Steps to Growth Capital Self-Study GuideStep 4

4.6 Strengthen Your Management Team

By now, you should have a fairly good idea of your team's weak spots. There are several ways to shore up these weak areas, depending on what suits you best. Here are some options:

• Upgrade Your Managers' Skills
  
• Hire New People
  
• Modify Team Structure and Roles
  
• Bring in Outside Directors and Advisors
  
• Look for Investors Who Will Enhance Your Team

Upgrade Your Managers' Skills

If you can afford the time or if the skills gaps are minor, consider upgrading the skills of some management team members. There is a wide variety of training options available: short intensive business-type courses, college or university courses and programs, self-study programs, and Internet-based training courses like this one.

Hire New People

Hire people with the skills you need to fill in the gaps. Be sure your hiring process is carefully targeted to recruiting to gain the necessary capabilities, and rejig the roles and responsibilities so new managers aren't perceived as invading someone else's turf.

Modify Team Structure and Roles

Are your management team's skills and abilities being used to best effect? Consider whether a reworking of management roles and responsibilities might open up the opportunity for an existing manager to use more of his/her qualifications and skills. Change is an integral part of a growing business. Changes in management should put key members of your team where they are best qualified. Many companies rebuild the management team continually — to adjust to changing circumstances.

Bring in Outside Directors and Advisors

You can improve your management team by forming a board of directors with reputable and credible outsiders. They can legitimately help a growing company grapple effectively with the many challenges of the early years. And investors will be impressed with your foresight. Another option is to seek advisors with abilities in areas where your team is weak. Look for people who have a reputation for integrity, foresight and success. Consider part-time advisors: your lawyer, financial advisor, accountant or even your potential investor.

Look for Investors Who Will Enhance Your Team

The degree of investor involvement in your company is sometimes based on the investor's perception of your team's management capabilities. If investors have confidence in your team, they may play a passive role and allow existing management to continue. Otherwise, they may want an active role in policy decision making, financial problem solving, and recruiting managers. This could be good for you, especially if investors complement a specific skill or provide growth opportunities that you would otherwise not be able to exploit.

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