Not everyone can put business ideas into practice without external financial support. Entrepreneurship often has hard beginnings; however, it will stand on a more solid foundation if everyone knows why and for what price they entered the business ...
And this should also be known to your investors; therefore, Francine Hardaway, co-founder of Partners Stealthmode, has shared via the Fast Company three questions which she had to face fifteen years ago when founding her company. Make sure that you have an immediate answer to possible doubts from investors.
Do I want to be a part of this business?
This question tells you that it is never about a product or service that you are currently providing but about the way you shape your business. The mentality of your business is usually formed around the average product(s) that you offer. Even Microsoft may not offer the best products in the world; however, it does have an incredibly profitable business.
Some products or plans may have a great idea hidden at the core, but will never be an investor target because the target group is too small, there are too many legal barriers, or you are unable to provide adequate material or conditions for production.
Do I want to work with this team?
Okay, the business has potential but what about the people who manage business processes? Perhaps this question is the most important for the investor to consider. Sometimes the entrepreneur does have all the prerequisites and properties that correspond to the expectations of the investor; however, the team is made up of inexperienced or not very loyal employees.
Hardaway says that she often encounters entrepreneurs who are trying to do everything themselves without the help of other people whom they would like to invite to the team but think they do not have enough money. Conversely, it also happens that they lack financing precisely because, among other things, they do not have their own team. The author believes an entrepreneur without a team is a bad bet for investors. There are weaknesses in certain aspects of the business but no one who could strengthen these areas. Moreover, who will lead the business when the entrepreneur him-/herself will just not be able to do it?
The best entrepreneurs generate such enthusiasm that attracts other people, who jump on a speeding bus and will drive the business forward. If this does not happen, then they are not the right people for your startup.
Do I want to be a part of this company right now?
Is it the first company in the market, which can be a problem because the market will need to be educated first, or is it another of similar businesses on the market that may already be oversaturated? Proper timing of entry is a key. Think about this when coming up with your business vision.
Are your thoughts attractive enough to become a business opportunity? Do you have the support of a strong coherent team? Is the timing right? If so, you will ward off an investor's concerns.
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