Why Outside Board Members Help Startups Focus Where It Matters Most

New research shows that structured boards accelerate short-term progress — and long-term growth

When you’re building a startup, it’s tempting to dream big — five-year plans, long-term goals, market domination. But the reality for most startups is much more urgent: get your first customers, validate your business model, and survive.

A new study of 170 startups in Belgium highlights a powerful insight: the presence of outside board members (OBMs) — people who are not employees, founders, or friends/family — significantly shifts a startup’s strategic focus toward short-term priorities. And that’s a good thing.

Source: Bruneel, J., Gaeremynck, A., & Weemaes, S. (2022). “Outside board members and strategic orientation of new ventures in the startup phase,” Strategic Entrepreneurship Journal, 16(4), 801–825.

Short-Term Focus = Faster Growth Later

The research found that startups with more outside board members were more likely to:

• Prioritize short-term strategy over long-term plans

• Focus on execution: understanding customers, cash flow, and product delivery

• Monitor performance more rigorously and professionally

And here’s the kicker: this short-term focus didn’t hurt long-term growth. In fact, it helped.

Startups that leaned into short-term orientation early on showed higher growth in assets and profitability 3–5 years later, compared to those trying to plan too far ahead too early.

When Outside Boards Matter Most

The effect of OBMs was especially strong in two situations:

• When the founding team had done little pre-startup planning (e.g. no business plan, minimal prep)

• When the startup was operating in a highly competitive environment

In those contexts, OBMs brought clarity, prioritization, and structure — exactly when it was needed most.

“It is ridiculous to plan five years ahead in a startup. I start laughing when I see that kind of strategic planning,”

— Outside board member interviewed in the study

What Founders and Investors Can Take From This

The study confirms something we see on the ground every day: startups don’t fail from a lack of vision — they fail from a lack of structured execution. Outside board members help startups:

• Focus energy on what moves the needle in the first 12–18 months

• Add discipline to decision-making without stifling agility

• Accelerate the move from idea to traction

The Role of Structured Boards and Advisory Boards

If you’re building or backing a startup, bringing in a structured board or advisory board early — especially with industry-aligned, experienced outsiders — isn’t about formality. It’s about speed and survival.

At OPERATORS, we help startups create structured boards and advisory boards designed to drive action in the short term, and build resilience for the long term. This study shows why that early focus can compound into outsized results.