Identifying Profitable Business Ideas, With Dr. Adam J. Bock
When it comes to new ideas, entrepreneurs are like machine guns. We can spit them out as rapidly as a machine gun sprays bullets.
But when we get so excited about an idea that we don’t properly put it through its paces, we end up wasting exorbitant amounts of time and money trying to fulfill an idea that’s never going to happen.
Then we blame our customers for not seeing the value, leap to the next “sure thing,” and repeat the process again.
This exact cycle is one of the top reasons 90% of startups fail, and why even established businesses can waste hundreds of thousands of dollars on “sure thing” business ideas.
Instead of letting idea excitement run the show, tune into this episode of Just The Tips with guest Dr. Adam J. Bock to learn what to do (and what NOT to do) once you’ve got a new business or product idea.
Adam is a serial entrepreneur and academic researcher who’s mastered the ability to structure sustainable business models that give you a competitive advantage.
Adam’s not only started multiple companies, he’s also sold multiple companies, in the venture capital space, for eight figures. When it comes to profitable, sustainable business models, he knows what he’s doing!
Adam will reveal the most costly mistakes entrepreneurs the world over make with their business ideas; plus show you how to identify when you actually DO have a winner.
Outline of This Episode
- What is a business model, REALLY? [10:20]
- Cool ideas are the start, not the finish [16:50]
- Avoid this expensive problem-solution blunder [23:00]
- Choosing who to ask (and who not to ask) about your idea [39:30]
- Don’t confuse valuable with profitable [48:02]
3 major points discussed
- When lighting strikes, give it space. Yes, entrepreneurs have to take risks in order to get anywhere. But there’s a big difference between taking a risk and allowing idea excitement to blind you. When your latest big idea strikes, document it, but give yourself space to get beyond that initial burst of excitement. That way you can evaluate your idea with a level head (and potentially save yourself years of wasted time and money).
- It’s not your customers’ fault. When you test the waters with your product and don’t get the response you’re hoping for, it’s all too easy to decide you don’t have the right customers. Or that they’re clueless for not seeing the value in what you offer. Educating people who don’t yet understand the value in your idea is possible, but it works a LOT less frequently than most people think. If your solution isn’t a solution in their minds, no amount of educating them will change that.
- Keep it lean when you test the waters. Instead of cannonballing into the water with your new idea, dip your toe in, especially when you’re gauging customer interest. Just because someone says they want it, doesn’t always make it so. It depends on who you’re asking, and whether you’re actually solving their problem, or just solving a problem you think they have. Keeping this phase lean is critical to stopping new idea excitement from running away with your time and money.
Resources & People Mentioned
- https://www.bizmodelbook.com/
- The Business Model Book: Design, Build and Adapt Business Ideas That Drive Business Growth, by Adam J. Bock and Gerard George (available on Amazon)
Music for “Just The Tips” is titled, “Happy Happy Game Show” by Kevin MacLeod (http://incompetech.com) Licensed under Creative Commons: By Attribution 3.0 License
