12 Aug 5 More Fundamental Things Aspiring Startup Entrepreneurs Need To Know
Last week, we gave you 5 fundamentals essential to know if you’re a new startup entrepreneur, or planing to be. But, of course, there are more than just 5 important things you must know. So, we wanted to provide you with a few more. Following are 5 more things investors look for when evaluating your company as a potential investment.
What makes your startup unique?
It may be true that everything has been thought of and done before. If this is true, that’s no excuse not to pursue your idea and be innovative with your product. How is you invention cheaper, faster or better? You have to bring something different to the market if you want investors to pay attention to what you’re doing. If you’re not the first to do what you’re doing, you need a competitive advantage. So, what is yours? Competitive advantage is a concern for investors, and something they will be looking for in your startup.
Why are you the right person to work with?
What makes you the right person to invest in and form a working relationship with? What prior experience do you have in the area you’ve launched a business in? Know your whys behind the whats, your qualifications and experiences. Though potential investors will conduct their own research on you and your background, refresh your bio, if you need too, and have your qualifications and experiences front of mind so you’re ready to discuss them when the time comes. When an investor is considering pouring their money into your business, they’re considering taking a huge risk on you. With that, they will want to see a track record of your past achievements, leadership skills, high performances with companies you’ve worked for prior to striking out on your own.
How big is your market?
Market size matters! The bigger the market potential the more confident investors feel that your startup will be wise investment for them. Investors will also want you selling and engaging your market significantly before they come on board. This is proof that you have reached your target market.
Mind your milestones
What are your startup’s goals? What will be your markers of continued success? What key metrics will you be watching that will mark major milestones for your startup? Will adding to your team be a measurement of success for your startup? Know your challenges and weaknesses, and have a strategy for tackling both. Expect to demonstrate your strategy for growth and talk about the milestones that will mark growth to investors
Momentum will be defined in different ways from startup to startup. It may be the number of users you have, beta customers, revenue, major press coverage, partnerships being made, etc. Basically, signs of growth and progress. Momentum is one way investors determine what you and your team are capable of, and these are very good signs that contribute to an investor’s overall confidence in your startup’s success.