Investors are definitely key people within the bookie entrepreneurial environment. These individuals are very influential when it comes to deciding which bookmaking start-ups are going to ultimately get the funds that they need to get things moving.
Bookie Tips: Making Assumptions, Not Always Convenient
Although investors are important, they are not always synonym with a good experience, especially when you make assumptions about them before establishing a professional relationship.
You may have read in a variety of publications out there that having investors is part of being a successful bookie entrepreneur, because after all, if your business idea is not funded, it doesn’t carry the necessary legitimacy.
Sure, there is some great deal of truth related to the statement expressed above; however, making the following assumptions can be counterintuitive for your sports betting operation:
Wrong Assumption #1: It’s Easy to Find Investors
When a bookie is over excited about a given business idea, he may wrongfully think that finding investors to get started is easy, when in reality it’s not.
But this is not only true within the gambling segment, as this is a fact that is faced by many entrepreneurs from a variety of industries.
Just to name an example, Walt Disney had to become very perseverant in order to obtain the capital to start his studios. Actually, Disney had to knock the doors of more than 300 banks before finding a positive answer to his request.
Many bookie entrepreneurs probably give up after getting rejected by less than 5 banks or angel investors, but they failed to consider that getting funds to start a business is energy-intensive.
If you are a bookie that is committed to build your own sports betting empire, then raising capital must be your number one priority. And in order to get that cash, you need to meet as many angel groups, venture capitalists and bank representatives as possible.
Although some of these investors may tell you that they don’t want to invest in your idea because it has some holes in its core model, don’t give up, and stick to your guns until you find someone that does believe in what you have to offer.
When trying to raise capital, think about the attitude of a good entrepreneur as the one of a marathoner who is running his most challenging race yet.
Wrong Assumption #2: Getting a Positive Answer from an Investor Means that All Your Cash Problems Are Going to Disappear
When you get a YES from a prospective investor, it doesn’t mean that you are going to get the cash under the terms that were first agreed upon.
In fact, it is not uncommon for investors to tell bookie entrepreneurs that they are going to fund them under certain circumstances, just to change the conditions at the very last minute.
Once you get a YES from an investor, your best bet is to get all the legal paperwork signed right away. This ensures you that you will get your so much needed funds, and that the investor won’t be able to change his mind later on about the conditions of the deal.
Wrong Assumption #3: Your Business is Going to Improve Immediately
Without the necessary funds, your bookie business can’t really move in the right direction, however, in lots of cases, more cash actually equals more problems.
If you get the funds, but your business plan is not very sound, the resources that you are putting to it are going to yield poor results.
The ideal scenario for your bookie company would be integrate some investors when your business is experiencing certified growth, or when you feel that you have an attractive strategy that has little chances of failing.
When you manage to understand the downside of working with any type of investors, you will definitely feel more prepared to deal with this new experience.
What’s important to remember is that even though to get funds from an investors is very relevant in order to attain success, it can also be pure hell.