Is success of a business based more on the decisions or the idea?
I recently attended an event where one of the speakers talked about the large number of businesses that fail. She said that most business failures are less about the idea and more about the poor decisions made. I am curious if others agree with this. I think decisions are important, but also having the right idea is critical to success.
Very interesting question and a challenging one to answer.
After my own experience of 17yrs, 8 startups and launching over 30 different products or services for either myself or companies I've worked for, and consulting to startups and businesses, I've really come to appreciate the power of the right idea, right time, right place. When you have those 3, you have to be pretty bad to screw it up. It just takes off and gets momentum like you wouldn't believe.
I've had many products that we all loved and thought were great but bombed because the market demand just wasnt there. So in a way that is both bad product and bad decision making because we didn't pay attention to market research and other advice!
One of my current frustrations is the huge range of entrepreneur success speakers doing the circuits here in Australia. No one EVER highlights the fact that they hit the right idea, right time and right place.
And by 'idea' I mean a product the masses want delivered in a way we want and at a good price.
I'm not really answering your question but you can definitely make all the right decisions but if the product is not appealing, it will bomb. And upon reflection, yes, the right decisions can shave years and thousands of dollars off business growth. In fact I even say a one hour consultation can save you a 1yr of wasted time and money.
So going back to your last sentence and getting a feeling for your own position and belief that it is critical to have the right idea, I totally agree. Don't ever discount the importance of that.
Not enough businesses or startups focus on this critical starting point of having the 'right idea'. And its hard for them to be unbiased in assessing their own idea because its like their baby, its their kid and who's going to look at their kid and say "you know what, you are pretty ugly and a failure, sorry but gotta dump you"!
Hence the reason so many startups fail. So...in summary I guess I'm saying the idea is the most critical starting point. If you start off with an ugly idea you are going to spend heaps on makeup and better decision making which makes life stressful, hard and 20hr days.
Your speaker was absolutely correct. Ideas are a dime a dozen. We all have hundreds of them every day. Transforming those ideas into business success depends upon a myriad of decisions about whether to pursue the idea and exactly how. I can't tell you how many "great ideas" I have had which a simple Google search showed me someone else had already developed. And in those cases where someone had not, I can't tell you how many times the decision about whether and how to pursue the idea convinced me not to.
It is a bit of a chicken and egg issue, in my eyes. I liken it to the issue of PASSION to making a business successful. On that one, I fall out to where passion is critical but is NOT sufficient for success. You have to have a great idea -- you have to have a product or service -- that can create distinction for any competition.
In reality, statistics I have seen on business failures indeed would suggest that there are business owner issues that trump a good product or service. One reason for failure is lack of any plan. Another one, believe it or not, is that the owners do not realize their own weaknesses and seek help. In my experience, this is a big one. Since I am a business coach, it is self serving but I have learned and seen that the successful owners are those who are always learning and who seek input to fill gaps in their own experience and/or expertise.
Ideas are easy, but it is all about putting them into a framework that turns them into dollars. The decisions that you make are critical and it is much much much easier to make poor decisions than to make good ones. I don't know what you're thinking about when you say, "the right idea," but any idea can be the right idea. People made a lot of money on Chia Pets and dice-o-matics while other people lost money on Betamax because their decisions about how to position it in the market made it vulnerable to the technologically inferior VHS.
Excellent topic. I would lean more towards decisions. Great ideas are everywhere - just look on any crowdfunding site. Great decision making however, isn't. It can involve numerous factors and consequences, and then there's the personality of the decision maker(s) involved - i.e., some are more risk takers than others.
An excellent topic, with no perfect answer!
Big ideas don't drive business success. Sound business decisions and good operations drive business success. Great ideas come and go but a business where decisions are made and implemented consistently will always trump a great idea. Jim Collins has some excellent books on this topic.
It`s all about the decisions you make and that includes the great Idea you have !! Decisions are the action taking part of your business !!!
Success is 100% based on your mindset, and the decisions you make about your business. Remember, actions require decisions first. I hate to say it but there are a ton of business owners who have great products and failing businesses. The decisions you make to be an entrepreneur, align yourself with the right resources, learn what you need to know, and create a valuable customer experience are all based on decisions before you create the actions. It is sad to say. Does this help? BTW, love your name!
