Guard your money!

Sometimes a single business idea can be one of the causes of bankruptcy. Some organizations would have remained in business if they had known the strategy to differentiating and dissociating business ideas and personalities. Don’t throw away your money in today’s world of business, where the Dollar is crashing in value and the Cedis is rising in the same market. It shows that just anything can happen. And that applies to anyone and any business. Sometimes the best thing to do in business is to remain naïve because overconfidence can devastate even big corporation faster than you can imagine.
Today there are still misconceptions about what a good business idea is. Some people may refer to a good business as the one that has potential. Others may call it a business that can yield profit in short time. Another may define a good business as one that has the characteristics of perpetuity irrespective of who comes along to run it. The question is what do you want to build? Do you want to build a good business or the best business around? If you wanted the best corporation, then what does it take to build it?
One of the things that it takes to build the best corporation is brilliant idea. There are good idea, bad idea and brilliant idea! Investors are looking for brilliant idea. The difference in these three kinds of ideas will determine where your business will end. If your business is built on a good idea. It is a matter of time. If it is built on a bad idea, it may get obsolete. People can easily point to where your company used to stand each time they drive past. If it is not built on a bad idea, then why are you struggling in it? What makes that business stand out? How is it brilliant than others? It may not bring the result you want in the immediate period but it will not bring you into loss either. So a business that is hanging in the balance can still be a brilliant idea? Wait and read on. I understand that you want to know what it takes for a business to skyrocket.
I remember how I have invested into some business ideas without considering the principles I am about to share with you. I thought that mere consulting was all it takes. I thought that having good intention was all it takes. So I consulted with an “expert” but I still ended up losing my money. Accurate analysis of these principles I am about discussing will save you from losing money. I learnt them in a hard way and that is why I can make bold to say that it is not enough to have an idea. It is important to scrutinize the idea. Some ideas are mere charm. They look golden but lack substance. Meanwhile some ideas appear ludicrous yet they are very lucrative and worth all the risk. Hurriedly embracing an idea will be tantamount to throwing away your money. Moving from loss to loss can dampen your spirit and self esteem even though it’s been said that success is moving from failure to failure without losing enthusiasm.
This is an age of innovation where all idea has to be analyzed. This is because some ideas can wreck your life investment faster than you can ever imagine. What it takes to know they are superficial is a closer look. An objective stare, a more intentional analysis on the ideas will show you all the loop holes. The litmus for business idea in our environment has to transcend feelings and sentiments. Ideas have got to be tested based on facts. Let me quickly take you through the basics. The three basic tenets of any brilliant ideas are as follows:
#1. Evaluation: This is the step one in the scrutiny. The step by step of what the business will cost. Costing in terms of future value of the money invested. A brilliant evaluation leads to a successful business. A good evaluation of the business idea will show you how the idea will sell. It will address what it will cost to execute and when will the business break even? Reaching a point like this is easy in costing and budgeting. The question is this. How much would it cost to take it off the ground? If the amount expected to take the business off the floor is too outrageous and higher than necessary, it may be a red flag. If the business will gulp more at the beginning such that few amounts of money will trickle in at the break even period which may even take several months than necessary? It may be a bad idea to invest in it. You need to ask: at what point precisely will that business break will even. What will be the requirements for that to happen? At this stage, what does the business posses and what does it require? If it possess nothing and require everything from you. Execution of the idea may be unnecessary once it has failed evaluation test.
#2. Market! A ready market! And desperate Market! Another thing is who are the audience that will benefit from the business idea? You need to seek your customers first before you search for investor. Who are your clients and Customers? Are they asking for the product or services you are planning to sell or you are just thinking they will ask for it when you bring it to them? When you bring it on them, without their actual need of it, you will be at their mercy because they may not even want your product and services at all. You are going to be appealing to pity if you don’t gather customers first!
#3. Your experience: What is your track record? Have you done this before? What do you know about this business? Who have done it before? Why did those people succeed or fail? What was your result like when you did it? Are you planning to do it the same way they did it? What will make you stand out? This third principle is another thing investors are very concerned about. They don’t want to just throw their money into garbage. What have you sold so far concerning the product or service? Is this idea going to sell without manipulations? This third principle will prove your business idea. Don’t go into business idea without checking these things first. Don’t invest your money without understanding these theories.