Executive Team

The business plan must convey a sense that the fledgling company is being managed by experienced and savvy executives. Among the issues investors are most concerned about are the following :

The business must be managed by a team-usually of three to six people-rather than by a single individual.

The team members must have complementary rather than similar managerial skills and must show evidence of appropriate previous business experience.

Entrepreneurs must be both careful and creative in using stock and financial inducements to attract key team members. Team members must be effectively motivated; among the most effective devices are golden handcuffs and employment contracts.

Teams can vary widely in their status, according to four levels, from most to least desirable:

Level 4-all team members are identified and on board.
Level 3-all team members are identified but not necessarily on board.
Level 2-there are one or two gaps in the team.
Level 1- there is only one key manager.