Some people have an enormous capacity for creative thinking and analyse the world differently than most. They have epiphanies about solutions to everyday ‘problems’ or an ability to produce products and services that society doesn’t know we ‘need’ yet.
But great ideas do not necessarily translate into a great business. If you have seen any episodes of the TV show ‘Shark Tank’, you will know it is a common theme: someone presents a great idea, but they haven’t created a viable business model for it. Although there are many paths on the business journey, there are some important steps that are vital to success, to move from a ‘big idea’ to a viable business:
- Identify and develop a customer base before you develop the product. You may think you have produced the most amazing, brilliant and essential product ever created. But if you haven’t tested your idea with real customers, you will almost certainly waste time and money fixing mistakes. Find people in your target market who can give you real feedback on your product. And then hone your product to meet their needs, not just your perception of their needs.
- Find out if your idea exists and whether it can partner with an existing concept. Sometimes you won’t know if your ‘big idea’ has already been done by someone else until you start. So be prepared to find ways that your idea can be adapted or can work alongside an existing product or service. This can be a smart move particularly in relation to marketing costs/success, as well as providing your new concept with a higher level of trust.
- Work on a ‘business model’ before a ‘business plan’. This will demonstrate how you will create, deliver and capture value. If you need to involve investors, this information is far more valuable than resource allocation, organisational structure and financial predictions. These are really all guesses anyway – it is far better to explore possibilities than to try and predict.
The overnight success stories that we sometimes hear about are very rare. And some are not as ‘overnight’ as they appear. Take heart that most great success stories are borne of courage, determination and years of honing to find the winning formula.