If I have a good idea, I'll be able to find startup capital
You may think it's a good idea, but that doesn't mean it will be good enough to
secure start up capital
. Millions of people "have a good idea" and frankly speaking, 99% of them aren't
that good and even fewer are properly executed on. The odds are, you probably fall
under the 99% category.
Is the business fundable?
The biggest deal stopper is a business that simply is not fundable. How do you
tell if your business is "fundable"? A fundable business will have a scalable business
model and should already have paying customers. Do you have customers writing checks
to you right now? That's the easiest way to tell if it's truly a good idea.
Must have potential for a huge return
Let's be realistic here. You probably didn't just discover a "$50 billion market
that's completely untapped". And even if you did, don't state it like that or an
investor will probably shrug you off. With that said, your business does have to
have the potential for substantial returns or it's not worth the investor's time.
"Substantial" is pretty subjective, but it's fair to say that your business should
have the potential to bring in at least $10 million to make sense to any investor.
It's time to execute
Can you execute on it? Do you have a track record of successful startups? There's
a reason that 9 out of 10 businesses fail. What will make you execute on it better
than somebody else that comes up with the same idea or takes your concept when you
come to market? And please don't say a patent--a patent won't cure everything. People
get around them all the time and you'll spend most of your own time trying to battle
people half way across the world that have infringed on your idea. Besides, a patent
won't help you execute on your business model and take your venture to the level
that investors are looking for.
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Your idea may not be as good as you think. First check to make sure it is "fundable".
Run it by some other entrepreneurs and maybe even an investor or two. If it seems
feasible, then work to execute on the idea.
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