For many investors, the management team section of your business plan plays a decisive role in funding (or not funding) your company.
Good writing only goes so far – eventually you might have to accept the fact that your management team lacks the strength to attract substantial investment capital.
But before you throw you in the towel, there are a lot of things you can do to strengthen the management team section of your business plan. A good business plan accurately communicates your business to investors – don't stretch the truth about your management team or bring on temporary management assets to secure funding. Just follow these simple suggestions for improving the management team section of your business plan:
Investors understand that it takes money to hire additional management resources. If your company's management is weak in a certain area, consider signing a contract with an executive who can fill the gap – but make it contingent on the acquisition of funding. Your investors gain the assurance of quality management if they fund your request, and you gain the security of knowing you won't be on the hook for a management asset you can't afford.
Design a Management Plan
If you can't locate a strategic hire who is willing to sign a contingent hiring contract, you should at least incorporate a management acquisition plan into the management team section of the business plan. The management acquisition plan should include achievable benchmarks and short time horizons that reinforce the fact that you are eager to improve your management team.
Create An Advisory Board
An advisory board is a great tool for enhancing the value of your management team. Unlike a board of directors, an advisory board has no fiduciary responsibilities to the company. They simply offer guidance and advice to help your company succeed. When you give your advisory board members a vested financial interest in your company's success, you increase the possibility of attracting bigger names to your advisory board – which significantly enhances your management team section.
Contract Well-Known Consultants
The quickest way to improve the management section of your business plan is to hire well-known consultants to compensate for management weaknesses. Although consultants may not impress investors as much as staff assets, a signed contract can provide assurances that your consultant is in it for the long haul.