18 October 2005

How Much Is That Idea Really Worth?

De welkom lezers van de Sprout!

Derek Sivers says that without execution, even the best idea isn't worth very much. (HT: Rob at BusinessPundit). He even has a method for determining the potential value of an idea:

To me, ideas are worth nothing unless executed. They are just a multiplier. Execution is worth millions.

Explanation:

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 $20,000,000.

As regular readers know, when that kind of math shows up, Political Calculations(TM) simply can't resist it! Here is the tool for evaluating how much an idea combined with the expected level of execution is potentially worth:

Idea and Execution Quality Ratings
Quality Type Rating
Idea Quality
Execution Quality
Potential Value
Estimated Results Values
Potential Value of the Idea ($USD)

The hard thing to do is to determine how an individual will execute when given the chance. This difficulty is the reason why people without good track records of execution routinely get shot down when they try to raise capital to support their ideas. If you've got the track record, odds are you'll get what you need to make your idea happen.