Aug 20, 2020
When it comes to new ideas,
entrepreneurs are like machine guns. We can spit them out as
rapidly as a machine gun sprays bullets.
But when we get so excited about
an idea that we don’t properly put it through its paces, we end up
wasting exorbitant amounts of time and money trying to fulfill an
idea that’s never going to happen.
Then we blame our customers for
not seeing the value, leap to the next “sure thing,” and repeat the
process again.
This exact cycle is one of the
top reasons 90% of startups fail, and why even established
businesses can waste hundreds of thousands of dollars on “sure
thing” business ideas.
Instead of letting idea
excitement run the show, tune into this episode of Just The Tips
with guest Dr. Adam J. Bock to learn what to do (and what NOT to
do) once you’ve got a new business or product idea.
Adam is a serial entrepreneur
and academic researcher who’s mastered the ability to structure
sustainable business models that give you a competitive
advantage.
Adam’s not only started multiple
companies, he’s also sold multiple companies, in the venture
capital space, for eight figures. When it comes to profitable,
sustainable business models, he knows what he’s doing!
Adam will reveal the most costly
mistakes entrepreneurs the world over make with their business
ideas; plus show you how to identify when you actually DO have a
winner.
Outline of This Episode
- What
is a business model, REALLY? [10:20]
- Cool
ideas are the start, not the finish [16:50]
- Avoid
this expensive problem-solution blunder [23:00]
- Choosing who to ask (and who not to ask) about
your idea [39:30]
- Don’t
confuse valuable with profitable [48:02]
3 major points discussed
- When lighting strikes, give
it space. Yes,
entrepreneurs have to take risks in order to get anywhere. But
there’s a big difference between taking a risk and allowing idea
excitement to blind you. When your latest big idea strikes,
document it, but give yourself space to get beyond that initial
burst of excitement. That way you can evaluate your idea with a
level head (and potentially save yourself years of wasted time and
money).
- It’s not your customers’
fault. When you test the
waters with your product and don’t get the response you’re hoping
for, it’s all too easy to decide you don’t have the right
customers. Or that they’re clueless for not seeing the value in
what you offer. Educating people who don’t yet understand the value
in your idea is possible, but it works a LOT less frequently than
most people think. If your solution isn’t a solution in their
minds, no amount of educating them will change that.
- Keep it lean when you test the waters. Instead of cannonballing into the water with
your new idea, dip your toe in, especially when you’re gauging
customer interest. Just because someone says they want it, doesn’t
always make it so. It depends on who you’re asking, and whether
you’re actually solving their problem, or just solving a problem
you think
they have. Keeping this phase lean
is critical to stopping new idea excitement from running away with
your time and money.
Resources & People Mentioned
- https://www.bizmodelbook.com/
- The Business Model Book:
Design, Build and Adapt Business Ideas That Drive Business
Growth, by Adam J. Bock
and Gerard George (available on Amazon)
Music for “Just The Tips” is titled, “Happy Happy Game Show” by Kevin MacLeod
(http://incompetech.com) Licensed under Creative Commons: By
Attribution 3.0 License
Connect With James and Dean
James P. Friel:
Dean Holland:
JTT Facebook Page - https://www.facebook.com/justthetipsshow/