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The secret to attracting investors - it’s all about PEOPLE

by Leanna Davies

You’ll often hear investors say that successful investments are all about the people, that people are key, but what does this really mean?

The simple answer is a strong management team. If you want your business to attract the investment it needs, you’ll need to demonstrate to potential investors that your management team is strong and that its boosts your business proposition.

So what makes a strong management team?

It is important to remember investors don’t expect perfection, but there are a number of things a management team can demonstrate to convince a potential investor that they can form a productive working relationship with your company.

Here are some points on what makes a good management team.

P is for Passion

Passion and commitment should be evident to inspire confidence in investors and stakeholders. As a management team you’ll need to show you’re  passionate about driving the business forward, solving problems together and have a ‘whatever it takes’ attitude when it comes to making difficult decisions.

E is for Experience

Experience and market knowledge will always reassure investors. Ideally they want to see a good balance of technical, commercial and financial expertise in your management team.
Don’t be afraid to bring in new people to complement the management team’s experience and knowledge.  Non-executive directors can bring the additional experience and expertise to your take the business to the next level of growth.

O is for Openness

Honesty, integrity and trust are vital if an investor is going to back your business.  Don’t be afraid to identify weaknesses and risks in your business, it’s much better to be upfront with an investor right from the start. Investors hate surprises and finding skeletons in the closet half way through an investment process won’t help you.
P is for Performance

Does your management team understand your business’ financial performance and what drives profits? A management team that can demonstrate a track record of high-performance are more likely to be investment ready. 

L is for Leadership

Every good management team should be led by a strong managing director or CEO who sets the vision and strategy for the growth of the business and can communicate this clearly across the organisation. They should also know when to take a step back and delegate key responsibilities to other management team members.
E is for Entrepreneurship

Above all investors are looking for entrepreneurial people and teams who:

  • spot new opportunities
  • are better than the competition
  • anticipate and respond to changes in their market
  • drive change and innovation in their company

Shout about your management team

If your management team is a strong asset of your business, make sure your business plan and pitch includes a people section and also includes the team’s CVs.

Be proactive and identify any gaps in your management team and explain how you plan to fill them. This may include naming potential key appointments. Demonstrating this type of awareness will often go down well with a potential investor.

If you think your business could benefit from investment visit our funding needs section to find our more or contact us at info@financewales.co.uk