Any investor wants to understand
Posted: Wed Jan 22, 2025 5:30 am
It is also important to think about the source of finance. This could be your own investments or attracted funds from investors.
By the way, in this case, a table with detailed accounting will also come to your aid. what he is going to invest money in, so provide the most detailed information:
how much money is planned to be spent on launching ecuador telegram database the project and its promotion before the project starts to generate profit;
what amounts you plan to earn and on what basis you assume that the goal is achievable.
Think in advance what to do if the project does not bring the expected result within the planned time. How long are you willing to wait for profit? There are, for example, startups that create a new niche - they need more time to get going. In this case, the rule "the greater the losses, the greater the potential profit will be later" may work.
Example: when my partners and I opened a vegetarian cafe, the business was unprofitable for the first five months. A good reserve of funds, which was enough to pay rent and salaries for employees for at least six months, and a strong belief in the project's payback helped us stay afloat: we observed positive dynamics from week to week. In the fifth month of its existence, the business brought in a profit that covered all previous losses.
As a rule, it is normal for startups in a new niche to be unprofitable in the first year of existence and longer. When, from the point of view of innovation, the business is rather “normal” and there are many similar projects, it often makes no sense to work in the red for a whole year. If you have decided in advance that under any circumstances you will continue to develop the project for a specific period, think in advance how you will cover possible losses:
If you are starting a business with partners or attracting investments, discuss in advance the capabilities of each partner in case of unforeseen circumstances. Are investors ready to invest additional funds in the project or issue a loan at your discretion?
Discuss your plans with your surroundings, find out if friends or relatives can help you financially if the project needs it.
In case of an emergency, study the conditions under which banks are willing to issue you a consumer loan. If possible, it is better to do without a loan, but sometimes this option is a lifesaver.
By the way, in this case, a table with detailed accounting will also come to your aid. what he is going to invest money in, so provide the most detailed information:
how much money is planned to be spent on launching ecuador telegram database the project and its promotion before the project starts to generate profit;
what amounts you plan to earn and on what basis you assume that the goal is achievable.
Think in advance what to do if the project does not bring the expected result within the planned time. How long are you willing to wait for profit? There are, for example, startups that create a new niche - they need more time to get going. In this case, the rule "the greater the losses, the greater the potential profit will be later" may work.
Example: when my partners and I opened a vegetarian cafe, the business was unprofitable for the first five months. A good reserve of funds, which was enough to pay rent and salaries for employees for at least six months, and a strong belief in the project's payback helped us stay afloat: we observed positive dynamics from week to week. In the fifth month of its existence, the business brought in a profit that covered all previous losses.
As a rule, it is normal for startups in a new niche to be unprofitable in the first year of existence and longer. When, from the point of view of innovation, the business is rather “normal” and there are many similar projects, it often makes no sense to work in the red for a whole year. If you have decided in advance that under any circumstances you will continue to develop the project for a specific period, think in advance how you will cover possible losses:
If you are starting a business with partners or attracting investments, discuss in advance the capabilities of each partner in case of unforeseen circumstances. Are investors ready to invest additional funds in the project or issue a loan at your discretion?
Discuss your plans with your surroundings, find out if friends or relatives can help you financially if the project needs it.
In case of an emergency, study the conditions under which banks are willing to issue you a consumer loan. If possible, it is better to do without a loan, but sometimes this option is a lifesaver.