Business Ideas en-us Tue, 24 Nov 2009 05:49:26 EST http://blogs.law.harvard.edu/tech/rss 5 Q: My son got a degree in technology management a few years ago. He has an idea for a tech business, but how do we know if it will fly? He is afraid to quit his job, especially in this economy. Joe A: Your question is one shared by many entrepreneurs – actual and would-be alike: How do you know if you have a good idea? One thing we entrepreneurs usually share is a deep passion for what it is we do. That passion is often combined with confidence (but may verge on hubris), creativity (that can sometimes be misplaced), and a willingness to act (damn the torpedoes, full steam ahead!) Let me suggest that the key to maximizing the positive and minimizing the negative is something as simple at doing your homework. I am reminded of the story of New Coke. You remember New Coke, don’t you? In 1985, Coca-Cola made one of the biggest mistakes in the history of bad business mistakes when it got rid of Coke and introduced New Coke. Might as well outlaw mom and ban apple pie while you are at it. To no one’s surprise, the new product was a complete flop. It was off the shelves in a few short months. How did the marketing wizards at Coca-Cola blow it so bad? To make a long story short, they didn’t do their homework. A lack of focus groups and marketing analysis meant that, although they thought they had a great idea, no one else did. Had the folks at Coca-Cola done some basic research they would have discovered that, even though New Coke tested better in the labs, people were not willing to drink it if that meant giving up old Coke. As I said, our confidence can sometimes verge on hubris. And the funny thing is, it is easy to avoid that unenviable fate. Maybe you have an idea for your business, or for a business you want to start. Maybe you think it is a can’t-miss, super duper, terrific idea. Maybe you are even scared that if you share it, someone will steal it. Too bad. You simply must get people’s opinion about your plan while it is still in the formative stages – the earlier the better. That’s what I mean by doing your homework. Hopefully, people will love your idea as much as you do and would be willing to spend money on what it is you plan to sell. If so, congratulations. But maybe bigger congratulations are in order if they tell you that your idea stinks. Do you see how valuable that would be? That sort of information would • Allow you to avoid spending a lot of money and time on a bad idea, or • Allow you to refine your idea Either way, honest feedback beats chasing a dog that won’t bark. Now of course it is true that there are times where you have a vision that others do not see; I bet few people thought selling books online was a great idea when Jeff Bezos first described Amazon.com back in the early 90s. But it is equally true that most of us are not going to be creating The Next Big Thing. So if you want to avoid being the small business version of New Coke, or simply want to be sure that your business idea is a winner, follow these steps: 1. If necessary, draft a non-disclosure agreement. This simple legal document (also known as an NDA) says that your ideas are your ideas and the person with whom you are sharing them can’t use them without your written consent. 2. Get feedback from people whose opinions you trust – your spouse, best friend, brother, whomever. If it’s a business associate and you feel more comfortable having then sign an NDA first, great. 3. Consider using a focus group, or getting feedback from online forums, Facebook groups, or Twitter discussions. 4. Evaluate the feedback and incorporate it into your plan of action. By getting feedback early in the process you will know whether or not you have the real thing. _____________ Want to be part of this column? Ask Steve a question at AOL@MrAllBiz.com. You can follow him on Twitter @SteveStrauss. Wed, 28 Oct 2009 15:27:23 EDT Finding herself out of work and facing £400 ($655) rent payments, Debbie Davis, 29, from Sutherland, UK decided to turn her situation around and found such success that within five years, she's now making £250,000 ($409,639) a year, drives a Mercedes SLK and a BMW X3, and owns her own house. How, you may ask? By breaking out the makeup, of course. Tue, 27 Oct 2009 15:38:48 EDT gallery Fri, 28 Aug 2009 14:05:41 EDT One can't blame Leslie Scott for wanting to write a book about the famous game she gave birth to -- Jenga. It's been around long enough and has become pervasive enough in the culture that it's easy to imagine that it's been around forever, but if you had created a global phenomenon, wouldn't you want a little recognition? Thu, 08 Oct 2009 15:27:07 EDT Warren Buffett, world-renowned capitalist extraordinaire is adding fashionista to his list of triumphs. This chairman and chief executive of Berkshire Hathaway, Inc. has been getting a lot of attention lately for his personal investments in a previously little-known Chinese clothing line, Trands. Thu, 01 Oct 2009 13:35:12 EDT A new group of small business entrepreneurs are taking the spotlight at Tampa, Florida's Hillsborough County Jail. Inmates at this minimum security facility are brewing and selling their own line of hot sauces. Even more unique than the sauce itself is the inmates' decision to embrace the unique product's roots by building the brand entirely around a prison theme, naming the condiment "Jail House Fire Hot Sauce" and using gripping slogans that include "So Lethal" and "Murder on the Taste Buds." Thu, 17 Sep 2009 19:04:30 EDT It seems like a dubious strategy, but it’s one we’re seeing more and more of: working for free and hoping it will pay off in the long-term. Interns, of course, have long done it, and there are reports that it’s becoming more common for college graduates to volunteer to work for free, hoping to gain entry into the marketplace. There are even stories out there of employees being laid off and staying on the job anyway, working for free and with the hope of being rehired if money becomes available. Meanwhile, any independent contractor, be it a freelance writer or business consultant, will probably be able to tell you that they’re periodically asked if they’ll work for free. Wed, 26 Aug 2009 17:28:51 EDT She is one of the most powerful people on the planet. She is beloved. She is admired. And she's suing at least fifty businesses along with some-times-guest Dr. Oz. Find out what these companies have done to make Oprah mad. Thu, 20 Aug 2009 14:28:04 EDT Shark Tank: Are you watching? Watch would-be entrepreneuers pitch their ideas to the successful Sharks. Zac Bissonnette recaps the first Shark Tank episode. Wed, 19 Aug 2009 16:02:53 EDT Mon, 10 Aug 2009 12:21:43 EDT