In an already startup-packed economy, it is difficult, close to impossible sometimes, to come up with a unique idea of your own. Market penetration is often tricky and a majority of startups fail within the first 5 years.
Even if you are able to create something altogether unique, if your initiative is not sustainable in the long run and does not have a sustainable monetization model, you will find yourself exiting the industry early. There is no doubt that not every venture is destined to succeed. However there are clear and consistent traits between successful startups.• A Perfect Idea
It pretty much goes without saying that a perfect idea makes for a perfect startup. What makes is perfect idea is scalability. Have a wider vision and take long-term factors into consideration before settling on your idea. Think big. Investors are not interested in good ideas to own relatively small companies with limited or niche scope. They need big visionary ideas that could disrupt multip billion dollar industries like UBER or AirBNB.• A Great Team.
Alright, so you have a great idea, now what? Now you need the right people to execute the idea. A great team is the difference between a successful or failed venture. The quality of your team depends on education, experience and also, quite a lot—more than the rest, in fact—on the personality of each member of the team and their ability to work together.Building a Team
You need to your weaknesses. If you are technical, find a business person. If you are a business person, find someone technical. If your industry is highly specialized or technical, find a veteran relevant to thay industry.
Once you have both of these things then the biggest challenge is raising funds which leads us to the pitch deck.• The Pitch Deck
Creating a pitch deck is actually one of the simplest steps if you have a clear vision. Start by stating the problem you are trying to solve, then a simple explanation of how you will solve the problem. After this, include some industry data, market size and very importantly your team information; why are YOU the perfect team to solve this problem.
Once completed, it helps to practice and rehearse. Standing in front of a mirror and delivering the pitch will help you perfect the pitch. Keep practicing then try in front of family, friend and eventually start with the investors you are closest to. Remember, make sure you know your market well, you have a clear plan and be confident!• Proof of Concept
Every startup needs that initial financial push to be able to kick-start. To avail yourself that much-needed funding, you need to develop your proof of concept. This proof is, usually, physically viable. A prototype that can be tested, measured, and improved. It works quite well for software products like apps, websites, and other similar makings—even though they are not quite physical. However, if you are a services-based startup or your product-to-services ratio hinges more on services than an actual product, there are other ways to present your proof of concept. Like visually projecting your initiative through a presentation or providing a detailed overview of how you plan to run things. The end goal is proveto your investor that your idea is tangible and will work.
For more on Proof of Concept and funding, read this blog here• 5 Year Projections
Last, but not the least, are financial projections.
You need to be very clear on where you want to see your business venture in the next five years. This is not an exact science, the investors just want a better idea of where you will be spending the majority of your money, how you plan to allocate it and importantly, your vision for the next 5 years.
In conclusion, be sure that you choose the right problem to solve. Once you have identified it, assemble a super team of experts to help you achieve your goals. Investors want to see the size of the market, your go-to market strategy and why you are the perfect team to address this problem.
Help minimize the risk of your venture by providing proof of concept. Either by building an actual prototype, or even drawings of exactly what you are looking to build and identify early customer who can vouch for their need for the product.
Once you are ready and you have all of the above, then you need to network, go out and meet people already in your industry. Reach out to influencers, potential board members. You might want to apply to accelerators or incubator programs to help get things started.
If you feel you have the perfect partner and want help with the proof of concept of validating your market, apply now for our code for equity program and learn how we can help your funding goals!