Investors only invest in ventures that multiply in the shortest period possible, mostly between three to four years. This means that the ideas have to be good, address a large market capacity, and value of proposition should be strong and attractive. Reasons why some of our startups are rejected are:
1.Startup costs are too high.
Entrepreneurs may have great business ideas and projects to start, but when the assessment cost by the panel is way too high they opt for other investment opportunities. We need to carry out a thorough audit on our startups and should be based on past achievements and the business potential.
2.lack of records to proof past success.
This mostly affects first timers when they have not yet started the business, and therefore they don’t have any record to proof success in the business. You must present a well-documented audit report to the board, to show the milestones the business will achieve in the shortest period possible, so as to convince your startup is worth investing in, and has value for money.
3.Lack of focus.
This happens with mostly with entrepreneur’s who you launch products or services, and when they it face challenges they abandon the startup and venture to another, instead of staying on track, dealing with the challenges to improve the business and necessarily, targeting a certain group of consumers. This creates an impression that you are not serious and hence no investor will want to risk their money in your startup.
4.Lack of a market strategy.
You launch a product and start selling it to the consumers but that’s not all. You must have a plan on how to boost your sells, and market the company to gain competitive advantage over the other already established companies in the game. Your market goals should be well outlined.
5.Being narrow minded.
Investors are people who have dwelled in the business ventures sector for quite a while. They happen to know the common trends in the market, and also offer consultancy services to some well-established company brands. When they give advice you ought to listen and put to consideration. The point where we loose is when we become so defensive when suggestions are made to change our products and services, this turns away investors.
6.lack of knowledge on your venture
When you lack the general knowledge, and unable to give the insights of the industry you are to venture poses a threat to your startup. You have to know the past, the current trends, and the anticipated future trends of your venture. This not only shows your seriousness, but also enables you to be able to predict the future events. This also enables you prepare a well published blueprint on your future goals.
Refrence: young entrepreneur magazine
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