Is startup planning really healthy?

07/04/2015 | Add comment

I am not going to lie to you. Startup planners are an irritating bunch. Most of them seem to get into the world of business for the wrong reasons. They see all of those startups being sold for millions and millions of dollars and they suddenly seem to think their idea has exactly the same potential. It doesn’t. In fact, most new startups seem to just rehash old ideas and they are going to get absolutely no leverage from that.

Startups are popular nowadays. If you have an idea, you could theoretically jump into the world of business with little to no investment. You could hop on a site such as Kickstarter or Indiegogo, showcase your idea, and ask for money. It is easy. Gone are the days where you would have to run to investors who would scrutinize your business to the point where you cried (seriously, it happens). Now people can get money from ordinary people on the basis of an idea.

The problem is that, it turns, most startups are nothing but an idea. They may be good ideas, but the team behind the whole premise often (not always) has absolutely no experience in getting that idea to fruition. They don’t know how to procure the resources they need. Most people have “good” ideas on a regular basis, but that does not mean they know what to do with them. The business world is not just about idea generation, it is about making those ideas a reality. Startup owners do not know how to do this. And in the real world it’s not about presenting ideas of yours, it’s about doing them. It’s about putting yourself in the implementation mode and making the magic happen. Then people start to complain how an idea of their own had been stolen by a bunch of people that had seen it as presentation 6 months ago. Well, somebody understood it and did it.

People who start up a company with nothing more than an idea are annoying. They will constantly be bleating about how awesome their idea is. They will take to social media, they will hit the streets, and they will intertwine the start-up idea into a conversation with their friends. It is all they talk about. Yet, if you ask them to show results or even the product, they will clam right on up and say nothing. They have nothing to show you.

Around six out of ten start-ups will fail, even if they are able to secure investment through one of the many crowd-funding websites out there. This is not because they have an inherently bad idea, it is simply down to the fact that they do not know what to do with it. These companies are absolutely fantastic at marketing themselves, but they aren’t good at the whole technical side of things. These companies never generate results or a product. They just die.

So, does a start-up matter if there is no proof that the company has achieved something? That is a tough question to answer. Obviously it is going to teach the company owners that you can’t just make a company and expect to generate a bit of cash. Things do not work like that. These start-ups that do fail however are likely to get an interesting idea into the marketplace. These ideas can then be picked up by those companies that actually know what they are doing, with improvements to the original idea of course. I would gladly do away with the whole idea of start-ups forming on the back of what they feel is a good idea, but I would not be against the whole idea of sharing ideas and the like.

It is the sharing of ideas that has resulted in so many brilliant products.

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