Updated: March 7, 2023
While hanging out with friends, it’s not rare that we would discuss business ideas. Most of the time, the idea would stem from a recent experience or observation.
I remember a friend sharing that he’s been eating a lot of Jollibee and McDonald’s at home because theirs are the only delivery numbers that he knows.
He thought it would a good idea to have an app where you can order from different fast-food restaurants. Just use the app and you don’t even have to memorize phone numbers.
This was in the early 2010s and a few years before Grab and Foodpanda were founded.
I saw that friend last week and for some reason, I asked if he remembers that weekend when he unintentionally thought of that billion-dollar business idea.
Oddly enough, he does and he’s proud of himself for “predicting” that.
“Imagine if you pursued that idea. You’d be a billionaire now,” I said.
“Yes, I would. But back then, I wouldn’t know how and where to start,” he answered.
Ideas and Execution
“Ideas are a dime a dozen. People who implement them are priceless,” says businesswoman, Mary Kay Ash.
Indeed, it can be fairly easy for most people to come up with a business idea. Just look around and think of a solution to a problem that many complain about.
However, the key into turning that idea into a profitable business is execution. And this is what’s difficult.
Execution requires planning and persistent action. It’s a commitment that most are simply not willing to take on.
Ideas are just a multiplier of execution.
In a simple yet powerful method, entrepreneur and author Derek Sivers comes up with a formula to measure how much your business idea is worth.
He claims that ideas are just a multiplier of execution. If you want to know the potential value of your business, then multiply your idea and your execution using the values in these tables:
Thus, if you have a brilliant business idea, but you have no clue on how to execute it, then that’s only worth $20.
But if you have a good business idea and you’ve written a so-so business execution plan, then your value goes dramatically up to $100,000.
Interestingly, even a weak idea with weak execution is still worth a decent $1,000 — totally acceptable because a running business can always improve its execution to increase its value.
So, the next time you have a business idea and you truly believe that it’s worth pursuing, then your next step is to write a business plan because knowing how to brilliantly execute your idea is what will make it profitable.
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