The only part of my work I find challenging is to handle enquiries for investments. I find it very depressing when entrepreneurs start ideas to get investment. Their focus is less on business concepts, but more on defining on what problem they are solving and the next day they start hunting for investment.
Investors are not here to pay for problem solving or even solutions to nation’s or people’s problems. Their purpose is to only to make money – as simple as that. They would like to explore how your business idea can be supported and in return they could help you grow and make better use of all resources to make more money.
With intention to make profits it’s but natural they will be more keen on investment where they have a proven business model and established line of revenue. It’s very disheartening to see startups focusing on getting seed fund and basic investment and putting idea for sale. First ideas are nothing without a team and research. No idea is fool proof and without trial and testing no formula is perfect. Thus your idea without a prototype would be very difficult to attract any serious investors.
Any serious investor would look for a great team, leadership, growth plan and business plan which caters to long term sustainable growth. Ultimately every investor wishes to make profits out of his investments.
Shridhar Bhagwat is a management consultant who has spent more than 2 years studying 50+ startups and 15+ incubators.