Ideas are a dime a dozen.
I hear no shortage of them. No limit to how potentially big and ‘profitable’ they are. Many of them are half-baked … and more not even that. Lots and lots of ideas … and each with the idea holder convinced that you would want to put in $50,000 or $500,000 or $5,000,000.
This seems like it would be a dream scenario for an investor, right?
The ideas are not thought through. They do not have any legs. Out of every 20 ideas, I estimate maybe one person has thought through whether it is in fact a viable business idea.
Do us all a favor … model your business idea.
Succeed first on paper, then start looking to build the next stage.
Because the reality is that not every idea is a potentially successful business. Some of them could be a successful business but all the requirements to turn it into a success are not available or attainable. So why waste your time on those ideas?
And remember, that the time you put into thinking through your idea and selling your idea, is also an investment. Don’t waste it on an idea that simply doesn’t work. Work through that idea until it is as robust as it can be, with the resources you have, because you start investing in getting it to work.
And what’s the one resource you almost certainly have? … Time!
So take the time to model our idea. Flesh it out. Use the business model canvas – fantastic technique! Pull up a spreadsheet and mock out what Year 1, Year 2, Year 3, Year 4 and Year 5 looks like in terms of revenue and cost. Nothing complicated … just revenue and cost. A realistic view. Does the idea have legs?
If it doesn’t, stop talking about it. Move on to another idea. And certainly don’t start telling me about it!