Posted by: Madhavi CN | January 4, 2013

Why Stop at an Idea?

Business ideas are a dime a dozen. Almost everyone would have come up at least one such idea that they were absolutely sure would revolutionize the industry and lead to a great business venture. Just imagine what if every such idea really took-off. In reality, every idea that pops up in our head has a high mortality rate owing to the lack of some essential groundwork.

How to make the idea worthwhile?

Knowing the value of your business idea is the first step to Entrepreneurship. By itself, your idea does not mean much. It is your capability of building a successful business entity around it that makes its potential. An idea without action is zilch. The sooner we accept that the faster we can move in the right direction.

Ability

This is one rare skill that builds the profitability in business. Let us not imagine without an honest assessment that we are bestowed with ‘the ability.’ It is quite easy to come up with an idea (for eg: a consumer product) as compared to coming up with the follow-up stuff for it – how to design and make it, how to price and package it, what is the sales pitch, what is expected sales and so on, including the most important of all, how to find the required finance! You can still make it even if you have no clue of all this by either learning or hiring the experts. The point is you need to take the first step in assessing your idea by actually assessing your strengths and weaknesses in building a business.

Steal-ability

Every idea that you might have come up with might have also come up in quite a few others. But that is not what we are talking here. The question is are you worried that someone may steal your idea and make a successful business out of it? If your idea is something that could be easily copied just by knowing it, then it is definitely time to look into it and fine-tune it. A good business idea is one where the success depends on the skill, time and effort in executing it. Build these factors into your idea and bring down the ‘steal-ability’ factor in it. This step is not to protect your ‘idea’, but to make it venture-worthy.

Market Intelligence

Know the market for your business and the competition. If you think you have zero competition then there is something wrong with the idea. Competition need not mean players in the same field or segment. Suppose you are thinking of bringing in a nutritious and tasty packaged health drink at a great price, you must definitely consider ‘water’ as part of your competition. This is what we call indirect competition – a big threat as it often gets ignored by start-ups.

Ethics and Legalities

Take care to see if you are not treading on the wrong path when it comes to environment, natural resources, human resources and other sensitive factors. In your enthusiasm, do not pursue ideas that ignore either ethics or the governing law of the nation where your business is registered as well as the markets it reaches to. It may be too costly a mistake in the long run, once you succeed and get noticed.

Affordability

Genius is one percent inspiration ninety-nine percent perspiration. Success in business is also the same. So it is time to check your affordability on that. Can you afford to persevere? Can you sustain as your business encounters a long and tough period as it establishes itself. How long can you manage to run the show without the returns? Taking a plunge into entrepreneurship in hurry and giving up and crawling back to your corporate job once the challenges strike in should not be part of your history.

Now, that you know the worth of your idea, it is time to carefully plan and take the action steps.

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