Wednesday, October 22, 2008

Capital West Advisors reveals the importance of highlighting a company’s management strengths, strategic partnerships, and existing relationships.

When an investor analyzes a business, two of the several key factors that he will typically assess are: (1) the strength and experience of the management team and (2) the existing relationships with customers, affiliate partners, and any outsourced providers that will play a key role in the operational and marketing process of the business.

An investor wants to know that the management has the necessary experience to grow and sustain the business; particularly with a start-up or early stage company. The business plan should contain a management section with a well presented biography for each key member of the executive management team. If the company is not very small, it is often beneficial to include an organizational chart to give a clear depiction of how operations will function from an organizational and hierarchy perspective.

One of the most important factors that an investor will evaluate is the strength of the company’s marketing channels. Along with a solid marketing plan, the business plan should emphasize and demonstrate any relationships that the company has with affiliate partners, distributors, manufacturing/operational partners, or co-marketers. The existence of strategic and affiliate partners in a company’s marketing plan can give the investor the extra confidence that the company will be able to grow effectively and smoothly. The business plan should discuss who the partners are, how they will benefit the company, and how these relationships will positively impact the growth of the company.

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