A visionary and a business enthusiast, Sanjeev K Kumar, is driving Kuberan’s House towards its goals as its Co-Founder & CEO. Sanjeev is known for his incomparable content, aesthetics, and extraordinary look and feel in all his shows. An alumnus of FTII, Pune, Sanjeev, is also a gold medallist in the Direction from AAFT and has a diploma with Honours in Screen Writing from BBC. Apart from these, he is the recipient of the 3 prestigious state awards, Star award for the Best Director and Zee award for the Best Production are among his many other accolades.
Having a successful start-up is every aspiring entrepreneur’s dream. The happiness associated with transforming that long term idea into a reality is inexpressible. It is no less than a dream come true. However, it comes with its share of challenges, the primary being finding an investor who would be interested to fund the start-up.
Challenges and risks are a part and parcel of any venture in the start-up industry. However, any idea is developed with a long term vision to succeed. Every start-up eventually envisions becoming a brand and works consistently and persistently to achieve this goal.
Providing funding is indeed a major decision as the individual is extending financial aid to the idea that he thinks is deserving and needs the required assistance. Narrowing down to this decision is indeed important yet critical. From the venture capitalist’s point of view.
While the industry works on the leap of faith and risk-taking ability, an investor considers various aspects in the start-ups to ensure long term success that eventually become the deciding factors or the criteria for the selection for the funding.
The business you wish to invest in should have a USP. This unique characteristic is what differentiates it from the other players in the market and hence is valuable to the investor. Any investor would want to associate himself/herself with an idea that is unique and offers value in its particular industry.
Market research plays a major role in evaluating the feasibility and the success rate of the start-up. An investor would want to devote his finances and time to an idea that is worthy of surviving in the market and offers a promising future. A feasible concept coming with a good growth expectation is preferred by the investors. For this, the start-up needs to come up with an extensive market research analyzing the growth graph, the challenges faced by the idea and the industry, the plausible solutions, key competitors, and the level of competition faced, along with the present scenario of the industry the venture belongs and the growth of the industry.
The idea should be worthy enough of being able to thrive in the cut-throat competition in the market and to be able to do this, the brand needs to carry out extensive market research. The objective of any business is to capture a place in the market share of the particular industry. Hence, the investor would expect answers to questions like- will the venture be able to sustain, the long term vision and mission, why choose this particular market, how will the idea sail through if the market is stagnant or saturated, etc. The market research should be comprehensive enough and should address these concerns of the investor.
Beneficial for the society and the citizens
Only if your idea is beneficial for the society and the nation, on the whole, will it garner the investor’s attention. The capitalist would want to be associated with a venture that benefits and works for the upliftment of the society rather than a self-centered approach. It should help improvise the present situation and extend a helping hand in the resolution of the nation’s issues rather than adding to the existing troubles. The impact the start-up has on the people, the society and the nation is of utmost importance. Hence, your idea should encompass the advantages for the nation and the citizens.
Helps improve the financial state of the nation
The start-up which an investor wishes to invest in should help facilitate improving the economic situation of the country. Aiming to help society, it should eventually uplift the economic status of the country with its unique services and upgraded technology. This is an important factor as such progressive ideas are eventually given preference by the investors.
Dedicated and efficient team
If you have a dedicated team, then you have the leverage of earning brownie points. Working with like-minded people who are passionate and sincere about their work is something that will attract the investor’s attention. Having a dedicated team in place would help you establish a good relationship with the capitalists. This eventually might make a way for long term relations as being associated with people at the same frequency as you will help ensure seamless and collaborative functioning with bare minimum scope for arguments and disagreements.
In a cohesive environment, both the parties will function as partners rather than as distinct entities. Additionally, a team that dedicates their sweat, heart, and soul to their venture consider them as their baby and give in their best. Working with such a team assures the investor that in case of any hassles, the same will be handled efficiently by the responsible workforce.
Dedication, experience, relevant industry exposure, risk-taking ability, managerial and leadership skills along with the craving for the introduction of innovations and change are some of the traits that are desired in the team and are preferred by the investor.
Robust revenue model
The start-up idea should have a competent business plan along with a robust revenue model. An investor would want to fund an idea that will help bring such profits. The concept should be profitable enough in the long run rather than draining them off their finances and resources. Everyone wants to witness visible gains and in an investing scenario, the gains are measured in terms of the revenue earned and the profits gained.
The longevity of the idea
Another important factor to be considered while investing is that the concept should have a long shelf life. The business idea should not be a short term one and should have a vision for long term survival and sustenance in the market. Any venture capitalist looks for the longevity factor before investing and this is one of the key criteria.
Short-term gains no matter how easy and feasible they seem won’t reap many benefits. Long term goals eventually make way for long term success. Such long-term visionary ideas are beneficial as they will help establish the brand image and reputation thereby benefiting both parties.
Customer reviews and response
Customer reviews play a major role in this funding decision. An idea that is welcomed and preferred by the customers and is successful in garnering the interest of the consumers will easily grasp the attention of the investors as well. The concept that is loved and appreciated by users and is widely preferred by them is indeed an extraordinary business venture and hence any capitalist would want to invest in it.
All businesses work to provide the required solutions and happiness to their customers. Having a happy customer base in place is one of the major achievements for any venture and an investor would readily invest in such an idea would understand the fact that it would be a beneficial deal for both the involved parties. While for the investor, it will be a good strategy in terms of enhancing their brand image; for the business, it would benefit the venture as they will receive the required financial assistance to improvise their functioning. This will additionally facilitate the provision of high-end features to their customers along with increasing their customer base and introduction of innovations to fuel their growth.
The cash crunch is one of the major reasons for any start-up not being a success. An investor will provide funding only if all his/her requirements are met. As a business idea, we need to gauge if we tick off all the requirements in the list. The idea should be feasible and should radiate success in the long term so that the investors feel that it is worth spending their finances, time, and efforts. If you as a start-up are able to sell your idea and team before the investors, then the battle is half won and the remaining half of it can be fought by both parties collaboratively.