If you are a young company or entrepreneur and want to improve performance, strengthen your management team, accelerate growth and raise funds, then an Investing Non-Executive Director might be just what you need.
Speed Mentor Central™ is really pleased to be working in partnership with First Flight – the pioneers of the concept of Investing Non-Execs. First Flight advocate that for companies with a turnover of less than £1m the Non Execs should not be paid any fees, instead focus on preserving cash and growing the business; this is only practical of course when the Non Execs invest but is the most cost effective option – a wise owl or two and no cost!
Don’t just take our words for it though, have a look at how these young companies are already reaping the benefits and rewards from appointments.
| Pod Foods - retail food company with outlets in the City who when they started up recruited through First Flight a Chair and 3 additional Non-Execs who invested collectively £250k. Pod has become a big success & they are about to open their 10th outlet. |
Chair: former Director, Grand Met
Non Exec: former Director of Boots
Non Exec: former CEO American Express with passion for food
Non Exec FD: former FD Arcadian International Plc
Invested £250,000
Download Pod case study here
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Vykson - an energy company who recently recruited through First Flight a young Chairman who invested £50k initially and then a further £50k. Appointment made: Chair: former Director of CPA Invested £100,000 |
| Incahoot - B2B-intermediary lifestyle facilitator |
Chair: former President & CEO of Virgin Life Care Inc
Non Exec FD: former CFO Watson Wyatt also Thomas Cook Group
Invested £170,000
You can see from this diagram the diverse range of industries First Flight have supported.
"From the high-profile Non Exec candidates we have on our substantial database, 70% are
interested in investing in companies they join…” Chris Spencer-Phillips, MD First Flight
Complete the contact form below to take the first step to securing funds and skills to help your business take flight.
To learn more about the value of investing Non-Executive Directors, MD of First Flight Chris Spencer-Phillips wrote the following article which first appeared in the Smith & Williamson quarterly newsletter.
The value of investing Non-Executive Directors
It is widely accepted that banks are not lending to young companies which is having a detrimental affect on UK start-up businesses and the development of young enterprises. Raising funds is a serious business in itself with the best choices presently limited to:
- family and friends; always a good option;
- angel networks: opinion is divided on this route to funding; they often prove useful however the cost to present is a burden and their percentage success rate is low. Furthermore, when businesses are short of skills & gravitas on their Board, angels tend not to invest so time is wasted. Despite their recent initiative to put angels onto Boards, this does not necessarily provide the right skills and experience young companies need;
- regional development agencies (which are being disbanded) and other funders usually operate on a matched fund basis & insist on a credible Board which works very well with the introduction of investing NEDs.
First Flight’s option and one that we specialise in is Non-Executive Directors who provide the core management skills that are crucial to young companies: strategic input, contacts, stakeholder reassurance, outside objectivity, Corporate Governance as well as providing some funding.
First Flight pioneered the concept of investing Non-Execs and has considerable experience (120 successful projects) of helping companies by providing them with “wise owl(s)” who also invest – with an average investment of £70k per Non Exec & £5m invested to date.
Successful businesses always need strong management and clear leadership and it is accepted that a successful business is 80% good management and 20% good idea. This is never truer than when trading conditions are difficult which, given the current economic climate, they undoubtedly are.
Raising finance remains difficult, which makes it hard for young companies. Experienced and successful Non Execs who have seen and weathered economic storms are an invaluable asset to a young enterprise; it is to these people that companies look for guidance with their track records in successfully managed businesses. In addition to investing, Non-Execs fulfill widely different functions at different phases of a business’ development - contributing to company’s strategy, Corporate Governance, providing excellent contacts, mentoring the MD, help with funding and providing comfort to funders.
“From the high-profile Non Exec candidates we have on our substantial database, 70% are interested in investing in companies they join;” explains Chris Spencer-Phillips, MD of First Flight. “Businesses are started by passionate entrepreneurs; people with vision and talent in their fields. However there are often skills shortages and a lack of business experience around the founder that can scare off investors. A Non-Exec is an affordable way to access those skills whilst providing clear focus for the founders and of increasing importance in the prevailing economic climate - comfort to funders (including trade creditors).”
So, if you are a young company, an investing Non Exec provides not only funds but also skills that will be even more crucial to your future success.
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