Start up /health care start up
First and foremost, how would you build your business if you knew in advance that you were never going to receive outside funding. Investors want to understand exactly what their money enables. They won't pay for discovery or experimentation, but they will give you leverage to accelerate something you've proven on your own, for example.
Start with marketing research, strategy, and validation. That will be how you get the right answers to define your product and ensure a product-market fit with lower risk. Don't start with product.
Investment is all about how you reduce risk for your investors. What they want is not very different from what you'd want if you were the one holding money that you could lend. There are at least six classes of investors, and each will want different things because they have different attitudes and criteria for what they consider a good use of their money. I suggest you read Alejandro Cremades's (the person who started CoFoundersLab) book "The Art of Startup Fundraising" to understand more about what the process will look like.
But, as I said at the start, figure out what you would do with your idea if you knew in advance that you'd never get outside money. If you can do it without outside money, go that route. Prove your business plan works. And then only seek money if it can accelerate something for you, not as a way to get started. You'll be in a much stronger position and less beholden to other people's wishes.
Thanks Paul ! Very correctly mentioned The aspect of starting a start up from funding expect!Pitching on the same voice but would love to have some opinions of the house!
To keep it simple:
1) top deals with top investors go to a very select inner circle group. This holds for every country or city. If you belong to the inner circle you would have had your funding already or knew when to get it. So this options will be off the table.
2) Most investors do not know that much. Just as a founder or any other person they are unable to assess the market and whether or not something is a good idea. This is why they focus on team (since they think that they are able to assess if a team is any good or not) or they look at financial metrics that proofs there is a money machine.
3) most investors surf the hype waves. so if you are in a hype market, get funding on the hype because you get cheap money.
As for 2) if you already have a proven profit generating machine there is only one reason why you would need investors money and thats to grow more quickly. In many cases, hyper growth is not necessary. Depending on your product and the market you operate in there might be time. Just fund with your cash flow and keep your stocks and autonomy.
Hope it helps. Good luck!