Hello, friends in my last article I wrote at length about various pitfalls which one can encounter while launching a startup. So, in continuation to that, I would like to highlight the challenges which are faced usually while raising series A, B, C funding. Make no mistake as much important it is to plan your product meticulously it is equally important to devise a clear strategy for persuading investors to invest in your product.
Let’s get this straight persuading doesn’t work if your product or idea is shallow. You need to be solid on that front and also provide that security and faith to investors that your venture will more than return their money while ensuring you don’t actually end up running out of support for yourself. Tricky balance to maintain eh?
- Blurred Priorities
Most of the times, startup founders are too engrossed in marketing the product that they seldom have a concise planning of how much to spend and where to spend. The priorities swing from marketing to team profits to number games which results in quick burnout of cash than expected. This eventually leaves them very little to play with when it comes to extracting a sizeable return. So it’s necessary to have a sound strategy for devising the money properly.
- An eye for talent
Okay, so this seems to be a very frustrating aspect of all since selecting right candidate goes long way in ensuring the progress of a business. Imagine spending your resources and time on someone and not getting the desired yields can be quiet a setback as it’s directly proportional to ROI.
- Collective team failure
This may raise quite an eyebrow but startup cannot rest on just one’s shoulder. All members need to be equally dedicated and relentless in viably carrying out the goals. Many a time startups fail to get the desired launchpad owing to direct failure of owners in implementing strategic goal in real time and this is a big turn down for investors to avoid investing in your product.
- Averse to risk and experiment investors
This factor corroborates the old saying that no risk no gain. At times the investors are against the idea of too much chopping and changing from the fixed set of methods and models which has work best for them previously. Although one may argue that it gives a sense of assiduity in one’s comfort zone but risk and rewards can never be ignored. So it’s important to have investors who are ready to be bold and have faith in your vision.
- Customer acquisition and retention
Portfolio expansion of business does not imply blindly going on run behind every section of customers as you also need to plan wisely on how to retain the existing customers. Since loyal and frequent customers go hand in hand with the expansion of business idea by word of mouth publicity. Also, it helps in avoiding reckless spending of funds on customer base expansion and you can plan accordingly.
- Having non-realistic expectations
In the flow of the moment, we are bound to go overboard and set some practically unrealistic expectations which hamper the sustainability in long run. Startup planning is 30% idea and 70% execution. You need to provide your total commitment to successfully execute the plan and achieve initially the short-term goals. Just having a good idea is not enough but along with it, you need to pursue it with proper execution.
In a nutshell, the thing is guys don’t rush to decisions. Plan everything minutely and keep up to date record of every spending. Also, prepare the daily business chart of activities and try and fulfill the set goals for the day. Plan for next moment and keep finding alternative feasible ways of getting better at your product or service without sacrificing the stand out quality.