Strength of the Management Team - The Key to Attracting Investors

Potential investors will more readily finance ancustomer, and even supplier constituencies being
entrepreneurial enterprise on the basis of thewilling to change their behaviors.
strength of its management team, and when theHence management must play the leadership role
market is large, ready and aware of its productsin order to establish an environment that
and/or services, than the underlying benefits andmotivates specific constituents to change. This
features of the products and/or servicesmeans being able to communicate both
themselves.aspirational and inspirational messages that cause
A successful management team may be able toothers to change their behaviors to adopt a
repeat their successes as serial entrepreneurs byproduct and/or service, either de novo or as a
knowing how to entertain, inform, convince,substitute. Such change occurs by understanding
persuade, and negotiate with people, and managethe difference between what people need and
processes.what they want, and creating emotional
The management team must be able tomessages that cause them to act with urgency.
demonstrate that they can enact change, both byTherefore, a management team seeking financing
being able to cause it or respond to it dependingis likely to lose their investor audience if they
upon opportunities and conditions (especiallyfocus solely on presenting a products and/or
crises). Causing change affects competitors, butservice. This rule generally applies even if the
being able to respond to change caused byvalue propositions offer strong benefits and
competitors is essential to sustainability also.features.
The acceptance of new products and/or servicesEffective leadership and management techniques
in existing markets, or existing products and/orare enterpriship (entrepreneurship, leadership, and
services in new markets is based upon employee,management) competencies.