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Thursday, June 27, 2013

Great ideas live or die based on your planning and execution

Dinner anyone?
Great ideas come and go.  Some people have several new ideas a day while other people have them infrequently.  Converting a great idea to reality requires planning and excellent execution.  For example, seeing a live turkey may remind you of dinner, but turning it into dinner requires a number of steps.   Some people consider a few of the steps to be undesirable. 

Like your turkey dinner, a business requires careful planning, successful development, and great execution to convert a concept into a successful company.  Occasionally, entrepreneurs forget or neglect to consider key elements of the business.  Excitement can cause a flurry of thoughts and plans while leading one to overlook or forget important areas.  Involving your team, including experienced mentors and advisors, is a great way ensure you identify topics requiring more attention.

It may be hard to believe, but one poorly defined topic is how the company plans to generate revenue.  Identification of your customers and their price points is critical to your business model.  Projections made solely on theoretical markets are only a starting point; a much closer review is required to ensure you get it right.  This topic should be included in any business plan and presentation.  Questioning from potential investors will focus on whether you have it right or not.  Investors are most interested in your revenues because it directly relates to whether they can obtain their desired return.

Production is another topic requiring great consideration; where products are made and who makes them, translates to manufacturing costs and quality.  Outsourcing manufacturing or having your own plant have positive and negative points to consider.  Planning for success requires consideration of all aspects.  You may elect to modify your plans as the business develops, but you must start with a good plan if you want to have a fighting chance for success. 

These topics may seem simplistic to some entrepreneurs because they think more logically or have experience.  Entrepreneurs are not all created equal. Some see the big picture but fail to see the steps taking an idea to a functional business.  Knowing your strengths and weaknesses is a step closer to ensuring you have the correct team around you.  Fill in your negative attributes by attracting the experience that makes for a well-rounded capability in the company.  The combination of a great idea with proper planning and execution is required if you really want to WIN big.