If you have an idea for a business you plan to launch, Devon George, COO at Prolific Interactive and expert start-up mentor & mobile developer on Maestro Market, a company that allows individuals and companies to connect with experts in a number of different fields, has provided the following insights you’ll want to take note of before you just start ‘pitching’ your idea.
Watch Out For Hollow Accelerators/Incubators. Incubators and accelerators are all the rage today with aspiring entrepreneurs seeking capital and mentors. Although incubators can be a valuable asset for entrepreneurs, it is important to do proper due-diligence before signing any deals because hollow incubators and accelerators promise the world but fail to deliver the access to mentors and anything else they might promise. Additionally, some entities have ominous terms regarding the amount of equity and capital they require from your company. Keep in mind that when signing any agreement regarding equity, having your own attorney at the table is a must, even if you are just starting out. Moving forward, if you are admitted to such programs, keep in mind the biggest complaint of participants is that they are not provided access to the “mentors” advertised as being part of the program.
The ONGOING Rise of Consumer Mobile Startups. Mobile is being touted as the hottest sector in technology today, but that does not mean you can enter the sector with half-baked ideas. If you think that “building the next Instagram” is your key to success, you better head back to the drawing board. Many companies pump money into development, but fail to utilize lean development principles and simple web based user acquisition. By devoting more efforts to user validation, the overall project cost and risk are greatly reduced as opposed to simply tossing ideas out and seeing what sticks. Additionally, lean development, the process of only building out the essentials for the initial launch, and then adding features as needed, can help save significant sums of money and cut time off of your project launch schedule.
The Great Crowdfunding Unknown. Crowd funding might appear to be an ideal way to raise capital for your projects but the current regulatory climate means that for traditional corporate projects, even those by small businesses, using crowd funding in lieu of traditional methods can spell disaster when it comes to ownership of your company and more. If you really want to pursue crowd funding, Kickstarter is the leader in the marketplace, but note that many of the projects are inventions rather than ongoing services. Unless you are raising capital only for an invention or project, you should refrain from crowd funding due to the fact the laws have yet to be written to govern the practice.
Overall when it comes to embracing new concepts, no matter how tempting it is, it’s always important to do proper due-diligence to ensure any new endeavors ultimately help your company’s operations. If the benefit is not immediately apparent, it probably is best to hold out for another opportunity, since they are usually easy to come by in the start-up sphere.