Note to a Startup Founder
There is a difference between running a Startup and running a Business.
Startup Founder’s has this illusion that all that is required to get the bank beeping with credit alerts is a good or amazing idea.
Haruna is looking at developing a software that will allow Nigerians withdraw money from their mind, he is looking for an investor that will invest in this business, the last time I saw Haruna, he was trekking from Zuba to Asokoro.
(note this is just an illustration not a factual incident).
I wrote sometimes ago that one idea you should stay away from, are tarpit ideas.
What does Haruna needs before seeking investment?
How do you generate traction, start with what you have, sometimes, you don’t need as much as you are looking for.
How I started my business is ridiculous. However, I will not bother to share as motivation speakers have made you feel our truth are tales only real on Nollywood.
2. Understanding the Dynamics of his idea.
Again, Haruna needs to understand the dynamics of his idea, who needs it, how badly they need it, how much they can pay for it, where are they and who is providing similar solutions?
3. Understand your Investors.
Haruna needs to understand who his potential investors are and how much control of his business he is willing to let go. Know this: when you start sourcing for external money, you take orders from someone even though the business or startup is yours.
4. Earn from Day One.
Haruna needs to figure out how to start earning from day one, not with the illusion that my idea will blow one day.
Investors don’t have money to throw around, they want to invest in what is real and have potential for returns of investment.
I can help you with your business plan, pitch deck and elevator pitch.
Emmanuel Abuhson PhD, DD
Diffusion of Innovation Strategist.