Check the New LOBSTER Theory
Plough before you sow, design before you build, plan before you organize- there are certain things which have to be done in advance in order to create something big. There must be thousands of ideas popping up in your head before a startup and every time you have to ask- “Is it good enough?”. When the idea is right it will haunt you night and day and never let you sleep- that is the power of a DREAM. They say that No dream is too big and no age is too small to make money but despite your big dream, great idea and sleepless nights there are various other snags that may come your way when you start painting your dream.
Pawas Jain, a prolific blogger and founder of SpringTide, suggests feeding the snags to the LOBSTER! (No Kidding). Mr. Jain suggests every budding entrepreneur to carry out a LOBSTER theory in order to fix the hitches that may trouble you in your startup.
- Legal feasibility- Did you ever give a thought to what Companies Act, 2013 is all about and how is it going to affect you? Did you know in what ways does Income Tax Act, 1961 affects your business and how it may result in lacks of penalties on your business? Legal feasibility is all about the same. Every start-up entrepreneur needs to perform a feasibility analysis to make sure that their business complies with all legal formalities. As a matter of fact, every business which wants to run as a company needs to get incorporated and registered with Registrar of Companies of the respective city. Interestingly, the new Companies Act, 2013 allows a person to form a company all alone, known as ‘One Person Company’ (OPC), especially for small businesses and start-ups.
- Operational – What is going to be the plan of action or the Modus Operandi when the business goes into operations? How is it going to work out? What manpower is required to execute the plan? All these questions springing up in an entrepreneur’s mind get answered while executing the Operational Feasibility Analysis.
- Behavioral – What will be the employee count and how are they expected to work? Is there a place of work or is it a virtual office? What behavior is expected from people in and around the business is the basic crux of this analysis.
- Social – We live in an inclusive interdependent society. We take a lot of society, but what exactly do we give back? Huge companies such as IOC and Tata Industries act upon social cost benefit analysis these days. Even a start-up entrepreneur must stop for a second and give a thought about the social significance and implication of his idea. Is he bringing a change? Is he contributing to the society? Is it going to harm, hurt or damage anyone or anything? These questions have become immensely important in today’s business scenario.
- Technical analysis – It seems to hold the maximum relevance in today’s time where technology goes obsolete in less than six months. What is the technology required? Does it need any heavy technological machine? Or is the idea technically possible to execute?
- Economic Analysis – This probably would be the most important feasibility study of all. Start-up entrepreneurs are most worried about the funds that are required in inception of the idea. Whether to boot strap or to approach investors for a seed funding? Is the idea good enough to attract angel investors at one go? How to go about the whole process of monetizing and investing in the business is one of the most important decisions to ponder about.
- Residual Analysis – This is a residual or the remaining head. Depending on the nature, complexity (or simplicity) and other factors affecting the business, an entrepreneur may consider other feasibility studies to be executed.
The LOBSTER need not be in the format of a formal B-plan, it may not be a corporate Power Point Presentation, it may not be a well thought out plan in black and white, LOBSTER can be in your thoughts. An entrepreneur can work on the LOBSTER for his idea when he takes a shower or is having coffee. LOBSTER is a thought; it should be running in the mind of the entrepreneur. The most important part is that he should be crystal clear about the LOBSTER of his business, on every point, on every part for a better understanding of his own business idea and for an amazing execution. So, you have a business idea? Go, carry out your LOBSTER!