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So you have an idea what separates an idea from the business. How to understand when you have a business and not just an idea.
Genesis Authored by Gavin Tonks 16/02/2009 wc 508 And in the beginning was the idea….. Well not just any idea that has the potential to be a business. A business needs to eventually drive a profit, sustain you and the company created as the vehicle to do the business from this idea. Many people have really good ideas, some brilliant and some just plain stupid, like the guy who had a micro trading store and thought that his business, in two years would be big enough, to give a large retailer doing billions of turnover a serious run for their money, after a 50 000 financial injection. Entrepreneurs all too often confuse the words, “idea” and “business.” An idea is a thought process, a dream or a concept that has becoming mixed in the conscious part of the brain as having some commercial worth. A business is an entity that drives commercial transactions and exists to generate income. The business has a market, a plan and a way to ensure that people who like the business support it with their financial transactions. These transaction result in generating turnover and if we are lucky “profit” and if you are seriously fortunate, wealth and some form of valuable asset. Ideas on their own in the business world typically have no value and even Richard Branson has publicly thanked all the people who have sent him good ideas. If you wish to sell or trade or generate income from your idea it requires presentation. The presentation highlights how it will perform as a business. The there are fundamental questions that must be asked with any idea. How many people will buy into the idea? What is the perceived transaction value and why would people pay this amount for the idea? How many ideas can be sold a day? Can you make enough ideas a day to meet this demand? What will happen when other people see your idea works? Can this idea generate sufficient profit to run a business? Finally would you buy one of your own ideas and put down hard money for it? Many people with solid ideas, sold their houses, mortgaged everything they had, and believed with the determination of Job to make it a success, or is your idea now “THE ONE” you are hoping some rich philanthroper will say, “I have waited my whole life, for this idea, here is a huge wad of money, now I will spend a lot more money and turn this into a huge profit”. Then as the generator of this idea and from the kindness of my heart, I will let you earn more money from my hard work on your idea, because it was your idea and have contributed nothing since, to its success”. PHASE ONE: of the entrepreneurial business journey, make a list of ideas, then see which ideas make a commercial business feasible. Evaluate which idea you would “buy into” and commit all your resources to making it a commercial success, and then consider the journey begun.
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