Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.
up vote 3 down vote favorite

There are two alternatives to startup path:

  1. A great idea (to solve a gigantic consumer problem) with enormous scalability, sustainability for long-term but in a different field/industry in which the founder is not so familiar with.

  2. A good idea (to solve a medium problem) with decent scalability and sustainability, in a field/industry in which the founder is very familiar even with small details and good amount of expertise.

Which is the better alternative?

share|improve this question

4 Answers

up vote 11 down vote

#2 - to me there's no doubt. (and one caveat at the bottom) Couple of reasons:

  • The amount of #1-type ideas is infinitesimal (Amazon, Google, Facebook, Twitter... what else?). The chances of a given person to have one are very small. You can waste a lot of time and energy looking for one and still not finding it.
  • Execution is far more important that idea - most wildly successfully companies/products were not the first to implement their particular idea (Google, Facebook).
  • For any given idea you have there are probably 10 other teams somewhere right now working on the exact same idea. This is because ideas mostly happen in context - you read something, you read something else, you connect some dots and you have an idea. Communication is so fast and efficient right now that everybody is connecting the same dots you are, at the same time.

*Caveat: If you have a #1-type idea right now - you should drop everything and start working on it right now. I can only assume that the fact you're asking the question means you don't have one yet.

share|improve this answer
Another caveat - which has option has people spending $? – james Mar 22 '11 at 14:01
Thank you Pasha, your third reason was awesome eyeopener....its true in this information savvy world....i understood that EXECUTION matters !!! Thank you once again :) – financewhiz Mar 23 '11 at 11:39
up vote 5 down vote

Check out this formula for thoughts on how to value idea versus execution. I'm not saying it's 100% accurate, but you can use the concept to help make your decision.

AWFUL IDEA = -1
WEAK IDEA = 1 
SO-SO IDEA = 5 
GOOD IDEA = 10 
GREAT IDEA = 15 
BRILLIANT IDEA = 20

NO EXECUTION = $1 
WEAK EXECUTION = $1000 
SO-SO EXECUTION = $10,000 
GOOD EXECUTION = $100,000 
GREAT EXECUTION = $1,000,000 
BRILLIANT EXECUTION = $10,000,000

To make a business, you need to
multiply the two.

The most brilliant idea, with no
execution, is worth $20. The most
brilliant idea takes great execution
to be worth $20,000,000.

However, execution may not depend on how familiar you are with the field. Within a short time of starting, you will probably be an expert regardless.

share|improve this answer
Brian....3 cheers for that equation !!!! Ha Ha....solution simplified with your answer...thank you :) I believe your natural ability to convert tough and heavy situations into easy and light moments...GREAT :) – financewhiz Mar 23 '11 at 11:46
up vote 2 down vote

Those aren't the general choices, so I assume you're being specific to your current situation.

Three questions are common to most startups:

  1. Why is this problem important?
  2. How does this solution help?
  3. Why are you the best person to progress?

Your second case suggests you have good answers to all three questions. Your first may be illusory - lack of domain knowledge makes all of (1), (2) and (3) suspect.

So my thinking would be, you have every reason to progress your 'medium' startup. And your 'gigantic' possibility may need further investigation, and perhaps the involvement of partners who bring the domain expertise you lack.

share|improve this answer
Jeremy, as you said, my #1st case could be illusionary due to lack of domain knowledge....I would progress with my startup(in financial services) and investigate further with my #2nd case...thank you :) – financewhiz Mar 23 '11 at 11:42
up vote 0 down vote

The unique ideas always work. If you have a great unusual idea, you should probably start with it. If you aren't so familiar with it, you can always find people who are. An average idea seems to be not so risky, but it will not bring you as much profits as a unique one.

share|improve this answer

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.