Loading...
Answers
MenuWhat are the best strategies to stop moving from one business idea to the next and start implementing one of them?
This question has no further details.
Answers
I'd suggest doing three things to narrow down the field:
1.Try to sketch the business model for the startup idea
http://businessmodelgeneration.com/canvas
2.Get good at doing quick and dirty market sizing of opportunities
3.Check if you are passionate enough about the idea to potentially spend the next 5-8 years of your life in making it successful
Based on a collective evaluation of the above three, you might be able to zero in on a few ideas to investigate further (e.g. building a prototype, customer development, etc.)
more doing - implement and test the concept
Focus on sales, even if the product doesn't exist yet.
Do you enjoy selling this product?
Do you understand who the market is?
Do people want to buy it?
Do they want to buy it even if you haven't created it yet?
Will they give you money for it now even if it won't be ready for a few months?
Set some targets for yourself. For example, commit to calling at least 100 prospective customers and trying to sell the product before you give up on the idea, and don't move forward until at least 6 people have agreed to buy it (or paid in advance).
1. Make a list of all your business ideas.
2. Eliminate the ideas that you cannot execute on within six months in your current status. It doesn't matter why not -- whether you have enough money, time, or talent to do it. Contrary to popular belief, starting a company does not start with the product -- it starts with what YOU can do. You may have the best product in the world, but if you are incapable of selling it or finding people who can, your company will go nowhere.
3. Of those that remain, you must do your research. By that I mean, you first must google the hell out of it. Most likely, someone else is already doing something similar, or it was already tried and a company failed at it. Find out why it failed. If another company is doing it, dig deeper to find out how they are doing, and what markets they are currently. Also, research the bios of all their team members and compare them against your own team. If you are falling short on expertise compared with them, it's probably not a good idea to directly challenge them.
4. Do more research. Talk to a CFO who is in the industry and ask him or her what the likely profits are for each.
5. Choose the idea that will generate the quickest amount of profits in the shortest period of time.
Notice I said nothing about passion. That is because passion is way overrated. I've seen companies run right into the ground because the founders were so passionate about it they refused to alter critical elements.
Some of the best companies I have seen the founder had very little passion for. Rather, they were in an industry, and they saw an opportunity to make money where no one else did, so they jumped on it and made it into a fast growing company.
It is NOT about passion -- rather it is about finding a product that the market needs and you can sell and scale quickly. If you can't do that, all the passion the world isn't going to save you.
Related Questions
-
What are digital products or services you wish existed and why? How would they help you and/or your business?
As the owner of a web development firm, I am always inventing our own digital products and services. Any service that is web-based and accessible to mobile devices work as long as they solve a business need. The digital products I wish would exist are: 1. Home building services including videos by experienced builders 2. Mail and package weighing digital services 3. More security services for document transfer services. BruceBC
-
How much equity should I ask as a C-level executive in a new startup ?
As you may suspect, there really isn't a hard and fast answer. You can review averages to see that a CEO typically becomes a major shareholder in a startup, but your role and renumeration will be based on the perceived value you bring to the organization. You value someone's contribution through equity when you think that they will be able to add long-term benefits, you would prefer that they don't move company part way through the process, and to keep them from being enticed by a better salary (a reason for equity tied to a vesting arrangement). Another reason is when the company doesn't have salary money available but the potential is very strong. In this situation you should be especially diligent in your analysis because you will realize that even the best laid plans sometimes fall completely short. So to get the best mix, you have to be very real about the company's long-term growth potential, your role in achieving it, and the current liquidity necessary to run the operations. It should also be realized that equity needs to be distributed. You cannot distribute 110% and having your cap table recalculated such that your 5% turns into 1% in order to make room for the newly hired head of technology is rather demotivating for the team. Equity should be used to entice a valuable person to join, stay, and contribute. It should not be used in leu of salary that allows an employee to pay their bills. So, like a lot of questions, the answer is really, it depends. Analyzing the true picture of your long-term potential will allow you to more easily determine the correct mix.DH
-
How do I hire a good Copywriter?
