Governance is about the set of rules, policies and procedures that allow a person or body to govern, lead and make decisions. If you're the sole owner, you're going to be governing the business, but you'll need the framework of rules and systems around you - both to guide you and your staff, but also to ensure the right information is communicated and interpreted.
Good governance frameworks include:
- clear roles and responsibilities, and reporting lines
- clear communication of strategy, policies and acceptable behaviours
- good information on performance and the risks facing the business
- a sound system of internal controls.