With the advanced logical abilities to find solutions and use of technological applications, we all are always good at spotting the next business opportunity. Believe me that is the easiest part to do. It is only when you start building up on it, you realize the challenges, difficulties and complexities around it. Right from the legal aspect to sourcing from vendors and identifying the right audience. Most of the companies are able to develop the solution around the opportunity/problem they spot. Financial viability of these organizations remains a huge question mark. Many of the heavily funded start-ups haven’t been able to break even after rounds of funding and years of operation, leave apart generating profits for the investors.
It is then you realize the importance of ‘Proof of Concept’, to make sure that you start working towards building a ‘Profitable & Sustainable Business Model’.
A detailed and robust financial planning based on realistic factors should be assessed to ensure building up of a prospective and sustainable organization. All sources of revenue and expenditure should be listed out meticulously to conduct a reality check at different growth stages. Proof of Concept may also be tested by launching a beta version or conducting a pilot test in the region of its launch. It is always recommended to spend time on analyzing the solution, testing the waters in targeted market and building upon a sustainable business model. One should seek help from peers and mentors to further strengthening the dynamics of the model.