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Finding the right team when starting up
One of the most common mistakes individuals make when starting up in business is to assume that they can reach their full potential by themselves.
By Ed Cooper, Enterprise Hub Network
Entrepreneurs may have brilliant ideas and develop an excellent product or service but, without the right team behind them, they can end up with an ill-managed business which no-one has heard of.
Start-ups with high-growth aspirations must recognise from the outset that a strong management team is vital. Here are some tips to help find the right team when starting up, without breaking the bank.
• Form a business plan. You can approach business support services in your area if you need help with this.
This will help you identify the skills gaps that need to be filled and who you need to bring into your business to fill them. The key areas in which most start-ups should be looking for support are finance, operations and sales and marketing.
• Look for those who will add real credibility to your business. This could be someone who has a good reputation in your market or who has successfully grown and exited businesses in the past.
This may seem daunting but once you begin the process, you will quickly find yourself moving in circles where you meet people who really can contribute to your business.
• A good starting point is to get involved with local business networks and attend networking events relevant to your market.
Consider presenting to business angel networks; even if you don’t get funding, it is a good way to get your name out there and to start meeting the right people.
• Also try approaching business support service providers. They often have registers of people looking to get involved with start ups, so they are always worth approaching. You could also try online business networks such as Linkedin.
• Be open about what you have to offer. If people know what you are looking for they can recommend people or pass on your name to their contacts who might want to get involved.
• When you find someone, remember you are expecting them to invest their time and expertise in return for a stake in your business, so show them you have a strong business plan. This will demonstrate that you are professional, serious, know your market and product and, most importantly, want to make money.
• Invite people on to your management board in part-time or non-executive roles. If you can demonstrate future potential, there are plenty of people who are looking for opportunities for a piece of the action.
They will often be willing to participate on an unpaid basis, or even invest money themselves, in return for equity in the company or a chance to develop the role later on.
• Once you have your team, use them. Keep them updated with the company’s progress, ask their opinions and run ideas by them.
They are a symbol that your business is going places and that people with business expertise have faith in you, so get them involved in meetings and put them in front of investors.
Having a team of experienced business experts at your disposal is an extremely valuable commodity both in terms of developing your business internally and bringing investment and new experience into your company.
Having the right people behind you will bring untold benefits. They can provide informal mentoring, a sounding board for ideas, and offer different perspectives that may otherwise have been overlooked.
Their experience can be used as a check to prevent seemingly small mistakes which can lead to disasters especially in small businesses, where cash flow is tight.
Furthermore they will cost less and be more hands-on than using business consultants and they will have a vested interest in your business so they will do everything in their power to ensure it reaches its maximum potential.
Having a team also means you have people out in the big wide world prospecting for business opportunities, which is inevitably much more powerful than operating alone.
The right team, properly used, will become an invaluable asset to your business and is one of the best investments you can make in its long term success.
Ed Cooper is Hub Director of the Thames Valley Enterprise Hub Ltd., part of the SEEDA Enterprise Hub Network, which helps the South East’s high potential entrepreneurial businesses to get off to the best possible start through coaching, access to finance, market intelligence and support with intellectual property.
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