A startup is a blossoming firm established by one or more entrepreneurs to produce a sole product or service and bring it to market. By its nature, the typical startup manages to be a shoe string operation, with primary funding from the originators or their friends and families. An investment is a resource or item including with the goal of generating income or appreciation. In an economic sight, an investment is the purchase of goods that are not occupied today but are used in the future to create prosperity. In finance, an investment is a monetary resource purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.
An investment always concerns the outlay of some assets today (time, money, effort, etc.) in hopes of a greater payoff in the future than what was originally put in. If you are thinking of opening a startup here are some tips to convince investors to invest in your startup.
- QUOTE MARKET RESEARCH AND INPUT FROM OUTSIDE EXPERT
No matter how passionate you and your friend are about your solution. It doesn’t mean that you will build it they will come. Seek evidence from recognized sources, like Gartner group, and spend time with industry experts and real customers, before quantifying your opportunities and prices.
- START SELLING IT ON SOCIAL MEDIA BEFORE BUILDING IT
Marketing is everything these days on the average it takes as long to build marketing momentum as it does to build the solution really listened to the feedback you are getting if you wait to begin marketing until your product is final you will find it very expensive to pivot to meet real-world input.
- BUILD A REALISTIC REVENUE MODEL AND PRICE, BASED ON COST
The three models with an implied intent to monetize later doesn’t work with the investor’s anymore it takes real money to sustain a business with the margin in the 50% range and some realistic milestones and metrics said at least one at full price to a real customer to show traction.
- DOCUMENTS AND INITIATE A MULTI FACED MARKETING PLAN
Word of mouth and viral marketing alone is not adequate and a website is not all you need for your credibility to get visibility and distribution for scaling plan on one or two levels of partner relationships as well as real events and promotions early transaction and marketing and sales results.
- GATHER EARLY TESTIMONIALS AND COMMITMENTS
Great customer experience expectations these days span the range from shopping, closing, delivery, usability, to support. If you don’t have real customers focus on that. Penetrate into recognized retail and distribution outlet
If you achieve all these five tips you will be able to convince any investor to convince in your company.