KEY POINTS THAT STARTUP OWNERS SHOULD KNOW

At Konzortia Capital, we are focused on helping entrepreneurs get funded so that they can achieve their dreams through their ventures. So get to know us! As you start your path to success, keep in mind that it is a tough road out there. You should do your research and show that you understand the market. Know what the consumer needs! Your business model needs to be realistic, and you need to know how to generate revenues. In addition, you may want to ask yourself whether you are ready to persevere through difficult times, because you will encounter many obstacles along the way.

THE UGLY TRUTH ABOUT STARTUP COMPANIES

According to the latest information, nearly 48% of the working population in the US works in the small business sector which runs with less than 500 employees. With more than 30 million small businesses in the country, the life span of these businesses is quite surprising as 65% of them cease to exist within 10 years.

“How do you make $1?”

One of the common questions that many investors ask startup companies is how do they generate $1? What are the major revenue drivers of the company? How much money do they need to spend to generate that $1? How niche is the customers? A lot of times startup companies don’t have the answers to all of these questions. We may think every idea is unique, but many of those unique ideas may not be realistic in the modern-day world. That’s why a lot of startups, even though they have generated successful funding rounds initially, run out of cash soon.

“A unique idea is all you need to flourish a business”

If someone ever told you that all you need is a unique idea to generate a successful business, then that is probably the recommendation you have ever received. Not having a unique idea should not stop you from coming up with your own business. You can always evaluate available products in a market and determine whether any of those products can be replaced by a cheaper or more effective product. Always remember that Orkut came before Facebook and GM-NAA I/O was the first OS available years before Microsoft.

“How much expertise do you have in the particular domain?”

At times, you will discover that a lot of entrepreneurs start companies because they do not have a job and need to produce income. They do not necessarily have a clear idea about the domain of the business nor why they want to be in that space in the first place. The hard truth is that without proper expertise these entrepreneurs are bound to struggle. Not only is it important to start a company that motivates them, but it is also important to hire people with expertise to complement your own. If you are a good coder, it doesn’t mean you can be a good marketer or a good accountant.

“Lack of Market Research”

One of the most important pillars for the success of any startup is market research. The company needs to know what their customer wants. A lot of entrepreneurs launch into the market thinking their unique product will be received with open arms, but fail to realize there is no demand for the product in the market. ?Business owners need to do their homework to identify the potential needs of the customers. Doing proper market research, will provide you with an idea about the problems that potential customers oftentimes face in the market while looking for a product that serves their needs and insights on the challenges that are encountered.

“It’s all about timing the market, not time in the market”

This famous quote is followed by many successful traders/investors around the world. But you may wonder why this is even relevant to startups. The reason is that a huge number of startups fail because of wrong timing. Surprised? Have you heard about Boo.com? The company was founded in 1998 to sell branded fashion apparel online. It was a revolutionary idea way ahead of its time. Why do I say this? The Internet was in its early stages. People were barely getting familiar with this robust technology transformation. Wires were required to set up our modem and speed was not our best friend. During that time horizon, it was difficult for an online retail company to leverage the internet at its full potential. There simply wasn’t critical mass online at the time, nor was there sufficient confidence concerning the security of online transaction. As a result the company ended up burning through $135 million in just 2 years.

“Keep yourself motivated”?

Motivation is hard to come by, especially if you are not seeing success after years of effort. One should not forget that many publicly listed companies are typically not profitable even after many years of operations. It is very important to remain focused and drive to achieve success with what you have started. Investors look for passion… so show it anddo not lose hope if you are not generating profit early. Make sure that you do not burn out and always find comfort among friends and families during times of failure.

About Konzortia

Konzortia Capital is a FinTech consortium providing VC/PE deal-sourcing for Investors and funding opportunities for Start-Ups. As part of our value proposition, we promise to Source - Match – Exit. Konzortia provides deal sourcing through our?Distributed Ledger Technologies (DLT)?and?Intellectual Property (IP). The recent?acquisition of Paraforge allows Konzortia Capital to provide differentiated services and greater operational efficiency through its InvestHub?platform for the needs of the Deal Flow sector.?

Konzortia Capital’s solutions reduce risk for investors providing significant vetting thus eliminating much of the uncertainty of non-operational early-stage companies, combined with the assurance of market fit, but still within a very modest valuation giving investors the possibility of experiencing high growth.

About InvestHub

InvestHub is Konzortia Capital’s platform for Source – Match – Exit. The platform leverages Paraforge, an applied learning artificial intelligence technology that perfectly marries large-volume data aggregation while[RA1]? leveraging?machine learning (ML)?and?artificial intelligence (AI)?for investors sourcing deals and Start-Ups interested in raising capital and achieving liquidity sourcing.

For more information, please contact [email protected] or visit our website at https://konzortia.capital/.

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[RA1]Added “while”