Ideas Have No Value!!  Get Over It!!

3 October 2009 | talking about Small Business

So I have been around the block a few times. I have been involved with big well funded, well organized companies and I have been involved with just a few guys and an idea type companies. More often than I would like I run into people that have an idea, sometimes even a good idea. So many times all they have is an idea. No money or resources to execute the idea. I would like to make it very clear, IDEAS HAVE NO VALUE!!!

People often approach me and want me to partner with them on getting their idea off the ground. If I am even interested in the idea I will outline what I can do for the company/product, I will outline what I think the idea person should do, and I will outline ownership of the idea/product/company. Nine times out of ten people will be floored that I want equal ownership or expect them to do work. I have heard more times than I would like "But there is value in the idea". So many people have come to me with the concept of giving me like 10% of their company or product in exchange for me doing all the work. Business partnerships are more a function of risk. In a business partnership if there is not risk on both sides there is no partnership. This is called "skin in the game".

Partnerships are based on two things; time & money! You got money, I got time; lets partner (risk on both sides). We can put a value to both and move forward. There is zero value in an idea. You do not get any extra ownership or less risk for coming up with an idea, so anyone reading this with that concept get over it now!! The value of your business/product is the money you have to build it and the talent/time you have to execute it.
 

tags: startups, ideas

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