Getting your feet off the ground when starting a new business is difficult to say the least. The biggest concern for any entrepreneur is where they will be getting their funds, no money no execution.
In the recent years, thanks to shows like Shark Tank, that have featured successful venture capitalists aide blossoming companies the popularity of Mark Cuban like figures are more highlighted than ever. The question is that with all the pitches VC’s are exposed to, how are you going to stand out? Andrew Medal from Forbes did a little digging and field work to find out what venture capitalist firms are looking for in their next investment.
1. Aim to Solve
The greatest ideas come from the yearning to solve an issue in your personal life. Look at the washing machine for example! It completely changed the washboard game. Like the washer and dryer, many companies aim to solve the issues that arise when procedures are services can be more efficient or productive. It doesn’t stop there. After you solve this “problem” what’s stopping another entrant to come in a make something similar or faster or smaller? Nothing. Which is why continuous innovation is key to maintain a competitive advantage. Take a look at this article to maintain and grow your marketplace. Don’t stop pushing if you are at the top because it’s going to be an arms race out there.
2. Passion AND Strategy
Most entrepreneurs looking for an investor are passionate about their project. It’s great and crucial for a business owner to know the heart and soul of a company’s purpose but that is only half of the coin. A business owner must also understand the strategy game comes with growing a business. Where to market, who to target and how to build teams. If you do not have these abilities to maintain the structure of a business, consider taking on a partner that has a more business oriented mindset before you pitch your product.
3. Be the Next Hoverboard
Firms love working with companies that have a grasp on the reality of the changing future, especially in tech. Try to think of the future when it comes to your product. Collect data and figure out what it is that the next generations will need. Getting a head start in the future department can help you land that check. Check out these tips for startup success.
All in all it’s just a matter of knowing your product and where you stand in the market. Be genuine and personable and things will go far for you!
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