It's a valid question. Your innovation is going to require money in order to advance from development to commercial launch. Whether your total capital needs are $3 million or $30 million, the needed money can trickle in via smaller increments or in tranches of millions of dollars—depending on how you ultimately structure your funding request. But, independent of such incremental amounts, you must establish and validate a valuation for your business. In other words, how much of your company (i.e., stock or ownership) will an investor get for their investment?

An embryo seems to miraculously mature through layers of development. Cellular differentiation, a forming spinal column, organ development, and more, are all necessary for a healthy, vital birth. Just as the developing fetus goes through a myriad of maturation steps, your innovation and your company must proceed methodically through multiple tasks. But this business procession is no miracle—it’s plain old work. I would say the adage, “plan your work, and work your plan” is invaluable advice—provided that your plan is well constructed.

Can you diagnose these symptoms? The subject has conceived of a novel innovation that he or she believes is so important it will soon become a staple product across the globe. The inventor thinks its features and benefits solve a problem facing the world. However, our inventor has never queried anyone beyond him or herself and a few friends.

How likely are you to obtain a patent for your invention? If you made and sold it right now, would you be infringing someone else’s patent? Researching the patent databases will help you answer these questions and give you a good idea about whether your innovation is already described or claimed by others.

IP. Many of us have heard that commonly used abbreviation “intellectual property.” IP includes patents, trade secrets, trademarks and copyrights. If you have an innovative idea that could, some day help people or solve a real world problem, then being a little versed in IP, especially patents, could be very important.

Hardly a week goes by that I don’t hear about an entrepreneur’s new service or product. If you’re one of those innovators toying with such a technology right now, then you must deal with some very critical realities. In fact, I would boil those realities down to five basic elements.