Its not uncommon or rather its more than common to see a question like “How much investment is required to open a small-scale cyber cafe?” in Quora from wannabe entrepreneurs who want to consider starting a new business of this kind.
Or consider a few more questions like:
- How can we set up an auto components manufacturing unit in India, and what capital is required for this business?
- How much money is needed to open a profitable spa business in Kolkata?
- What is the minimum amount required to start a business?
It sounds like a normal thing for one to think about capital needed when one thinks about starting on new business. After all, capital is one of the most important parts of a business and it is something that is not available in abundance for most of us.
The capital needed would depend on your business model. See this slide share – Business model innovations to know what I am saying here.
But, neither your business model nor the investments should be the deciding factor to evaluate business idea to work on. You need to keep all such filters away when you are trying to find an idea.
The first step for any new startup business is to spot some problem or pain experienced by a bunch of prospective target audience and explore if there is any solution that can be of any use for solving the pain.
Why is it important to keep a filter such as “capital needed” away when you are searching for a good idea?
Filters screen out ideas based on our guesstimate of their viability early in the process.
So if you want to find startup ideas, don’t merely turn on the filter ‘What’s missing?’
Also turn off every other filter, such as “how much money will be required?” or ‘could this be a big company?’ There’s plenty of time to apply that test later. But if you’re thinking about that initially, it may not only filter out lots of good ideas but also cause you to focus on bad ones.
The human brain has amazing capacities. It contains billions of neurons, allowing it to process vast quantities of information so that we can function effectively. But can we have too much information? Yes, and, in fact, filtering information is one of the brain’s most important functions. Brain filtering is an adaptive strategy and ensures that only the information relevant to our goals is allowed into our consciousness. This keeps us from being flooded with irrelevancies that might distract us.
The brain filters our access to a vast consciousness, which extends beyond the limits of neural activity. James proposed that the brain acts as a partial barrier and gives us only the surface of what is possible for us to perceive. The process James described so many years ago is, of course, the filter theory, and he said that what the brain filters out is consciousness itself—a supremely expanded consciousness.
When you work on finding a business idea, keep all such filters off. Remember, “how much will this business cost to set up?” is not a question that you need to worry about in the beginning; but more critical question you need to ask, “what are the pain points of this customer that I can possibly solve?”