Validating a Startup Idea

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Before launching a startup, a founder should first validate the startup idea.

Here's a list of key steps to validate your startup idea:

Is the idea big enough to justify a startup?

Many ideas are simple side gigs with little return to the founder.

Are you solving a real problem?

Without it the startup will not succeed due to a lack of customer demand.

Does the problem cause enough pain that someone will pay to fix it?

There are many problems that people just learn to live with.

How much does it cost to launch the business?

Some problems require huge investment up front, which one will be unlikely to raise.

Is there a beachhead market to enter the space?

Finding an entry point into a market is one key element of success.

Can it scale?

It's easy to start a boutique business such as consulting, but it must be designed to scale.

Who is the competition?

Avoid believing there is no competition and look hard for those who are solving the problem currently.

What unique insight do you bring to the business?

You need to have some advantage over others.

Is now the right time?

A recent change in the market may be giving an opportunity.

Finally, is the founder the right fit for this solution?

Consider these steps in validating your startup idea.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
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When the Investor Fails To Respond to a Fwup

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The key to a successful fundraise is to follow up with the investor to close.

It's important to maintain communication with an investor to carry the funding process through diligence.

In some cases, the investor fails to respond to a fwup after a pitch.

Here are some key steps to take when the investor fails to respond.

After the pitch, ask the investor if you can keep them informed of your progress.

Most will say yes either to be polite or because they are curious as to how it will turn out.

This gives the founder permission to fwup.

Send an email update on an every-other-week basis and invite for a fwup call to give more detail.

If the investor fails to respond, then call them on the phone and indicate you need just two minutes of their time for a fwup.

Given the shortness of the call, the investor will take it.

Show progress around sales, team, product, and fundraising.

Pick at least one news item to tell the investor to show the traction is growing.

Avoid sounding desperate, as this is not a good look for a founder.

Another technique is to ask for advice.

This engages the investor in the startup and provides an opportunity for the investor to show their experience and knowledge.

Consider these steps for following up with an investor who fails to respond.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Highlight the Benefits of the Solution

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In pitching for funding, the founder identifies the problem to be solved.

And then describes the solution to be offered.

It's important to show not only the solution with its features but also the benefits.

Show how well the solution solves the problem as follows:

This could be a customer productivity enhancement number.

This could be a cost reduction number.

This could be a time-saving number.

Talk not only about how the product works but what benefits the customer will find.

Most founders assume the investor knows the value of the solution, but this is not a good assumption.

Identify the benefits of your solution and list them out for the investor to see.

The rule of pitching is if you don't articulate it, then it doesn't exist.

If you don't know the benefits of your solution, then it's best to research it with current and past customers to identify them.

Consider the benefits of your solution and capture it into your pitch deck.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.