Idea is only a small piece of the puzzle for startups, the rest is execution
“I have a great business idea…but I can’t tell you. First sign an NDA and then sign your life over to me.”
Sound familiar? Yea, stop it!
Let’s see, there are 28.8 million small businesses in the U.S. with 3.9 million startups each year. That’s 10,714 new startups each day or 7 each minute. Everyone has a great business idea and their idea may be the same as yours. 😮
Signing an NDA is problematic for investors and can cause them legal repercussions. If the investor invests in a company with a similar idea, they may get in trouble. Some NDAs may even limit them on hearing pitches that are in similar category. This limits the investor on many levels and something they don’t want to get involved in.
This reminds me of a Fort Minor song:
“This is 10% luck, 20% skill, 15% concentrated power of will, 5% pleasure, 50% pain and a 100% reason to remember the name.”
For startups, it’s more like:
“5% idea, 95% execution and a 100% reason to use your product/service.”
Yeah, your super brilliant idea is just a small piece of the puzzle.
Why is execution so important?
Remember MySpace? I remember when MySpace came out and it was the sh**! I took pics, had them photoshopped into awesome works of art and posted them for all my friends to see. And those background themes…BADA$$! Then came Facebook. “Crushed them like the cockroaches they were” as Kevin O’Leary would say.
Facebook’s execution was on par. Mark Zuckerberg could have just copied MySpace but he instead decided to build demand through exclusivity. Started off his service at Harvard, then the other Ivy League schools, then all colleges, and finally everyone. Mark also listened to his users. He gave them what they wanted. If they wanted to have games such as Farmville…done! Users want to network with each other in a different way…done! Facebook did not fight the current, it went where the market told them they should go. That my friend is execution and is what gave Facebook a competitive advantage. Whether it is small or big, execution is the secret sauce and without it all you have is…well, just an idea.
Let people in on your little secret.
Tell people about your idea. What do they think? Is it dumb or does it have credibility? Let others help form your idea into a working product.
When mint.com was being developed by Aaron Patzer, he went around in train stations asking commuters if they would use such a product. Aaron presented three sayings to strangers and asked them which one they would trust for a personal financial site. This resulted in mint.com putting the words that say “Bank level security” (still on the site today). If Aaron decided to keep the idea a secret and come out with a bangin’ idea without sharing, would he have had an exit of $170 million (cha-ching!! 💰)?
What’s the bottom line?
Don’t keep your startup idea a secret. Spread the word early on and get feedback to help mold your idea into a working product. Plus, as you share the idea, you may pick up your first customers/users along the way. All startups are different and operate in different environments. If you have the chance to listen to the market and take it in the direction they want it to go…run like hell in that direction! Listen to them.
What do you think? Would you share your idea with others? If you are a startup and want to share your idea, tweet your idea and tag #Waccal and @Waccaler.
Here is our idea: Waccal is on a mission to help startups and investors reduce their weighted average cost of capital via efficient, accurate, and meaningful workflow. What workflow? This includes getting introduction to investors, increasing quality deal flow, performing due diligence, managing cap table, and managing investor relations.
We listened to our clients from ideation to execution and creation, and we continue to listen to them as we release new features. This is part of our success in acquiring over 300 users in the first 2.5 months of launch. Check us out: Waccal
And out (mic drop)! 🎤
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