1.1 | ASSESS THE VIABILITY OF AN IDEA
Coming up with a boundless supply of ideas is the greatest tool you have. But you need to make sure that each idea is workable and viable. Strengths need building upon, weaknesses need to be checked and improved upon and evidence needs to be uncovered to substantiate the idea. Your idea needs backing up.
Get insight into the strengths and weaknesses of your idea. Seek out best-seller lists, contact the Office of National Statistics, read financial papers, contact trade associations, subscribe to trade magazines and do your homework to uncover the size of the market your idea fits within. Find out about the demand for a product or service like yours. Seek out press stories about problems your idea solves or opportunities being created in your market.
Review competitors in the market. Go online. Look at failures and successes, how have other people implemented their ideas? What can you do differently? What can you do safer, faster, better and cheaper than anyone else out there? Who and where are your potential customers and target audience?
Assess the idea from all angles. Can you honestly implement the idea? Pad the idea out. What needs to be done to get it off the ground and make it happen? Is it still possible? Evaluate hard. If an idea is not researched properly before it is turned into a business then it is likely to end in failure.
Question everything. Then hunt down the answers. Give your idea merit.
WHAT MAKES AN IDEA VIABLE?
ORIGINALITY: Many entrepreneurs and inventors create ideas that have never been done before, either in the UK or globally. Great entrepreneurs change people's perception of what is possible by launching successful businesses based on a unique and exceptional idea. They have the imagination to create a truly innovative and groundbreaking business concept by challenging the status quo; challenging existing options and alternatives.
DIFFERENTIALITY: A great business idea doesn't have to be explicitly unique or original. An existing idea can be modified, changed and improved upon. Entrepreneurs are often the architects of change. There must be some differentiating factors within your business that reflect this change, so go against the grain. Challenge current available choices. Unravel a fresh take on an existing business idea. Find a better solution for your customers' problem.
GROWTH MARKETS: A strong idea within a growth market with low to medium risk is likely to appeal to investors and other financiers. Risks and vulnerabilities must be fully understood when entering a fast growth sector, including a firm grasp of what the competition are doing and a plan for how to exploit the growth in the market to your advantage. Areas of technology, IT outsourcing, childcare, online social communities, alternative therapies and life coaching have all seen high growth in recent years.
IMPORTED IDEAS: Think laterally. Import ideas from abroad and use your imagination to build on them. Obviously be aware of cross-cultural sensitivities because what works in one part of the world may not work in another. But could you put a different twist on it? Make a foreign idea your own.
SPECIALISTS: Can you become a specialist in one product area? I did just that when I set up Phones International Group in 1998. I'd worked in the sector and decided to go against the grain and focus solely on one manufacturer, so that my company would be recognised as a specialist in their products. I called this "single brand distribution". As a result, within 12 months we became the manufacturer's number one partner and the Phones International Group dream was on its way to becoming a reality. I then replicated the focus I applied with my single brand distribution concept with other manufacturers which enabled the business to grow faster than the competition, and be recognised as a partner that added real value.
FINDING A NICHE: Can you target a specific niche market with your idea that nobody else is focusing on? That's what I did with Phones International Group by focusing on the rail market place. I devoted all my energies to cracking that market and I also made a strategic acquisition. As a result I ended up with 75 per cent of the market place - simply because I took an existing idea and made it better by focusing on one area, instead of trying to be all things to all people.
GLOBAL POSSIBILITIES: Can the idea be replicated globally? Investigate international markets fully to understand competitive pressures, cultural differences and economic pressures. If entering global territories and assessing whether it is viable to do so, entrepreneurs need to get a grasp of market dynamics at a local level and adapt accordingly. A strong international appeal is increasingly important to investors, and is something which separates a good idea from an outstanding one.
INTUITION: Does it feel right? If so, you will make decisions based on a strong purpose and vision - a critical differentiating factor between companies that grow fast and those that don't. Heed your intuition and respect your gut feeling. Intuition is an entrepreneurs own in-built radar system.
My 10 Golden Rules consist of the critical success factors required for entrepreneurial brilliance. When creating an idea, deciding on its viability and pitching an idea to investors, entrepreneurs need to use four of these rules in tandem: INTUITION and PERSEVERANCE, COMMITMENT and CONFIDENCE
1.2 | HARNESS THE POWER OF IMAGINATION
Imagination is the most important tool in the world when nurtured, developed and properly used.
Imagination is a powerful force that we possess from our earliest years. My childhood imagination fuelled my ambition to be a success in business. As a seven-year-old, I would walk the three miles from school to my father's office in Windsor where I would spend hours sitting in his leather swivel chair, imagining my future and cultivating my dream of running a multi-million pound company.
Aged 12, I imagined what it would be like to run a tennis academy. When I was 16, my imagination ran riot when I gained experience from another coach during the summer holidays. It was enough to spur me into completing the Lawn Tennis Association's coaching exams, which enabled me to set up my own academy. I made the most of my two interests: sport and economics. I followed my imagination.
Make time to daydream and ignore anyone who mocks you. The mocking will stop when you're able to make your dreams a wonderful reality - and they're not.
What do you daydream about now? And what future did you daydream about as a child?
