Enterprise Hub Network - Case History
Thames Valley Hub
Ed Cooper
People: The key to start up success
Entrepreneurs too often forget that having the right team around them is essential to achieving business success. Ed Cooper, hub director of the Thames Valley Hub, offers top tips on finding the people you need.
One of the biggest and most common mistakes that individuals starting out in business make is assuming that they can reach their full potential by themselves. Wrong!
Individuals 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 and entrepreneurial management team is vital. Of course finding such a team can seem daunting and expensive, but costs can be kept low by share ownership schemes – perhaps offering equity in the company in return for expertise. Whichever way you look at it, the benefits a strong team can bring usually outweigh the dilution in equity.
"Individuals 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."
Once you have accepted the necessity of a strong team, the next step is to put together a business plan. You can approach business support services in your area if you need help with this. This plan should help you identify who you need to bring into your business to develop it and identify the skills gaps that need to be filled. The key areas in which most start-ups should be looking for support are finance, operations and sales and marketing. Resist the temptation to go into business with like-minded people – instead bring in people with the right complementary experience to ensure the business side runs smoothly, leaving you to focus on developing your business proposition.
Finding the ideal team members can seem like a big hurdle to overcome, but once you begin the process, you will inevitably find yourself moving in circles where you meet people who really can contribute to your business. Look especially for those who will add real credibility, maybe someone who has a good reputation in your market or who has successfully grown and exited businesses in the past.
Once you spot someone who you think can add value then make an approach with your business idea. Otherwise 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 calibre of people. Business support service providers, often have registers of people who are looking to get involved with start ups, so they are always worth approaching. You could also try online business networks such as Linkedin.
Once you start meeting people, 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 have found someone appropriate, approach them with your business plan. Remember you are expecting them to invest their time and expertise in return for a stake in your business so whilst you need a strong elevator pitch, show you have a business plan to back it up, as this will demonstrate that you are professional, serious, know your market and product and, most importantly, want to make money.
"Once you start meeting people, 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."
Financial constraints mean most start-ups are unable to bring on a full executive team at the inception of their business, but this does not mean that this potential is out of reach. Invite people on to your management board in part-time or non-executive roles: if you can demonstrate a strong plan and 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. Having them involved can open a world of opportunities and equip you for most eventualities.
This team will bring untold benefits: a depth of experience which will help with getting your product or service into the market, scaling up your business, avoiding potential pitfalls. They can provide informal mentoring and 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. They also provide extra eyes and ears, so they can be making contacts and communicating your business message to the right people much more effectively than you could alone. 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 reputable team behind you demonstrates to others that your business has potential. It shows you have a plan, the facilities to overcome obstacles and that people with business expertise have faith in you."
Perhaps most importantly, having a reputable team behind you demonstrates to others that your business has potential. It shows you have a plan, the facilities to overcome obstacles and that people with business expertise have faith in you. This adds vast amounts of credibility to your business and will inspire others to get involved, including investors who can provide capital which may be essential to future business expansion.
Once you have your team, use them. Keep them regularly updated with the company's progress, ask their opinions and run ideas by them. They are a symbol that your business is going places, 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. The right team, properly used, will become an invaluable asset to your business and is one of the best investments you can make in the long term success of your business.
www.thamesvalleyhub.co.uk
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