[johnbears]

Hey Everybody,

I just want to ask you guys how important an ideas is when starting up a business.


I was arguing with Paul Graham about this. My position was that ideas are cruicial to the success of a startup. The better the idea, the more likely it is to succeed among other factors of course. I was arguing based on his essay "Ideas for Startups" http://www.paulgraham.com/ideas.html. I am quoting from his essay:

"I think people believe that coming up with ideas for startups is very hard-- that it must be very hard-- and so they don't try do to it. They assume ideas are like miracles: they either pop into your head or they don't.

I also have a theory about why people think this. They overvalue ideas. They think creating a startup is just a matter of implementing some fabulous initial idea. And since a successful startup is worth millions of dollars, a good idea is therefore a million dollar idea.

If coming up with an idea for a startup equals coming up with a million dollar idea, then of course it's going to seem hard. Too hard to bother trying. Our instincts tell us something so valuable would not be just lying around for anyone to discover.

Actually, startup ideas are not million dollar ideas, and here's an experiment you can try to prove it: just try to sell one. Nothing evolves faster than markets. The fact that there's no market for startup ideas suggests there's no demand. Which means, in the narrow sense of the word, that startup ideas are worthless."


Anyay, this is what I wrote to him in an email:

> Hello Mr. Graham,
>
> In your essay "Ideas for Startups" you mention that ideas are worthless. I
> strongly disagree with this point for the following reasons:
>
> 1) You mention there is no market for selling ideas to startups. However,
> this company www.brainreactions.com in essence sells ideas to established
> companies. Also let's think of consulting firms that also sell ideas. Okay,
> they are already operating business but just because nobody tried to sell
> ideas to potential entrepreneurs for starting a business doesn't mean there
> is no market for it. Maybe the market hasn't been formed yet. How do you
> know that nobody would want to buy ideas if they have a hard time coming up
> with ideas themselves. If I could generate ideas to a person's interests,
> then it maybe possible to sell it.
>
> 2) Have you ever heard of www.milliondollarhomepage.com. It basically is a
> million dollar idea. If you come up with something similar, I would
> certainly buy it for the right price.
>
> 3) Compare the following examples' speed to good ideas (million dollar
> ideas) and bad ideas. I could walk from Boston to New York. But then there
> are other possibilities such as riding a bike, going with a motorcycle,
> truck, sports car, helicopter, commercial plain, jet, rocket, etc. That is,
> the better the idea is the easier will be the success of a business
>
>
> Please let me know what you think of this.

[robyang!]

Ideas (good ones) are definitely important. I've had many people pitch to me, and boy were their ideas terrible. Execution is important, but you should execute an idea that has merit.

[TheBox]

A good idea is obviously important. However, it's not the "end all, be all". For instance, let's say I'm an accountant and I want to open my own accounting firm. There's nothing new or unique about that idea at all. There are thousands of accounting firms accross north america and beyond. However, if I execute the idea well, there's no reason I couldn't be a huge sucess.

Anyway, the problem is that I don't think you can really sell ideas... Who would buy an idea without first hearing the idea. And, if then did hear the idea and like it, what would prevent them from going and copying your idea without paying them? You could make them sign a non-disclosure agreement, but often they aren't as enforceable as you might expect.

[TheBox]

Originally Posted by johnbears

I was arguing with Paul Graham about this. My position was that ideas are cruicial to the success of a startup. The better the idea, the more likely it is to succeed among other factors of course.

Also, consider myspace... It wasn't really a new idea. However, the way in which it was executed made it a big success.

[quantikev]

I think part of what makes an idea 'good' is whether or not it resolves a problem, or meets a demand.

Many successful ideas were implemented at the right time to meet a growing demand for a specific audience.

Similar to a scientific hypothesis, research can help determine if the idea is viable in the marketplace.

Of course, sometimes the factors which determine the viability of an idea might be very complex and difficult to predict, in which case it could possibily be undervalued. The milliondollarhomepage may be a good example of this - as I believe it would have been very hard to forcast its tremendous success based on normal analysis of the marketplace.

[jg_macarthy]

Companies don't buy ideas, because an idea is just a starting point. When you see companies like Google buying YouTube they dont just buy the idea, they buy into the strategy and the core competencies around the idea. The reason is not some secret it is that they want to statistically see that your idea will translate into a posotive return on their investment. If you want to sell an idea you need a strategy and a core behind it. Probably like a business and marketing plan. But it is just logical thinking. Companies don;t like risk. An idea in your head written on a piece of paper proves no statistical proof of likliehood of success and increases rat of failure. Thats why they are worthless. Even if you work for a company when you pitch an idea you, it is backed by extensive market research data translated into information.

[tsj]

I believe ideas are very important and valuable. I believe everything begins
with a thought or idea. And good ideas will not have been found to be good if no one did noy act on that idea to discover it was an excellent idea.
But the saying goes like this when the fox can't reach the grapes he will say it is sour.

http://tj.acnrep.com

[ronsharon]

Ideas are a good start BUT and this is a big BUT, if the million dollar home page or the red paper clip guy would not hit the main stream media they would never have succeeded there are a millions of ideas out there you just need to get them out there and that’s the problem

[akula]

I have a total disregard for the i word

as a rule of thumb, when I hear "I have a business idea" - the conversation is over because the person using this entrepreneurial profanity, is difficult and dangerous

sentenses should always start with, "based on evidence, I think I might have spotted a commercial opportunity, and I'd like to find out how this opportunity compares to other opportunities" - that's the language of an entrepreneur

"I have a business idea" is the language of a dreamer

an idea is a figment of imagination. a commrcial opportunity is what attracts a premoney valuation, and the job of entrepreneurs is to attract premoney valuations

[Nigami Enterprise]

Originally Posted by akula

I have a total disregard for the i word

as a rule of thumb, when I hear "I have a business idea" - the conversation is over because the person using this entrepreneurial profanity, is difficult and dangerous

Personally I think that’s a very stupid and immature outlook. Not everybody who comes up with ideas wants to create a business or be an entrepreneur. Rather still you should evaluate there “idea” and then turn it into a commercially viable product using your knowledge and resources.

I know at tertiary educational institutes they like to impound into people that there is no such thing as a good idea and to dismiss people in the industry who say things like “I have the next million dollar idea”. But why not give them a chance. Ideas can be worth a lot or can be worth nothing its what you do with them that matters.

[DrMoney]

Originally Posted by ronsharon

Ideas are a good start BUT and this is a big BUT, if the million dollar home page or the red paper clip guy would not hit the main stream media they would never have succeeded there are a millions of ideas out there you just need to get them out there and that’s the problem

The milliondollar homepage is GOD i have a GREAT new idea based around that that is very inexpensive and will make atleast a 1/2 million a year


But Yes ideas EVERYONE HAS its that initial push that makes the idea good....For example... The upcoming Teen Entrepreneur Magazine; everyone has thought about something along those lines but he started it or has the will too.