There seem to be a plethora of people that think that their business idea is the next billion-dollar one. And also that potential investors will gladly want to invest in it.
On the other hand, there are people with some proven experience under their belt. It may be in the form of knowledge about the industry they are going to start the business in, or just skills that helps instill faith in their ability to be able to run their business effectively.
And to your surprise, most potential investors will be more inclined toward the second group of startup investors, than the first one. And a well-known Indian entrepreneur Anand Mishra, explains why.
The thing is, the business ideas that people are so enthusiast about are usually not that great. Either there are already many businesses based on that or a similar idea, or the idea is just not practical enough to be turned into a reality.
However, when it comes to people that are actually skilled in the industry they are looking to start a business in, then most times they know exactly what they are talking about. They know what’s possible in that particular industry and what’s not. They are likely also aware of the potential hurdles and roadblocks.
Hence, they may also be much better-equipped to get around those hurdles than someone with zero experience about the industry they are looking to get into with their great business idea.
This is not devaluing the importance of a great business idea. They certainly do exist, but far less than what people think. Also, even for people with a great business idea, things are not as easy as they might think as they are usually breaking into a new market.