Ways To Make Your Business Investable
Scalability of business can only occur if your company has the funds to do so. Time as they say is the downfall for start-ups looking for angel investors. Speed to market is critical for start-ups. As a founder, it is an important aspect for you to make sure that your start-up is not just profitable but also growing. As such it’s imperative to make sure that your business is attractive to angel investors or venture capitalists. As a start-up consultant in Mumbai here are some of the ways I advise my clients to make their business investable. Read on ahead to know more!
1. Aim of your business
Make sure that your business fulfils a certain purpose or need in the market. For making sure that it does, an extensive market analysis must be conducted in the niche. Start-ups with specific aims and ambitions attract not only the right kind of angel investors/venture capitalists but also the right team to back them. Purpose-driven start-ups are known to maintain their customer base and customer loyalty along with rising profits. Once the aim of the start-up is known, the integral heart as such is found.
2. A good team that backs the company
A good team is everything to help to make sure that a start-up can succeed. Business advisors push start-up owner to make calculated and well-thought-out decisions while hiring the core team of the start-up. Angel investors themselves are looking for companies that have a good team that is adaptable and able to go with the punches per se. They must be the best at what they do. Work experience, in the long run, goes a long way. It’s always noted that solo-founders are not those that an angel investor would necessarily invest in. A great team will not just attract more people to want to work for the company but also investors who will not just invest but put their heart and soul into the company making sure that they use their industry expertise to make the start-up thrive.
As a start-up, you must identify what type of market friction you are trying to solve. There are three types of investments known to turn into investment opportunities for angel investors. Market friction expected friction and latent friction. Once you identify the friction it becomes easier to identify what kind of investor you are looking for and how they will be able to help in the long run.
Is the product or service that your company offering better than the competition? If the answer is yes then for sure go ahead with outing your all into the company and taking risks. If the answer is not 100% yes the wait. Work on your product, see how it fares on a demo population. Understand the nitty-gritty of how it all works. Only once you are convinced that your product/service is better and faster in a way that compels your customers to come back, then you can go ahead. Because by this time you know that you are on to something.
About Devansh Lakhani
Director of Lakhani Financial Services and a Chartered Accountant helps in start-ups funding India from his network of investors. He guides and advises start-ups to scale up by providing efficient sales, marketing, team building, and business management strategies. Being a business plan consultant he has executed fundraising by block deals on the stock exchange and conducted IPOs and right issues on the SME platform to the tune of over Rs. 50 Crore. He is currently working with start-ups from various sectors to help them channelize their business models and investments.
Check out a blog about Lakhani Financial Services written by Karo Startup here.