The first component before starting business is the idea or in simple terms what’s the concept is it the service or the product that you want to offer and earn revenue to it.
The idea has to be validated on the following parameters the business model, the revenue model and the scalability it can have for e.g. if you are planning to start business for providing home health care services to NRI parents then you first need to understand the business model is it individual’s you are targeting as your primary segment and secondary segment will be the hospitals with whom you will tie up.
Then comes the revenue or how the money will be earned what’s the pricing of your service and what all services are you going to provide for the amount that you are charging. Then comes the scalability is it just going to be your city or you can expand to other cities.
With these questions the next crucial questions comes is the financial viability which will give you clarity how much money is required what are your miles stones as to how many patients you need to target, how are you going to reach out to the NRI parents who are going to pay.
Idea, which cannot generate revenue, is not an idea once you have clarity on the financial viability is where you start the process of either pumping in funds till you reach some sign ups, which will give confidence to run things.
Yes its completely agreed that idea is the base line for starting of business but it cannot be just the only reason to start business in today’s scenario of competition and changing markets
The purpose of idea is to solve a problem and create value, but some ideas look good in concept stage specifically if its service as lot of companies bench mark on services aspect as its easier to start and not heavy on investment as its required in manufacturing of product.