Ideas Are Worth Nothing

Have you ever had someone that you consider to be very smart describe an amazing idea that will improve the way that everyone does everything all the time everywhere? A head-nod, get-it-in-a-second, yep-I-would-use-that kind of idea? You know, the kind of idea that you feel privileged to have heard because obviously if anyone else hears it they will steal it?

I've come across more of those than I can count. To be honest, I've had plenty of gestalt moments of my own, and I have the scribbled-on napkins and crumpled scraps of paper to prove it. At the end of the day, however, I've come to the conclusion that ideas in-and-of-themselves are worth pretty much nothing.

Ideas For Sale?

Don't get me wrong. I still love the notion of a lonely programmer banging out a world-changing app that takes her to instant fame and fortune. The reality, however, is that the distance between an idea and a business is huge, regardless of whether you're executing as an individual entrepreneur or a large business.

Derek Sivers (sivers.org) explains this brilliantly, by describing ideas as a multiplier of execution to determine the value of a business. The most significant contributor (by far) lies with execution, not with the idea.

Think about it this way. Customers don't buy ideas, they buy products or services. Venture capitalists don't fund ideas, they purchase a stake in a startup with a believable business plan and a balanced management team. Companies don't acquire ideas, they buy successful businesses.

OK, That's Depressing...

For those of you that are purveyors of ideas, this may seem a bit deflating. Don't be discouraged, and don't tear up those scribbled-on napkins! You must begin thinking in terms of execution. How can you make your idea an attractive business reality?

Over the past few years some very successful patterns have begun emerging that are making it easier for a good idea to meet up with good execution. In particular, accelerators are carving the process of early-stage execution on a good idea down to its essence.

Groups such as Y-Combinator, 500 Startups, TechStars, and Capital Factory are accelerating entrepreneurs in major cities and development centers around the world. The pattern is also being replicated and improved by regional accelerators such as FlashStarts.

These organizations offer incredibly rich networks, mentoring programs, assistance with marketing and PR, formation of business plans, and even name selection and logo design. They generally fund at the seed level for a small stake in the company, and measure success by the number of participants that receive follow-on funding. The real value in being accepted in an accelerator program is not the funding though, it's the concentrated access to resources and expertise.

With over fifty members, the Global Accelerator Network (GAN) is a great place to start your search for an organization that meets your particular needs.

The Bottom Line

The bottom line is this: whether you apply for an accelerator program or decide to go it alone, you need to surround yourself with the expertise required to shape your idea into a business.

Smart people come up with cool ideas all the time. That's usually where things end. Entrepreneurs, on-the-other-hand, take ideas and make successful companies.