In the part on introspection there are two theories which can be used to decide what you should do. One is to understand whether the business model is a passion, an idea or a market-based calculation. The second is to evaluate whether you should do something in which you have a capability or something for which you have a passion.
Passion vs idea vs market calculation
There are three ways in which an entrepreneur can decide what to do:
Passion: The entrepreneur is extremely passionate about something in the business modelbe it industry, product or service. In many cases, the entrepreneur starts a business here because the best outlet for his passion is a start-up and because he wants to pursue that for life.
Idea: The entrepreneur has a particular business idea which he feels will make a great business model. This, again, could relate to an industry or a particular product.
Market calculation: The entrepreneur does not have anything specific in mind, neither an idea nor a passion. He is more driven by what can be called a calculation based on markets, skill, experience and financial calculations.
All three, by themselves, are equally good and proven reasons to start a business, especially in the absence of either of the other two. Also, it is individualistic and choices will differ depending on individual wishes. But it is advisable: Don’t look for an idea, follow your passion.
An idea is only as good as the end result and everything depends on how well it is executed. An idea is a single entity and if that does not work or cannot evolve into a successful business model, then, in most cases, the entrepreneur is left with nothing. Also, quite often, how an idea appears on paper or in a discussion could differ from how it might turn out as a business model. Many a time, entrepreneurs make the mistake of confusing idea with passion. Thinking of a business idea is very exciting, there is a lot of rush and thrill about it and it feels like nothing less than an invention or a discovery
Also, at such times, the entrepreneur is unable to entertain any negative thoughts about it and only the positive thoughts come to the fore. It is like newly falling in love, you see no faults in your loved one. Only, as time passes and you are with that person day in and day out, you start seeing things you do not like. Passion and idea are very, very different.
Passion usually grows stronger over a period of time and following it brings you happiness. An idea will fetch you money if it succeeds, not necessarily happiness. When you are passionate about something, you are fine doing it even for a lower salary and you want to do it forever.
Market-driven calculations can be immensely misleading. For one thing, they are mostly facts and figures and are unable to tell you how a business model was actually built. Market-driven calculations are like reading the business section of a newspaper. Both passion and market-driven calculations are needed to build a successful business. Learn more about choosing a business and entrepreneurship only at the University Canada West, one of the most popular universities in Canada, offering various business and management related programs.