One of the most common errors that Entrepreneurs make when approaching Angel investors is presenting their idea with just themselves. Each individual has its strength and weaknesses. A company needs a wide range of skills to be successful. The three main roles that have to be identified are a sales/marketing person (preferably with industry experience), an operations person or technology person if it is a pure technology play, and a financial person. Most investing groups understand that you are coming to them to get resources to bring on these key people. Here are some ideas on how to build and present a team.
1) Assemble a strong advisory group: this should include a combination of people with industry and start up experience. Some people will advise you for free but consider using stock options with milestones to incentivize them
2) Use key people as consultants: Hire them part time. This gives you a chance to evaluate their talent and team chemistry (key in a start up). If they are the correct people for your team then build in their salaries or an increased role into your funding pitch.
3) Key people have been advising you for free: If you know who you want as key hires then identify them in the post funding team and in the use of funds. Be straight forward with the present situation and timing of hiring them.
4) Know the need not the person: Identify the experience and skills of the person to be hired and include in the use of funds. Often times Investors who are familiar with the business segment nay be able to recommend qualified personnel.
The key is to understand what roles and skills you will need and that you have identified how the company will work and grow.
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It takes a team
One of the most common errors that Entrepreneurs make when approaching Angel investors is presenting their idea with just themselves. Each individual has its strength and weaknesses. A company needs a wide range of skills to be successful. The three main roles that have to be identified are a sales/marketing person (preferably with industry experience), an operations person or technology person if it is a pure technology play, and a financial person. Most investing groups understand that you are coming to them to get resources to bring on these key people. Here are some ideas on how to build and present a team.
1) Assemble a strong advisory group: this should include a combination of people with industry and start up experience. Some people will advise you for free but consider using stock options with milestones to incentivize them
2) Use key people as consultants: Hire them part time. This gives you a chance to evaluate their talent and team chemistry (key in a start up). If they are the correct people for your team then build in their salaries or an increased role into your funding pitch.
3) Key people have been advising you for free: If you know who you want as key hires then identify them in the post funding team and in the use of funds. Be straight forward with the present situation and timing of hiring them.
4) Know the need not the person: Identify the experience and skills of the person to be hired and include in the use of funds. Often times Investors who are familiar with the business segment nay be able to recommend qualified personnel.
The key is to understand what roles and skills you will need and that you have identified how the company will work and grow.