This has to be one of the first questions that an entrepreneur asks themselves before committing to an idea or venture. Successful start-up are usually based on filling a defined customer need or providing a solution to an existing problem. The need itself doesn’t have to be basic; it can be based on fashion or social trends, but your solution has to fill an existing gap. It is eminently more difficult to start generating cash flow and raise capital based on the assumption that demand will follow supply. Forging new markets is noble, but generating cash flow from existing ones speaks louder to investors.

                                                                                                                                                                                                       

Other guides

Which Venture Capital Stage Fits Your Business?

Business Plan Ready?

When not raise money

The Naked Truth of Raising Venture Capital Finance

Venture Capital Providers Don’t Care About Your Resume

The Customer is King in Your Business Plan

Venture Capital Loves Competition

Is Your Business Plan Aimed at the Right Audience?

Is Your Business Plan Out of Date?

Marketing

Does Anybody Need What You Are Selling?

Cash flow management

How to Make Your Capital Go Further

Investor selection

Where to Look for Angel Financing and Venture Capital