Successful startups have many things in common, but also have many differences, making them unique, competitive and innovative. Building a company from scratch is not an easy job – it requires much more than talent and hard work. Even though there isn’t one recipe to follow, the key ingredients of startup success are easy to define – great product, impeccable business strategy, talented and experienced team are just three of these essential elements that determine high achievement. But even the best business ventures need resources to operate. The starting companies need money, but often struggle to secure funding.
To help entrepreneurs understand better the importance of learning about raising capital, pitching, networking and choosing the right investor for their company, here we will focus on the top three startup funding myths and debunk them in order to save you time, stress and, well… even money.
Just focus on the product
Many business owners believe that if they build good product and manage to secure sufficient market share, the investors will start knocking on their doors. Similar scenarios have been told by successful entrepreneurs, but the truth is that this is not the full story. It rarely happens that easy. The entrepreneurs must work hard towards building the reputation of their businesses as companies that have the potential to grow before they even get the chance to win the attention of investors. Don’t focus solely on the product development, but also think about the full potential of your business and all future opportunities.
Take the first offer you receive
The entrepreneurs must focus on every aspect of their venture. The investors always look at the bigger picture, so you must be prepared. When an offer is received, take your time to think about it, to analyze it in order to have better judgment over the terms and conditions. Don’t rush with the decision-making when you get the first offer on the table. Evaluate all the conditions and think about every little detail. It is also advisable to consult yourself with an expert in order to help you understand better all the financial aspects of the deal. Remember that you have the power to negotiate a better deal.
Rely only on investor money
The entrepreneurs must remember that the investors are also taking a risk by choosing to fund a starting company. By investing their own money, the entrepreneurs show their dedication to their venture. The investors need to know that you are completely devoted to the business. Otherwise, why would they invest in your startup if you as an entrepreneur are not fully in? Get on board!
