Steps to Growth Capital Fast Track

Management Capabilities

"This is very critical...you need an exceptional management team to attract financing."*

Investors will look to see if your management team can implement your business plan and realize the investment potential.

They are not looking for an operation dominated by one person. Instead, they want to see a talented team with:

• a range of appropriate skills and experience;
  
• a solid track record in all key business functions;
  
• an effective structure;
  
• good communication, decision-making and consensus-building skills; and
  
• the ability to grow.

Assess Your Team

One of the key criteria for investors is that your team is able to take on the new challenges of growth. Assess your team's abilities and readiness for growth by comparing available skills to needed skills. You can do this using tools such as:

• management audits; and
  
• report cards of key management functions.

(For examples of these tools, see Demonstrate Your Management Capabilities in our self-study guide.)

Prepare for Investors

You'll have to provide investors with evidence of your team's readiness and competitive advantage. Be ready for tough, specific questions about each management function:

• marketing/distribution;
  
• production/operations;
  
• accounting/finance;
  
• human resources; and
  
• research and development.

"I built the proposal based on two things: first, that the people I want will come when the investment arrives; and second, that investors believe that if the people I want don't come, I'll be able attract the people I need."*

Strengthen Your Team

If your team is weak in some areas, start planning to improve it now. You can strengthen your team by:

• upgrading your managers' skills;
  
• hiring new people;
  
• modifying team structures and roles; and
  
• bringing in outside directors and advisors.

"It's challenging at first. There's a catch 22, especially for start-up companies, because you need an exceptional management team to attract financing, but you can't get them together without money."

"I courted people on one side while I was building my business plan and making contact with investors. But I was honest with them; I explained that I wasn't in a position to make a concrete offer. So it was challenging, for me and for them."*

Action Items

Use our Management Capabilities Checklist to help you assess your team, identify your competitive advantages and weaknesses, and prepare for investors.

* All quotations used with permission of Chris Griffiths, Griffiths Guitars International, St. John's, Newfoundland, Canada.

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