The world is filled with transformative business ideas, but the only ones we will ever get to see are those that become business ideas. Most people have some noble and fantastic ideas about how something can be done better, faster, or with great ease. But maybe not all of them will ever act on their ideas. And even for those that do, they will have to find a means to fund it.
In seeking funding or investors, you may hear a comment that sounds something like the title above, maybe not as direct though. You may pitch to a potential investor or group of investors, only to be told that while it is a good idea, it is not worth investing in? Or it is not worth their while. Either way, it means you have been told that your idea is not bankable.
Bankable, creditworthy, and worth investing funds into, they all mean the same in this context. If an investor tells you that your idea is good but not bankable, it could simply mean that the idea is not worthy of his money. Many transformative business ideas may not see the light of day unless the owner is able to show that the idea is creditworthy.
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What does it mean for your idea to be bankable? What does it mean to be creditworthy? How can you show potential investors that your business idea has a future? How can you prove to them that investing in you and your business would not amount to investing in a sinking ship? It is very unlikely that an investor will fund your business just out of sentiments. There has to be something to show the investor that there would be some returns.
Commit your own resources to get started. In my entrepreneurship posts, I have mentioned before that you should be able to commit some of your resources to get started. Your funds, time, energy, and talent should be the starting point for the business. “If you cannot commit your own resources, why should I commit mine?” This is the unspoken question that goes through the mind of potential investors.
In getting started with your own resources, you will be able to prove that there is an existing market for your product or service. Importantly, you should be able to use this to get clear financial records and show a positive cash flow in the business. When you get started with your resources and you notice that you are still spending more than the revenue, make necessary adjustments till you have shown that the business can at least break even, and potentially become profitable.
As a bonus tip, always accept and utilize the feedback you get from a pitch. Even if there is no financial investment in your business, you could get advice that would completely alter the cause of your business and change it for good.