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Should you raise money to make your startup successful?

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The reality is  unless you or your team members can work for free or you are getting free services from your partners, you need capital to have any chance towards success.Receiving money from either of these two scenarios is a great sign that your idea has value and there are people willing to pay for it.

1. Find an investor who believe in your startup idea

2. Find a few customers who find value in your product.

The first case will mean that you can “go heads down” building your product. You should have a very good development plan in place and know exactly how you are going to complete it achieving success. You will need a lot of data to initially impress your investors on your plan. They will be looking for at least three to four times in return for their initial investment. A solid business plan with a projected data will be required to sell your idea. A lot of time will need to be spent collecting survey data along with many other ways to prove your concept will work.
 
The second case will get you a continuous flow of money provided you satisfy the business need they are paying you for. Providing the bare minimum features of your product with a projected road map will help. This is a chance to learn what is most important to your customer. This will also make the customers feel valued as well as gain confidence in your service provider abilities.
 
Comparing the two scenarios with the software delivery methodologies, we can associate the first one with the waterfall methodology. The second scenario could be the agile methodology.
 
I found a great article on the Wall Street Journal giving a great example about “How to start a business with very less money

Photo Credit: Money” by PT Money on Flickr / CC

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