Build Your Team

During the past several months, Creo Quality has had the opportunity to work with quite a few early stage entrepreneurs. Most of these people are in fund-raising mode. Some have better product ideas than others. Some have assembled better teams than others too. Let me share with you a recent encounter we had with an entrepreneur. Let’s refer to this person as Horatio.

We were first introduced to Horatio from a mutual contact. Horatio has a product with FDA clearance but needs funding to fill the product pipeline and establish sales and distribution channels. Horatio has some first hand experience using similar products and technologies as a clinician. However, this is the first time Horatio has ever tried to start a company.

We were more than willing to connect Horatio with several resources. We made introductions to investors, sales / distribution resources, etc. It appeared as though Horatio was making progress, although the fund-raising was taking quite a bit of time (as it always does). We reviewed Horatio’s business plan. It wasn’t a complete disaster, but the plan needed a significant overhaul.

We asked Horatio who his management team was. The answer: Horatio. We asked Horatio if he had established an advisory board. Nope. We asked Horatio if he had scientific advisors and/or clinicians championing the product. Again, no. Horatio thinks he can do this alone. Horatio has a problem. He can’t do this alone.

So why does Horatio choose to fly solo? Is it because he doesn’t have funding to hire the right resources? Is it because Horatio doesn’t want to “pay” resources with equity (which without revenue has questionable value)? Or is it because Horatio doesn’t understand the value of building a strong team?

The answer, I believe, to all of these questions is “YES”.

We recommended strongly, multiple times, in multiple ways that Horatio correct this glaring deficiency. In our experience, it is difficult–maybe impossible–to raise any amount of funding with a weak team. Nearly every investor I’ve met says they invest in people first.

Sorry, Horatio, but investors will NOT invest in only you. Take the advice we’ve given you: BUILD YOUR TEAM.