There is a difference between an idea and a business idea.
An idea is a thought or suggestion as to a possible course of action.
A business idea is a concept that can be used for financial gain that is usually centered on a product or service that can be offered for money.
The difference is the financial gain.
It is easy to go crazy on an idea, it is sobering to find out how this idea will make money.
When you pitch it is important to explain how the money comes in and out of the business.
This determines whether your business model is sound.
- How do you get paid?
- What’s the opportunity for growth?
- How can you scale beyond your current scope:
Are you in the business of:
- Asset Sales [Car, Building]
- Usage Fees [Hotel, airlines]
- Subscription Fees [Software, Gym Membership]
- Leasing [a property, car]
- Licensing Revenue [Content production, inventions]
- Brokerage Fees [Commission on deals]
Once you understand how the money comes in and out, tell us wow will you grow your business:
- Have you identified new industries,
- Have you identified new territories,
- Have you identified potential partners.