Why You Should Invite Investors Only After Actualizing An Idea

Most people assume that capital is the most important factor to consider when starting a business. Therefore, they concentrate on getting investors, first, before launching a venture. This approach is wrong because investors concentrate more on a business that has guaranteed returns. An entrepreneur should look for investors only after launching a business idea because capitalists often rely on hard data, want a lucrative business plan, value unique ideas, focus on a ready venture, and look for a clear structure before putting in their capital.

Grey Metal Case of Hundred Dollar Bills
Why you should invite investors only after actualizing an idea.
  • Investors rely on hard data. The main reason why investors put their capital on an idea is to maximize returns on their investment. This fact means that they rely of specific data to make their investment decisions. An already launched idea is a good starting point for an investor because the progress can be seen from the available data. Moreover, initial information, such as sales, expenses, and expected profits, are already available in an operational business. Besides, an idea that has not been launched only relies on forecasts, which are not hard data. Therefore, it is vital to launch an idea, first, before inviting investors.
  • Investors want a lucrative business plan. Investment decisions rely on a number of facts. These facts should be communicated using a business plan. The plan should also show the investor where they are investing, why they should put in capital, and what to expect within a specified period. After launching an idea, the where, why, what, and when questions are already answered since the business will be in operation. At this stage, the only value that the investor adds is to improve the operational capacity and effectiveness of the venture. This fact implies that a lucrative business plan is one that is already operational.
  • Investors value unique ideas. A business is meant to cater for the needs of a target market. Therefore, a good business idea is one that has unique ways of meeting the needs and preferences of the target market. An idea can also be considered unique of it has run the test of time. This fact means that a business can be considered unique if it is already operational and is solving a given problem better that what is available in the market. Such ideas can attract investors because their uniqueness can clearly be seen by the concerned stakeholders.
  • Investors focus on a ready venture. A ready venture is one that has already taken off. Besides, it is difficult to estimate the returns from a venture at the idea phase. The forecasts that entrepreneurs give before launching a venture are also normally biased because they concentrate on making profits. However, an already launched idea will show various important facts, such as the response of the market and prevailing challenges. Such ideas will give a true representation of the status of the business in terms of expected profits or losses. Therefore, it is vital to launch a business idea, first, in order to attract investors.
  • Investors look for a clear structure. Any business should have a clear structure how it is going to operate. An already launched business idea is one that is in operation, which means that there is a clear structure on how things are done. Such a structure makes it easy for investors to make decisions since everything is transparent. Therefore, it is better to come up with operational structures, first, by launching a business, then inviting investors when there is need.

Investment decisions are normally challenging to make. However, it is better to look for investors for an idea after launching it because an already running business has hard data and a lucrative business plan. Launching a business idea, first, before inviting investors is also vital because capitalists value unique ideas, look for a ready venture, and focus on a clear structure.

Joshua Omolo

Founder and Managing Director at Joshua Omolo & Associates Limited (JO&AL). JO&AL is a knowledge-based company whose clarion call is to “help people and businesses get out of the cubicle and create wealth.” The company has combined different methods of making money to create effective resources for beginners and experts. The focus is to conform to the global changes brought about by information technology. JO&AL’s commodity of trade is “Knowledge”. We are a reflection of a transformation that is taking place in our national and global society. Currently, learning is continuously being redefined for formal and lifelong learners in both public and private sectors. Consequently, we deal with affiliates, advertisers, agencies, and entrepreneurs. Our private fora coach individuals interested in leveraging their careers for business.

Joshua Omolo

Founder and Managing Director at Joshua Omolo & Associates Limited (JO&AL). JO&AL is a knowledge-based company whose clarion call is to “help people and businesses get out of the cubicle and create wealth.” The company has combined different methods of making money to create effective resources for beginners and experts. The focus is to conform to the global changes brought about by information technology. JO&AL’s commodity of trade is “Knowledge”. We are a reflection of a transformation that is taking place in our national and global society. Currently, learning is continuously being redefined for formal and lifelong learners in both public and private sectors. Consequently, we deal with affiliates, advertisers, agencies, and entrepreneurs. Our private fora coach individuals interested in leveraging their careers for business.

Related Posts

This Post Has 15 Comments

  1. I’m usually to running a blog and i actually recognize your content. The article has really peaks my interest. I am going to bookmark your web site and hold checking for brand spanking new information.

  2. It抯 really a cool and useful piece of information. I am glad that you simply shared this useful info with us. Please keep us up to date like this. Thank you for sharing.

  3. One more thing. I really believe that there are quite a few travel insurance websites of trustworthy companies that allow you enter a trip details and acquire you the estimates. You can also purchase this international travel insurance policy on the internet by using your credit card. Everything you should do is always to enter all travel particulars and you can start to see the plans side-by-side. Merely find the system that suits your allowance and needs then use your bank credit card to buy them. Travel insurance on the internet is a good way to begin looking for a reliable company for international holiday insurance. Thanks for revealing your ideas.

  4. It抯 really a cool and useful piece of information. I am glad that you simply shared this useful info with us. Please keep us up to date like this. Thank you for sharing.

  5. hey there and thank you for your information ?I抳e certainly picked up something new from right here. I did however expertise some technical points using this site, as I experienced to reload the web site lots of times previous to I could get it to load correctly. I had been wondering if your hosting is OK? Not that I am complaining, but slow loading instances times will sometimes affect your placement in google and can damage your high-quality score if advertising and marketing with Adwords. Anyway I am adding this RSS to my email and could look out for a lot more of your respective intriguing content. Ensure that you update this again soon..

  6. Does your blog have a contact page? I’m having trouble locating it but, I’d like to shoot you an email. I’ve got some ideas for your blog you might be interested in hearing. Either way, great website and I look forward to seeing it develop over time.

  7. I discovered your weblog web site on google and verify a few of your early posts. Proceed to keep up the excellent operate. I just additional up your RSS feed to my MSN Information Reader. Looking for forward to studying more from you later on!?

  8. I’m really loving the theme/design of your web site. Do you ever run into any browser compatibility issues? A small number of my blog visitors have complained about my site not working correctly in Explorer but looks great in Opera. Do you have any solutions to help fix this issue?

  9. My developer is trying to persuade me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using WordPress on numerous websites for about a year and am concerned about switching to another platform. I have heard good things about blogengine.net. Is there a way I can transfer all my wordpress posts into it? Any kind of help would be really appreciated!

  10. I have realized that car insurance corporations know the automobiles which are liable to accidents and various risks. Additionally, these people know what style of cars are susceptible to higher risk as well as the higher risk they may have the higher the particular premium amount. Understanding the straightforward basics of car insurance can help you choose the right sort of insurance policy that can take care of your preferences in case you happen to be involved in any accident. Thanks for sharing the actual ideas in your blog.

  11. Great post. I was checking constantly this blog and I am impressed! Very helpful information specially the last part 🙂 I care for such info much. I was looking for this particular information for a very long time. Thank you and best of luck.

  12. It’s a pity you don’t have a donate button! I’d most certainly donate to this brilliant blog! I suppose for now i’ll settle for bookmarking and adding your RSS feed to my Google account. I look forward to new updates and will talk about this site with my Facebook group. Talk soon!

Leave a Reply

Your email address will not be published.

%d bloggers like this: