Succeeding an Investment is a very important step for a startup. But when is the best time for that?
Let’s start with some simple questions:
- What is your vision?
- Does your strategy support your vision? How do you apply it?
- How to you acquire new visitors and how you convert them to clients?
- What is your main branding message?
- Is your marketing strategy well defined including all new media?
- Is your company/product disruptive to the market?
- Why should one become your client?
- Which are the concrete steps to bring your company/product to life?
- How much have you invested in?
- What kind of investment do you seek?
I know. Right?
We all understand that all in this life starts with the limitless definition of who we are, as individuals and as companies. Many business owners appear to believe in their business, but it is obvious that they are not entrepreneurs. They do not bet all they have in themselves and their company. For sure the risk is high. How could it not. But the moment you have an idea which may set you free from a vicious
For sure the risk is high. How could it not. But the moment you have a unique idea and a solid plan of execution, simply do it! That actually, might set you free from a vicious cycle, a torment of knowing what should you do and not doing it.
Now to our original point. When do you need an investment? There are only 2 stages:
- When you create your first profit! X amount of self-investment vs. net income after you pay yourself a salary! Then you are a healthy business and meaningful to invest in.
- When your prototype/beta is ready or product inventory is substantial or service has a great Operating Structure and you need monies for marketing and sales. The obvious risk is that your valuation will be low and you will not be able to protect your percentage. At that stage, you might have to consider that you need more a strategic partner or alliance instead of an investor or a VC.
Obviously, it all comes down to how much do you believe in your idea and if that is your passion. All the rest are (many) piece(s)… of (a big) cake!
Ps. please don’t go to your beloved FF&Fs. Bad practice to involve them with a serious emotional cost.