Kudos to you for seeing the value in great copy. I love that you mentioned 37signals, which is an organization that's made copywriting part of almost everyone's jobs (or so they've shared on their blog). MailChimp and Zendesk are two others that people often point to re: great copy that builds a brand and differentiates; Groupon is another awesome example of really, really tonal copy that people actually read (which is more than half the battle). MailChimp has in-house copywriters, including Kate Kiefer (https://twitter.com/katekiefer), and so does Groupon. I'm not sure who writes for Dropbox or Zendesk, though searching companies on LinkedIn can often reveal little-known in-house geniuses. The startups you mention have a certain style and tone that I have to say is different from what you'll normally get with a "direct response" copywriter, though by all means check out the link David Berman submitted to you because you never know. I recommend that, to achieve the slightly funky, funny-ish copy you're looking for, you seek out a conversion-focused copywriter with a creative and UX background. You need someone who's totally at ease adopting a new voice / tone and using it appropriately across your site and in your emails; less experienced copywriters might be heavy-handed with the tone, which often gets in the way of the user experience (e.g., button copy that's tonal can lead to confusion). Be careful, of course, not to push your writer to be exceptionally creative -- because a little touch of tone goes a loooong way for busy, scanning eyes. Here are some great freelance copywriters you could consider: http://copyhackers.com/freelance-copywriters-for-hire/ The link to Neville's Kopywriting peeps is also great. Before hiring, ask to see a portfolio or get a) links to websites they've written and b) a zip of emails they've written; if a writer is accepting clients, they'll usually showcase their work on their website. Check out their blog and tweets to see if their voice comes through in their own writing. Don't hire bloggers or content creators for a job a copywriter should do. Don't hire print copywriters for web work unless they do both. And when you find a great copywriter, trust them... and don't let them go - because 10 bucks says, they're in demand or about to be.JW
-
Business partner I want to bring on will invest more money than me, but will be less involved in operations, how do I split the company?
Cash money should be treated separately than sweat equity. There are practical reasons for this namely that sweat equity should always be granted in conjunction with a vesting agreement (standard in tech is 4 year but in other sectors, 3 is often the standard) but that cash money should not be subjected to vesting. Typically, if you're at the idea stage, the valuation of the actual cash going in (again for software) is anywhere between $300,000 and $1m (pre-money). If you're operating in any other type of industry, valuations would be much lower at the earliest stage. The best way to calculate sweat equity (in my experience) is to use this calculator as a guide: http://foundrs.com/. If you message me privately (via Clarity) with some more info on what the business is, I can tell you whether I would be helpful to you in a call.TW
-
What is a better title for a startup head....Founder or CEO? Are there any pros/cons to certain titles?
The previous answers given here are great, but I've copied a trick from legendary investor Monish Pabrai that I've used in previous startups that seems to work wonders -- especially if your company does direct B2B sales. Many Founders/ CEOs are hung up on having the Founder/ CEO/ President title. As others have mentioned, those titles have become somewhat devalued in today's world -- especially if you are in a sales meeting with a large organization. Many purchasing agents at large organizations are bombarded by Founders/ CEOs/ Presidents visiting them all day. This conveys the image that a) your company is relatively small (the CEO of GM never personally sells you a car) and b) you are probably the most knowledgeable person in the organization about your product, but once you land the account the client company will mostly be dealing with newly hired second level staff. Monish recommends that Founder/ CEOs hand out a business card that has the title "Head of Sales" or "VP of Sales". By working in the Head of Sales role, and by your ability to speak knowledgeably about the product, you will convey the message that a) every person in the organization is very knowledgeable about the ins and outs of the product (even the sales guys) and b) you will personally be available to answer the client's questions over the long run. I've used this effectively many times myself.VR
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.