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3 Indicators of a Business Idea for Outside Funding

Hitting on a great business idea is more thrilling for any entrepreneur. That’s because good idea is the fundamental indicator of a business that might be successful. However, to nature, the idea to its maximum potential will need sourcing for external funding. Then it ceases to be a walk in the park but a real hustle that many startup companies in Houston and large America have gone through to become mega-companies.

Therefore, before engaging an external financier, a lot of preliminary planning is a necessity. Planning should factor in the most essential determinants of securing an angel financer to boost your business with the maximum amounts for full development. That is what you should learn from the factors below, which are primary indicators of a business idea that is prime for outside funding.

3 Indicators of a Business Idea fe75c249


1.   Your business idea is true, with greater market opportunity

The growth of any business depends fully upon the ability to get a sufficient market for its products or service. For any entrepreneur, market analysis is essential in the design of the marketing process for its product. It simply entails carrying out a SWOT analysis to establish the following fundamental aspects.


The market analysis will be critically assessed by potential investors before any considerations. In case you find many loopholes within the market structure, enough to turn off investors, go back to market segmentation and marketing structure. Then you can do all it takes to position your products or service in a more marketable manner. 

But don’t make any mistake to seek investors when your idea is not marketable and doesn't have a larger looming market.  Unless you wish for Frustrations and burnouts to define your entrepreneurship.

2.   Proof of responsible money spending

Every investor who wishes to push your business a notch higher will seek to understand your revenues and expenditures for the period of operation. It may seem a little bit awkward yet very essential. Since no one will give lofty sums to an irresponsible investor, who might mess up with the business and bring it down to knees.

To reach where you are with your startup, substantial money has so far been spend and some profits might have been made. Account for every dime in the business. Not just to please potential investors but also to understand your level of responsible spending.

The only way to account for the same is through maintaining ledger books comprising of profit and loss accounts, trial balances, and balance sheets among others. Keep receipts of every service or product purchased for the business. Then you can have sufficient evidence for your angel investors.

3.   The startup has a Business plan and financial plan

I need to reckon enough that no single investor will be willing to put a dime in an idea that does not have a plan in place. Worse still a business lacking a financial plan. Then it is even difficult to gauge what amount the business needs and how the money can be spent. Putting yourself in an investor's shoes, it is worse than gambling to place funds in such a startup.

Therefore make a good business plan. It should have well defined financial plan which is the section most investors will be checking.

If any startup companies in Houston and America meet these three criteria, then it would be more than easy getting the angel investor that will push their idea to maximum potentials. Are you here yet? If not then begin working on it and nothing else will stop you.

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