Most of the startup founders think at some point of time that getting funding is the sole answer of all their problems. This is not true in many cases though. It does seem unlikely that all issues can be solved by funds and that too someone else funds. Many of my coaching conversations with new owners slows down at lack of funding. When I try to brainstorm about the marketing research and finding out who their target audience is and what do you think they want? Have you collected feedback on your product? Did you use any of this feedback to fine tune your product and offerings? Do you know who is your competition? What market share do they have? They have not thought through this and more. Sole aim is to get investors and funds, little realizing that if business model is not there, investors don’t do charity.
Most of the times the answer is – I don’t have money to do that kind of ground work. How do I get the funding?
Another one now – have you explored all the other alternatives to arrange funds?
And do you know how much you need to ask? By the way, answer to this would be minimum you need to get off the ground.
Before you rush to hunt funds, know what you are getting into. Know what cost these funds are coming to you. Are you okay with the risk and cost of borrowed funds at the early stages of business?
The investor invests money in your business. Hence, the business model should be proven for its profitability and sustainability for any investor to consider it. They look for some traction and plan for potential Getting an investor might be easier than their exit. Let the need and not greed drive the decision.
Very simply put, check if you have a decent tested product, customers and revenue model in place. If you can confidently tick these three boxes, you are good to go for next step.
Thanks for staying with me till now. If you are reading this, most likely You are already a part of this wonderful business owners community CWE. Now, do not reinvent the wheel. Share and learn from your fellow business owners and book a session with CWE mentors today to get guidance. You are not alone. We are all together in this.