisions are made, risks are managed, and leadership is held accountable.

Think of it as the GPS for your business. Without it, you might end up driving in circles, or worse, straight into a ditch!

Good governance creates clarity—it ensures the right people are making the right decisions with the right information. Without it, businesses can become reactive, directionless, or even vulnerable to costly mistakes.

Here's why it matters, especially for growing businesses:

• Clarity: Knowing who's responsible for what avoids confusion and bottlenecks.

• Better Decisions: Informed decisions lead to better outcomes.

• Risk Management: Spotting potential problems before they blow up in your face.

• Accountability: Keeping everyone on track and focused on the big picture.

Sophie realised that while she was great at running a business, she wasn’t an expert in every area. That’s where her advisory board came in. She realised she needed outside eyes on the business, people who could see the forest for the trees.

Sophie had already built an advisory board when she started scaling. Now, she decided to lean on them even more, but she still wanted to keep things simple & retain control – after all it was her business.

Her board included (as well as her):

• A Business Advisor: This person kept her focused on strategy and decision-making, challenging assumptions and providing a fresh perspective.

• An External Accountant: This ensured the financials were solid and growth was sustainable (no more wondering what cashflow might be in the next few months or nail-biting moments at tax time!).

• Her Operations Manager: This person provided insights on the day to day running of the business, efficiency and supply chain challenges, helping to streamline processes and save money.  It also meant Sophie didn’t have to do everything.

This mix of expertise gave Sophie a 360-degree view of her business. Instead of relying on gut instinct, she now had data-driven discussions that helped her make informed choices.

• Fresh Perspective: It's hard to see the label when you're inside the jar! Advisors bring an objective viewpoint, free from internal biases, providing an impartial perspective that’s often difficult to achieve internally.

• Challenge the Status Quo: They can ask the tough questions and push you to think differently.

• Experience & Expertise: Access skills and knowledge you might not have in-house.

• Clarity & Focus: Help you prioritize and stay on track with your goals. External support aims to bolster the business’s leadership by addressing key questions such as:
  
  • What are we trying to achieve
  • What are the key milestones
  • What are we missing?
  • How can we be different?
  • What keeps you awake at night?
  • What concerns your clients?

So, how did all this fancy ‘governance’ stuff actually help Sophie? Let's break it down:

1. Structured Decision-Making:

Instead of making decisions on the fly, Sophie implemented regular strategy meetings with her board. Every month, she reviewed key financials, growth opportunities, and risks. Major decisions—like launching a new product line—were discussed and analysed before action was taken. This structure reduced reactive decision-making and kept the company on track.

2. Accountability at Every Level:

Sophie also ensured her leadership team was accountable for their areas of responsibility. KPIs were set for every department, from sales targets to production efficiency. Regular progress reviews kept everyone aligned with business goals. By delegating responsibility, Sophie was able to step back from daily operations and focus on strategy.

3. Managing Risk More Effectively:

Sophie’s advisory board helped her identify risks before they became problems.

• Financial risks: Were they over-investing in growth?

• Market risks: Was a competitor launching a similar product?

• Operational risks: Did they have enough production capacity?

By addressing these questions early, Sophie avoided costly mistakes and stayed ahead of the curve.

With a clear governance structure in place, Sophie’s business became more agile, more informed, and more strategic. She no longer felt overwhelmed by the weight of decision-making—she had the right support system to guide her.

Do You Have the Right Governance in Place?

If your business is growing, governance isn’t optional—it’s essential. Ask yourself:

• Who do you turn to for strategic advice?

• Are your decisions structured, or reactive?

• Is accountability built into your leadership team?

Great businesses don’t succeed by chance — they succeed by making great decisions consistently.