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Ideas Are Great, But Execution Is The Best. Here's Why

Profitability

The profitability of an idea is a framework that contains two parts:

  1. What comes in: People, resources, funds and time.
  2. What goes out: How big a step you can take toward reaching your goal.

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Ideas Are Great, But Execution Is The Best. Here's Why

Ideas Are Great, But Execution Is The Best. Here's Why

https://entrepreneurshandbook.co/ideas-are-great-but-execution-is-the-best-heres-why-5a999203b158

entrepreneurshandbook.co

5

Key Ideas

Details are important

Entrepreneurs naturally have big dreams and the willingness to follow them. But, they often disregard the details that go along with execution.

Goals are critical, but without understanding what goes into the execution can greatly injure your company. Profitability is such a concept that needs to be considered.

Profitability

The profitability of an idea is a framework that contains two parts:

  1. What comes in: People, resources, funds and time.
  2. What goes out: How big a step you can take toward reaching your goal.

It is important to make money

Money is a way of creating a measurable goal. Some goals align with giving back, but, in order for you to further any goal you have, you will need money.

The concept of profit

The fundamental idea of profit is to determine if and why an idea is worth your time.

If you have to spend more money to gain less, you need to have a great rationale to do it.

The time lag

Not every opportunity will bring in profit right away. An idea now can mean more profit later on. An early investment in a product can pay off massive dividends down the road.

However, you need to have a well-informed opinion on the timeline as well as how much money you might need to invest until you reach that point.

SIMILAR ARTICLES & IDEAS:

Mentally Prepare

Think if you are willing to sacrifice your free time to struggle to establish a side hustle and if you can handle the consequences of it. 

If you are willing, develop a system of ...

Your Skills And Areas Of Interest

Acquire relevant skills, experience or industry knowledge necessary and ensure you have the passion and competence for what you are going to work on.

A good start is to monetize the skills you already have that are related to the side hustle you want to establish this. And if you lack key skills that relate to your interests or the side hustle you want to create, there's no better time than the present to learn them. 

Validate Your Side Hustle

Your side hustle idea may seem awesome and disruptive to you, but your potential customers will likely ignore it like most “brilliant ideas” or even not have a need for it. So, ensure you're not creating a solution to a problem that doesn't exist, as this is one of the top causes of startup failures.

You can do that with objective feedback from potential customers and asking them to join a waiting list, pre-purchase your solution or hire you as a service provider. 

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See Your Side Hustle as "Me Time"

When choosing your side hustle, pick something you want to do, be or achieve, and actively work toward it. Not only will you enjoy the sense of accomplishment that comes with progress...

Always Default To Action

Spend some time planning. Then spend a lot more time doing. If you're unsure, do something -- and then react appropriately.

It's easy to think and plan and evaluate yourself out of ever starting a side hustle. See starting a side business as the grand experiment it is. Never forget that the fun is in the doing -- not the thinking.

Only do What Generates Revenue

You may need to spend some time on admin and infrastructure. But you don't need fancy spreadsheets, comprehensive reports, a catchy brand or a mission statement.

Successful side-hustlers focus on selling and working. Anything else is time taken away from generating revenue.

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Tim Ferriss

“The hard choices—what we most fear doing, asking, saying—these are very often exactly what we most need to do.”

Tim Ferriss
What's Holding You Down

Some people allow fears to keep them stuck in their situations. Fear has the ability to keep you stuck and control your mindset.

You can silence it by stating this fear out loud and becoming familiar with the worst-case scenario.

Gary Vaynerchuk
Gary Vaynerchuk

“You Don’ t need permission to chase your dreams. Go execute.”

4 more ideas

First-principles thinking

Breaking down complicated problems into basic elements and then reassemble them from the ground up.

It’s one of the best ways to learn to think for yourself, unlock your creative poten...

A first principle

...is a foundational proposition or assumption that stands alone. We cannot deduce first principles from any other proposition or assumption.

Reasoning by first principles removes the impurity of assumptions and conventions. What remains is the essentials. 

