Article/Business
It is a known fact that entrepreneurs bootstrap when
starting out because of limited finance. This is one of the main reasons why
less than 50% of them survive the first five years in the market. To take your
startup to the next level, entrepreneurs are regularly searching for venture
capitalist and investors to invest in their businesses. Of course, startup
investors desire innovative companies to invest their monies. However, they
won't drop a dime if they do not see the following things highlighted by Jumia
Travel, the leading online travel agency, in your startup.
Strong leadership teams
To secure startup investor funding, show that you have
smart, strategic, and successful leaders. You must show the competency of both
your company founders and leadership team. So, endeavour to leverage your
leadership team’s professional experience for increased investor interest in
your startup.
Clear ROI
Return on investment (ROI) is the time needed to
recoup the initial expenses invested in a business. Most startups aim to
achieve this within the first one year of operations, but in certain sectors,
it takes considerably longer due to high entry costs and low-profit margins.
Would-be investors are aware that quite a number of startups that receive
venture funding are unable to immediately make returns. As such, they want to
see some real evidence that within a particular period, they will begin to get
these returns.
Consumer interest in your
product
Investors want to know that your product has a future
in the marketplace. So, the onus is on you to show them proof that it has a
market niche of its own and consumers are interested in your product.
Transparency
Transparency is important to increase investor trust
in your business. No startup investor wants to enter a deal when they do not
feel like they have all the facts. Be open and honest about the state of your
business, the challenges you are facing and how you plan to surmount them.
Growth potentials
Investors do not want a company that will be stagnant.
They want to invest in startups that will thrive and eventually provide a
return on their investment. Therefore, your business should be built with
scalability and growth in mind.
Leave your comment.
0 comments:
Post a comment