Creating a New Business – Part 3

December 28th, 2009 by Shaun McNerney Leave a reply »

Note: This is Part 3 of a 3 part seriesPart 1 | Part 2 | Part 3

One of the hardest things to do is to come up with a compelling idea for a new technology business. Here is the process that I use to help uncover hidden opportunities.

  1. Identify Fundamentals
    • Asset or Baby Business
    • Product or Service
    • Better-Faster-Cheaper or Brave New World
  2. Collect Ideas
    • You
    • Your Company
    • Customers
    • Emerging Trends
  3. Fail Fast
    • Prototype The Business
    • Test The Market
    • Time – The Most Precious Resource

 

Fail Fast

Read this very carefully. This is important.

Bad ideas should Fail Fast.

Good ideas stand the test of time. Every other idea should Fail Fast. Here is the process I use to Fail Fast.

Prototype The Business

Don’t explore a new business idea by building it. Instead, prototype the new business idea. Napkins, white boards, sketches, or (if you must) PowerPoint presentations are a great way to prototype a new business. The whole idea is to spend as little time as possible on bad ideas (and there will be many of those).

The elevator pitch is another good way to prototype the business. The elevator pitch plays a big role in the next step – Test The Market.

Test The Market

Your new business needs customers to be successful. Test the market by talking to as many potential customers as you can. Ideally your idea should solve one of their top 3 problems. If it doesn’t, then it is probably time for the idea to Fail Fast.

Note: Be sure to remember the customer’s top3 problems. They may lead to other ideas.

Fail Fast

Time is the most precious resource that you have. Rich or poor, everyone has the same amount of time. Don’t give bad ideas any more time than necessary. Always look for ways to fail bad ideas fast.

If a new business idea doesn’t Fail Fast then either:

  • You are not performing enough due diligence on the idea

– or –

  • You have found a great new business idea

Let me know how you find and evaluate new business ideas. Leave a comment or contact me directly. Enjoy!


Shaun McNerney

Note: This is Part 3 of a 3 part seriesPart 1 | Part 2 | Part 3

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1 comment

  1. Shawn, very good points in this article. I really like the idea of “failing fast.” Many entrepreneurs fall in love with their ideas and have a hard time accepting failure. But it’s just like the stock market – better to take your losses quickly and let the profits ride.

    Chris Ryan
    http://www.fusionmarketingpartners.com