Essay 5 Questions To Ask To Know YouRe Investment Ready

5 Questions to Ask to Know You’re Investment Ready In the lifecycle of a startup, nothing is as important as fundraising. You will need investment to turn your business idea into reality. But just because your startup needs money, doesn’t mean it’s ready to attract investment. Indeed, plenty of startups fail to raise funds. So, how do you determine your startup’s investment readiness and what does it mean? Here’s a look at this all-important subject. â€Å"Is the market big enough?† Investors are looking for big returns. In the case of venture capitalists, the expected returns can be anything as high as 10x the investment. Therefore, investors need a demonstrable market opportunity. Essentially, you need to know whether the market is big†¦show more content†¦You also need to demonstrate an ability to enter the market and cut a sizable piece of it. Your startup needs to showcase momentum. What showcases momentum? The first step is to sort out the problem/solution dilemma. You need to understand what problem your product is trying to solve and then highlight why your product is the best solution to it. You need to have a clear competitive advantage outlined. A competitive advantage could be the intellectual property or just the business model you use. For example, you might be able to find new customers at a lower cost than your competitors or you might be able to launch the product globally quicker than others. Ideally, you need to have a clearly defined competitive advantage and then be able to show real traction with the product. Investment ready businesses are not necessarily those who already have a huge amount of paying customers. An investment ready startup is one that is able to show a huge interest and momentum building up. Therefore, you need to have a plan of acquiring customers – investors will prefer a solid plan over mild results. Show how you will grow – what your predictions are in terms of gaining customers, how fast and how many, and what it all will cost. Your second major move to show momentum is about showing startup interest towards your product. Launch a website and start gathering signups for product launch or test. Get letters of