Getting the right team in place can make the difference between getting funding or not. The management team is one of the key aspects investors look at it when determining whether to invest. So how do you build the right management team for your business?
Determine the key needs of the business – What are the key roles the business needs to have high quality people involved in to succeed? This will vary from a restaurant to a tech startup to a retail location to a service business. Take a step back and identify what those key needs are to determine how you manage those needs.
Determine the timing requirements for these key needs – If Person A is going to be responsible for all technology-based key projects, how much time will that take? Can Person A take on other roles as well in the early days of the business?
Define these roles with specific titles and compensation – Investors want to see that you have identified exact roles for members of the management team. This includes a specific title (or two!). It also means you have to figure out how or if you will compensate these management team members.
Find the right fit for the roles – Once you have identified the roles, find the right people to fill these roles. As the entrepreneur, you’ll likely fill one of these spots based on your own strengths. Hire someone else to do the things you’re not good at.
Evolve as your business changes – Businesses change, sometimes drastically in those first couple of years. As your business changes, evaluate your management team and their roles and make changes as necessary.