5 answers
ashley
Student
Elk River, Minnesota
2
Questions
Asked
1046 views
How do you know if your idea is good enough for an investor when starting your own business?
Do you have to have a super creative idea or would an investor put effort into something basic
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5 answers
Mila Kuznetsova
Research & Development
2
Answers
New York, New York
Updated
Mila’s Answer
Hello Ashley,
There's a wealth of insightful responses already in this thread! I'm in full agreement with the suggestions made and would like to further emphasize the importance of refining your ideas through discussions with friends, family, and potential consumers. Identifying your target market and obtaining their input is crucial. Depending on the nature of your concept, you might want to think about developing a prototype. Seek initial feedback and make necessary adjustments. It's possible that users may appreciate certain aspects of your idea while not being entirely sold on others. Don't let this deter you, instead, make the necessary enhancements and retest. Investors are always keen to support ventures that demonstrate an understanding of market needs and show potential for consumer interest. Best of luck! You have what it takes!
- Mila
There's a wealth of insightful responses already in this thread! I'm in full agreement with the suggestions made and would like to further emphasize the importance of refining your ideas through discussions with friends, family, and potential consumers. Identifying your target market and obtaining their input is crucial. Depending on the nature of your concept, you might want to think about developing a prototype. Seek initial feedback and make necessary adjustments. It's possible that users may appreciate certain aspects of your idea while not being entirely sold on others. Don't let this deter you, instead, make the necessary enhancements and retest. Investors are always keen to support ventures that demonstrate an understanding of market needs and show potential for consumer interest. Best of luck! You have what it takes!
- Mila
Olivia McDonnell
Consulting
23
Answers
Los Angeles, California
Updated
Olivia’s Answer
Business ideas don't need to be super creative to be successful. They need to solve a problem since that is really what customers are paying for.
First identify a problem. Next identify potential solutions. Evaluate each solution based on the ease of use, customer demand, the competition, and potential substitutions that customers are using today. The solution doesn't need to be elaborate, it just needs to solve the problem for the target customer. Never forget the problem you are trying to solve for and don't start with the solution before you have identified the problem.
Once you've identified the solution that you want to offer, evaluate what the minimum viable product would be. The minimum viable product is the easiest and most cost effective way to deliver the product/service you are selling. Companies don't need every feature in their first iteration. The first iteration is meant to draw customers in. As your customer base grows, you can add additional features to increase the amount a customer spends or attract new customers. Determine if the minimum viable product requires start up capital. If so and it is more than you have available personally, then investors may be a good idea.
Something to keep in mind is that investors take part ownership in your company in exchange for providing you the start up capital. This means that as the company grows, the investor receives a return on their investment from the profitability of the company. It also means that they get a say in how the company operates.
First identify a problem. Next identify potential solutions. Evaluate each solution based on the ease of use, customer demand, the competition, and potential substitutions that customers are using today. The solution doesn't need to be elaborate, it just needs to solve the problem for the target customer. Never forget the problem you are trying to solve for and don't start with the solution before you have identified the problem.
Once you've identified the solution that you want to offer, evaluate what the minimum viable product would be. The minimum viable product is the easiest and most cost effective way to deliver the product/service you are selling. Companies don't need every feature in their first iteration. The first iteration is meant to draw customers in. As your customer base grows, you can add additional features to increase the amount a customer spends or attract new customers. Determine if the minimum viable product requires start up capital. If so and it is more than you have available personally, then investors may be a good idea.
Something to keep in mind is that investors take part ownership in your company in exchange for providing you the start up capital. This means that as the company grows, the investor receives a return on their investment from the profitability of the company. It also means that they get a say in how the company operates.
Sharyl Allen
Lead and Coach
12
Answers
Helena, Montana
Updated
Sharyl’s Answer
If you've got a valuable idea that can benefit others, it's crucial to craft a comprehensive business plan. This should detail what your product or service is, how it works, why people would want it, its cost, and projected cash flow, among other aspects. Check out the YASS prize as a guide. It's a reward for innovators in technology and education, and it can give you insights into what potential investors might be seeking.
Thank you for the advice, sharyl.
ashley
Paul Morris
Portfolio Management
6
Answers
Elmhurst, Illinois
Updated
Paul’s Answer
First, this is developing a business plan. There are many products out there that will help you put one together. Anyone who invests will want to see at least the idea being created, the vision of how it will be delivered, and when profitability will start. I will provide more if you want.
Thank you for the advice.
ashley
Greg Quinlan
Custom Software Engineering Senior Analyst
3
Answers
Pittsburgh, Pennsylvania
Updated
Greg’s Answer
Start by assembling a compelling pitch deck for your concept. Utilize online resources to gain insights on what constitutes an effective pitch deck. Here's a useful link I discovered: https://www.thestartupsquad.com/entrepreneurship-pitch-competitions-for-kids-and-teens/
Once your pitch is polished, it's time to spread the word. Begin with your parents and teachers. They can offer valuable feedback to refine your pitch. Moreover, they might be able to link you with programs and investors, who in turn can connect you with individuals intrigued by your ideas and leadership skills.
Remember, the path of entrepreneurship is often filled with hurdles and demands. It tests your patience and determination. But you've already taken the first step! Best of luck!
Learn about a pitch and pitch deck
Make a pitch deck of your ideas
Pitch to family members and teachers.`
Get and use their feedback and help.
Once your pitch is polished, it's time to spread the word. Begin with your parents and teachers. They can offer valuable feedback to refine your pitch. Moreover, they might be able to link you with programs and investors, who in turn can connect you with individuals intrigued by your ideas and leadership skills.
Remember, the path of entrepreneurship is often filled with hurdles and demands. It tests your patience and determination. But you've already taken the first step! Best of luck!
Greg recommends the following next steps:
Thanks for the advice.
ashley