Start-Ups : It only starts with raising money

Everyone seems to think that raising that elusive investment round is the conclusion, the end all be all, of a  long series of trials and tribulations.  However, every start-up should remember that this is only the beginning and the real journey begins when you take investors’ money.

So are you ready to even raise money for your start-up business?  There are a few questions you should ask yourself.

Can you continue to operate without it? : If the answer to this question is ‘yes’, then I would probably recommend that you stray away from trying to raise investments.  The reason is two-fold: (i) you will probably spend the money on places that are not absolutely necessary and (ii) you will expend much attention on trying to raise money and convince investors when you could be using that energy on growing and developing your business.

Have you set out a firm budget for the money that you intend to raise? : This is related to the first point as well, but it you have not yet developed a detailed budget for the money to be raised, you are more likely than not, not yet prepared to raise an investment round.

However, if you are raising your very first investment round (and this holds true for all subsequent rounds) be honest with your investors and deliver realistic expectations.  Be a responsible business manager and remember that taking an investment is a somber responsibility that should not be taken lightly.


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