A good idea or a good plan? What do investors invest in?

Investors will be interested because you have a plan to address an opportunity well, and not just because you have identified an opportunity that is interesting.

The success of an entrepreneurial venture depends entirely on the quality of execution. While ideas are important, just having a good idea is not good enough to start a company. Many companies fail to implement their ideas well.

That’s why while having a good idea is certainly a good starting point, and will be of interest to investors, they will eventually invest only if you have a good plan to implement the idea. And of course, that plan has to have an underlying business potential and business case.

On the other hand, you may have a strong plan around a concept that has already been implemented in the market by some others. If there is a business case, and if they believe you have the capability to implement a sensible plan well, investors will be interested.

In the Indian market, take the case of online travel agencies. After the success of Make My Trip, who was an established leader, investors did back brands like Clear Trip, Yatra.com and Travelguru.com, each of whom had a strong team with a plan to create space for themselves in a growing segment.

 

 

 

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Author: Prajakt Raut

Prajakt Raut is the founder of Applyifi.com, and author of the book for startups - ‘Starting Up & Fund Raising’ Prajakt personal goal in life is to encourage and assist a 100,000 people to become entrepreneurs. _____________ Prajakt is the founder of Applyifi - an online platform that provides startups a 36-point scorecard and assessment report on the venture's investment readiness [www.applyifi.com], and helps them improve their odds of getting funded. Prajakt is also the founding partner of The Growth Labs, a platform where growth-stage companies get sharp, incisive advice from senior professionals and experienced entrepreneurs. [www.thegrowthlabs.in] Before starting Applyifi, Prajakt was the head of operations at IAN, founding member of a leading incubator, and the Asia-Director for TiE (2004 - 2007). Previously Prajakt had co-founded Orange Cross, a healthcare services company, and was part of the founding team member of Idealake Technologies. While in college Prajakt had founded a printing business and has spent over 10 years working in leading advertising agencies. Prajakt’s book, ‘Starting Up & Fund Raising’, helps startups understand an investor’s perspective, and helps them improve their odds of getting funded. The book also helps entrepreneurs understand the building blocks of a business.

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