Make time to daydream and ignore anyone who mocks you. The mocking will stop when you're able to make your dreams a wonderful reality - and they're not.
Free thinking is vital in business. Daydreaming is good. Ideas are the seedlings of reality which need to be nurtured into real, living, breathing enterprises.
Being an entrepreneur means harnessing the power of your imagination constantly. Imagination has no boundaries or constraints. Great ideas are central to you and your business. Let your imagination breathe.
Ideas are everywhere. Use a variety of stimuli to help you capture them. Draw parallels from one object or idea to help you think through the workings of another idea. In doing so, you can turn an imaginative idea into a fully fledged fleshed out business.
Equally, ideas harvested by the imagination must be plausible, rather than total fantasy; believeable, rather than unlikely. For a dream to become reality, it must be real enough to believe in. So let the imagination run freely, without constraint, but still have viability in mind.
As the idea blossoms into a plausible business idea, it's time to stop and stand back.
Entrepreneurs know when to stand back and review their ideas objectively. It's vital to appraise ideas honestly. A common mistake is to believe there are no flaws in an idea whatsoever, which often means missing obvious problematic areas. There will be links in the chain to fix and potential problems to smooth over.
A good entrepreneur knows this, seeks out the missing pieces and focuses on the weaknesses of the idea as well as the strengths before fine tuning the idea and proceeding.
1.3 | PITCH YOUR IDEA FOR FINANCE
WHAT ARE INVESTORS SEEKING FROM YOUR IDEA?
There are likely to be many occasions when you will need to win over people's interest in your business idea - particularly when you are seeking finance. I've met hundreds of would-be entrepreneurs attempting to secure funding from me, including those intrepid enough to step into the Dragons' Den. Here's a list of hint and tips to help you make a big impact.
DO
Keep your pitch short, concise and factual - around 5 -15 minutes long. Get to the point.
Provide visuals, either a tangible product or visual images of your concept.
Demonstrate the opportunity. Specifically tell the panel you are pitching to exactly how there is going to be a return on the investment that's made and demonstrate why.
Show your commitment. Explain clearly and concisely what you have done and what you intend to do next. Reveal what you have given up, what you are prepared to do and how determined you are. Show how you will be sharing the risk. Passion and commitment are vital ingredients of a winning pitch. In the entrepreneurial dictionary, action comes straight after decision. Committing to getting things done is an invaluable ally on your road to success.
Be confident. An inner self belief is like a foundation stone under the tallest building. You need to convince potential investors that you have the courage of your convictions and why.
Practice your pitch in front of a mirror until you know it by heart and it is word perfect. Practice in front of anyone you can rely on to give you honest feedback. Some business angel networks provide dummy investor panels and workshops to help entrepreneurs practice their pitches.
Persist. Dealing with rejection is all about passion and conviction and never giving up. When Thomas Eddison, who invented the light bulb, was asked what it was like to have failed 1000 times in trying to invent it, he replied that he didn't fail, he just found 1000 different ways not to invent the light bulb. That sort of analogy is what it's about, that's the way we should view life. Successful entrepreneurs have two undeniable qualities, determination and persistence. Develop a ''keep on keeping on'' ability.
Protect your idea before entering a pitch situation.
Keep calm. Take five seconds to breathe and let your pounding heart to slow down. Look down if necesary. Compose yourself. Silence is fine. Then, spring into life.
Don't
Exaggerate! Know your figures inside out and off by heart. Be realistic about the risks your business faces and turn yourself into an expert on how to deal with them.
Come unstuck. Know exactly what you'll be spending the invested money on and provide realistic valuations and projections.
Stop using your imagination. Once your business is up and running your imagination will act as a catalyst for other people's imaginations. As long as your imaginative visions and ideas remain deliverable and realistic. An imaginative leader is encouraging to those around them.
Look un-inspirational. Make me like the look of you. Don't look like you're utterly desperate for money or that you've just been dragged through a hedge backwards because you're wearing ripped jeans and a t-shirt. Wear a suit.
Be condescending. Have confidence in your idea but do not patronise those you are seeking investment from.
Argue. Do debate. There is a fine balance between debating and arguing with somebody. The minute you start arguing with a potential investor, you're now in a state of conflict and it's going to go wrong for you very quickly.
1.4 | MINDSET PLAN TEMPLATE
Download this template to use as a route map towards success.
1.5 | REALITY CHECK: THE RIGHT IDEA
REALITY CHECK: THE RIGHT IDEA AND PITCH CHECKLIST
Have you harnessed the power of your imagination to cultivate your idea?
Are you making time to daydream?
Have you generated honest appraisals for your idea?
Have you taken your idea for a test flight?
Have you substantiated your idea with real facts and figures to give your idea merit and answer questions and objections?
Have you assessed your idea's viability? Is it different, better? Is it specialist or niche? Can it go global? Does it feel right?
Do you believe in the idea and have the confidence to take it forward?
Have you protected your idea?
Have you pitched your idea to your team and others? Have you practiced and polished your pitch?
Does your pitch clearly and concisely reveal the opportunity, the return on investment, and substantiate your claims?
Have you bought your suit?