Investors Invest in Management
The team you have in place will figure prominently in an investor’s decision to fund your business.
From: Inc.com
One factor that almost always figures into a savvy potential investor’s evaluation of your company is your “team” — key management and advisers. This is particularly true for a young company with no track record of its own.
Why do investors tend to base their decisions to invest on management teams? The answer is in large part because there are so many imponderables about any emerging business. Even a great business idea sometimes simply can’t succeed on its own strength alone. The idea may be too revolutionary, too unproven or otherwise lack sufficient credibility. It may involve a product or technology that is simply too complex for the potential investor to understand, or market projections that are simply too speculative. This is when you have to rely on the management team to give the business credibility. The history of the management team may be the only solid, understandable, non-speculative information available to the potential investor.
For the entire article go to Inc.com
Corra sees this as a good article, particularly poignant with the credit crunch and the probable deflation of certain businesses. Investors will soon engage in turnaround actions, and to do so they must hire the proper people to get things back in order. It is not just the existent team that is important, but the team of the future.
In spite of hard times, recruiting the right management team is no day at the beach. Hard times often mean people are not all that eager to leave their present job situations in quest of the unknown. And if they do want to leave, then comes the question as to whether they are as good as they say the are.
Background checks help. Education and criminal checks are essential, and education and the motor vehicle driving report will tell you much about someone’s behavior.
Check them out before you hire.
