Securing Investors for Start-ups.
Can the market sustain you in the long run, or is there a risk that, after an initial growth phase, you might lose out to other, newer businesses or products? If you can show to the investors that you understand the competitive landscape and your unique selling point, then the investors will know that you have a clear understanding of what the position of your start-up will be in the market. An investor wants to know that their contribution is sustainable with a sound return.
While nothing in business is guaranteed, with the proper groundwork and strategic planning, you can, however, ensure that you have covered all bases as far as you can, and in doing so, allow your unique business to shine through and receive the funding it so deservingly needs.
So, if you are still only in the start-up phase or in the very initial planning stages, there are still some factors that will help an investor gain insight into whether your business has potential.
This time is crucial, so what are your expectations for the first 12 months of the business? Think about what the priorities are, and in what order. Choosing the right name will help ensure you’re creating the right image for your business. It’ll also help to distinguish it from your competitors. Before deciding on a name, you should familiarise yourself with the different registration requirements. A business name is the name under which your business trades and it needs to be registered in every state where trading takes place.
Yes, your idea looks great, I’m interested. Even if you are developing a service, some sort of dry run or example gives an investor a much more tangible idea of its potential than a mere idea on a piece of paper. How can you show the investors that it has potential once it takes off the ground? What sort of tests/trials are you doing? How thoroughly are you doing them? Is there a working prototype?
If an investor feels that you have a well-thought-out strategy, and that you also understand the role that an investor will play (which is a whole separate subject), then this will, in turn, boost your credibility within the market and potential investors. So, focus on how are you selecting your potential investors, what are your criteria, and how are you going about it.
Are you ready to venture into business? What is your method of putting together a dedicated team? For example, will you hire a professional company to undertake psychometric tests of those you are considering for senior roles?
Operating a small business is not just about working for yourself, it’s also about having the necessary management skills, industry expertise, technical skills, finance and of course a long-term vision to grow and succeed. You can take advantage of a broad range of advice and support offered by the Government. These services include information and advice on starting and expanding a business, obtaining funding and training.
What will drive growth in the business? Tell the investors what size it will be. Also, consider what sort of potential bottlenecks might occur.
These are just a few outlines of what I look for when approached by companies looking for me to invest in them, but they are essential points to bear in mind. A great product or a novel idea can so easily fail to get crucial funding if they are not presented properly, or if an investor is scared off by the impression that your company is not well organised or that their investment will have no return, or, even worse, a loss.
Most small companies don’t need to hire as many workers as their larger counterparts, which means they usually don’t have an in-house procurement team. But in this age of technology, they can take advantage of many of the same tools, techniques and resources that larger organizations use to attract and land highly sought-after customers and investors, even employees. Contact HyperEffects to chart out a tailor-made tool for your business processes to be more swift, organised and easy.
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