What are the best ways for people to turn their ideas into reality?

First, let me call out the elephant in the room. Not everyone who has an idea should be an entrepreneur. The hype surrounding entrepreneurs has reached fever pitch in recent years. University graduates and success-hungry millennials are joining the start-up world in droves, hoping to be the next Elon Musk – lured by the promise of big money, notoriety and the dream of retiring young.

Many people want to be their own boss, lead a business, create something truly worthwhile and valuable. And some truly want to make the world a better place.

These are all very admirable intentions but how do you give yourself the best chance of success? Here are three tips to help turn your idea into a viable business, with one caveat: be prepared to work for it. A business idea without hard work is destined to stay an idea.

1. IS IT FOR YOU?

The first question you need to ask yourself is, “Am I cut out to be an entrepreneur?” You’re clever, you’re not averse to taking risks – you may even thrive in that space. But you’ve also worked long and hard for what you already have and what you’ve already achieved: a good job, a nice house, some money in the bank.

So maybe that idea you have should stay on the shelf until the day arrives when you have plenty more time, energy and money to get started. If you nodded along to that last sentence, you’ve already failed the test.

When I started RedBalloon back in 2001, I quit my corporate marketing job and started with $25,000 in savings and a second-hand computer. I used the only programmer I knew, my next door neighbour, to build me a website. I would walk through Martin Place in Sydney with red balloons tied to my briefcase hoping someone would stop me to ask me why. It took almost four months to make the first sale.

But through it all I maintained my passion, persistence and a pragmatic attitude. I knew it was going to work. If you have the passion and persistence, take action and stop waiting for the right time.

2. DO YOUR RESEARCH

To commercialise an idea you must work out if there is even a market for what you have, and you will need to find the best people to do this for you (it may not be you). Establish what the “job” is that your idea (soon to be product or service) will do, and that will help establish commercial viability. Will anyone buy what you’re selling?

I look to Lori from The Inappropriate Gift Co, whom I invested in during season four of Shark Tank. Before launching her range, Lori already knew she had a big market of interested buyers, thanks to the background work she’d done in establishing a loyal social media following on Facebook and Instagram. She had brand credibility and a highly engaged audience to market to right from the get-go – an engaged audience who was proof her idea was viable and the product would sell.

3. KNOW YOUR NUMBERS

It’s a scary fact but according to the Australian Bureau of Statistics, more than 60% of small businesses cease operating within the first three years. Some of the primary causes are poor cash flow, lack of strategic management and poor financial control.

Starting and running a business is hard work and money is to business what breathing is to life. Understanding before launch what your key numbers are will help you make the decision about whether to proceed or not.

Business owners need to be able to read a balance sheet, understand how money works and understand profit and loss and cash flow forecasts. You absolutely must understand the commercial side of things. Is your product or service viable? Can you manage the cash flow and out-ofpocket expenses in those crucial early years? How will you seek or find ongoing investment?

During my time on Shark Tank, I have seen first-hand the mistakes that people tend to make over and over again, and most of them relate to poor financial planning and management. If you don’t have the knowledge here, find people who do and make the commitment to learn.