All too often the management team section of the business plan consists of a paragraph that states that the team has all the requisite skills followed by print outs of resumes citing educational qualifications and employment histories. This is not what venture capital providers want to see and wastes a valuable opportunity to sell the investment proposal.

While a Harvard MBA may pique the interest of an investor, the dot-com bubble proved that lack of business experience can engender heavy costs. The management team section should therefore emphasize all the relevant specific experience and successful track records of team members as they directly relate to the current proposal. Past business failures can also be included if they have produced valuable learning experiences that will contribute to future success.

Emphasis on experience should also be relevant to the stage of business development. If the company is an early-stage start-up then investors want to know that there is a track record of managing rapid growth.

It is also acceptable to acknowledge skills gaps as long as there is a plan to fill them. However, avoid identifying potential high profile outside candidates if you do not have a commitment from them – this will only damage your credibility.

The management section should also outline controls and performance measures in place for management and list auditors and other advisors. Careful consideration should also be given to the appointment of non-executive directors. A strong board can add significant value and the relevant experience or contacts that members bring should be identified.

Finally, always remember that when a venture capital provider tells you that they are investing in your team, this only holds true as long as things are progressing well. Having the right team doesn’t remove the need to deliver.