The 5 Magic Ingredients that is sure to make your Startup Investible!

When investing their priceless money, investors look for that perfect startup that will be worthy for them to invest in. Investors don’t just want to invest in any random startup, which lacks the qualities to be successful. They want certain things to be perfect. They want the ingredients to be just right!

So, what are those 5 magic ingredients that every investor looks for in a startup when closing the deal? Well, fasten your seatbelts, because we’re gonna discuss just that.

Your 5 magic ingredients for a successful Startup Potion

Although the number of qualities that you require to possess to pitch your ideas in front of the investors is innumerable, there are some qualities that are more important than others. What you’ll be reading below is a list of 5 such qualities that are of utmost importance when pitching in your ideas. So let us start, shall we?

• Your IDEA

No. 1 on the list is your idea itself. Lighting up that light bulb inside your head is very important as it is by this factor of popping up ideas that investors will want to risk their money.

And not just any idea - it should be practical and unique at the same time. Practical ideas are those that have the potential to solve the existing problems of the market and target customers. Your idea should also be unique - meaning how much competition is there for it in the market, whether or not it’s a common idea, and if people are excited about the product.

You can conduct market research to judge these factors of your “idea”.

• Your TEAM

Investors will be betting on your team’s ability to turn your ideas into reality. So make sure that you have a leadership team. The talent and skills of your team are critical for ensuring the efficient development of your startup.

You’ll need partners to help you in making decisions and forming partnerships. Your financial team will take care of your budget & will also ensure that your cash flow stays positive. Your marketing team will make sure that your sales are increasing and will raise awareness of your brand. Culture is also an important factor so make sure your teammates are getting along.

Now don’t take it the wrong way. A solo founder can be equally good. But it makes the job a little easier to have more people. It’s generally difficult for one person to grasp all of the operational and strategic aspects of a startup. Multiple founders can divide and win by focusing on their distinctive strengths, and also giving multiple perspectives to a problem.

• Your TIMING

Even when you have a great idea and a great team, everything is well-executed, there might still be chances of you failing if you don’t get the timing right. You need to release your product in the market at the ‘exact right time”. Any sooner or any later - you’ll lose the opportunity.

If you hurry to the market before your consumers are even ready for your product, they might not buy it. If you wait too long for your launch, you may lose the “early brand recognition” advantage.

Timing can be the key to your success — or failure. Ask yourself - “Are my consumers ready for what I’m offering?”, especially if it’s innovative or new.

• Your TRACTION

Needless to say, your investors hear about hundreds of business ideas every day - all of them, great ones! You need to show your investors what makes your idea stand out. You need to show that you’re passionate and committed to working hard towards your goal and that you’ll not show your back and chicken out when things get rough.

When investors see the spark and the traction in you, they’re much more likely to invest in you.

• Your WORK

Last, but definitely not the least, - your work should speak for itself. Doesn’t matter even if you have the best idea, in theory, you’ll still need a formal business model and successful execution of your idea to convince your investors. Many times than not, good ideas fail to be executed properly, thus collapsing the business despite its potential.

The Closing Lines

All these ingredients are easier said than done. Building a startup isn’t easy at all, but knowing the areas that could be responsible for making startups a success can direct you in the right direction.

When you pitch, always keep this in mind - understand the 5 magic ingredients, think through how they relate with one another, assume that your investors don’t understand your business at all, and communicate clearly. We hope this helps! ;)