Melanie Ford has read several books on how to write a business plan. All of the

Question

Melanie Ford has read several books on how to write a business plan. All of the books stressed the importance of the management team section, stressing the number one thing that investors focus on is the strength of a new venture's management team. Melanie can't figure out why this is true. Recently, she wrote a letter to the editor of Inc. magazine and asked, "Why do investors put so much stock in the portion of a business plan that deals with the strength of the management team? If a start-up's product doesn't do well in the marketplace, what's the value of having a top notch management team?" If you were the editor of Inc., how would you reply to Melanie's letter?

Explanation / Answer

If we were the editor, we must explain Melanie the importance of team for any project. A startup requires a good start and this can be provided only when the team is perfect. If we have a team which is not capable , no matter how good our plan is , it will not be executed as planned and hence the whole thing gets wasted. Hence investors are much interested in management team and it's strength to execute the plan.

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