3 T’s Of A Successful Startup

1. Traction- You could have the most innovative idea for a startup in the world. You could even have the best team .But, if you don’t have traction, you’re not going anywhere. Traction means having a measurable set of customers or users that serves to prove to a potential investor that your startup is worth investing in. The most difficult part is actually gaining that traction and knowing when you have enough to approach potential investors.
   
   
2. Team- The next important part of building a startup is the team. It doesn’t matter how great your idea is if your team cannot perform. From the initiation of the idea and its conversion into a commercial product, a team is what pulls it through. An inefficient team can make you disappear from the ecosystem in no time.
   
   
3. Target Market Size– An investor would obviously be interested in future of the product or idea in terms of profit and revenue generation. The revenue generation is largely dependent on the size of the target market. If the idea is appealing to a large number of populations and is a solution to masses then the investor would be more interested in investing.

Can the investor afford to lose the money if the startup goes under? An entrepreneur should affirm that their reputation won’t be in jeopardy if the startup fails.

Few Questions you should ask before taking the investment from the Angel Investors.

1. How available is the investor to offer advice? How much time will they commit?
2. How much capital are they willing to put in now? How much do they keep in reserve?
3. Beyond the funding, where’s the value ad? How entrepreneur-friendly are they? Will they be supportive and offer advice along the way?
4. How easy will the process be for the investor to cut the cheque? (According to Paul Graham, Y Combinator’s founder, will often advise startups to go with whoever will write a cheque with the least hassle.)
5. Which of their investments has failed? Will these entrepreneurs be willing to provide a reference?

Getting funding from angel investors isn’t easy, but it can be done if you take the right approach and are a good match with their interests.

And the benefits can beyond the money for your business, but their expertise in both in business operations and your industry niche.

Extract from Bizztor