Fuel the engine, press the pedals and the vehicle starts to move. Forbusiness startups initiate in a similar manner and require a thrust before establishing itself completely in the market. For making an enterprise buoyant, capital is the foremost thing that a startup requires.
In the initial stage, a startup always staggers and wobbles in the market, and trails investors to receive reinforcement in terms of hefty investments. While approaching investors or venture capitalists, the startup companies commonly make some mistakes, thus retrenching the chances of success. Sometimes, the blunders have been factored into the business models and at other times, fallacies emerge in the strategy. These mistakes lower the chances for startups to grab venture capitalists attention.
Ascertaining the Right Opportunity to Make the Deal
When sales professionals approach customers, they follow a process. First of all, a pitch is made, then the features explained about specific product/s to entice customers towards it, and finally, a deal may get made. Similarly, a startup company approaches the investors; the company creates a business report; showcases the growth of its platforms; and exhibits its focus on customers. However, during this process, it does not scrutinize the business model on its own.
Likewise, an investor needs to undergo a process in order to ascertain the future potential of a company. If the investment company or investor is not able to find a positive response of questions that are made either to himself or to the startup, then he should invest in the company.
In order to ascertain if a particular business deal is working or not, there are a set of questions that investors and startup companies need to address and accordingly, figure out whether to invest in the company or not. Similarly, startup companies after answering the questions will come to know whether their business proposal is worthy enough to put forward to investors.
When a company gets an opportunity to connect with investors, then it becomes essential as to how the company make the best of this situation and takes steps to achieve the aim.
Using this opportunity to exhibit its superiority over other companies is the foremost way in which investors assess a companys potential. Furthermore, a company needs to be clear and precise with its business idea and stand to it throughout the journey. If there is a shortcoming in the business outline, the company should fix it immediately before it catches the attention of the investor.
If investors and startup companies are uncertain about particular issues then they should keep track of those problems and avoid making further trouble out of them.
In order to reduce the bad impact of uncertain events, companies should deploy effective strategies and measure the outcomes of those strategies. For instance, if customers are facing problem with a product or service then the company, before rectifying the problem, should approach the customers and know the exact nature of their problems with the product. Following this, the company can build a plan to resolve customers queries and ensure that good services or products are offered to the people.
If a company wants to fully utilise an opportunity then it needs to ascertain if the team is ready to make use of the opportunity. Secondly, it should find if the team has ever met this kind of situation earlier;if not, how will the team deploy this opportunity.
A company, as well as investor, should answer these questions and accordingly make their decisions.