How to Be a Fundable Entrepreneur?
Most aspiring entrepreneurs are often at a loss when it comes to starting a business and finding investors. Before we get started, let’s make it clear that there is nothing which can be deemed as the absolute wrong, or right thing to do in a particular situation. However, it is beneficial to do things in a way that lowers the risk, enhances your efforts and creates the right “first impression” on possible investors. You should ensure that you are not selling your brainchild to investors prior to giving the idea time to mature.
A well-liked and recent approach adopted by business founders to investors is pitching their business as the unique “million dollar” idea. Ideas are commodities and they won’t create any funding interest without a leading force that can execute them.
Here are some recommendations for establishing the right sequence that can make you a fundable entrepreneur:
· Tackle Specific Problems Before Incorporating Your Entrepreneurship Idea
You should not create a business that is not fully defined. Both the type and the name of the business have to fit, otherwise an expensive rework could be required in future. The specific date of incorporating the idea is deemed as the official start date of your business, therefore progress from that date will be closely observed by investors. At the same time just a solution without a proper company will be deemed as a hobby. Therefore, figure out these aspects before you take a plunge into the market.
· Find an Associate
Very few people have the energy and skills to build a startup on their own. If your strong point is technology, look for a co-founder having a comparable strength in finance or marketing and last but not least; find an A-Team of employees that are known for their talent and quality.
· Register an Intellectual Property
A large section of your competitive edge and your possible value to investors is the volume of intellectual property portfolio that you have. Entrepreneurs who lack patents or trademarks are generally deemed as non-competitive and non-fundable.
· Shift Your Focus on Customers at The Earliest
Investors give preferences to entrepreneurs that are customer-centric over the ones that are technology-centric. Before you even build a product, you should try to interact with possible customers and try to ascertain what it is they want.
· Operate Quickly, Check the Market and Make Improvements
Start-ups that operate in safe mode until they find the solution for their problems generally acquire both customers and investors slowly. You should consider that your initial offering will require tweaks, so build a culture and process for improvements from the start.
· Be Ready for Grabbing Investors’ Attention when Your Business Is Scaling.
Having investors before a business plan, customers, or a product, is foolhardy unless you have had success with previous businesses. Fundable entrepreneurs have an established business model and are prepared to take their business to new heights. They also know that they have initial alternative funding options to take the plunge into the market before they gain investors. You should ensure the same so that you have the required funds to sustain a budding business before you have solid ground to attract new and bigger investors.
Do things in the correct manner and the results will be reflected in what you have achieved. For most investors, it’s all about having confidence in the people behind the product, not the product itself.