Every startup hopes for an offer of funding. Plans are great but without resources, it’s tough to get off the ground. As your startup takes root, while you toil with early stage development, make sure you are not vulnerable to an investment storm. Whether you are courting a bank, a venture capitalist, or some type of partnership, here are a few key considerations to keep in mind.
Cultivate The Right Crop. You will prosper best when you work with experts in your industry, those who understand the dynamics that come with your company-size, and players who have pursued similar market opportunities. Align with experts that can make introductions that fit your needs and steer you away from tempting mismatches. Seek advice from industry experts who can identify the best investors for your company. The perspective they bring will help you plow through the many options and find those that fit.
Pick The Perfect Partners. Do not accept the first offer that comes along. Ask questions and get to know your investors. If their answers don’t fit your vision, be prepared to walk away. Understand that getting funding is a critical milestone for you and for your company. The partnership must be mutually beneficial. What advantage can an investor bring to your company and what can your company bring to your investor? Cultivate an investor relationship that is aligned with your vision and your culture.
Plant Your Seeds Wisely. Investors, employees, customers, prospects, and the industry will look at what you do with the funds received. Make sure the actions you take are aligned with your vision. Above all, be true to your story. If you aren’t ready to scale, don’t do it! Keep focused and expand when you’re prepared to manage the added aspects that manifest with growth. Don’t over-fertilize the startup in an over-zealous push. Let your idea make it’s way forward in health.
The startup ecosystem is full of opportunity, and risk. Build your idea and stay true to it. Find the right soil to nurture your startup to weather the storms and thrive in the sunshine of success. Let your idea take root and grow into an outstanding business that yields greener pastures.