So I have an idea for an online service that got me excited. However, I feel the idea is kind of dumb when I think about because it's so basic/simple (but new). Should I spend more time enhancing the idea or go ahead and execute?
Execute.
Is there a critical mass of value that someone will care about the problem you are solving for them?
The size of the problem you are solving and well you solve it generates the value. That then dictates what (if anything) you can charge. The number of people who have that problem defines your market size. That might give you an indication of the type of business/startup you have - is it a high growth startup, or in the case of a problem being solved where the market is not very large, maybe it's a life style business. Pete Thiels excellent book from last year talks about this and is certainly worth a read http://ajs.io/bookzerotoone.
Wikipedia says: A business model describes the rationale of how an organisation creates, delivers and captures value.
Or in my words: your business model is the way you profit from the value you create for others.
The good news is, starting simple has lots of benefits to usability, UI, message to market and capturing your first 100, 100, 10,000 users or customers. Go-to-market is where many startups fail most, not the technology, so that is something you should focus on and simplicity -provided your idea is part of a bigger vision- is a great place to start.
Think about it this way - Over-complicated ideas can be too difficult to bring to fruition. Never dismiss an idea because you believe it's too simple. Believe in yourself and go for the gold!
Impossible to say. Doesn't really matter if the idea is elaborate or simple, new or old.
You should be asking these questions:
(1) Should people use this?
(2) Will they if I reach them?
(3) What will it take for me to reach them?
(4) Will they value my service enough to repay my efforts?
Things can be simple, just not simpler. Good to know that you think your idea is just simple enough. It's so easy to make simple complicated, make sure you don't fall in that trap. What's complex is establishing business model around your simple idea, enhancing the perceived value, and brainstorming over monetizing the same.
Go ahead, not with the execution but, with thinking twice and planning. Cut once, think twice!!
Do you think it's dumb? If not, why do you present it like this? Have some faith in yourself!
Does this service give value to people? Is it needed? Maybe it's so simple it's genius, not dumb, and it is amazing how you are the first person to think of/ execute it...
My advice to you is: a. have faith in yourself! You are amazing (we all are!) and you can do everything (it's true, you can!)! b. if you still have doubts, ask your friends and family if they see value in it. Don't forget that it is very easy to think why not but what you really need to think is "hay, why not...?"
Sorry for the Zen like answer, but I truly believe in this attitude.
Good luck!
Let customers decide if it's dumb. Only people voting with their dollars are experts. There is a great booked called the "7 Day Start Up" by Dan Norris in which he talks about having some minimally viable product that people can buy as quickly as possible. Only then can you get honest feedback and begin building the service that people really want. All the best, Tom
3 stages:
1. Get as much feedback as possible (don't say: "what do you think?", say: "my friend has this idea, he wants me to join. I think it's not such a good idea. What do you think?" - this way people will be more willing to tell you the truth about the idea (if they know it's your idea, they will be afraid to offend you).
2. Refine your idea (and the solution / value it provides).
3. Validate the idea ( see how on this answer thread in Clarity: https://clarity.fm/questions/596/how-do-you-get-access-to-the-right-people-to-validate-an-idea )
I've successfully helped over 100 startups. I'm happy to provide further assistance.
Best of luck
Simple ideas are not considered dumb at all! Infact there have many instances when they have proven beneficial but only when good planning is accompanied with them. Here are some of the benefits of good planning:
1. See the whole business: Business planning done right connects the dots in your business so you get a better picture of the whole. Strategy is supposed to relate to tactics with strategic alignment. Does that show up in your plan? Do your sales connect to your sales and marketing expenses? Are your products right for your target market? Are you covering costs including long-term fixed costs, product development, and working capital needs as well? Take a step back and look at the larger picture.
2. Strategic Focus: Start-ups and small business need to focus on their special identities, their target markets, and their products or services tailored to match.
3. Set priorities: You cannot do everything. Business planning helps you keep track of the right things, and the most important things. Allocate your time, effort, and resources strategically.
4. Manage change: With good planning process you regularly review assumptions, track progress, and catch new developments so you can adjust. Plan vs. actual analysis is a dashboard, and adjusting the plan is steering.
5. Develop accountability: Good planning process sets expectations and tracks results. It’s a tool for regular review of what’s expected and what happened. Good work shows up. Disappointments show up too. A well-run monthly plan review with plan vs. actual included becomes an impromptu review of tasks and accomplishments.
6. Manage cash: Good business planning connects the dots in cash flow. Sometimes just watching profits is enough. But when sales on account, physical products, purchasing assets, or repaying debts are involved, cash flow takes planning and management. Profitable businesses suffer when slow-paying clients or too much inventory constipate cash flow. A plan helps you see the problem and adjust to it.
7. Strategic alignment: Does your day-to-day work fit with your main business tactics? Do those tactics match your strategy? If so, you have strategic alignment. If not, the business planning will bring up the hidden mismatches. For example, if you run a gourmet restaurant that has a drive-through window, you are out of alignment.
8. Milestones: Good business planning sets milestones you can work towards. These are key goals you want to achieve, like reaching a defined sales level, hiring that sales manager, or opening the new location. We are human. We work better when we have visible goals we can work towards.
9. Metrics: Put your performance indicators and numbers to track into a business plan where you can see them monthly in the plan review meeting. Figure out the numbers that matter. Sales and expenses usually do, but there are also calls, trips, seminars, web traffic, conversion rates, returns, and so forth. Use your business planning to define and track the key metrics.
10. Realistic regular reminders to keep on track: We all want to do everything for our customers, but sometimes we need to push back to maintain quality and strategic focus. It’s hard, during the heat of the everyday routine, to remember the priorities and focus. The business planning process becomes a regular reminder.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
