Investors know a great business plan when they see it and one of the characteristics of a great business plan is a competent management team.
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Your company's management assets are a critical factor in determining whether or not you land a face-to-face interview – and that means your business plan has to include management team credentials that are capable of making a lasting impact on investors.
Your company's management team credentials should be tailored to your industry requirements and strategic planning objectives. But there are certain management team credentials that apply to all companies and impress investors every time:
- Proven investments. Investors love a sure thing – or at least business investments that are as close as you can get to a sure thing in a tough economy. If your management team includes leaders who have delivered a good ROI for investors in the past, they are more likely to pay attention this time around.
- Respected names. The bigger the name, the better chance your business plan has of landing interviews with investors. Although it might be difficult to convince highly recognizable leaders to join your staff or board of directors, you might be able to convince them to become part of an advisory board by giving them financial incentives for participation.
- Seasoned professionals. When the you-know-what hits the fan, your investors want assurances that your management team is capable of handling it. Seasoned pros beat inexperienced geniuses when it comes to preparing for the unknown.
- Educated leaders. The preference for seasoned professionals over inexperienced geniuses doesn't mean that investors discount the importance of a good business education. By including people with Ivy League credentials on your management team, you can convince investors that your business plan is the result of a competent thought process.
- Strategic figures. Investors are impressed by teams with strategically positioned management assets. For example, a management team member with a proprietary interest in a crucial manufacturing process can reassure giddy investors that your company has access to the resources it needs to achieve the objectives outlined in your business plan.