John L.
I train people like you to develop business ideas more skillfully using my sixRoles(sm) Framework
What process (or steps) do you follow to get from a "new idea" to making money from that new idea?
I am collecting input for a book titled "New Ideas New Money".
Answers (18)
Calvin L.
Internet Professional, Website Developer, Programmer, Designer
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Hi John,
I ain't making money. But, according to other people, you must have a strong passion. You must enjoy what you do. Help others. Provide value. Then money will follow. No need to think about it.
William T. C.
Facebook Marketing Expert with 1,100,000 Fans
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I recommend that companies use their corporate website for commerce, community and content; Facebook for interactions (Likes + Comments + Shares); and LinkedIn for large sales. Facebook should be layered onto your website through Wall Posts. ChristiaNet makes 100% of its sales using the above strategy and all successful businesses should follow the advice.
We test against the above model.
Kenneth L.
Retired Aerospace Contracts Manager, MicroMentor Volunteer and Founder "Smalltofeds"
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Product entrepreneurs all face the same challenges.
Those who succeed recognize they need to visualize themselves in the product development business, structuring an enterprise, generating a business plan, protecting intellectual property and then seeking industry partners and investors to bring the product to market.
In the process, copyrights, patents and royalty issues may come into play and development and distribution agreements are formed. Pricing is finalized based on cost and expense projections and competitive factors unique to the company as negotiation results are achieved with industry teaming partners, developers, manufacturers and distributors.
Financing is always a factor and can be achieved through loans or investors with a good business plan. The free article linked below addresses the basic elements of a framework within which to succeed with your product development. Although geared for government contracting, much of the generic guidance may be useful to you.
Links:
Judy H.
*Exp. CEO & Speaker *Leadership Development Specialist *Mentor & Coach to SMEs *Writer, Trainer and E-learning Designer
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Hi John,
Once you have a new idea, the next step would be to test the market and see who is interested in your product and whether the numbers stack up to make a go of the product/ service. Without buyers, there is money to be made from the idea!
Dave M.
Professional trade show booth traffic builder and party entertainer. Corporate and private sector events.
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First thing I do is, if it relates to my business, I'll call every event planner I know and let them know what I'm offering. I also post it on my websites and let folks following me on Twitter know also.
I'll put together a youtube video and publicize that also.
Mike V.
Advisor at Business Owners Toolbox
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From "new idea" to revenue takes many steps, and they all cost money.
-- Design your product, service, or business concept from the idea.
-- Build a prototype, so you can test it. Is it practical? Does anybody want it?
$$ You need money for this. No banks or VCs are interested, so go to 3Fs: Family, Friends, or Fools.
-- You must first form a company so that you can accept funding. $$
-- You must hire expertise because you don't know everything. (Maybe you give them equity.) $$
-- You work from your garage or spare bedroom? Or lease a facility. $$
-- Conduct market tests with your preliminary prototypes. Refine it using the feedback and research. Prove that you have a potentially viable offering, and can sell it at a profit. $$
$$ You're broke again. Time to make the rounds of angel financiers. If you get seed capital, you can go on. Others now own part of your gig.
-- Commercialization stage. Arrange for rollout.$$$
-- Marketing, marketing, marketing. Spend money like a fire hose!$! $$$$$$
-- Launch. Are customers lining up? Will anybody buy version 1.0? $$
-- It never takes off as fast as you want. But if there's measurable potential, then you can either
$$ Go for 2nd round financing from angels or VCs, or
... grow organically, i.e., very slowly, since you're funding growth through cash flow.¢¢
-- Time to roll out version 2.0, to correct all your initial mistakes. $$$
-- Repeat cycle until profitable.
I'm sure I've left out some steps.
When do you get paid? After everybody else.
Wallace J.
Multimedia Producer, i3D Programmer, Acrobat 3D PDF, Android App, Virtual World & iTV Design, Kindle, Nook & Sony eBooks
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1. Create the 3D Models, Texture Maps, Animation, and Renderings
2. Write the Java and JavaFX Source Code and XML and HTML5 Mark-Up
3. Upload the 3D eBooks and 3D Apps to the App Stores and eBook Stores
Links:
Luca K.
Global Director for Product Development and Alumni Networks at AIESEC
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Chossing a very clear and concrete segment and prototyping it (being fast and dirty) in that environment. In this way you cannot make a big loss (by investing resources) but can still have solid experience in how to evolve the product.
Check out this video on TED about kindergarten students building a marshmallow tower - this is the behavior you need:
Links:
Hi John,
The next steps from "new idea" to making money are to Validate your business idea and then Execute it, Execution being the key to making money. If your execution fails, then no matter how brilliant your new idea is, it will remain just an idea. Both Validation and Execution need to be understood in greater detail.
Given the space constraint here, I am giving two links that you can follow in order to understand the next steps of Validation and Execution better.
http://www.entrepreneurswebsite.com/2011/05/19/how-to-validate-your-idea/
http://www.entrepreneurswebsite.com/2011/07/07/execute-your-idea/
Hope you find it useful.
