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Ideas & Concepts: What separates an idea from a company?

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      CommentAuthorAlex K
    • CommentTimeApr 16th 2007
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    Also posted on my blog and at Mind Petals Nation.

    I think I’m with many other individuals when I say that I have many, many ideas for companies. However, I’ve never acted on any of them. Why haven’t I?

    What is an idea?

    A thought or suggestion as to a possible course of action

    Oxford English Dictionary

    If you have an idea, should you act on it? Well, even a child (especially a child!) would point out to you, that you should do it if it is a good idea. But …

    What makes a good idea?

    If it’s a business, a good idea is simply one that will make money.

    That’s a rather boring and not very thorough answer.

    I would qualify a good business idea as one that would involve the client or customer to the point where they enjoy your product. A good business makes the customer love your product and therefore, you. That my friends, brings about the best kind of marketing money can’t buy. Word of mouth.

    If people love your product, they’ll tell others about how amazing it is, they’ll show it off and convince others to use it. Don’t believe me? Look up Google’s Corporate History.

    What customers love your idea?

    You have to love it. What? You expect other people to love your company if you don’t? Where’s their motivation? A good marketer can tell you everything about a company because they love the company with all their heart. You may find fanboys ridiculous but they are the perfect example of marketing at its extreme. They love something to the point of obsession. If you’re not at that point with your own idea, I’d suggest that maybe you should rethink it.

    You can’t sell something you don’t love.

    Now the less fun stuff…

    Is it feasible?

    Quite simply will your company work.

    There are many romantic ideas out there of the “perfect” company. While everyone has a different idea of what makes the perfect company, everyone can agree that it has to sell.

    There has to be a market, a group of individuals who want your product/service. Now, they may not know that they need it, but they do. You have to be able to convince them they not only want, but need your product.

    Making people need your idea.

    There are a thousand books out there that tell people how to make people need your product. Truthfully, I don’t think there’s a right answer. Maybe someone has a good answer for this one, but I don’t think a good answer exists.

    What separates an idea from a company?

    Getting back to the crux of the issue. How do you know if your idea is sellable?

    • Just because you love your idea, doesn’t mean other people will love it.

    • Just because other people love it doesn’t mean it’s feasible.

    • Just because it’s feasible, doesn’t mean you should make it.

    What do you think? What separates an idea from a company? What makes an idea business worthy?

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      CommentAuthorletutor
    • CommentTimeApr 16th 2007
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    I would say the way to know is if it's feasible. I do this by using what I call the million dollar test.

    First I figure out what it would cost. Then I try and think realistically how many customers do I think would truly purchase this product or service a week in the ideal situation. Then I multiply that by the product price then by 52 and if it equals a million then you've got a business idea.

    Now here are a few pieces of advice.

    1. don't make up #'s because you want them to equal a million. If doesn't ad up it doesn't ad up. Know when to fold em. Keep the idea because maybe in the future the market will be ready for your idea.

    2. Even if the million dollar test works if you aren't passionate about the business it won't work. See there's a difference between entrepreneurs and corporations. Entrepreneurs have relatively a lot less resources, even if you've got a million, than big companies so you've got to make up for the lack of money to throw at problems with passion and enthousiasm.

    If you are a large company and have millions to burn you don't need passion you can buy hard work. Your companies money and time can wait out the dry spell until consumers catch on to your product.

    In my opinion that's the difference.

    Phoenix, AZ Foreign Language Lessons - Tutoring Indianpolis, IN web design
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      CommentAuthorrosshill
    • CommentTimeApr 17th 2007 edited
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    Don't make people need your product, that's backwards. Make a product that people need, seriously.

    How do you know if they really need it? Test it.

    I wrote this a while ago, Testing the next big business idea.

    Break down your idea to the simplest form and then find the fastest (and probably cheapest) way you can to see if it works or not. I know you'll probably say that you can't test everything, and you probably can't, but I reckon if you think hard enough you'll find a way for most things.

    I'm Ross from Thrive. See my log and HatchThat.

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