Preparation: On the basis of the idea, interest and curiosity the need is adjudged by the entrepreneur and he starts looking for the answer to implement the idea. If the idea is to launch a new product or service then market research is conducted.

Incubation : This is the subconscious assimilation of information. This is the transition period.

Illumination : In this period of illumination the idea re-surfaces in realistic way and entrepreneur comes out with viable plan to give practical shape by collecting raw-material, arranging funds, policy–making for the implementation of idea. 

Verification: Also called the validation or testing stage. This is where the idea is verified to prove that it has value. This is the most difficult phase of creativity as obstacles begin to appear. This is the developing stage in which knowledge is developed into application.

Detailed Answer : Next four stages of idea germination :

(i) Preparation :

(a) This is the stage where an entrepreneur starts looking for the answer to implement the idea.

(b) Market research should be done before the launch of a new product.

Example : Samsung has done a lot of market research in India before launching its smart phones in the country.

(ii) Incubation :

(a) This is the stage where an entrepreneur starts process of studying the pros and cons of manufacturing the product.

(b) This is the transition period.

(iii) Illumination :

(a) Practical shape is given to the idea.

(b) Collection of raw material.

(c) Arranging funds.

(d) Policy making for the implementation of idea. 

(iv) Verification :

(a) It is also known as testing stage.

(b) It is verified that idea is valuable or not.

(c) This is the stage where entrepreneur starts facing obstacles.

(d) This is the stage where knowledge is developed into application.

(v) Innovation :

(a) Translation of idea into a successful venture. 

(b) To work out analytically all the details of the enterprise.

(c) To develop marketing strategies.

(d) To organize the finances and strategize operations.