A business idea is a concept for commercial purposes and typically centers on a product or service that can be sold for money by adopting an operational and practical model. The characteristics of a unique business idea are:

I. It must fulfill customer needs
II. It should be innovative and solve market failure
III. Uniqueness in features and appeal
IV. Clear Focus
V. Profitable in the long run

The process of improvement in the existing product/services in its manufacturing/delivery/use and applicability by way of technology and enhances efficiency adding to its value proposition/benefits is termed as innovation. For example, the mobile app services are innovation for delivering product and services which were earlier possible to be delivered only through a computer.

The product/services which are traditionally in the market may be improved upon in a multiple manner so as to differentiate them. The product/service differentiator usually comes with improvement of quality, service and overall standardization. For example, the intervention of technology helped in railway ticket/bus ticket and hotel booking. Similarly, packaging of milk helped it improve ease of handling and sale anytime during the day.

Defining the challenges in a business and in production of products or delivery of services in clear terms is a problem statement. Writing a problem statement helps in analysis and arriving at solutions to the challenges.

Any new idea or concept when translates into a product/services is first tested within closed group of experts is a testimony of the proof of concept. The incubation centers are usually the places that provide the support and services for proof of concept of new idea/concept. The PoC is a stage before the test marketing (or beta stage) of any product/services.

An entity shall be considered as a Startup:

a. Upto a period of seven years from the date of incorporation/registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India. In the case of Startups in the biotechnology sector, the period shall be upto ten years from the date of its incorporation/ registration.

b. Turnover of the entity for any of the financial years since incorporation/registration has not exceeded Rs. 100 crore

c. Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.

The business that focuses and registers enough profits so as to serve its own cost of existence and grow on a year on year basis is a sustainable business. The products and services of the business remains relevant in its value proposition and benefits to its customers to be in demand sustains itself.

Incubation is a process whereby an entrepreneur/organization get help for their new and startup business to develop by providing services such as management training, capital or office space. The incubation provides the eco-system for harnessing new business idea/concept and develop it into a commercial venture.

Mentoring involves advising or training an individual or a group of individuals and guiding them pertaining to their respective activity or domain. This involves counseling, training and guidance by experts. A mentor can be anyone who helps a new individual learn and understand the nuances of a particular activity/work/business/art/trade. Mentors usually have long years of hands on expertise in their area of work and have demonstrated success in their field.