10 REASONS WHY YOUR STARTUP IDEA DOESN’T GET FUNDED

fundingYou might have enough passion to fuel your desires to become a startup entrepreneur. You might have the right skills and qualifications to represent your idea. In fact, you might have everything – the qualities that every startup entrepreneur should have. But your idea just isn’t selling. What’s going on? Take a look at these top 10 reasons.

1. Your Business Idea isn’t scalable

Think about the big picture. Is your idea capable of being expanded into a large scale once it clicks? If it doesn’t then it probably has to be shelved. Think about how investors are always after ‘the next big thing.’ That ensures longevity and, of course, a healthy cash flow.

2. Your Pitch Deck or Executive Summary is Unsatisfactory

Ever heard about the ‘elevator speech?’ How good is yours? If done in writing, how long is it? How valuable is the information in it? Does it appeal to an investor’s sense of interest? What merits does it have? Where’s the money in it? Think about it.

3.You’re Not Prepared

If you keep on thinking about how perfect your sales pitch is, then you’re prone to ignore potential questions that investors may ask. Be prepared as though you’ll be attending an interview. Anticipate questions and frame your answers based on your idea’s potentials.

4. Prove that the Idea is bound to Work

The keyword is ‘traction.’ What is it? It’s when there’s initial proof that your idea is getting attention. Do you have a respectable traffic on your website? Do you have app downloads? Do you have press coverage? More importantly, do you have sales? Remember: unless there’s traction, your idea remains an idea.

5. You Management Team is not qualified

You’d have to have a powerhouse management team complete with the right credentials, experience, and knowledge have to have your back. The quality of your management team matters to investors. Not only that, your team has to share your vision, your dedication, and hard work.

6. You insist on not having Competition

Believe that every idea is has a corresponding competition out there – whether known or not. You might not have spent time analyzing your competition before talking to an investor. So learn your competition’s deficiencies and demonstrate how your idea can address that.

7. You’re Financial Projections are Unrealistic

If you’re looking to rake RM10 million in merely five years, you’re being unrealistic. Base your projections from facts and by considering how your idea can grow into a profitable business in the coming years. And never assume.

8. You’re Not Tapping into a Market Needs

Your idea has to address an existing market need. Consumers have to find value in it. Consumers have to decide to go for it because it is unique. Above all, it has to be able to evolve with time to address the changing needs of the market.

9. You Don’t Know How to Attract Customers

Do you even have a target market? If you don’t, you have to find it. Your customers will help your idea and your business to take off, so they have to a part of your equation. So establish a customer acquisition strategy.

10. You Don’t Know How Your Idea Looks Like

Your ideas will remain intangible forever unless you have a functional prototype or a video simulation of how it will look like. In as much as your idea is important, it’s also important for investors to see what they’re putting their hands on. Your presentation, then, complements your product.

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