How to tell if your startup has the potential to raise capital

Have you ever considered how good-quality investors are really looking for a startup to consider whether the business is really worth the money to invest in? Right click the partner of Capital and Sydney founder Institute's joint Sensible Benjamin Chong in the article "3 questions enough to verify your startup's fundraising potential" has created 3 verification questions to help you solve this problem

Many entrepreneurs feel that as long as their business has been able to solve all the problems of investment, but you need money and whether your business is worth other people's investment is not the same. It's worth investing to say whether your startup has the potential to attract financing to grow your business. All startups need a certain amount of money to survive, but not all of them are worth the investment.

So is your startup worth investing in? Take a look at the following Benjamin Chong for this question.

1. Is your startup really solving an existing problem?

When starting a startup, you should be aware that before you start raising funds, your company must provide the world with a real value, at least as a part of providing value. Here are some of the things you need to consider:

• What is the problem that your start-up business needs to solve?
• Is this a real, specific problem or a perceptual one?
• Are there any potential users that have verified that you really solved the problem?
• How big is the market size of the problem?

"In the last one weeks, I attended a creative discussion, and the idea was to provide a personal electronic device to help people pay at the store checkout. This idea sounds interesting, but I don't see what the idea really solves.

2. Do you have an army of enemies to win?

The so-called great minds, in the same vein, creating a team that can kill and win is crucial. Before investing, investors will consider the comprehensive strengths of each start-up company, such as technical background, business skills, industry experience, and so on, that can bring the enterprise to success.

"A very good way to gain experience is to invest in a startup and help this starving enterprise Fly Eagle's sky." I have hired some of these employees (now entrepreneurs), and they have brought huge benefits to our business. At the same time, they learn how tight the pace of a business is in the early days of entrepreneurship and, of course, the overall upgrade of their skills from financing to telemarketing to graphic design. “

3. Is your business being sought after?

It is impossible for a start-up company to mention the interests of investors without or only a little bit of customer pursuit. Make sure that you are building a reliable customer base and get their popularity. This will allow the investor to determine whether your startup is really promising. Here are a few things you have to solve before you take your business to the next level:

• Do you have a user or customer now?
• User growth geometry?
• Do you have a good return on your customers ' purchases of your products or services?

"Investors need to see customers chasing your products so they can determine if your business is really viable." Whether or not you are being sought after proves that your product or service really has customer needs. “

Quoted English original: http://fi.co/posts/13491
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How to tell if your startup has the potential to raise capital