Picking the right Management team The importance of picking the right people for your Start-up
Business Startup Resources

Picking the right management team: picking the right people for your start-up

As important as the concept of business, angel investors are also investing in the people who will lead the business.

In early stage companies which are risky and have a high chance of failing, angel investors want to be sure that you have what it takes to run the business.

They need to be convinced that there is leadership with sufficient knowledge and understanding of both the business and the overall industry before they will consider investing. 

Angel investors will also look to the company’s management team for leadership ability and skills in the areas of marketing, selling, managing people, finance etc. 

Angel investors will look for the skills, experience and industry contacts to give the company the best chance of succeeding.

As a start up company, the founder is usually going to take the lead and assume many roles. If you are the founder and also representing the management team, you need to do an honest self assessment to determine whether in fact you possess the skills necessary to lead your business most effectively. Yes, you may have thought of the idea, but know your limitations because if you lack business and financial sense, angel investors will take a pass on your investment opportunity. However, you can alleviate much of the concern by addressing your role going forward and your willingness to fill essential roles as required. 

Angel investors will appreciate this and be more comfortable knowing that as the company grows you will continue to build your team by filling it with key people. This will demonstrate your ability to accurately assess your team and your understanding of how it will need to change as the business continues to grow.  

Don’t overlook the possibility that some angel investors are eager to get actively involved with a company. They can be a great resource as an active participant in the business or by referring someone who may be interested in joining the management team. Bear in mind that the industry experience of your management team has a significant influence on the angel investor’s perception of the viability of your business proposal.

Venture Giants Insider Edge:
Find an interested angel investor that has your industry experience and who wants to participate in the company and you are a step closer to succeeding with your new venture.