Regards,
Mridula
Links:
Donna K.
Founder/CEO, The Donna Krech Companies
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We do mind maps. We scope out the new idea, laying it out in not strict detail but a good overview. And then we begin a meeting on possible income streams from that idea. It unfolds itself into a map. And with the income stream that was chosen, we can map that further into the strategy we need for achieving goals pertaining to that idea.
The strategy mind map is a lot bigger because you have to cover all aspects of the new idea.. from sales to customer service.
Wendy K.
Assistant Vice President at Willis Re
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In addition to having a great idea and producing your product or service, making money requires 3 other things: (1) demand; (2) awareness of the part of potential clients/target audience; and (3) method of distribution. If no one knows about it or no one wants it, or you don't have a way to get it to them easily, it ain't gonna happen.
On my profile I have a small flow chart describing steps for making it happen for a new product/service vs doing that for an existing business (where the only ways to make more money are to add additional revenue streams for existing clients, increasing your customer base or raising prices). Lots of overlap, though. It's in a ppt in the boxnet files. Not sure if you can see/download if you're not my connection. Message me if you want me to email it to you.
by the way, if you're looking for input for a book, you may want to join www.HelpAReporter.com to ask its subscribers. HARO is a great (free) service book authors can access too.
Clarification added 3 months ago:
correction: (2) awareness ON the part... sorry for the typo
We go through lots of new ideas regularly. Usually, for anything that seems promising we create a one page business plan to see if it holds together through some basic analysis. If it still looks good, then we market test it.
We don't develop, or source or anything till we've got concrete market feedback - and maybe even a prospective buyer that someone would actually buy it. This forces us to be business led, and helps us avoid getting caught up in the excitement that surrounds new ideas.
Having an idea should not always be linked with generating money. Most of the time it's linked with your passion.
There are chances that many other people have same passion but they were unable to find solution and you solve that problem.
Steve S.
CEO | Business Development | Rapid Growth Strategies | Author of Success Secrets of America's Fastest Growing Companies
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John, as I think you know the first step is to be sure there is demand for the idea by running tests.
We've interviewed 200+ of the CEO's of America's fastest growing companies and have gathered a lot of data related to your question and your book. Send me a connect request and I'll be glad to share what we've learned with you.
Delcour C.
Financial Reporting at Geniki Bank
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Find the idea
Test the Idea
Create a solid plan
Work the plan
And never forget to know when to stop if the plan does not go as it should! Like this you will loose less money ;-)
Patrick M.
Career Coach, Talent Management & Leadership Consultant, and Seminar Facilitator
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I have taken this from my book called Profitable Passion. "Well there are Three Pillars, I Think You Need to Have a Successful Passion turn into Profitable Work.
1. What is it your passionate about?
2. What is it you can be excellent at?
3. What's your economic model?
I often say, "that luck is what happens to people who have clear goals and detailed plans of action."
Links:
There are, in fact, many techniques that can be applied for combing for ideas. Some people even look for patents that have not been developed. (Many are registered and not developed.) You should create a business process map to use for your feasibility analysis. (This will help identify start-up resource requirements.) Where the venture lies in its value chain will determine what its margins are, who its customer is, and how much it can charge for its products and services. You should also be aware of common pricing strategies (e.g. Premium, Price skimming, demand-based, captive market, product bundle, etc...) at start-up. And through all of this, please be aware that your pricing model will also dictate how you will convert your efforts into cash.
Hello John,
Fantastic question. It's very simple, there are 4 stages to a new business (aka startup) and they are here:
- Idea
- Prototype
- Launch
- Acceleration
In the Idea phase, you have to make sure the idea is feasible. Basically, you need to understand if the idea actually "could" work. Check your financials, legal and insurance requirements before proceeding.
In the prototype phase, you must build out the "Minimum Viable Product" of your idea to ensure that you generate something "tangible" but not in so much detail that you assume that you know what the market wants...yet.
In the launch phase, you have to see if you can actually sell your product to your target demographic. This is where you find out if your assumptions about the market, their problems and their opinion of your product are tested. In many cases, most businesses fail the first, second, third and fourth time here but the successful ones PIVOT until they find the winner. There are many popular companies that we all know and love today that started off as something completely different before they came to be what we know today. This list includes Toyota (formerly created looms), EMC (formerly sold office furniture) and Groupon (formerly ThePoint.com which was a collective "group action" site) and now is the largest coupon distributor on the planet.
In the acceleration phase, this is where new companies become stable, breakeven, turn a profit and have refined their customer onboarding, maintaining and exiting process. More importantly they can predict how much every dollar put into the front of the business will yield on the backend. This is where bankers, investors and others come in to provide expansion resources to GO BIG.
That is how you truly take a business idea and turn it into a cash cow. No fly by night stuff but with experience and laser accuracy, this can be done quite quickly.
I hope that helps you!
