It's so funny when I hear people being so protective of ideas. (People who want me to sign an nda to tell me the simplest idea.)
To me, ideas are worth nothing unless executed. They are just a multiplier. Execution is worth millions.
Explanation:
* Awful idea = -1
* Weak idea = 1
* So-so idea = 5
* Good idea = 10
* Great idea = 15
* Brilliant idea = 20
* No execution = $1
* Weak execution = $1000
* So-so execution = $10,000
* Good execution = $100,000
* Great execution = $1,000,000
* Brilliant execution = $10,000,000
To make a business, you need to multiply the two.
The most brilliant idea, with no execution, is worth $20. The most brilliant idea takes great execution to be worth $20,000,000.
That's why I don't want to hear people's ideas. I'm not interested until I see their execution.
So here's the trick question: which side, of the above equation, do you think competitions like Startup@Singapore fall on? How many S@S winners have actually gone out and executed their brilliant idea? And, most importantly, why are business plans so important to the startup establishment here when it's people + talent + execution that matters?
7 comments:
Pranoti Nagarkar Israni was the 2009 grand champion and was selected as one of Asia's Best Young Entrepreneurs 2009 by business week. http://images.businessweek.com/ss/09/09/0911_asias_best_young_entrepreneurs/6.htm
as an individual i do agree that it's execution that matters, but when we take a look from the point of the people with the money, they actually need to know that you have a plan before they can part with their money.
i mean, why should they give you the money unless they know what you are going to do with it.
i believe that we can take the business plan part as the pitching part of start-up. if the guy goes in blur, the money put into him will be wasted.
plus, how else can investors figure out how well that guy can execute his plans if they dun even know the plans.
taking the quote from Randy Pausch, "You can always change your plan, but only if you have one."
CDBaby is a nice example.
One of the opportunities I see today is the integration of social networks into "traditional" websites and services.
I think that if you guys figure it out, $22 million shouldn't be a problem. Perhaps not within the next 13 weeks, but $22 million really isn't a whole lot of money in the great scheme of Internet startups.
@Laurence: My point is that the Startup@Singapore model of how a startup is formed is not the typical one. That is, S@S believes that Idea -> Win Money -> Find People -> Execute -> Profit! is the most valuable startup catalyst.
Unfortunately, it's 'Idea -> Find People -> Execute -> Win Money -> Profit!' that is the normal model for a successful startup. Ideas are the easy bits, and people usually fail in finding other people and/or executing. So wouldn't it be a better idea to have a competition emulating the hardest bits of forming a company? The 'finding people' problem, and the 'executing' problem? Focusing on the Idea and Win Money stage is the wrong way of teaching the most valuable elements of founding a startup - the best people who win are the bullshitters.
As for Pranoti Nagarkar Israni, I wish her only the best of luck. But let's wait and see if she manages to find the right people, the right lawyers, the right partners and the right markets to enter in the coming years. Because those are the hard bits, not the idea or the awards or even the prize money.
Okay maybe I shouldn't have said 'bullshitters'. =/ I meant 'the best business-plan writers'. Sorry bout that.
If we face the facts, though: business plans are easy to write. I'm a writer; I can tell you on good record that writing is one step away from dreaming. In words.
Ironically enough we already have something that teaches us the hard bits of forming a startup. You and I are in it - it's called CS3216. ;-)
Err dude, beg to differ. Talking is one step from dreaming.. Writing is one step away from Talking. =)
Keep up the good stuff you're writing. I don't feel like I'm wasting my time reading your blog, so that's a thumbs-up.
Err dude, beg to differ. Talking is one step from dreaming.. Writing is one step away from Talking.
Good point. =)
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