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Sci0036: What Investors Look For: There Is No I In Team

As an entrepreneur you must ask yourself, “What Do Investors Look For When Deciding To Invest In A Project Or Company?” It is important to answer this question before seeking for funding from investors and we will highlight the main criteria investors look out for before committing themselves.

The building block of any company is its team. Without a doubt, the team is the most important thing that investors keep a look out for. It is the team which executes the business plan-be it a robust or weak plan. Therefore, a high premium is placed on the team to ensure that it consists of people who are able to effectively execute the business plan.

The best of plans may be fruitless if a weak team fails to execute and transform the idea into a business. On the other hand, a robust team will be able to salvage a weak plan by troubleshooting problems and transforming a sketchy plan into a robust one.

Examining and analyzing companies’ progress from a start-up to an on-going business can enlighten us on the importance of good synergy and teamwork. In almost all cases, the business plan undergoes modifications. The business plan is but a guide or blueprint for businesses which needs to be enhanced and updated as new discoveries and developments are made along the way. While the plan needs to be flexible, the team must also be dynamic and receptive to change to respond to the changing environment and conditions. Therefore, investors will always make an assessment of the team members to ascertain if the team is well-equipped to work in a dynamic and at times stressful environment.

Having a strong team is insufficient. The main idea is to have an integrated team. What is an integrated team? You can have the best brains with great business acumen in your team but that does not guarantee you success in your venture. A team of heroes that cannot work together is futile and it may lead to greater backlash if these heroes clash with each other.

An integrated team is one where each member understands the strengths and weaknesses of other individuals in the team. With this understanding, team members will be able to complement each other and avoid conflicts in tough and high-stake situations.

For less heartaches and headaches, ensure that you have a strong, integrated team that is able to take on challenges that arise along the way. A team that has worked together in the past may give an entrepreneur the leverage when seeking investors. Nonetheless, a newly assembled team is at no disadvantage if it is able to demonstrate its ability to remain strong and integrated even during times of adversity. Rest-assured, with a strong and integrated team there will be no dearth of investments in your venture.

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EntreCity
The idea behind EntreCity is to help entrepreneurs build successful businesses. We want to achieve this by helping people build an entrepreneurial mindset and to arm them with the technical tools to start and grow businesses. Whether or not you are ready to start a business, EntreCity aims to help everyone to think with an entrepreneurial mindset.

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