Steps to Growth Capital New Tech Case Story

New Tech Case Story — Step 4

The Challenge: Is Management Ready?

The Team

Investors will only be interested in New Tech Distributors Corp. if the company is lead by a skilled, professional management team. That's the message Grant Argent delivers to Stuart Chip. Grant, New Tech's financial advisor, tells Stuart, the company's owner and President, that investors will be looking for management that can achieve New Tech's ambitious growth objectives. That means a team with the right experience, skills, and qualifications - and the commitment to succeed.

What Investors Want

Grant explains that the management team's past track record is very important to investors. They will want to scrutinize the management team's business credentials and qualifications. And they'll ask how the company resolved earlier business and management problems. Investors will be looking for evidence of a strong and cohesive management team that compares favourably to its competitors.

Grant suggests that New Tech perform an audit of management capabilities that will identify both strengths and weaknesses. Grant argues that highlighting weaknesses will push the team to take the necessary steps to improve. It will also provide investors with convincing evidence that New Tech is fully committed to its growth potential and objectives.

Key Tasks

In order to show the company's management capabilities, Grant and Stuart will have to answer the following questions:

• How good is the current management team at the key functions of marketing, sales, finance and operations?
• What are the team members' specific skills and experience in product knowledge, financial management, human resources, production, research and development?
• What aspects of the current team's skills and composition are weakest or least prepared to embark on the new growth plans?
• What can New Tech do to improve its management capabilities?
• How can New Tech demonstrate to investors that it's building a management team for the future?

Read how New Tech conducted a management team audit.

Read how New Tech prepared for growth.

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