Raising money has become more challenging. Venture capitalists have become more risk averse in while there has been an increase in the number of entrepreneurs and new business concepts in the marketplace. Ingo Mueller is President of Capital Fusion – a company that since its founding has been involved transactions of over $500m – says that “due diligence” is one way to get you ahead.
Due Diligence In Finding The Right People
According to Mueller, while everyone knows the important strategies and people in corporate success, little take their time and appreciate that strategies are crafted by the very people you have in the team. Your people define your strategy.
Doing diligence in finding requires great effort and time, because you are looking not only for people with the right expertise, but also the right values. In his past experience, meeting with people and sharing his business idea, he finds that people can play 3 very different roles in the business. First, they can come on board and play a more active role in the business. Second, they can act as advisors, who can bring their expertise on the table and fresh perspective. Lastly, they can be connectors, who can’t directly add value to your project, but may help you connecting to the right person.
“Since business environment is getting much more dynamic, a strategy then should be dynamic as well. Having this variety of expert people will enable the strategy to be crafted agilely and result in more effective strategy and execution” says Mueller. “And that’s what investors are looking for. Because good project is one thing, but the right people ensure great strategy and great execution, which are very important in determining the project’s success.”