Time and again, I have highlighted the rising graph of entrepreneurship in India. The success of businesses at the grassroots has inspired ambitious persons across generations to become entrepreneurs. The glamour of business success can be enticing and often ends up being the primary motivation for many.

As it is often said, the starting point of a successful business is almost always a good idea. While I agree with the statement, I would like to emphasize the fine print that comes along with it—one that is easily overlooked.

Not all great ideas grow into successful business realities.

Albeit spontaneity and risk-taking are a part of entrepreneurship, impulsiveness can end up in loss and failure. While every entrepreneurial adventure comes with its elements of surprise, certain essential elements need to be set straight before one develops an idea into a business venture.

At a time when the opportunities are virtually endless and the market is ready to experiment, it is easy to be brimming with seemingly “revolutionary ideas”. In fact, at the risk of sounding blunt, almost every single person, if asked, will have their version of a “mind-blowing idea” for a successful business. Amidst such an overflow of ideas, would-be entrepreneurs need to give themselves a reality check. They need to take a step back for the calculative assessment of the practicability of their idea. To achieve this, they need absolute clarity about their business. Whether to engage in providing goods or services or both and to which degree is crucial to determine. Once decided, the same needs to be applied through possibilities. The checklist should assess whether their idea brings real value to the market and whether there is a demand for it. The identification of a relevant market includes the determination of the target audience for a business’s products and services. The tastes and preferences of this target audience need to be accounted for. It is also important to study competitors who are engaged in similar activities.

There are multiple layers to this test since there are times when novel products or services that solve gaps in the market are entirely new to the consumers. However, that is when market research comes into play.

Once the market research game is strengthened for an entrepreneur, half the battle is won. In the next part lies building capacity and scalability.

If a strong business plan is the heart of a business, then finance is the blood that keeps it beating. The initial investment, working capital, and the entire short-term, as well as long-term financial plans of a business, have to be forecast. The sourcing for this finance needs to be decided based on a range of factors. In a previous blog, I had drawn a parallel regarding when to dip into one’s savings for a business venture and when to borrow money.

Once the foundation is laid, other intricacies including branding and brand positioning, team building, marketing strategy, sales plan, and legal compliances have to be handled. Only when these requirements are handled does a business become ready for deployment.

Entrepreneurship is not for the faint-hearted. Therefore, even after these considerations, there is a risk factor. However, preparedness makes all the difference and determines whether one dives into the sea with or without a life jacket.