In the era of start-ups, one of the biggest buzzwords is entrepreneurship. “Start on my own” is a feverish frenzy now. But very few entrepreneurs, with their innovative products, have changed the way people work or improved millions of people's lives. Great innovative products have gone South with sales figures because they did not aim exactly where they were supposed to. So most people return back to the comforts of a cushy job after their entrepreneurial stints.
Apart from burning desire to have something of your own, how does one come to a decision if they have the right stuff to become a successful entrepreneur? Are there specific traits? Does one need to answer psychological tests and answer routine questions like, can they tolerate a loss? Are you an over-performer? Are you a self-starter? Are you willing to work long, extended hours? Why it is essential to question oneself thoroughly before pressing the foot on the accelerator?
A would-be start-up may have a great idea but making it commercially viable is a trait one needs to acquire. Harvard Scholar William ByGrave mentioned, “After much research, we now know that there is no neat or single specific set of behavioral attributes that allow us to separate entrepreneurs from non-entrepreneurs.”
Most senior managers in any job profile work with an entrepreneurial mindset.
I would rather ask these questions to a wanna be start-up and have them respond at length.
Does your business idea create value for a mass customer? Think about it. Why should anyone buy your service or product? How does it help them? If it does, will they pay a premium price for it?
How does the product/service becomes an attraction for all stakeholders? Zomato, a restaurant aggregator app adds value to creative food reviewers. Food reviews are being written for free and, in turn, helping Zomato. That one aspect has contributed to a popular household name in food delivery and is giving an avenue to people to unleash creativity in gastronomy writing.
Fit between opportunity and you or team: The world is full of opportunities. They all look very promising and tempting. But not everyone has the capability and the right skill-set for the market. Be very clear of what the team and you are capable of. Begin with the strengths you have. Adding new skills at the beginning of business is very difficult and will only add up to existing challenges.
Is the market open for your idea? Will it be there for long? A lot of companies manufacturing CFL lights went out of business when LED lights stormed the market. No one can predict the future but there is a strong need to find out if the idea you are dishing out is going to remain profitable for long. The product can be innovated and upscaled many times but the core of the product is important. Analog Cameras went out in no time but cameras as a product are not only here to stay, but are also now available in more professional ranges and at higher prices.
Is your idea worth financing? There is no scalability of business if there is no money. Will any financial institution who listens to your business idea or look at your product find it worth putting their money in?
Who are your competitors? Monopoly now exists only as a virtual game. Look around for competition. Will your product be another copycat? Will it face stiff competition also because of lack of finance?
My personal favourite is to ask start-ups before incubation begins, “Why are you doing this?” If I hear the words, “This exactly is my hobby. Building drones or building an e-commerce platform is something close to my heart,” I am alarmed. Passion is overrated in start-ups. Research and logic would always take the front seat.
The writer is strategic advisor and premium educator with Harvard Business Publishing