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Investing in startups: Why it’s a brilliant move

equity investment market


Most of the time, the term ‘investment’ is subjected to the limited perception that it stands for merely putting money into a venture with the expectation of financial returns.

However, investment encompasses far more than that: business knowledge, patience, expertise, priceless experience and time are also integral aspects of investment whose role in enabling a business to yield significant returns must never be overlooked. In case of a startup, most of these aspects are missing, and this is the essential part where ‘’the dwarf needs a giant’s shoulders to ride on’’ if it has to succeed without making expensive mistakes or wait too long before they get to the break-even point.

For a startup, there is a great need to get both business and financial assistance. Most startups are genuinely big dreams which have the unlimited potential for realization wrapped up in a small beginning. Accorded apposite business mentorship and support, they can defy the odds and grow into remarkable corporate institutions in a relatively short time. Here are some reasons why startups seriously need investors.

Investors are a reliable source of capital

It is an open secret that most of the businesses seeking to gain momentum in a field of venture struggle to set themselves in motion primarily due to financial constraints. A startup that believes in its dreams does not have to rely on bootstrapping to get there. Reliable capital injection from an external investment is an ideal solution to all its financial needs through its process of establishment, stabilization, and expansion. Approaching a reliable investor will help in solving this problem.

Most small businesses would hesitate to approach an investor out of the fear that the investor will resort to protecting their interest. As an entrepreneur, we should look at this from a positive perspective and depart from the patronization blindfold. True to the story, nobody would bank their money in a sinking ship. The only reason an investor would put their money in a growing business is that they have confidence that it will pay off sometime in the future.

For a startup, this is an excellent opportunity because the investor, in this case, will do everything in their capacity to help the startup grow. It is advantageous for the young business which may not have enough investment and administrative expertise to move forward on its own.

  • They help in maximizing profit and minimizing risk

As earlier mentioned, it is in the investor’s best interest to ensure that nothing compromises their investment. For this reason, they will go out of their way to ensure that any potential risk or threat to profitability is terminated right from the onset. It involves networking with more experienced players in the startup’s field, which may include fostering goodwill for the company or additional investment if the risk calls for advanced mitigation measures. These benefits are absent in a business that lives for itself.

Hence, the first step is to come to terms with the facts and opportunities enveloped in an engagement with potential investors. The next step is to decide on the engagement with a really appropriate investor as well as decide who to rule out. For starters, you don’t just need someone with a lot of money in a briefcase and no plan at all. Funding is not the only need for a startup, since, as we have already observed, there’s more to business than just money to put into it.

Kinetic Investments invests in online entrepreneurs with a clear-cut vision but needs a hand to hold and someone to teach them the ropes in running online enterprises. Besides capital backing, they offer entrepreneurs any other form of support that they may need to actualize their vision. By believing in people, it builds trust in them and empowers them to grow empires from budding companies. They offer;

  • Capital – They chip in to bridge this basic gap in budding ventures.
  • Business mentoring – They grow leaders in general strategic planning, accounting and finance, leadership, and directing, human resource and management in both operations and legal regulation.
  • Creative mentoring – Ki offers support and mentorship in branding, design and development, marketing and product strategy, and creative thinking.
  • Expertise – Ki’s professionals are expendable. Hence they can temporarily work in your company to offer orientation to your employees and temporarily fill personnel gaps.

At Ki, entrepreneurship is put ahead of investment; hence, you don’t have to worry about partnering with an investor who is all about themselves. They will ensure that you get absolute goodwill and everything that your company needs to grow in exchange for joint ownership. Additionally, with this company, he has been able to see the success of other big ventures such as Investoo Group and Seven Star Digital.



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