Are you somebody who got an idea that you think can turn into the next profitable million or a billion-dollar business? Not trying to discourage you over here, but do you know that not every idea that you have in your mind can turn into a successful venture. Some things only look good on paper and in the individual mind. But when you try to turn your ideas into reality, it starts turning out to be disastrous that you start wishing that what if you didn’t waste your time on it. Today first, we are going to talk about “5 Worst Startup Ideas.” That you should avoid in all cases.
Five worst startups ideas
1. Try to Invent something which people, in reality, doesn’t need
Like I mentioned before, some things only look good on paper, not in reality. If you have seen the “Five minutes of crafts” videos, you will know what I am talking about. They are always trying to create something which is not only laughable, but they often develop something which nobody wants to use. A man back in 2009 came to the “Shark Tank” show. Asking them to invest in his “Ionic Ear.” He thought people have a problem with Bluetooth because of how uncomfortable they are to wear, and you need to keep on adjusting it.
So he came up with this “Iconic Ear” plan in which the Bluetooth will be surgically installed in your ears. The sharks outright rejected the idea because it not only sounds horrible and creepy, but it can also be dangerous towards someone’s health. No one wants to add Bluetooth in their ear permanently unless they completely lost their mind. So make sure people actually need the product that you are developing, and it is also useful. Otherwise, no one wants to invest in crazy ideas like these.
2. Business Ideas that are against the investor’s morals and also illegal
When you are approaching a particular investor for your startup ideas, suppose your plan includes something that is immoral and frowned upon by our society. No investor in their right mind would want to invest in your business venture. For example, you have an idea in which from the very beginning, you want to cheat your customers. Like scheme, a fake lottery of crores gets people to buy those tickets and, in the end, announce the person who was in this with you as a winner to make it look real and earn a lot of money most of the investors will reject it. Because it is not only immoral but also illegal on so many levels. That your plan from the start was based on lies, fraud, and to make a fool out of people, and you can’t build your empire on falsehood.
3. Creating a product which is only going to attract a small number of customers
Investors are always after those creators and products, which are going to be in massive demand in the market. Imagine that you have a plan about creating pants for those people who only got one leg and due to some accident lost a leg below their knee and according to your project you want to design a pant in which one leg pant length is full, and the other is like a Capri.
Now, this pant was created to target those immobile one leg people, not for everyone around this world. Why would an investor invest in your plan when you are only targeting 1000 people out of 1 million people. It is like from the onset was a terrible plan, and you are going to barely make ends meet to build your company on such ideas.
4. Unrealistic ideas and overconfident entrepreneurs
Every investor loves a creative mind who can think out of the box and create something which is going to break product sales records in the market. But there is a difference between liking those entrepreneurs’ ideas, and it is a totally different case to invest in such ideas. Take Baba Ramdev, for example, think of him as an ordinary entrepreneur who went to an investor claiming he made the cure for coronavirus. He got only a few samples, but to create it on a large scale, he needs them to invest in his business.
Why would a business owner believe that what the greatest scientists and doctors all over the world failed to do with thousands of resources can be created by a person who doesn’t even have enough money to make a thousand bottles of that cure. But it doesn’t mean that every entrepreneur’s ideas are fake, there are going to be wise minds who are going to create things which others failed to do. But an investor is not stupid they will see the genuine person and will know if your product is what you are claiming it to be
5. Business can’t be built just on the title
Presume out of the blue while doing something you have a title for a book, but you don’t have any plot or thought about the main characters of the book. For a minute, forget all of this, but the biggest thing is that you don’t even have to write a book, and you go to the publisher and say you have a title for a book, which can be the next biggest thing.
Publishers will think you are crazy and are going to send you on your way home. My point is that first, you need to have everything mapped out about that business plan. You don’t just think of a title and build your business around it. First, you build your business plan and figure everything about it and then think about the title.
Seven ways to make sure your business gets funded
Now we talked all about the five worst startups ideas in which no investor is going to be interested in investing in it. Now let’s talk about the seven ideas on how to pursue an investor to invest in your business.
Present a clear idea in front of the investor about your business
When you finally get to meet your investor for the first time. Your first duty is when you start explaining about your product, make sure that you are explaining every single feature and benefit of that product, and how your product is much better than what is already available in the market. Because why would anybody want to invest something when it is already available? It is much cheaper than the price you have decided on your product.
Your experience and expertise in this field from the past
Investors are not only investing in your ideas or product. They are also investing in you and your skills. Not only your product features need to impress them, but you also have to leave an impact on them. Show them your potential and how much you have already achieved. That not one single penny of theirs is going to be wasted, and your previous investors also had faith in you and believed in your ability to make the business successful.
Show your achievements and what exactly you can bring to the table
If your business is a year old and you already sold so many products, and you think you have the potential to attract more customers in the future. But to meet those demands and to manufacture those products you need investor then approach someone and show them how well you were doing in the past and how much your business already earned and it is increasing day by day, and how much you both can profit from it in the future, then I am sure investors would love to spend in your ideas.
Making sure your documents are up to date and completely understandable
Your business lifetime deal also depends on your documents and how you represent your business through these reports. If your papers are not understandable and leave investors more confused than anything. So you need to be clear enough in your documents on why they should choose you over the thousands of applicants who want them to invest in their business. Make yourself clear and unique that they don’t even need to think for the second time before investing.
Make a sheet about financial prediction
Before starting a business, every entrepreneur should know how much investment they need to make into this product. Approximately every single thing the cost of manufacturing, the workers cost, if the place where you are producing the product is on rent, cost of the marketing of the product and finally how much profit your business made in the past year and your yearly income from it and how much you are willing to pay the investors. Everything should be mentioned in detail in the financial sheet.
Respect other people time
Nobody wants to invest in someone’s business if they don’t respect their time. If you have heard of this phrase before, ” The first impression is the last impression,” then you need to start implanting it in your life. The investors will notice your every action. If you reach the meeting spot on time or not? If you delay replying to their calls and emails? These little things will show them how serious you are about your business. They will only take an interest in your product if you show them your will, your enthusiasm for it, and how much you are respecting not only them but also their time.
Show them how much they gain after investing
You can never attract investors with a high amount of investment, and in their ROI, they only get a small percentage from the profit. When they invest money in your business, they are also spending their time in it. So they should get an offer that they find attractive and which you can give to them without going into a loss yourself.