Entrepreneurship is the heart and soul of the great American economy. It is a fact and manifests itself in so many successful and not-so-successful startups, self-made billionaires and success stories. Most of my friends and acquaintances are either running a startup or planning to start one. These folks are highly educated, successful in their fields and very ambitious. I am sure this is not unique to just my limited network but a typical story of an immigrant community in America. While a startup is a great way to unleash one’s potential, I am surprised how much of it hinges on the next great “idea”. Most people consider idea and startup as synonyms especially in the technology industry. I keep hearing – “I have this great idea” or “Do you have a good idea? We can make a business around it”. I wonder how much of a successful startup is about a great idea.
The biggest risk with a startup is to not find a viable business model. Since most start-ups are genesis of an idea, they generally lack a sustainable business model at least in the beginning. Startup failures galore, the rare success stories are full of mid-course correction or stumbling upon something different while working on the original idea. I believe it is not an “idea” but a “market-validated idea” that should be the basis for starting a new business. It is easier said than done as most of the time it is not easy to articulate the concept in early stages, let alone validate it with potential clients or markets. However, this is not a reason to cut the process short. It can save entrepreneur toil, frustration and lost capital on a promising yet non-sellable idea.
I recently learned in a “pragmatic marketing” training that “your opinion is interesting but irrelevant”. I thought it summarized the idea-based startup thinking very well. Everybody has an opinion [read idea] but is it worth launching a business or a product around it? Only a factual research can confirm it. There is a reason that early-stage business cases have sections on market research, sizing and potential customers. A thoroughly researched, market-validated idea is certainly worth taking a dip into the entrepreneurship ocean. Otherwise, it doesn’t hurt staying on the sidelines and enjoying the sun! So next time when you hear a cool idea, ask how many potential clients also found it useful.