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Get Ideas

BILLION DOLLAR IDEA – the investors criteria for funding your big idea

My idea is to write a report about the criteria needed to get funding from investors.If you seek to build a multi million dollar business.

Most startups will never get funding because they do not understand how to approach investors and what preparation is needed to give your idea the value all investors need to see if you are to stand any chance of being successful.

Three of the most important elements are..

1. unique idea .some innovation or new market 

2. scope. ideally global

3. value in helping solve problem.

The mistake most entrepreneurs make is they try to
get funding from a wide variety of investment houses
it rarely works…
The investors are inundated with business proposals ..this includes the five dragons in dragons den…It is a shear impossibliity for all these business ideas to be viewed..The biggest problem for the investor is to find a way to select the idea which is commercially viable , this often from a few words in an executive summary..many of which are never read.

In fact many funded ideas are introduced by contacts
through business partners and some times TV shows!

All enrepreneurs who want to be successful must learn how to “court” an investor and in some way make the idea so attractive the investor will meet you to pitch ( this is your big chance and is another report ! )

To even get the investors attention requires an understanding of human nature .. for example if you know your target has certain interests and only invests within his interest or knowledge frame work;
..it is obviously wise to make sure your proposal matches those areas ;and the industry which he/she is engaged in..eg IT; medical;shipping; yacht building..etc..

It is amazing how many entrepreneurs don’t do this fundamental research….

Let’s consider why Google was such a success..

a..it gave a better search result than other search engines.
b..the timing was just right ( coming in as the internet traffic exploded in the 1990′s ..mainly to search for information )
c..investors thought they could monetize the immense traffic. ( they where right! )

It was funded with $25 million before it had made a cent..

It had however all three elements in abundance.This with the other factors ( eg timing )plus the funding to build data capacity quickly accounts for the great success of Google.

The lesson from this is if you want to build a million dollar business; you must have a clear vision of what formulation will give this result .from the start. This means you have to do your research ; and seek fundamental human needs ..otherwise the business would would not have the scalability investors seek.

All investors ask themselves one basic question ” Can this startup give me a good return within …”( here they will decide how many years they are willing to risk their money )

 

 

To see more noteworthy ideas, please visit  http://www.testmyidea.com

About the Author

WELCOME TO TMI We help you invent, test and progress your business ideas in real time, using a global market voting system and business education programme in monthly modules designed to save you time and money. This silver service is free Test before you invest Investors monitor TMI and can receive ideas matching their funding criteria.
ideamaster00@gmail.com

I Get Ideas (When We Are Dancing) Louis Armstrong Cover by Danielle Ate the Sandwich