💸 How To De-Risk Your Startup And Become ‘Definitely Fundable’ 💸
There are 3 risk areas investors are worried about.
Imagine you're trying to convince your friend that you're a skilled guitar player.
The risk spectrum in this case could be:
1️⃣ You claim you can play well.
2️⃣ You show your friend a video of you playing a song.
3️⃣ You introduce them to other musicians who speak highly of your talent.
4️⃣ You perform a captivating guitar solo in front of them.
If you’re trying to de-risk your startup, then:
1️⃣ You claim your startup has great potential.
2️⃣ You showcase previous successful projects or prototypes.
3️⃣ You introduce investors to satisfied customers or industry experts who endorse your product.
4️⃣ You demonstrate a fully functional, market-ready product, and provide impressive user traction or revenue growth.
De-risking your startup helps maximize the potential for success, attracts investors, and builds a sustainable business in the long run.
There are three important risk areas that you need to look at:
👉🏼 Product Risk:
> Validate the problem
> Develop an MVP
> Validate your Unique Value Proposition (UVP)
👉🏼 Customer Risk:
> Identify your target customer segment
> Build inbound channels
> Gather customer feedback
👉🏼 Market Risk:
> Understand the competition
> Set realistic customer expectations
> Optimize cost structure
See below other risks you need to be aware (and solve) of as a founder. 👇
There is no bulletproof startup/idea.
Only the prepared ones make it into becoming a unicorn.
Is anything missing here? 💭
Source: Leo Polovets
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