In the last few years, India emerged as one of the countries having the 3rd largest Startup ecosystem in the world with consistent annual growth of 12 – 15%. With having Startups around 50,000 in 2018, India is witnessing at least 2-3 startups every day (Source). The world witnessed at least 1-3 startups per second. But how many startups became successful in the market? According to a report, out of 10 startups, just only 1-2 startups entered the success zone. So, what makes those 2 successful startups different from the rest? Because no one invested in those 8 startups.
Startups need investment for technical support, Marketing Research, Marketing, Legal and Professional Advice. Now the question arises, what are the parameters that made the investor invest? The question that will hit on the Investor’s mind at the time of investing in your startup:
“Is your startup good enough to invest in?”
Features of Good Startups :
The business model makes a heroic role for an investor to determine whether he/she should invest in your startup or not, as the entire concept of your startup lies within this. It should catch the eyes of the investor. New ideas and innovations are always welcomed by the investor. Also, using the existing ideas or technology with the addition of some innovation and features is appreciated.
An investor always wants profit. To get profit, you should start a startup keeping in mind the customer’s needs. This can be an idea that solves the problem of the daily needs of the customer. For example, decades ago, people in India had to wait for Taxis, but now apps like OLA reduces all that time as now it can be booked from anywhere.
Marketing plays an important role in any startup. If you are providing a service but people are unaware of that, then you will not get any profit. Hence if marketing is good, it will automatically catch the audience’s attention and will subsequently lead to profit and gain investor’s attention.
If your team consists of members with perfect knowledge and ideas, then no investor will hesitate to invest in your startups because they know your team will be able to cope with any difficult situations, if it arises.
The uniqueness of your business idea will make your path to success easier because there is no competitor in your area. Hence people will depend on you for services. More chance of service means more profit. Hence investors will try to reach you.
For example, according to a report released by Central Pollution Control Board (CPCB) in the national green tribunal, India generates about 101 metric tons per day (mt/day) of covid-19 related biomedical waste. This quantity is in addition to the normal biomedical waste generation of about 609 mt/day. One of the best ways to utilize this waste is to prepare bricks from it. This idea is very much unique and hence will attract investors. (Source)
Timing plays a very important role to excel in any area. Hence if your startup is launched at proper timing, it will benefit you. For example, before Lockdown was imposed Worldwide, only a few people knew about Online Meeting Platforms like Zoom, Google Meet (Source). But today we are completely dependent on these platforms. Since according to the latest trend, Investors will try to invest hence if your startup is something that walks with the latest trend then it will catch more investment.
Knowing the competitor and their weakness is the trait of a good startup. For example, education platforms like BYJUS, VEDANTU, TOPPERS, UNACADEMY are leading, All these platforms have the same objective, – to spread education but what made them different is the unique features that they added. Some features that BYJUS offers may not present on any other platform or vice-versa. This competition helps them to grow. (Source)
Investors will always want to invest in that startup, which looks more dedicated to providing services. Just like always remember a singer singing a song in different movies on a regular interval of time, rather than remembering someone who used to sing once or twice in a year. In the case of Startup also, if you are providing service with consistency then the profit will be also inconsistent. Hence, it will attract Investors.
If you want to catch the eye of the investor, then start your business with a scalable idea. The idea of scaling deals with whether your fixed cost is high or low, if you can add more customers to your business without increasing the cost, your business is said to be scalable.
Plan – B
If your Startup does not have Plan B, you cannot succeed. Having a plan B doesn’t mean you are accepting your defeat, but it means you have a clear intention in your life. it is the characteristics of a successful entrepreneur. Flexibility is the key to success in a business. If you don’t have plan B, you will lose, just like when you put all your eggs in one basket you lose them all. Plan B is something that saves us when our main plan doesn’t work. Having multiple plans makes you more creative. Let’s take a look at the journey of PayPal. The company PayPal was started to serve as a mobile encryption platform. They change themselves to Mobile Payment Company. Then they launched new features that offer a Combination of Mobile and Website Payment. Today, PayPal is an Email payment company. They never shifted their focus from their business model that is based on operating payment systems but they change the nature of their business multiple times.
Hence we can conclude that to have a good startup proper research and knowledge about that particular field is very important. We can’t cross the sea just by standing at the beach and seeing it. To build an empire, one should have the motivation, dedication, passion and positive attitude towards goals. Your startup should be prepared in terms of strategically as well as financially. As told, “It took a miracle to get investment if investors are not impressed with the team”. In order to impress the investor, the features mentioned above are really important. For more amazing articles check out Insellers.