Cutting through the dogma

If we never learn to take something apart, test the assumptions, and reconstruct it, we end up trapped in what other people tell us.

We remain trapped in the way things have always been done. When the environment changes, we just continue as if things were the same.

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Investing defined

Investing is about laying out cash or assets now, in the hope of more cash or assets returning to you tomorrow, or next year, or next decade.

Most of the time, this is best achieved th...

Productive assets explained
  • Productive assets are investments that internally throw off surplus money from some sort of activity. 
  • Each type of productive asset has its own pros and cons, unique quirks, legal traditions, tax rules, and other relevant details.
  • The three most common kinds of investments from productive assets are stocks, bonds, and real estate.
Investing in Stocks
  • It means investing in common stock, which is another way to describe business ownership or business equity.
  • When you own equity (the value of the shares issued by a company) in a business, you are entitled to a share of the profit or losses generated by that company's operating activity.
  • Equities are the most rewarding asset class for investors seeking to build wealth over time without using large amounts of leverage.

7 more ideas

A Changing Work Culture

The work culture is changing globally. On one side we have large, established companies which are the gravest offenders. They have deeply entrenched hierarchies, rules, regulations, and ...

Disrupt

Companies are recognizing that the old way may amplify the employee's resentment to the conformance and the 'fitting in', and that they must upgrade their culture.

New Choices in the Old Way
  • The traditional career path now offers new kinds of digital opportunities as new technologies offer new possibilities and are also streamlining the old operation process.

  • As Big Tech expands further, new innovations will transform many current jobs.
  • It is a good idea to keep looking, keep learning, and be ready to pivot.

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Hackathon

... is a term used in reference to innovation jams and describes an event that pools eager entrepreneurs and software developers into a confined space for a day or two and challenges them to inn...

A Good 24-hour Hackathon
  • Centers on the customer process or journey and supports a clear business target.
  • Involves employees from all relevant areas to find different ways of working a problem. 
  • Challenge participants to reimagine an existing method to try to find the most efficient way to improve the customer experience.
  • Sessions start with ideas but end with a working prototype.
  • Output includes a clear development path that highlights all the steps needed to accelerate production and implementation.
  • The hackathon concludes with a presentation to senior leaders, including a real-life demonstration of the new prototype and a roadmap of IT and other capabilities needed to bring the final version to market.
  • Once the teams agree on what to do, those responsible for execution create a virtual model that the group vets, refines and re-releases in continual cycles until the new process or app meets the desired experience criteria.
  • Management prevents the dissipation of enthusiasm and energy created on the hackathon by placing new processes to sustain it. 
5. Read For Immediate Rewards

Studies show that there’s correlation between human behavior change and immediate rewards. Receiving immediate rewards releases dopamine in our brains, which compels us to seek more of the a...

4. Use Triggers to Your Advantage

We often start habits and drop them a few days later. To combat this, you can use triggers to remind you to practice the habit. Examples of triggers:

  • Reading at the same time everyday will prime your brain to automatically trigger itself to begin reading.
  • Leaving your books in places you will easily see is another trigger. If you read books digitally you could pin your tab so it’s always in your visual perspective.
3. Stop Before You’re Finished

Studies indicate that the Zeigarnik Effect is real. It says you are more likely to recall uncompleted tasks than completed ones.

Knowing this pattern of our brains, we can trick it by forcing cliffhangers when we’re reading books. It’s hard to stop reading in the most interesting part but it will make you want to start reading again.

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Benefits of workplace collaboration

Employees can share resources, swap perspectives, and boost each other’s creativity.

Collaboration allows us to capitalize on the collective knowledge and expertise of our people, whil...

Downsides of collaboration

Collaborations can be unproductive, time-wasting, and a strain on top employees.

Collaborative organizational structure can drain people’s time and resources, wherein employees are “emailed to death and meetinged to death."

For effective collaboration...

... (or delegation), it helps to know where everyone’s expertise lies. 

Make sure your employees get to know each other, whether that happens through group lunches, coffee breaks, or informal social events. This also builds trust — a vital element for successful collaboration.