We all have ideas and if you need more, call up for a meeting and you will get more ideas than you can handle. So if ‘only’ ideas are going to make a person or a company successful, then all we have to do is to spend the entire day in meetings, generating ideas. But is this the case? Think about it and you will agree that ideas are worth nothing unless executed. Also when your idea (after execution) becomes a solid business venture, you can be sure that someone will copy it and become your competition! So which is important?
I for one feel that to be successful, we have to generate new ideas, execute the most appropriate one, carry out the needed course correction and keep moving our merry way. Hence it is the IDEA, followed by DECISION MAKING (which idea to be implemented and what course corrections are needed), and EXECUTION that makes a company great. All 3 put together and one without the other is meaningless. Bottom Line: Focus should be on execution of your great idea and deciding on what will make your work better than anyone else on this planet. Hope this helps.
Good question, but rather easily answered. I know idea is the basis for all business. Isn't it? Your thoughts your dreams, your passionate drive that is the business. The decisions we make is the implantation, of that business wouldn't you say? Our decisions are directly responsible for the direction our businesses take, good or bad. But all still comes back to the main idea, thought. That is why you chose the business correct?
Decisions are important, ideas are important. It's the quality of the questions you ask that help bring focus to the business.
How could this great idea help me grow my business? What steps do I need take to implement this idea? How long will this process take?
Once you've asked these questions and others then decisions need to be made to move the plan forward. Critical path decisions made in a timely manner are critical to success. That said mistakes are made. Learning from these leads to greater clarity! And an opportunity to make new and better mistakes! Keep learning, asking questions & stay positive!
I haven't read all the answers so perhaps this is a repeat but I believe that it starts with a great idea followed by a valiant effort to see it through. Many who start a business fail because they give up to quickly when the going gets tough. It's not always going to be smooth sailing and those that are aware of it, adapt and persist through the inevitable bumps in the road will ultimately become the most successful.
I think so both are important but both are different things,business success based on following points:
2)Good business plan (with time and decisions)
3)Owner skill with piece of time
Diplomatic answer is, both are equally important. But my personal opinion and belief (based on experience working with global businesses) is, every idea is a good idea but in order to succeed operations decisions are key element. Apple is biggest example. Without Steve's decision of staying rooted to Mac OS, or iOS or iPod (where there were many lusty commercial ideas around), Apple wound't have became what it is now. It was the decision to SAY NO to other worthy ideas.
Think in terms of this progression...an idea must lead to a viable opportunity to create value, which in turn requires developing a business model to exploit the opportunity. You validate the viability / scalability of your business model through a series of incremental interactions and commitments to test various assumptions you've made about the market, value proposition, revenue model, and resources and partners required to successfully execute the business model. Executing the business model is when you actually become a "venture." So the idea is the kernel / inspiration of a potential opportunity, and you can make a lot of meaningless or potentially fatal premature "decisions" if you don't understand and embrace the progression from idea to execution. Good luck!
Determination! Ideas are great, decisions are important and a thick skin is a necessity. But when that phone doesn't ring, or nobody will take your call, or nobody will enter your store it will be your determination and self-belief which will keep you going with trying new strategies to win clients.
Ideas don't fail and neither do people (unless they think in terms of success and failure). Every decision we take creates consequences, even decisions to do nothing, which may create opportunity costs. If you view life (including business) as an exercise in cause and effect, what others see as failure will not have toxic emotional effects on you. One of the great things about the US (and I immigrated here so have seen a contrasting national attitude), is the encouragement here to push the envelope and try new things. There's a phrase often used in the tech community "failing forward", meaning that if you're not comfortable with the effect you create being different from what you hope for (aka "failure") you might as well go back to the day job, because great things come from those with the courage to experience enough contrast until they they see clearly what will work. Ideas are like belly-buttons, everyone has one. But it's the people with passion, courage and persistence who succeed in the end. Sadly, most people are governed by fear, and never see their dream through to fruition.
Success in business is about reaching your goals. