Do Startups really needs Investment??

 

One question arises in every Startup founders  mind “CAN MY BUSSINESS REALLY SURVIVE WITHOUT FUNDING?”to every founder’s dilemma there is a thin line between

Am I selling my ownership? And we have made it so far without funding we will make it in future too.

The debate between weather to get investment or not Is highly contradicting each other depending upon the perception between the people .So here we are with five reason favoring and contradicting “Isinvestment really important to a startup”.

First we list out 5 good reasons to seek investment :-

  1. For the capital

Startups are intended to grow very big very fast, and growth is expensive. Regular cash flow is necessary for the smooth functioning of the venture. In which investor may come very handy as they are there to help maintain the cash flow and meet the budget criteria.

  1. Assistance in business-plan

Investors are not passion driven rookies who are following their instincts and gut feel. They are experienced profit centric person who can really help you in business-plan formulation and strategy.

  1. Risk and knowledge sharing

With not only financial assistance they also provide knowledge and experience in the field. This is also causes amalgamation of risk bearing in the startup.

  1. Quality in office procedure and long term vision approach

With the knowledge and experience the quality in the office day to day activities and long term visionary approach in the team with reference to the investor is obvious.

 

  1. Risk Management

Major factor main startup to hit the rock bottom is lack of risk management. The art of calculative risk bearing is not their due to lack of experience. In which investors can provide useful insight regarding the minimum risk with maximum profit motive approach.

 

Finally 5 reasons not  to seek investment :-

 

  1. If it’s only an idea forget it

You should not be seeking investment if only idea is there .No investors are going to invest in your idea they want solid prototype or working Minimum Viable Product (MVP).They are too smart for you to trust in your idea with their cheques .

  1. Financial sound doesn’t assure success

Bagging the investment doesn’t guarantees the success. Being financially sound is a upper hand no doubt but there are many other elements yield a good startup. So the perception of financially sound solves everything can be lethal should not be seeking investment.

  1. You are selling ownership

Cheques comes with the price. The cash they owned are not easily earn by the investor too. Asaassurance the investor seeks some form of ownership or equity. If you’re not ready share a mind set to share investment is not for you.

  1. Investors are bosses.

Ownership sharing is concern so basically the investors are your boss. Mentioned earlier growth are expensive so ownership must be greater basically you are hired in your own firm.\

  1. You get fired from your own company

As a bosses are capable of hiring and firing the employee there is high probability they may be the case of you being fired from you own firm.

Conclusion:

The subject entirely depends upon the mindset of the founder. The level of cooperation, patients as well respond of the particular founder of particular startups determines whether your venture really need investment or not we entirely leave the decision to the founder and mindset to determine the subject.