While ideas tend to be overrated, and startup success comes down to execution more often than not, it is still valuable to have a process for coming up with ideas versus relying on an “aha” moment to occur. Ideally, you’ll find an idea that is perfectly at the intersection of your skills (where you can have a competitive advantage), your passions (so you will be excited and motivated to continue through the inevitable ups and downs), and market opportunity (taking advantage of market trends). Let’s look at a process to find this intersection.
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I find myself continually answering questions from aspiring entrepreneurs about how to be taking seriously given different age or skill gaps, how to get in front of VC’s, and how to find that perfect idea that no one else has come up with before and has no competition. MIT Launch applicants (high school students) answer a question about their biggest hurdle or impediment to starting a successful company: I’d like to take a moment to share how many of these are only perceived barriers or misconceptions.
The next time you ask someone, “What do you think about my business idea?” take a step back first and ask yourself, “What am I looking for?” The underlying question you are asking yourself here is, “Am I serious about entrepreneurship?” It’s a hard question to ask, but an important one.
There can be a few things you could be potentially trying to seek through asking people about your business idea, and therefore a few self-assessments you can do in advance to know how to proceed. The popular reality TV show Shark Tank allows hopeful entrepreneurs to pitch their businesses to a panel of business executives and investors. The show has everything I look for in entertainment: the American dream, witty puns, and some valuable lessons in business and entrepreneurship.
Plenty of articles have attempted to develop a list of business lessons one can glean from the show, though few have put it into an easily digestible framework for how investors assess a potential investment and what that means for how an entrepreneur should pitch. It essentially boils down to a three part screen that investors follow when assessing their potential involvement: · Is it a good business idea with real potential? · Are the deal terms realistic? · Would the investor want to work with the people? Let's look at each of these three screens in more detail. How did you come up with the idea behind the Launch Program? How do I know when I'm successful as an entrepreneur? Do you ever realize, when you finally have a moment to catch your breath, that you've been so busy running your company that you haven't had time to think strategically about where your company is really headed? There's a critically important, but sadly, rarely asked question that hopeful entrepreneurs should be asking themselves before they take the plunge into launching a new company: How do I know when I'm successful?
Why is it important to ask this question up front? It's like a mission statement for an entrepreneur. The answer to it will define what the objectives of starting the company are, so that the business model and strategic decisions are aligned with the ultimate objective the entrepreneur seeks to fulfill. Without an end objective in mind, it's like the Cheshire cat says in Alice in Wonderland, "If you don't know where you want to go, then it doesn't matter which way you go." What defines success for an entrepreneur? Before our engineering degrees and Harvard Business School MBA’s, we were ambitious, bright-eyed, high-achieving high school students. Despite our relentless curiosity and limitless potential, it was hard to be taken seriously as real contributors to the world at that age. We felt that age, just like any other demographic indicator, does not limit one’s ability to achieve magnificent feats. Just like anyone else, we needed the confidence, training, and opportunities that were deserving of our high potential. Ideal business opportunities combine a market opportunity with the skills and passion of the founding team. The world is changing fast. Really fast. |
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