1) Business idea: You should be passionate about the idea, its workability, and its benefits. This alone will drive the business. The idea should provide benefits to the consumer in terms of productivity, cost reduction, reaching more customers or time saving. This alone will bring in clients, people, money and the works.
2) Be realistic: You will not get funding for 1-2 years. The Banks, Financial institutions and Venture Capitalist will not fund the company at idea stage. They will all come when there is a proof that the idea is workable and when the clients are on the horizon. So be ready to sweat it out. Personal finances, funds from family and relatives will be the only available sources of funding till the idea generates proof of concept and clients.
3) Do a through research: A through research will give you insights into your prospective client’s business and the pain points. Understanding the customers requirement will not only help in providing solutions but also in marketing your product. Unplug yourself from the computer, and speak with others who have succeeded to discover what really works. The real-world information you gather will save you time, money and frustration. Passion sometimes clouds judgment. Thinking that you know what is best for your customers is one of the most common mistakes in starting a business. To avoid “selling only to yourself,” seek real-world advice by discussing and interacting with prospective customers.
4) Protect your idea: For the business to be successful, being at the right time in right place is very important. The business not only needs time to set up and get customers but also needs time to scale up. Till such time, the idea should be protected.
5) Create Marketing Strategy: Do not believe that the product is good and hence does not require marketing. Marketing expenses will require lots of resources in terms of people, finance, ideas and time. Once the company is in place, the product/service is well developed, approach Venture Capitalist for funding the marketing and expansion expenses. VC are more favorable to fund at this juncture.
6) Think Big: Do not limit your ideas in terms of industry and geography. In this age of globalization market is vast and the products and services with a little tweaking can be applied across many industry.
7) Business plan has to constantly evolve depending on the market condition and customer’s needs and preferences. The adage “Nothing is constant except change” holds good. The strategy, the area of focus, additional verticles etc need to be constantly evaluated and adapted.
8 ) Commitment: “I’ll have more time to do what I want.” Do not start a business with this thought. Business takes up lot more time than a job. You have to embrace the concept that being an entrepreneur is a lifestyle, not a job. You may have time for the family but not necessarily more time. So prepare yourself for the long haul for immense demands on your time.
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