Business plans are antiquated.
For early or C-stage companies, putting together a full business plan with all the details of everyone’s best guesses of what the business is or can become is a waste of time. Investors really only need to know the elements of what your business is, who your management team is, and what you’re offering.
This segment deals with the management team element. There’s an old addage that investors bet on the jockey not the horse. That’s because every early stage investor knows that whatever the current plan is – it’s not final note. The end game for the business is not a straight line and there will be pivots along the way. The investors want to know about the people on the team.
Questions about your management team you need to answer for investors are:
- Who is the management team?
- What are their achievements?
- Do you have gaps on your team?
- Who can you bring on to help fill those gaps?
- Does the team have the domain knowledge and experience for this particular venture?
- Have you thought through all the components of your potential management team including technology, vision, finances, etc?
- Has your team engaged high-quality advisors?
- Is this the team that’s going to know when it’s time to pivot and adapt to what the marketplace is saying?
In our previous segment we discussed how to describe your business and in the next segment we’ll discuss how to describe your offering.