Every one of us thought about starting a business many times. However, not everyone is ready to take responsibility and try to launch a profitable company. According to research, most startups burn out in the first two years after their beginning. There are many reasons for that, but one of the main ones is failing to find an investor. That’s why every startup that wants to succeed needs to know how to make a business project attractive to investors.
1. Evaluate the Market
Before bringing a project to a market, a startup owner should understand its basic needs and risks, as well as evaluate its size. For example, if your project targets the financial market and you are creating a new mobile app, then you need to be aware that this area is very competitive. According to statistics, hundreds of app startups appear on the market every month. So, you can imagine how hard it is to survive this bloodbath. On the other hand, you can buy cheap essay thanks to fierce competition.
If you are aiming for a broader market, you need to remember a few basic rules. First, it’s almost impossible to create something fundamentally new, so look at the competitors, adopt interesting ideas into practice, and experiment. Second, you should work on the look and the concept of the brand because customers pay attention to brand positioning and its visual attractiveness.
Third, you should attend events where investors and representatives of large corporations are present. For example, many organizations practice open doors and pitch days. At these events, large companies gather teams of developers to solve business problems in a very short amount of time. It might concern writing new codes, creating algorithms, and so on. Visiting such hackathons will help a startup clarify what kind of technology the market needs.
2. Does the Market Need Your Idea?
At the planning stage, your idea is known only to you. Because of this, it is not easy to judge it objectively. It might seem ingenious to you, but, in reality, it can turn out to be completely wrong and useless. Therefore, it is necessary to share your intentions with experienced people from the industry you are operating in.
Also, you need to look for potential customers and assess their level of interest in your idea. It can also be done at events where investors, executives, and top managers participate. At these gatherings, it is essential to talk about your product to make people interested. It requires identifying the main task your product will solve in the future.
Here are a few essential questions to ask yourself:
- What problem does my product solve?
- Who is the target audience?
- How much does the target audience need my product?
- What are the obvious benefits that the product can bring to its consumers?
- How do my competitors solve these problems?
Also, any startup founder needs to realize that you can’t call yourself a business before starting to sell the product, be it goods or services. Sometimes the ability to sell is much more important than the offering itself. This understanding allows an entrepreneur to conduct test sales of a product prototype.
Selling a product that is not yet fully prepared will give you an idea of the following aspects that should be considered before you move on:
- Is your target audience ready to pay the price you established?
- What is the sales funnel for your product?
- How many people are monitoring your company, and are they ready to buy when sales start?
Also, in the majority of cases, the final product will significantly differ from the initial concept — no need to be afraid, though. The main point is to evaluate the demand correctly. There are a lot of examples of how products change from conception to further steps.
After the product hits the market, it might turn out that it does not fully meet the needs of customers. Additional time and resources are needed for changes to the product and pricing policy. It is the reverse of the business launching process, and it is better to avoid it. It will save you a world of trouble if you remember that any change at the planning stage is always cheaper than a correction to the finished product.
3. Build the Right Team
You can’t create a business from scratch by yourself. According to a Neil Patel study, a poorly chosen team is one of the main reasons a startup fails. Therefore, it is imperative to approach the hiring of employees with all seriousness.
The first step is to determine what positions you need to fill and assess how many people should be hired. You should calculate the number of jobs based on your starting budget. Sometimes, at the very beginning, a startup does not need or cannot afford to hire full-time employees. In that case, you can attend events to talk to credible consultants who can help solve the matter with, for instance, an outsourcing solution.
The second step is the formation of an approach to hiring. At this point, it is necessary to identify the essential qualities to look for during interviews. Also, starting with the interviewing process, it is useful to establish yourself as a team leader, because even a perfect team needs a person who will guide the company and take an active part in the whole endeavor.
4. Monitor Your Competitors
It is vital for a startup to keep up with changes and new trends, as well as having a competitive strategy, which includes monitoring companies within your field. This analysis covers various areas, but information about your competitors’ business and products is the most relevant.
In a world where competition is an integral part of any business, it is logical for every company to have an effective monitoring strategy. It is extremely helpful to be able to predict the actions of competitors, identify available market opportunities, and be ready for the unexpected.
5. Look for a Business Angel
Private venture investors or, as they are often called, business angels, provide financial assistance to startups in the early stages of development. Typically, business angels are experienced entrepreneurs or famous people who have built their careers in large companies.
Large corporations, like Google, Intel, Yahoo, and Amazon, were all beneficiaries of business angels in the initial stages of their evolution. Many startup founders dream of this kind of patronage. However, attracting the attention of a business angel is not that easy.
Often, when choosing a startup project for investment, business angels are guided by personal motives, like ideological stances or sporting interests, so it is easier to negotiate with them than with other professional investors.
In closing, these recommendations can increase the chances of your success. Define the main idea of the project, identify your target audience clearly, assemble a team of professionals, draw up a business plan, and be sure to prepare an arresting presentation to attract investors.