BenPatterson
Joined: 24 Jul 2015
Posts: 8
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 Posted: Fri Jul 24, 2015 10:12 am Post subject: How to Position Your Startup as a Good Investment |
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The ideal for securing money is to raise everything in one go, which means you need to be very realistic with your projections.
If you don't like those numbers, see what your numbers look like if you cut your initial sales projections by 50 percent, and double your expenses -- then use that as a base and plug in an additional 30 percent in costs.
It's better to raise more than you need rather than trying to secure a second round of financing later on.
If you want serious investors, be a serious investment.
The real reason people opt for financing from friends and family is because they aren't willing (or able) to do the serious market research and due diligence to see if the business is even viable.
There's very little upside to the friends and family scenario and the payoffs are rarely as big as the downside risks: lost money, hurt feelings, families torn apart and friendships broken forever.
You're always better to go for a private group of investors or a private placement, which will force you to do the hard thinking and heavy lifting on your concept upfront. You'll also see if there is really a market for your idea.
Are those things a guarantee of success?
Of course not. You could have all of these in place and still not have a winning package. If you're going out to 20 seasoned investors and all 20 say "no," it's time to go back to the drawing board and reassess your concept.
property investment |
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