"How do you move from your initial idea to something that is worth doing?"
"What should I do with my first idea to craft it into a killer app business plan?"
Those are important and typical questions that confront the entrepreneur who is new to start-ups.
Serial entrepreneurs know what to do to move through the process of converting first thoughts to great business ideas.
Today I'll use a real example to give you more insight to this somewhat mysterious process, so you can then apply it to your cool idea.
M = My response
E: We have technology that can build a lab-on-a-chip. We plan to use it to monitor HIV patient's use of medicine so they can vary the amounts and get better results, improving their health.
M: How many are there?
E: About 2 million in the U.S.
M: Which are especially concerned with monitoring their health?
E: Those with geek tendencies, ages 20 to 40.
M: That would be about half of those with HIV. Which of those are extra sensitive to monitoring their health?
E: Ah, we had not thought about that. I guess the ones with the most income, how about a third of them.
M: So you are aiming at a third of half of two million, that's a very small market. Too small for venture investors to get interested.
M: What other health monitoring markets could you do, ones much larger?
E: How about pregnant women?
M: Yes, that would be a market large enough to pursue.
E: We could do that all over the world! That could be huge.
M: Right. Is there any one competitor doing what you are going to do, for pregnancies?
E: No, there are only a couple offering specific sample tests, non are doing on-going monitoring.
M: So you have a chance to become the Gorilla of a new market! Great news.
M: This idea fits under the banner of "personalized medicine," a rising tide lifting a lot of new boats.
M: What else could you do for your Ideal Customer? What else could you sell her?
E: Well, how about providing related health information. We could do a peer-to-peer discussion on our web site. And we could provide experts with free advice. That would attract advertisers.
M: Any ecommerce?
E: Oh, we could do affliate sales of baby things. We need to figure out the best strategic partners for that.
M: How could you get the doctors involved?
E: We could send the MDs the data from their patient, saving time and increasing the quality of healthcare.
M: That will make a fine cooperative arrangement.
I'll stop there with this example. I think you can see how the entreprenurial team moved from a weak initial idea to a very attractive one. Review the elements of the process and you will see what the issues were.
BOTTOM LINE: Your initial idea is going to change a lot by the time you get it ready for a real business plan. The process of moving, pivoting, morphing from the first thoughts to the great idea is a process worth its weight in gold. World-class angels and venture capitalists can do it very quickly. Serial entrepreneurs do it in split seconds. Doing it well lays the foundation for building your unfair advantage, so get started right now, apply the process to your cool idea and move on to the much improved next version. You can do it, others have, and they became big winners.
I wish you The Best on your Adventure!