The initial value of an idea is zero

The initial value of an idea is zero

You have a new business idea. You are so excited that it quickly becomes your best-kept secret. You get almost paranoid about somebody stealing this great concept that apparently nobody else figured out yet. Now – one day you have to share the secret, when you hire somebody to help you build the product when you ask somebody what they think, or when you want the first customers to try it out.
Most of those ideas will never see the day of light – the fear that somebody steals it is greater than the ambition to make it happen. OR – you may not even want to realize it yourself but have somebody else do the work and you want to sell it. You will find out that there is no customer for it. And here is the first clue: The average human generates about 10,000+ up to 30,000 ideas during their life cycle. Times 7.5 Billion people, that is 140 Trillion ideas!!! We are drowning in ideas. Hence – the initial value of your idea is exactly ZERO. To make a long story short: all its value is created when an idea is turned into reality. And that is the ENTIRE value not most of it or half of it.

The initial value of an idea is zero

No one can actually ‘steal’ an idea. All people can do is to make it much better right from the get-go. If it is an outstanding and truly new invention, file a patent if that makes you feel better. But consider yourself warned. More often than not are patents the reason for failure. Customers want choice and not yet another technology dictator. They want options and not a monopoly. If Tim Berners-Lee had received a patent for his HTTP and HTML protocol we simply would either not have the Internet as we know it, or none at all. Because the days when somebody pays royalty fees are pretty much gone.

The entire value of an idea is created through execution
. Meaning only when you turn it into reality, work with smart and engaging people, as well as work with your potential customers you will win. And if somebody executes better than you, they will win – no matter what – even with a patent as they will try everything to find an alternative. And they will find one, which makes them even stronger.

Stop worrying and start doing

Cowards will never bring an idea to life because they are more fearful their idea will be stolen than the fear of failing. If you feel you are too weak to execute – go back to square one and rationalize that it is all about execution, and look for a partner who can execute while you craft the concept for your idea. If you have nobody you can trust, work on your network. If you have no network, build it.
Every outstanding idea is usually created multiple times at the same time. Did you ever wonder why most breakthrough concepts happen around the same time in different places? Some may be a blunt copy, but most just happen because the time is right, the base to build a new step in the evolution of something is perfectly prepared and a need from a market is pushing it to reality. It doesn’t matter whether it was copied or the same idea was created multiple times by chance – getting it done is the real value – not having a brain fart ;)

Why Espionage?

You may wonder why espionage is such a big deal on a global scale. Keep thinking: This is the worst way to get to leadership. It is well known that many of the largest enterprises and governments try to find out what their competitors do – so they can do it too and hope to be better. That particular behavior obviously results in “follower-ship”. And follower-ship is by definition, not leadership. Every leader welcomes followers – why? Because only with followers they can become a leader. As a result companies or governments with huge engagement on espionage are doomed to fail in the long run – and history can prove it over and over again.

Putting it all together

Share your idea with great people who can help you make it happen. Involve potential customers before you even build a prototype. Then build what you the market needs and is willing to eventually pay for. As soon as you can show your first results, be as bold as you can get and invite others to follow your ideas – to become the market leader and thought leader. While the followers copy your idea, you already have a new version, an improved process and they will follow again. Yes, you are doomed to never stop innovating – but at one point it is the market that will co-innovate with you if you keep the market on your side. Examples of long-term innovators include Mercedes Benz, IBM, Lindt Chocolate, Kellogg’s, and Steinway & Sons, … All had one thing in common: They had a great idea, they built their first products quickly, brought it to market, and competitors tried to copy them right away, they ignored everybody but their customers, and continued to build on what they had – all remained to be leaders in their field over generations.

Try to MAKE money before you TAKE money

I was recently asked what ways I’d know how to get money to start a company before you really raise money. Except donations, I successfully tried all of them myself. There is a huge value in getting money from other sources than institutional investors in the first place. One of the biggest advantages is being independent and knowing there are many ways to make money before you take money.

1) Friends and family

always the most important starting point. If you don’t have any, it indicates that nobody is trusting you – not a good start. [Trust Money]

2) Early Customers

Your first customers may actually be a great way to make money as they may even pay for the development if the product gives them the needed extra value. [Smart Money]

3) Crowd Funding

Even more early customers with an additional boost of marketing and new early adopters. [Smart Money]

4) Additional Consulting Services

Providing consulting services in the space your startup provides products to augment your financial side. [Smart Money]

5) Training & Education

Paid education programs (Training and general education) you may offer to help clients better understand the space you are in. [Smart Money]

6) Events

Events with sponsorships – finding sponsors to help you boost events that may end up be profitable for you and help promote your idea. [Smart Money]

7) Advertising Revenue

You may allow others to advertise on your product, your training, your events, in order to get some additional funding. [Just Money]

8) Donations

You may add a “Donate” button to your product or outreach program and get some donations to finance your business. [Friendly Money]

9) Grants

You may look for available grants from your government or universities. They are very difficult to get and mostly takes for ever but certainly a very viable opportunity. [Just Money]

1) Business Angels

While typically the first option startup entrepreneurs think of, yet it should be your last resort. It feels like easy money quickly – but after several startups you will learn it should be your last choice after you considered all the above. [Just Money] [Smart Money only in rare cases]
* note: Smart money means you get a serious extra value – not just hope getting an extra value. Customer money is always smart as you learn from their use, you learn about your sales and marketing process, you learn about improvements and you build the base for institutional investors (VCs)  who will want to know what the market is like. Same goes with events, training and consulting, despite the fact that you won’t continue with it long term you learn a ton from your market.

I was ask what to do to motivate yourself to work harder. I was wondering why on earth you want to work hard. But obviously that is what most people tell others on their quest to success. When I was 28, somebody told me a bout Confucius’ saying:

Seek an activity you wholeheartedly love and you will never work a day in your live“. Confucius

It changed my attitude to work for the rest of my life in two ways:
1) I understood that hard work is only hard if you don’t like what you do which is almost automatically leading to failure.
2) The only thing that is hard – or better said – not easy is to determine what you actually love to do.

If you don’t know WHAT YOU WANT: buy yourself a shovel, get out into a desert and dig a hole as deep and as wide as you can. Make sure you do not do that on property that is owned by anybody and that you are not endangering anybody. You may exhaust yourself over and over again. People may come and watch you doing it. The hole may have a diameter of maybe 500 yard. And you dig deeper and deeper – wider and wider. While you do that you have time to think about what you rally want. More and more people may come by and watch you. You may get interviewed by local television. You may become famous for the man that single-handedly dug the widest and deepest hole ever. You may get advertising contracts and get more interviews. But most likely at that stage you know:
a) you really enjoyed digging this unbelievable hole – or
b) you know what you really want to do instead
c) if none is true, go to the poorest country on earth and help people survive and thrive. Do this until you know how you could create more value for our society. Once you know, you help those who can’t figure it out – where to start and ask them to dig a hole.

In other words make every effort to find out what you really want to do – instead of just doing something because you don’t know.