Andy Swan » A great OLD idea for a business!

A great OLD idea for a business!

January 8, 2010 – 10:10 am

We already know that your idea is worth very little.

But I’ll go one step further: It often sucks to base your business on a completely new idea.

Why?

You’re probably not the first to think of it or try it. A lot of times it is true that the reason something doesn’t exist is because no one really wants it.
It’s crushing to get going on a fully original idea and then see a competitor pop up quickly and aggressively. “New” idea businesses tend to think they’ll be the only ones in the game for much longer than reality will allow (if it actually is a good idea).

Don’t get me wrong, if you have a great idea….GO FOR IT. Just don’t think you need to have a one-of-a-kind idea to go for it. You don’t. You can start a used car lot tomorrow and make a lot of money if you do it well.

Which leads me to my next point: There is nothing wrong with starting something that’s already being done. In fact, this is how a LOT of great companies are started….a couple guys sitting around saying “man, I really think we could do it better than those dumbasses (who just so happen to be their bosses….attention soft-middled management).”

There is a certain realistic focus that comes from identifying a clearly-defined enemy prior to the battle. You know there is a market for what he is doing, because he’s banking some coin. But you can also identify his weak points….and innovate new ways to best him, take his bounty and win the hearts of his herum, if you will.

So, if you haven’t thought of the “golden idea” yet….stop trying. Instead, start focusing on who you can take down, and how. You’ll innovate new ideas that are actually worth something.

p.s. If you’re looking for a target industry, anything with “agent” as a primary position will do quite nicely in the 2010’s.

Dave Pinsen

Mohnish Pabrai (who is, IMO, a better entrepreneur and salesman than investor) made the same point in his book, The Dhando Investor. He cited several examples in that book of entrepreneurs who were successful not because they reinvented the wheel but because they entered an existing space and executed better (or at a lower cost) than their competitors.

I can't help coming up with new ideas though (or, as in the case of Short Screen, a new take on an old idea. The Altman Z-score model has been in the public domain for decades; my new take was to use it to screen for short selling ideas). What I am trying to do is focus on the ideas I have that seem the most practical to implement and will have the biggest potential impact. I'm putting the finishing touches now on what I think will be a good one.

JakeGint

Agreud. I have the perfect example here in L'ville. Talk about 'everything old is new again.'

As usual, the value is in the entreprenuer in this one. Guy is a pip. Next 5-Squares meeting, I will elaborate (he's not going anywhere).

danreich

Why do you think "agent" will be good a target?

reecepacheco

well said. there are a ton of industries that are ripe for renewal in fresher approaches to business...

for fun, here are some buzzwords that apply: green, sustainable, web-based, customer focused, local.

i grew up in the restaurant business, but my experience in business on the web has really helped me rethink how brick & mortar businesses run.