The startup is the riskiest investment to be done. The startup will surpass the market or not will depend on various factors like the business plan, the market, etc. To see the potential in a company isn’t easy. Investors like Adam Jiwan analyze a lot of factors and takes huge hours to actually judge the right startup market. If you are looking forward to investing in a startup then you should consider the following things before putting your money into it.
The market demand of the business
The startup will make business only if the business has a demand in the market, or if the business will be able to create demand in the future. You have to make sure that the company has a clear idea of their vision. The founder of the company should know what they are doing and calculate the growth of the company in the next couple of years.
The ability to execute
No idea is perfect. It is the execution that makes it perfect. There have been many ideas that seem senseless and were calculated to be a flop. However, the executing of it made the idea sustain. Take for example Facebook, looking into its model it wasn’t promising enough for investors but with the vision of connecting the world and the execution of the CEO make that dream possible.
It is the CEO ability to execute the idea that would make it work. Even if the company has a powerful business plan but the execution lacks the quality, the company is sure to fail. Hence talk to the CEO and know the way he wants to execute his company.
The passion of the team
The management and their effort are crucial to the establishment of a successful business. To look for a long-term gain it is important to realize the ability of the team so formed. It’s is not the company that you invest in but the efficient management. If the management fails your investment fails.
Deeply research and talk with the CEO to have a clear idea of his plans. Look it would create revenue in the future.