To a lot of investors, investing in a company is like gambling. Betting on the grounds on the odds of success are always decreasing. While each businessperson is certain they will succeed, it is the role of the investor to look past that all-consuming conviction and see whether they’re really to bet on you and your company.
Your company is going to need funding from an investor. You have to know what will make an investor say yes to your proposal, or keep running the other way. This article will show some of the issues that may stop an investor from investing on you. Buy & Sell products POS
When an investor decides not to invest on your startup, they always take the time to think about their decision and tell you. Here are some of the common reasons why investors might refuse to invest in your company.
LACK OF STRAIGHTFORWARDNESS /HONESTY. In the event that we distinguish that an author is not being direct or is being dishonest, we promptly lose intrigue. Investing depends on a lot on connections and most importantly relationships; dishonesty does not bode well for a relationship. Selling Online
NOTHING EXCLUSIVE/DEFENSIBLE. When you don’t have something that is exclusive that makes it faultless against business contenders, we will lose a bit of our interest.
DON’T KNOW ANYTHING ABOUT THEIR KEY PERFORMANCE INDICATORS (KPI). The success of a company and the company founder’s knowledge of its KPIs has a direct correlation.
SHORT RUNWAY. When we put resources into a business venture, we want to see that its post-close runway will be no less than 12 months.
TAM is too little. For a company to accomplish exit velocity, it should address a sufficiently extensive market to make the investor think of the importance of its upside income. On the off chance that an organization can’t show to us that the span of the market that it addresses is sensible, we typically don’t invest in it.
THERE IS NO VISION. We like to put resources into companies whose makers have a reasonable vision for how to develop the company to 100x its present size.
THE BUSINESS MODEL IS UNPROVEN. You should convey some sort of ‘business model verification’. How would you plan to profit and do you have evidence of that on a little scale? You will lose our investment when you cannot answer the question.
This is not a comprehensive list, but this gives you a look at how the mind of the investor might work when facing you, the business owner. Point of Sale: Retail and Travel Weekly