Choosing An Executive Management Team

For start-ups seeking funding, one of the most important features in attracting investors is undoubtedly having a strong management team.  While most everyone agrees on this fact, not many say  what the ideal management looks like.  Some will tell you, "Long resumes of relevant work experience", while others insist, "Your team must have a large network to add to your own".  In Investopedia's article, "How Venture Capitals Make Investment Choices" Ben McClure insists that VCs look for experienced management teams that have success building businesses that have high returns for investors.  While these are not bad aspects to look for (in fact I think they are necessary aspects to seek after), I believe that many do not look for the most import aspect of a team: Passion and common beliefs.

Passion

When I say passion, many different images or associations can come to mind.  Some would say that when someone claims to be passionate that what it really means is, "I have no experience but find this area really fun".  However, I would say that if one has true passion for an industry that their start-up is situated in, this really means, "I spend all my time researching this industry and know exactly how to make this business successful because it's all I do.  I can't see this business failing because I won't let it fail."  When someone has true passion for what they do and the company they work for, they have a sense of ownership in the company and will protect its success like a mother protects her child.

With that being said, an individual still needs experience to be able to carry out all that their passion has just promised the investor.  However, I believe that if passion is the first filter that investors use to judge an executive management team, they will invest in stronger companies.

Common Beliefs

 

When constructing a strong management team, it is essential to make sure that your team shares the same values and beliefs that the company you are constructing shares.  Now if you can't nail down what values and beliefs you want your company to have, I would say you have another issue.  Knowing why your company exists and being able to find people that want to further your company's cause are essential to the success of your business.  If a management team that has conflicting views on the direction of the company is constructed, business meetings will be run exactly like a congress that is split 50/50 republican and democrat: nothing will get done.  

By finding a team that is passionate about your business and shares your beliefs, your company will be bound for success.  Take note, this is assuming that your business is feasible to begin with.  If your business is trying to sell something that no one wants then your business will still fail with a management team of Bill Gates, Warren Buffet, and Steve Jobs from the grave.  The point is, to ensure healthy long term growth, you must have a strong management team.  By constructing a team this way, if will become evident to investors that your team has what it takes to make your business successful, more importantly, want to make your business successful.