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
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
E is for Entrepreneurship
Above all investors are looking for entrepreneurial people and
- 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