Human race, right from the outset have been creative whether to hunt for food or sheer sustenance on this planet. Perhaps ‘creativity’ has evolved as one single storehouse of power that has led to human growth over other species. It is by harnessing this power of creativity using which tools were made to fulfill requirements of survival to the lifestyle era today. Business had its humble beginnings right from barter or exchange and negotiation era to the monetization format that we see today.
Before you get into the pilot seat, it is important to gauge the characteristics of the market for your business idea. It would be worthwhile to gauge your idea on the following parameters:
- if there would be an enduring and predictable demand.
- Is the fragmentation in the market high enough
- Good and decent industry margins
- Low competitive professionalism
- Low industry customer satisfaction
- Startup capital needed matches your personal capacity
As you know that “Business Starts at Home”, it is better to start validating your idea from close friends, relatives, potential customers and with entrepreneurs. Ensure that the sample set is fairly large for a decisive decision on the idea. Doing this exercise will help you to evaluate the initial pros and cons of the business idea and will also help you get into a more detailed market research.
Setting up a legal entity for your business is one of the important aspects in the entrepreneurship journey. There are various types of legal entities available to start your business and popular ones are:
- Private Limited Company
- Liability Partnership and
- One Person Company to name a few.
Each type of entity has their own characteristics and depending on your business requirement, your ambition, roadmap you could choose one that is appropriate, else take guidance from our experts.
You should be looking at your future plans such as business operation, funding requirements & sources, Geographic segmentation, business structuring etc. before selecting any type of legal entity for your business.
Quick Tip: The most popular and business suited form of legal setup is Private Limited Company and it fulfills all the requirement as mentioned above and to know about Private Limited, please click here
The term economic moat, popularized by Warren Buffett, refers to a business' ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms.
Nevertheless, this is a definitely how you would have started and will sharpen as you go along. Moat can be of any type say for example creation of Strong Brand, Unique patented solution, creation of intangible assets or technology, having strong presence on social media etc. Having moat in the business reduces your marketing expenditure as that can be your best-selling point which your competitors don’t have to offer.
Entrepreneurship is the ultimate high and is living a few years of your life like most people won’t, so that you can spend the rest of your life like most can’t!
Entrepreneurship is a lottery of efforts. I believe the business idea should start with the person asking the following questions to himself/herself:
-> What is valuable, am I passionate about this
-> What can I uniquely do
-> What is nobody else doing
When you put your head critically around each of the points above, the idea will crystallize as you have never imagined ever. Well, it is pertinent to mention that you don’t need a new idea as such to start a business. Does the idea give you excitement or say you have a compelling desire or passion for doing it? I am not saying you cannot choose an activity other than your passion, there are entrepreneurs out there doing business that is not their passion, but still, they have achieved success in what they are doing. It is just that choosing an business idea that you are passionate about makes your entrepreneurship journey more fulfilling and the probability of success higher.
I would recommend – taking up one idea. Make that one idea your life, think of it, dream about it, and live on that idea. Let the brain, muscles, nerves, and every part of your body be full of that idea and just leave every other idea alone. That is the sure-footed way to success.