Start Your Startup – Investment Is Not The Only Way

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Let me start by telling you a story about a well-known product called Intuit, Intuit Inc. is an American business and financial software company that develops and sells financial, accounting, and tax preparation software and related services for small businesses, accountants, and individuals. When they previously started the company in 1983 they had no cash, and they were seeking to get investments, so they made their first proto-type and started visiting investors, the only thing they got was a refusal, and the reason behind it is that investors seek startups that they can see future growth, and at this point, Intuit was not having any sort of traction. The founders were running out of cash, so they got about 151,000 USD as a loan from rich people and they started implementing some sales and marketing to reach several companies to work with, to cut the story short, after maybe 5 years Intuit had made good traction without 0$ of investment and they were valued of about 100M USD without any single investment, when they started growing faster, investors started calling the founders, asking them to invest as they have seen great potential with their company, here it was Intuit and the founder’s advantage to choose between investors and not vice versa.

Who Are The Investors?

An investor is anyone who puts money or anything of value into a business or cause for a financial return. Investors come in all forms. Some investors put money into startup businesses hoping that these companies will become the next industry leaders; these investors are referred to as venture capitalists.

They are people who seek financial growth, not investing in one startup but a lot of startups per year, and according to their study 1 or 2 out of 10 might succeed and make a huge return for the investment they have made in the 10 overall startups.

When To Get An Investment?

This question that is sometimes missed by a lot of entrepreneurs as they get an idea, validate it and then starting to search for investors, as to get more money to start their business, this is not the normal case, because investors seek businesses that have goodwill to be a successful one. So, when to get an investment? two cases for getting an investment, the first one when your business is running out of cash “reaching fume date”, the second case, when you are increasing the valuation of your company and you need to make a higher growth rate with a higher valuation. This means that you can even start, validate your idea and make some traction that makes investors the ones who want your business, not the other wayside, people who are desperate for investment and valued with less money. Push yourself, business, and people around you to do your best as to be choosing between investors and not a desperate business seeking investment to continue.

How To Choose An Investor?

An Investor is not only a source of money but also mentorship and advisors. When choosing an investor you need to be careful in understanding how did those investors dealt with other startups before, how did they work with them on the board membership, were they mentoring the founders and advising them or making decisions and not leaving the founders the space to work.

Please be noted that Investment is not that easy thing, these are entrepreneurs or rich people who want to get their money back with a profit margin, so they are not people giving you charity money so you can take and do whatever you want to do with, study the investor as they are studying your business.

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If you want to read more about Entrepreneurship and how to start your own successful business, check the below section of everyday lesson: https://davidthabet.com/category/entrepreneurship/

Also, you can find our online course about how to start your startup go ahead and sign in and take it:  https://www.udemy.com/course/draft/2913948/?referralCode=4C43581E89BAA9D8E80D

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