A
business however has high probability in order to succeed if it can thus solve
an existing problem and thus also has some of the immediate users.
The
demand and supply of money, however so far, has thus also simply been dependant
on the attractiveness of the business plans which are thus also presented by the start-ups and also the returns as it is thus seen from the
investor’s lens. In many of the cases,
the start-ups also have not been able in
order to scale and also have a shut down
their shops or either also have scaled but are also unable in order to generate the returns even after years of
operation.
Thus,
investing in a young company also involves high risk, but can thus also be
rewarding for the investors looking for
the high returns. The, New Investors
however are also considering the investments in the start-ups should thus also be mindful of the
usual pitfalls and also understand the risks before however making investments.
Thus
, the purpose of this article is to make the reader aware of the fact as to how
investing in a startup can thus also be risky and as to what tips one should
follow to play safe.
If
one is however also considering getting into the space, one can thus also refer
to the following guidelines for however
a general overview of both Dos and Don’ts before thus making an
investment.
Dos
1.
Considering the business objective , one
must thus also see if either the business solves an existing problem. Also, one
will also have at least a few potential customers that will thus utilize the
solution offered . If one is also
investing in a business that thus also has at least some of the immediate users, there is thus a high
probability that the business will however
succeed. One must also not get trapped thus by a potential need in future. Only
businesses that however are right in
time will thus also be efficient enough
in order to create returns on the
investments.
2.One
must also consider the proposed revenue
model when it is also compared with the
competition. If the problem is also thus being addressed is also well known , there is thus also a likelihood
that there are however many solutions which are
offered in the market. One must also evaluate if the proposed revenue
model is thus likely to perform better
when it is however compared with the competition. Sometimes the proposed
revenue model may thus also be feasible but it
may not also be scalable.
3.Success
of a great business idea is thus also dependent on the people who are however
working on it. One must evaluate the strengths of the people who are involved
in the business. Most of the investors
thus also invest in the people smarter thus
also than them. One thus also has to make it also absolutely certain that the
proposed team is thus also more than its
words and is thus also capable of executing the proposed business model.
4.
Also, one must make sure that one asks
for a business plan and also thus evaluate the execution strategy in detail.
The assumptions which are thus made should also be grounded with the market
reality. It is thus also possible to go to moon, but there is thus a cost and
it also has to make sense.
5.
Founders thus also have to be deeply involved with their own money for the
success of their business idea. Get the founding members in order to invest
capital.
Don’ts
1.
One must not put all the eggs into one
basket. Diversify the investments in the several start-ups and also in other
assets.
2.
If one also do not understand the business, one must also not invest unless one
is thus investing with someone who thus
does understand the business.
3.
Most of the start-ups are thus also cash flow negative however for the first
couple of years, meaning that they thus burn more money than they make.
Therefore, the investors must thus understand that start-up investment is thus
also a long term game. One should also not expect the immediate gains.
4.
One must thus also quit the ritual of following the herd. One must not go where
everyone is going as that’s thus an opportunity that however won’t last for very long.
5.
Thus, on a concluding note, investing in a promising start-up can thus also be
rewarding, provided that one follows the
rules of the game. Additionally, one also needs to be realistic and also not
let oneself to be fooled by pretentious Jargons and the aesthetics.
Even if one is however truly invested in
thus investing in a startup, the odds
are always against you. It’s thus the
law of startups—mathematically which happens to be the reasons of the most
likely exit for a startup. Thus the above mentioned do’s and dont’s should be
kept in mind before one is investing in a startups as startups are a risky
venture.
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST Software, GST Return Filing, GST Registration, Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online.
Comments
Post a Comment