Mention governance in a room full of founders, and many will immediately think of large corporations, formal board meetings, compliance requirements, and lengthy reports.

For many entrepreneurs, governance feels like something reserved for later, something to consider after raising capital, hiring executives, or reaching a certain size. In reality, governance matters much earlier than most founders think.

In fact, some of the most important governance decisions are made long before a company has a boardroom, external investors, or hundreds of employees.

This is because governance is not primarily about paperwork or process.

It is about how decisions are made.