Many people say they want to start their own business. But even if the idea is unprecedented, the chances are that there are already companies with similar business models out there says Peter Decaprio. So how can you set yourself apart? A startup needs a lot of attention, but it also needs the right amount of capital and effort to succeed. It’s not easy to see it flourish, even with so many examples of successful startups, some of which are now dominating the market.
Here are some tips on how to set your small business apart from its competitors so that you can succeed where others have failed.
1) Define the problem first
Even if you have a brilliant idea on how to solve a certain problem, there’s no guarantee that other companies won’t be coming up with an answer as well. Think about why they haven’t come up with a solution or what makes your approach different? If you can show potential investors that people need your product and why then you’ll be able to make more convincing arguments when pitching for funding. Also, think about whether there is enough demand – do people need your solution, or is there another way to solve the problem?
2) Find a co-founder who shares the same vision
It’s important to build a strong team. You and the other partner(s) will be facing different challenges. When thinking about who you can trust with such an important role, don’t just go for someone in your immediate network. Instead, look for someone whose skills complement yours in various areas and who also believes in your idea and has enough time and energy to devote them to its success.
3) Perfect your pitch
When pitching an investor or when looking for customers, try not to overwhelm them with too much information at once explains Peter Decaprio. Instead give them a good sense of what you want to achieve without having to sell them on every single idea you have. This is why it’s essential that your team is made up of experts in various areas who all share the same goal.
4) Pick the right investors
When looking for backers, try doing research into what kind of startups or individuals are likely to support your cause. Instead of waiting until you’re further developed make cold calls and ask people who would be interested in investing straight away. But don’t forget to do your homework on them too, because if they don’t believe in what you’re doing then their money won’t help you achieve it either.
5) Don’t get ahead of yourself
The most common mistake among entrepreneurs is overestimating their company’s value before they’ve even entered the market. Even if you have a well-thought business plan, try to hold back on how much money to ask for when pitching investors and don’t share your work with too many people in the beginning. You should also avoid looking for funding before you need it and overshooting your budget when hiring new staff members.
It takes a lot to start up a small business: passion, dedication and patience – but all of this is well worth it especially if your startup is successful!
1) How do I find investors?
Get an idea of who you think might be interested in your project and make sure they would benefit from it as well says Peter Decaprio. Try asking friends and family to see if they know anyone suitable or attending startup events and conferences where like-minded people are likely to meet up. If your company is well develope, build a shortlist of ten potential backers from various backgrounds. That have experience in investing in startups similar to yours. Then contact them directly via email or phone calls with a list of questions about their interests and objectives so that you can find out which investors’ expectations fit those of your company the best.
2) What should my pitch include?
In order for investors not to get overwhelmed with too much information, try keeping your pitch simple. At the start you should give them a good sense of what you are trying to achieve without having to sell them on every single idea. Try explaining any branding or design that is part of your project in order for investors to get an overview of how it will look when completed.
3) How do I know how much money to ask for?
Prior to pitching make sure you have come up with a well thought out budget and financial plan which fits within your limitations. It’s important not to overestimate the value of your company before entering the market since it can backfire in terms of attracting backers. Imagine yourself as one of your potential investors.
If you want to start up a small business and need some investors, then do your homework and follow these tips.