The Problem:
Too many business ideas get paralyzed in the process of development. Usually the research is daunting, the budget is too difficult to predict, etc… For one reason or another the business plans take too long and sometimes lose steam and are never released to the financial hands that can actually get it off the ground!!
Additionally, time is more sensitive for ideas than ever. We live in a “NOW” world where concepts and ideas are more wildspread than ever!! The turn around time for an idea must be on a quicker cycle to lift off.
Solution:
Master the process of compiling a plan into a deliverable ready to put in front of a investor or financial institution within a single day (more specifically within a 4 hour studio).
Method:
Compile a team of business development experts (CFO, CTO, Lawyer, and a team of researchers) into the studio for a commitment of 4 hours.
10 minute briefing on the idea/concept and current status.
- start the research team on developing a body of competitors, similar business models and market analysis.
20 minute development of the rest of the meeting structure (what needs to get done in order to complete the plan within the next 3.5 hours).
- Utilize the SethGodin modern business plan model (or something catered to the specific project) to map out the completed document.
The Rules:
For this kind of rapid development to be a success there must be a set of rules that everyone understands and everyone plays within.
1) ALL participants must be ready to start ON time. There is a multitude of reasons why…
2) The research team’s job will be to continuously inform the different parts of the process with information and insight into the project.
3) There will be multiple “spaces” to contribute (Audible, Visual, textual, image, etc). Each participant should have a computer and be logged in to the visual spaces for maximum engagement during the process. (see TheMethodMeeting for more information)
4) In one model this studio will be accessible to off-site participants utilizing webspace and video conferencing as a method for distributed collaboration. The webspace may be public during certain times of the development process (most likely the initial introduction hour). This must be clearly defined and LOCKED down no more than 2 minutes after the meeting starts.
5) There are different phases during this meeting (brainstorming, development, task distribution, reporting, etc). Each of these different phases will have different rule associated. Participants should be aware of what phase we are in at each point in the process.
Model:
The Business Design Team can be compensated in two ways:
1) They can be paid for 4 hours of time. I expect around $50/hr for each of the C level members and $25/hr for each of the researchers. After the studio session there is no obligation either direction for the relationship to continue.
2) The business visionary may elect to have this service presented at no initial charge. After the session is complete the Team gets first right of refusal on exactly 50% of the business. More clearly defined as 50% of the seats on the board of directors and 50% cash investment of the business with a clearly defined term and buyout.
From the broader perspective of how our region is defined as being entrepreneurial- this idea is meeting a crucial demand in our region- we must get more ideas to market at a faster rate than what normally occurs. Your concept could act as a “fuel injector” in the regional innovation system. More, better ideas being injected would increase the overall nimbleness of the system. Great idea. I would like to hear more about the business model. Interesting ideas.
In Los Angeles, I participated in a number of ‘events’ that I would say mirrored this type of concept. The addition of paying the professionals in these meetings could add power to them. That power could translate into more actions later on down the road. But, what I have also found is that the fleshing out, the analysis of markets, competitors, alternative solutions, and the rest, can rarely be fleshed out with enough meat on the bone, to attract investors in a short time frame. It is the rumination, the ‘pickling’ of the egg, that makes the plan become something more. The visionary may have the vision, and the leaders may have the skills, but there is something more that needs to happen. It is a driving force, a commitment to excellence coupled with a drive and ambition to succeed that makes any venture real, and it is the long term commitment of the driving force that makes a business sustain with or without cash. Ideas and concepts are powerful stuff. Without them, no business can take root. But over and over I have seen that it is the tenacity of one individual, one person, who is so compelled by their own vision that ‘out sourcing’ is just not going to cut it. When it comes right down to it, accounting, legal, and money are all the stuff of a business. But they are not the business. The business is the net effect of a the personal drive and ambition of a single person. That single person can eventually add partners, or professionals, or others to come for the ride. But in the end, it is the visionary who also has the drive and ambition, and most importantly, the desire to ‘cross the Rubicon’ to say…”Damn the torpedo’s full steam ahead.” And that visionary will probably need singleness of purpose, focus like a laser, and commitment to their vision that supercedes nearly everything else. Without that, there is no business. And it is that very thing that makes entrepreneurs out of “Scrap Metal” people, or “Recycled Plastic” or “human waste” or the greatest “new way” to do things, whatever it is. Dont misunderstand me, I think these ideas have merit. They have purpose, and they could serve one well. I just think that without the driving force of the power of an individual, who is willing to risk it all to see their vision through, no matter what the costs…. you basically have nothing but a great idea, that the visionary is hoping someone else will pay for.
What we should all note, is the investor who is looking at an investment, is probably asking themselves this basic question: If the idea is so good, why do you want to share? Why give up so much gain? And if the answer is, because there is an enormous amount of risk..then the investor will ask, and how much skin do you have in the game? For the entrepreneur who is willing to give up so much before the venture has even begun, then the idea must require so much capital, to even start it, that in most cases, you will need venture capital.
I had a friend who’s team of engineers created a way for Cell phones to receive on their current bandwidth, gigabit speed. All they needed was $5 million to make the first chip set, and they could prove it. As a matter of fact, they had amoungst themselves, over 50 patents on technology, including cell technology. They were offered from a venture firm $2 million, and they had to give up 80% of the company. They said no. They still have the patents, but without the funds they cant build the chip. They held out for more. Another idea, which could have made the world a better place, for less. In the trash bin of history. Could the chip do it? Dont know. But 2 years later, they still talk about the $2 million they didnt take. That was 5 years ago. They are still working their jobs.
Investors either need to see big infrastructure costs, or they need to see real drive and determination. And even then, sometimes they balk.
Anyway, those are my thoughts.
Keith and Sandy, thank you for publishing your thoughts on this.
I would like to dialogue to continue as clearly there is some meat to put on these bones.
Again, thanks for reading and taking the time to comment.
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I am developing an updated version of this summary.
Something that I can deliver. The first meeting of the studio is THIS Tuesday… and I am happy to share what I am working on so far, if you are interested let me know.