Given the renewed growth in entrepreneurial activity, relationships are arising between entrepreneurs and investors who are interested in providing financial or strategic support.

On many occasions I have heard about the difficulties small or medium-sized investors, or even increasingly common stakeholding options such as Business Angels and Venture Capital firms in later stages of development of these companies or start-ups, face in finding an appropriate interlocutor for financial issues, which may lead to the idea of support to become an investment, as the entrepreneur lacks the financial know-how needed to move forwards with their idea.

The availability of relevant information is vital for entrepreneurs to convince investors to support the project and afterwards for proper follow-up.

In fact, on several occasions the lack of a basic financial and administrative background can put investors off an entrepreneur Click & Tweet! . The latter should focus on their core business and it is not necessary for them to have financial expertise. My advice in these cases is to temporarily outsource administration, reporting and financial services, commonly known as Interim Management Services.

This way, you avoid incurring high fixed costs in the initial phase, when it is vital to keep the cost structure as light as possible, not incorporating staff recruitment until it is truly necessary. However, it is important to consider the work of experts on the matter and with the possibility of “focused procurement” of services as needed.

As a matter of fact, these services are not only necessary in start-ups or take-overs. Occasionally, it is necessary to cover a business management position that does not require full-time dedication, or support in complex situations in which the staff cannot provide solutions.

And as a final point, I would say that another area in which it is becoming increasingly common to require a staffing support with strong financial knowledge is on Boards of Directors. In this case, they need  the financial support to interpret the consequences of decision-making and can help prevent problems in companies.

Interim management provides specific solutions to specific problems Click & Tweet!