Does a Good Idea = A Good Business

One of the most uplifting and disappointing things about meeting someone with a new business idea is their belief that their idea could make them a fortune. Just to be in the same room with someone sharing their idea and its potential is an uplifting experience. The smiles, the conspiratorial atmosphere, the dreams that follow... But when the rubber hits the road, can they actually make any money on it? Disappointingly: not likely.

Good ideas require business savvy and expertise to translate them into financial success. In fact, I will argue that it has very little to do with the idea at all, but more importantly it is the people behind the idea who will determine the commercial viability of a product or service.

To prove my point, note the following:

• If I ask you to find a small stone, I bet you can do it in under a minute, anywhere in the world

• In 1975, Gary Dahl sold more than $15 million worth of small stones in 6 months (equal to more than $56 million today)

• Welcome to the Pet Rock

Now, think about how many great ideas have not been commercially successful, ideas that provided massive value compared to the Pet Rock, and try and tell me that the person behind the product isn’t the deciding factor.

There are a number of key questions that have to be asked when trying to determine the commercial viability of a product or service:

• Legally, are the rights to your idea available?
• How much will it cost to produce your product or supply your service?
• What is the $ value of your target marketplace?
• How will you connect with this target marketplace?

And the most important question of all:

• Can you make any money?

If you don’t have the skill set required to assess, develop, and close your new business idea, then the most important decision you make will be who you partner with to make your project a success. Each one of the simple questions above leads to a myriad of complex questions which need to be addressed prior to committing any significant resources, time or money, to developing your new business idea.

Spending a little money up front can save you an enormous amount of personal and financial heartache down the road. I much prefer to hear uplifting stories of success from people who did it right than listen to stories of disappointment that end with, “I learned a lot”.