MANAGEMENT PLAN Prospective investors look for well-managed companies. Of all the factors they consider, the quality of the.management team is paramount; it is even more important than the nature of the product or service. Investors frequently
say that they would rather have an "A" management team and a "B" product or
service than a "B" team and an "A" product. Unfortunately, an entrepreneur's ability to conceive an idea for a new venture is no guarantee of her or his managerial
ability. The management plan, therefore, must detail the proposed firm's organizational structure and the backgrounds of those who will fill its key positions.
Ideally, investors desire a well-balanced management team—one that includes financial and marketing expertise as well as production experience and innovative talent. Managerial experience in related enterprises and in other startup situations is particularly valuable in the eyes of prospective investors. (The factors involved in preparing the management plan are discussed in detail in Chapter 10.)