What Kind of Business are You Building?
1. Which of the following 2 businesses would be far easier to make a successful business out of?
A business where people WANT your products and or services.
A business where people NEED your products and or services.
It is a fact that people spend over 90% of their entire resources on what they NEED in life so clearly it would be much easier for you to create a successful business selling something that people NEED, rather than a business that sells something that people want.
2. Which of the following 2 businesses would be far easier to make make a successful business out of?
A business built upon something completely new?
A business built upon something existing?
It is a fact that over 90% of really successful SME's are those businesses that have simply worked out how to deliver their products and or services better than their competitors as well as learning how to tell everybody about them as quickly and as effectively as possible because it's the exception rather than the rule, where businesses without SERIOUS resources make it big with something completely new.
So...unless your idea is amazing and you also have a fortune ready to invest, then allow us to show you how to clearly deliver and market the products and or services you sell or want to sell, better than any of your competitors!
If you do have a great idea but no fortune to invest yourself, then the best advice we can give you is...never get into business with any investor who does not bring something special to the table, which your business needs on a daily basis other than money.
Because you must be very clear in understanding that most every investor is simply looking for a return on their investment, with their investment criteria being; getting as much back, as quick as possible and with the minimum amount of input and risks possible to themselves.
Will investors also share your vision?
Most any investors will not be able to understand your business/idea anything like you will and in most cases, they will not share the same vision for the future of your business/idea as you do.
If you really think about it for a little while, then you will very quickly see the potential problems that are ready to happen before you even begin a relationship with an investor becuas ethey will want to have their say if they are investing their money.
Therefore; it is imperative that you consider investors with skills that your business needs on a daily basis and which they are willing to invest into your business, unless of course you are able to secure a concrete agreement with them, where they are willing to invest in your business with very minimal say and where they accept your conditions as you truly require.
If you do find such an investor then please let us know!
Will you really be able to secure an investor for a new business/idea?
As an entrepreneur, you must confront the reality that if your business is new then you are most probably not going to be able to secure a main stream investor.
Because most any investor will want to see a very considerable investment from you as a minimum as you are the inventor/business owner who is so confident in your business/idea that you are asking them to invest their money so if you are not confident to invest fullly yourself, then logically why should they.
An investor will also want to see supporting evidence that proves you have a successful business/invention history upon which they can rely. as well as a great team to back you up and preferably a team who also has a great business/invention history behind them.
Futhermore, if all of this were not enough, most every investor out there will want to see you have real traction and real sales or at least great usage so that they may be able to mathematically predict how this traction, sales and or usage could increased, should they bolster your resources.
Are there any other options available to you?
1. Collaborating with Academic Institutions - (Your business must "Educate People").
2. Government funding - (Your business must "Benefit People").
3. Securing a partnership with a potential manufacturer/supplier (Your potential sales forecasts must look good and it must be supported with hard evidence).
Research and Development Funding
Please note that in many cases financial support for research and development can be secured from the government but you would always be expected to be able to demonstrate great business acumen.
The securing of financial support for research and development from the government would also add great benefit to discussions with any potential investor and or manufacturer/supplier and if you were additionally able to secure an agreement with a manufacturer/supplier to get involved with your business financially, then again your chances of securing finances from a main stream lender would therewith logically also be greatly improved.
Please note that any partnership agreement with a manufacturer/supplier would have to be underpinned by perfectly defined roles, responsibilities and commitment for both parties, whilst also ensuring that the decision making process between both parties are also made crystal clear, just to ensure disagreements do not become a risk for an investor as well as yourself.
To find out about our Fast Business Development Program Click: Business Coaching now.