Business Idea #2

No, this is not about an additional business idea, just the 2^nd column to follow the first (see Business Idea?). I promised a discussion on how to assemble a team of supporters and or contributors to help manifest an idea. As previously mentioned, my brother and I have a long history of bouncing ideas, problems, and solutions of one another. It could have been my best friend or my partner but my brother has more discretionary time during daylight hours and I was impatient to discuss my idea so he won the ‘who do I call’ lottery that day. It was important to hear myself talk about the idea – maybe that is the counselor in me - but hearing it out loud helped me to disseminate what made sense and what did not. Also important was to listen to his feedback with an open mind. You absolutely need someone you trust to tell you what needs to be said versus what you want them to say as you work toward something congruent. It was very clear from our discussion that there were many questions neither of us possessed enough expertise to answer, which led us to a brainstorming session on who either one of us knew that may be able to help. Basically, we both knew someone who knew someone. A few phone calls and a couple of days later, I was connected via email to that other ‘someone’ who – after signing a NDA – listened to me rant and rave with a tremendous amount of energy on how my idea could be implemented and how a certain percentage of the population would feel as though they had to have it! I must have presented a pretty solid understanding of why my business idea had value as this ‘other someone’ began thinking out loud of ways that he and people he knew would use it. Most importantly, he began vocalizing how he may actually help it materialize out of my conception. Phew! Rule #1: be able and willing to SELL your idea.

The next big decision from my perspective is to calculate how much financial risk I am willing to take to turn my idea into reality. That ‘other expertise’ I was talking about – I needed it. Not necessarily a strong position to be in. The question was – how do I get it? I could pay for it but I have to risk the total of the expense and this specialty does not come cheap. How much of my savings was I willing to commit? I was not naïve enough to believe this may be my only expense so in my own mind I came up with a budget. Also, it occurred to me that even though this individual was referred to me, we had only one conversation. He was my one and only contact. What else should I know – about him – about other options? I asked him for a resume of sorts, a candid evaluation of his strengths and weaknesses. I spoke with others who had used his services and was able to see how he had worked with other projects. He gave me a rough estimate on how many hours he might spend developing my product and I did the math. At the end of the day I figured I wanted to move FAST and had a couple of options, which I presented. He could pass (he really didn’t know me either) on the offer; he could take my project on for a flat fee and a deadline; or he could partner with me and we would attempt to bring this idea to fruition together. He opted for the third choice. In my mind, this was very exciting for a couple of reasons; 1. He saw the possibilities 2. He was also willing to take a risk 3. He now had a strong vested interest in success! Needless to say, taking this route has a certain amount of risk for me as the ‘idea’ person but I hesitate to focus on everything that could be wrong with my decision. Instead, I am guided by my intuition and ability to make good decisions more often than not. I have a signed NDA and ‘feel’ good about this individual. Rule #2: trust your instincts.

The formal side of a new business venture is not entirely new to me but most of what I know is self-taught and far from voluminous. My brother on the other hand, is not only great at helping me massage ideas but has years of experience in investment banking, venture capital, and small business development. Clearly – a good match for where I lack skill. Certainly we’ve all heard “NEVER go into business with a family member” over and over yet there are countless families who successfully build thriving enterprises. Also in our favor is the openness and honesty that forms the foundation of our bond. I felt that my new business idea and any resulting business project would tremendously benefit from his expertise and he was also willing to work for equity! The point here is to look carefully at the people in your life who may bring ability and energy to your venture that compliments your specific skill sets. Rule #3: seek partners that compliment your talent.

In either case, I could have hired people who had the knowledge and skills to help me get my idea off the ground; depending on my budget and the amount of financial risk I would be willing to take. For me, partnering with people who will have the same vested interest in success and who possess the skills to generate it makes a lot of sense. Quite simply, it limits my financial risk. Of course it also limits my financial reward but something is better than nothing and that’s what I would have if the project never gets off the ground. Rule #4: don’t be greedy.

So, as I rev the engines… I have followed a few self-declared rules:

Rule #1: be able and willing to SELL your idea.

Rule #2: trust your instincts.

Rule #3: seek partners that compliment your talent.

Rule #4: don’t be greedy.

Next time I will begin discussing a few of the elements that are going into building our business plan.