"Fresh Ideas, 2 cents a pound!"

"Fresh Ideas, 2 cents a pound!"

by Marc Dewalle
Posted on 09/17/2008
Its fun to see how protective people can be when they have a new idea that they want to turn into a business.  I remember a school buddy that abruptly ended a conversation at the bar one night. He had started telling me about a new idea he had for an inventory management system that he claimed would "revolutionize on-line sales", when he stopped mid-sentence and said: "I shouldn't talk about this when I drink".  That night he wouldn't say another word about it.  And when I asked him later he said he just needed to be careful that he didn't let his ideas get away.  Its now several years later and it doesn't seem he ever did anything with it. Start-ups are not really about ideas (although ideas are part of them).  Start-ups are really about execution.  You can make more money from the revolutionary execution of a simple idea, than from the the simple execution of a revolutionary idea.  Take Netflix... they rent movies by sending DVD's through the mail.  No part of that idea is either new or revolutionary.  But their execution is well-done and the product has the right price-point.  Its actually surprising that it hasn't been copied more.  Maybe Netflix is succeeding because their execution is so well done.  Their is simplicity throughout their concept:  a simple website (look for movies you like, add them to your list), efficient delivery and simple pricing (no late-fees, all postage is included).  If you wanted to copy Netflix' success, you might have to copy their execution rather than their concept.  Although it may not be so easy.  Just take a look at Southwest Airlines -- many others tried to copy their model and none have succeeded so far. I'm preparing an interview with a guy who blogged (jokingly) about buying new innovative ideas for $0.02 a piece (his "two cents").  Soon he started receiving offers from around the world from wanna-be entrepreneurs hoping to cash in on their business concepts (from revolutionary golf tees to a system to locate kidnapped people).  Many missed the part about the 2 cents and hoped to get many times that.  The other part they missed is that the real value of their ideas lied in finding a way to execute on the idea, rather than selling it. So if you're stuck looking for that great idea before you can launch your start-up, cut to the chase.  Many succesful start-ups are based on a slight improvement to the execution of an existing idea.  If what you really want is new ideas, rather than execution you might be more inventor than entrepreneur.  They're both good and amicable, just make sure your vision matches your calling.  Two cents, anyone?
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