Last updated on May 7th, 2022.
When a great idea comes to your mind, just write it down. Make awesome business plans, financial projections then go straight to investors. They will fund you immediately.
If you believed it even for a second then maybe you are in a dream and you need to wake up.
Let’s imagine there is only one business in the world – the taxi business.
Your question is “I have an idea for a 10,000 taxi a day business. I need investors”. People will ask you these questions:
- Have you driven a taxi before?
- Have you run a small taxi company before?
- Have you any knowledge about your competitors?
- Have you any proof that you are not inflating hope?
Do your home and answer these four questions. There is no shortcut.
The best time to approach investors for funding is when you have found a product/market fit, meaning you have some customers and they are loving your product/service.
Here are some ways you can get funding even if your startup is still in the idea stage.
If you are a serial entrepreneur or have built a startup in the past making your investors rich, then the chances of getting funded at the idea level is high.
if you are a nerd, geek, Ph.D., expert, and have piles of validated publications in your name, then you might grab investors’ attention.
You can always reach out to your friends and family explaining your idea and asking for their money.
Take Whats App story for an instant, people are still counting zeros on that multi-billion dollar deal. So, If you go to such an investor, and make him believe that you can create something similar like Whats App or something which has similar potential and sells it, chances are he will take the bait.
But always keep in mind that, if you make fool out of investors, you will have to pay them back eventually in some form or be prepared for the legal consequences.