Making a successful startup is itself an achievement. It is like winning a Lamborghini Sesto Elemento in the daily sweepstakes or like making something out of gold. Some had it served to them on a silver plate, some had to earn it hard whereas some just played by the rules and got it as a result of their dedication and commitment.
When the startup begins functioning, it starts working on a product intended to serve the target audience well. But it should be understood that challenges exist everywhere, especially when the company is nascent.
Communicating to investors how the company plans to tackle these challenges in a convincing manner will help investors secure their money. Else, it all falls down like a building razed down for destruction.
The occasional mystery is always present and that shouldn’t trouble anyone. As a professional, improving skills, perseverance, exhibiting business acumen and improving problem solving skills in tough times is a good sign, but not everyone can do it, and that is okay too. However, investors are at times quite picky but there are some who are really understanding of everything.
Keeping all these things in mind, it is time we read this post written by expert app developers Toronto who went through thick and thin to run their own app development firm while starting it from scratch seven years ago.
Getting the pitch deck ready along with the needed financial records for the startup
Hard numbers and hard data will always remain a part of business reporting. Most digital startups lose money in the early stages of their working, and can continue depending on the way owners are running it. They either become successful, merge into a company or end up getting closed.
What is important here is that startup owners can lay out their plan sensibly to make sure not much money ends up wasted.
Each startup initiated is run like a slingshot. What it indicates is that owners often act at a time when they find it right. Meaning they launch the ammo at the target at the needed speed and trajectory when the target is in sight.
Running a startup is like playing a risky game of Russian Roulette. Everyone wants to hit the target but the target is often out of sight. Those who miss try again but it then results in a loss of money. Meaning, a robust top-class app is not a game of luck, it requires manpower and technology, and of course a handsome amount of money.
Burning down all that money just for the sake of experimentation and trying to hit a bullseye without setting proper goals, is plain and simple foolhardy tactics coming from inexperienced professionals.
Furthermore, no startup owner should be expecting investors to be part of their momentum and enthusiasm about their work. All they want is results, and profits, and not all investors are tech savvy. If they don’t get the return on their investment, then they’ll eventually pull the plug and things will hence go in a downward spiral.
Not all investors are excited about what a startup does, they all want a handsome return on their investment. Individuals who are financially astute will be interested in what the digital product holds and how and when will the startup give very good returns.
What are the key things investors look for in a startup?
Uber and Spotify we’re startups once, and they came at a time when these app ideas were platinum in a world of copper and iron ore. Now they have reached the top. They are cultural icons but no one knows the amount of hard work, toil and trouble that were put into making these apps work and make it to the top charts.
In short, startup owners need to be honest about their expectations and plans at all times.
Here are some things that will help add a bit more detail to a startup’s strategy, especially that of the owner. They will help paint the real picture of what has been going on and in what ways can they look to improve:
- How good have previous attempts at securing funding been?
- Which people are part of the startup’s management team?
- Is StartUp making its entry in the right industry and catering to the correct target audience?
- What is its level of traction?
- Does StartUp have any advantage over its competition?
- What is the product vision and the roadmap, the StartUp’s management has in mind?
- Other key factors.