So, as of August 9, 2006 at 8:40 am from my cubicle as an IT consultant, my business partner and I are 60% through a completely reformulated business plan (more on my thoughts on the necessity of business plans later), and 100% through an initial concept document (high level design document).
We are realizing that our product would be most cost effective to develop if we partnered with one of the Big Guys (Google, Yahoo, MSN). The upside to such a parternship - the $$$,$$$,$$$.00 (lots of money!!). The downside to such a partnership - having your soul owned by a Big Guy. Literally. The question becomes - how much is your soul worth?? I'm still working on my valuation.
As for our quest for venture capital, we've realized (quickly...like, in a day) that no network truly worth having can be built in a day. So for those who think there's some magic secret to getting yourself "out there" on the right web site, discussion forum or message board - there's not and it's not. And when you really think about it - why would it be? Someone who's interested in pushing $100K - $1MM towards a concept or an idea is NOT going to go off what you posted in your "We need money" rant or even through an exchange of 50+ emails regarding your concept, customers, competition, market, financials or growth strategy. When you really get down to it - the capital investor/entrepreneur relationship probably goes a little something like this:
We are realizing that our product would be most cost effective to develop if we partnered with one of the Big Guys (Google, Yahoo, MSN). The upside to such a parternship - the $$$,$$$,$$$.00 (lots of money!!). The downside to such a partnership - having your soul owned by a Big Guy. Literally. The question becomes - how much is your soul worth?? I'm still working on my valuation.
As for our quest for venture capital, we've realized (quickly...like, in a day) that no network truly worth having can be built in a day. So for those who think there's some magic secret to getting yourself "out there" on the right web site, discussion forum or message board - there's not and it's not. And when you really think about it - why would it be? Someone who's interested in pushing $100K - $1MM towards a concept or an idea is NOT going to go off what you posted in your "We need money" rant or even through an exchange of 50+ emails regarding your concept, customers, competition, market, financials or growth strategy. When you really get down to it - the capital investor/entrepreneur relationship probably goes a little something like this:
- 30% Concept
- 10% Business Structure (business plan documentation)
- 10% Instinct
- 50% YOU
We'll re-evaluate these proportions once we get some money. Which leads to the idea - which question is more important:
- Do they believe in your IDEA?
- Do they believe in YOU?
This isn't to say that the idea itself is worthless - obviously its not. Without an idea...what's the point, right?
I can't help but wonder - which is is more important, you or the idea?
Now Playing: Talib Kweli - Beautiful Struggle (Title Track)
2 comments:
Ideas are a dime a dozen. People who can make the transition from idea to reality are not.
Isn't that the truth!!!
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