I had coffee today with my trademark attorney, and in our discussion he said that many of his potential clients have one thing in common—each of them believes that his or her business idea is a winning lottery ticket.  As we talked about the reality of going from an idea to money in the bank, I realized we had stumbled upon a topic for my next blog.

The idea itself is an important factor in entrepreneurism, but coming up with what you think is a great money-making idea is not a call to buy drinks on the house.  The number of good ideas and products that never produced any money is as plentiful as McCain’s use of the word, “maverick.”  Coming up with the idea or product by itself is only a small part of the equation.  What remains is marketing, funding, company structure, accounting, hiring, firing, and on, and on, and on.

The key to all this is to be realistic about what needs to be done to take a good idea and turn it into money.  This is why I believe so many great ideas are started on the side.  Simple businesses require simple plans which then can be expanded as the business grows.  They begin small, outside the parameters of our regular occupations, and the learning happens as the steps are taken.

The beginning risk is also minimized by a slow, learn-as-you-go plan.  Sure there are tons of things you can do to anticipate what may be next, but in business you never know you are right until you try.  If you are wrong, you have to tweak your plan, make adaptations and move on.

In conclusion, if you’re looking at a new entrepreneurial plan for yourself, plan for an extended learning and incubation period.  Do not expect much cash flow for awhile, and plan for that reality.  Anticipate a need for expert advice and for capital.  Understand that you are going to make mistakes that will cost you money.  Be mindful of every penny spent.  The number one reason that businesses fail is because of a lack of capital.  This happens as the result of a poorly laid out plan and often a lack of reality about what it’s going to take to succeed.