Make your start-up idea work as a revenue model

On an average, around 90 per cent of all ambitious start-ups tend to fail. So, why exactly would anyone bother going down that road, often risking every resource at one’s disposal, at a venture that comes with no guarantees of success? You could attribute it to the presence of the entrepreneurial DNA – a desire to fix upon a business idea that can generate income and jobs, and then tirelessly pore over a feasible and practical model that takes that idea from the drawing board to reality. 

For every 100 pitches that we hear, of a ‘brilliant’ idea whose time has come, we give a thumbs up to barely 30 or 40 per cent of them. Every time they are approached by a ‘fresh off the campus’ start-up for funding, investors ask, “Is your product necessary? What gap does your service fill? Who are your consumers? Is your offering aimed for the long haul? Are your ideas executable,  and above all, are they profitable?” 

When we go to colleges, we find youngsters with dreams of doing something on their own and latching on to the start-up bandwagon, without any clear idea on how they plan to get there. A conversation with them often reveals a desire for striking gold overnight, minus the legwork and perseverance to see the venture through the long run. The desire for making money should never supersede the intent to create something extraordinary, that can affect the lives of not just the creators, but a larger demographic. 

Today, thanks to initiatives like Start-up India and Stand-up India, there is a positive sentiment among investors, to expand into newer areas of business. However, the number of investors available in the market now have a much wider pool to choose from. Earlier, many venture capitalists have burned their fingers by funding the wrong project. Today investors are a lot more cautious. You have to hone your business proposal to a tee before approaching any potential funder.

This might be a good time to discuss the role of a business mentor or an advisor. He or she is ideally someone with a respectable experience in entrepreneurship who has an astute understanding of the local market. A good mentor will tend to give you honest but brutal feedback and help you refine ideas. It’s best to approach the idea of a start-up in a formal manner. Youngsters, who are passionate about a business idea should consider opting for a reliable end-to-end start-up facilitation programme that can help lift your idea off the ground.