Startups place too much importance on the IDEA, and too little importance on the EXECUTION of the idea.
This is my observation as a recruiter who works with early-stage startup leaders.
Startup leaders fall in love with their idea. They often ask me to sign an NDA before they can even share their idea with me. I sign the NDA, but it really doesn’t matter.
The IDEA doesn’t matter. In fact, they could email their idea to all the Big Orthos and nothing would happen.
It’s the EXECUTION that matters. Potential acquirers will only take notice when a startup is executing well. Acquirers give strong valuations for great execution, not great ideas.
Derek Sivers shares the multiplier example below.
To me, ideas are worth nothing unless executed. They are just a multiplier. Execution is worth millions.
|AWFUL IDEA||= -1|
|WEAK IDEA||= 1|
|SO-SO IDEA||= 5|
|GOOD IDEA||= 10|
|GREAT IDEA||= 15|
|BRILLIANT IDEA||= 20|
|NO EXECUTION||= $1|
|WEAK EXECUTION||= $1000|
|SO-SO EXECUTION||= $10,000|
|GOOD EXECUTION||= $100,000|
|GREAT EXECUTION||= $1,000,000|
|BRILLIANT EXECUTION||= $10,000,000|
To make a business, you need to multiply the two.
The most brilliant idea, with no execution, is worth $20.
The most brilliant idea takes great execution to be worth $200,000,000.