Startups are changing the ways of doing business. Companies these days are not only focussing on making a good name in the market but earning profits has also become very important. Money is a big factor for running any startup and it is one of the most difficult problems that entrepreneurs face in the initial days of their work.
Having good ideas isn’t enough to start something, there should be a proper planning of funding as without money it is almost impossible to hire workers and sustain them in the startup.
An interesting topic that is not discussed much about startups is why ideas are not getting funding from investors? There must be some relevant reasons which are stopping people with cash to put their money for turning the ideas into reality. Let us have a look at some of the valid points for this:
1. Ideas are not everything
A person seeking funding should know that an idea isn’t everything. There should be a small implementation of your idea that can be shown to the investor getting funds. No one likes to take risks for things that are only in thoughts.
2. Lack of judgement
The need for money to launch a startup should be defined very precisely. A lot of times founders don’t know their exact need which leads to wastage of time. Confusion is one thing that can negatively impact your ideas in a big way. Lack of judgment in predicting the neede of money is one reason why most startups are running cashless right now.
3. Less requirements
This is an interesting point because earlier it was very costly to run an office and set up infrastructure with complete facilities. Now, the scenario has changed and startups can be started with some laptops and a small working area. This is probably a positive reason as startups these days can be started with a low budget that can be managed by hiring money from knowns.
Good networking and communication skills are required to impress someone for investing money in your startup. A lot of people these days are creative and have some great ideas but they lack in elaborating their ideas to others. This is probably why a lot of startups don’t get started as the ability to express and share plans can play a vital role in encouraging someone to put his money in your idea.