How much is an idea worth…

Over the last few years I have had the privilege of working with a number of very bright individuals who all believe that their *start-up* or concept is unique, scalable, powerful and ultimately will be profitable.   As “Howard 2.0”  has evolved,  I have become a student all over again … this time in the fast paced, often ruthless world where start-ups reside.  I have not been in school long… but in those few short years, I have learned quite a lot.

A concept is born… (or so you think).

Many of these friends or colleagues insisted on me signing an NDA four pages long and broad enough to cover what I ate for breakfast.  The paranoia that some display around a concept is amazing.  These colleagues refuse to share the concept with anyone, or to even attempt to crowd-source the elevator pitch — or a simple deck.

None of these friends’ and colleagues’ concepts are  new… but they have potential— and that’s all they have.   As Guy Kawasaki said — if you have a great idea, 10 people are already working on it.

 

 

Other companies that I work with or consult for do not exhibit the same paranoia that cripples many who are considering starting a newco.  They are out there. They are showing an in-depth deck to colleagues and gaining insightful feedback on how to improve or re-work their model, and how to differentiate themselves from known (or un-known) competitors.

I have been on the funding circuit with a few colleagues who are appalled when a VC or Angel refuses to sign an NDA.   They are afraid the VC will steal their idea and run with it.   While I do recall stories of that happening a while ago… most reputable VCs and Angels are far too busy to start up a new company based around your concept.  If they like your concept, they will invest in it, incubate it and help you achieve success…that’s their model— and how they make $.

 

 

So, you have an idea… great.  What are you going to do with it?  Right now that idea is worth NOTHING.

Once you have your team in place, you’ve crowd-sourced your model and had it validated and you are learning from everyone you talk to … now these things have some tangible value….

Leave your paranoia at the door when you leave home in the morning.

Now… Execute!