Being a successful entrepreneur would be a breeze if every idea came with its funding. Since this is not a fantasy league, before becoming a business owner with salaries to pay, every young entrepreneur must face his/her fears to attract the right investors. To our surprise, many motivated spirits and sound ideas don’t conquer this challenge. We end up confused, asking ourselves “What were these investors thinking? How did they take their decision?”. I might just have an answer for you based on the insight I’ve gained to investors’ minds during my professional experiences.
It all starts the moment an aspiring entrepreneur pitches his/her idea, and meanwhile a potential investor is judging its originality. Usually, a creative new concept combined with experience in the relative industry will rouse interests, thus scheduling a meeting.
Within that time, investors will assess a business’ performance. They will check for financial stability, evidently, and at research data as well. Note that financial aspects reflect a business’ model effectiveness, market size and existing partnership. Consequently, entrepreneurs are expected to answer questions relative to pre-mentioned aspects.
Following the Q&A session, investors take the time to study the proposition closely to verify its sustainability and scalability. A sustainable business is a business addressing not only financial, but also environmental and social demands. On the other hand, a scalable business is a business able to withstand fluctuations in volume without harming its profitability or efficiency levels. In simpler terms, investors will look for growth and evolution possibilities during good economy, and also for harmless downsizing strategies during bad economy.
Lastly, even if you don’t find investors right away, that isn’t necessarily the end of the road. You can launch crowdfunding campaigns, and start on a smaller level. After all, it doesn’t matter how slowly you go as long as you do not stop.