Whether you’re a first-time inventor or an entrepreneur whose tasted failure more than once, you know it takes confidence to show others your business startup’s rough sketch. There are several ways to make your business startup idea more acceptable to potential investors and customers.
4 Necessary Steps For Business Startup
1. Place it in numbers.
“There’s $70 billion trapped in waste in Africa. Our startup aims to recycle that into cash.” This sounds more appealing to prospective investors than, “We want to clean the streets of Nigeria.”
The typical investor itches to hear how much she or he will get in return for each dollar committed.
When you think about how to sell your idea, use figure, attractive and honest ones to convey your message.
2. Present the problem first.
A problem-tackling approach to marketing relies on the fundamental belief that the customer will buy if the problem is painful enough. You can use this same technique to win over investors and advocates for your startup idea.
3. Create a great name.
Your brand starts with a title. Naming your idea shows you’re serious about the work. Don’t let your idea get stuck behind a terrible name. If your idea sounds like a joke to investors, it’s probably because the name didn’t give you a head start. This stage could be the most vital for your future’s startup.
4. Develop a road map.
A well-thought-out growth strategy, including a sound marketing approach will influence investors. Your road map should outline the steps you’ll take in the following stages, identifying potential obstacles and how you intend to overcome them.
- Ideation: If you’re shopping for investors, you’ve already passed this stage. You might need to retrace your steps to this early phase if your potential investors have a justifiable reason for passing on your once-in-a-lifetime opportunity.
- Pitching: Your internal strategy should describe how you’ll evaluate leads to find the right investors.
- Funding: Take your fundraising strategy very seriously. Let investors see that even if they say “no,” you have a realistic plan to raise the needed capital for your brilliant idea.
- Prototype: Once you secure funding, how long will it take you to develop the first prototype? You should be able to present a feasible timeline that investors can work with.
- Marketing strategy: Most investors won’t back a startup without a compelling story and a plan for sharing it and that includes an online marketing strategy.
- Revenue model: Investors want to see how you intend to recover their money and build on that collateral many times over.
- Exit strategy: Investors need to know there’s a contingency plan if you fail to save your company. That might be an IPO, an outright sale or something else.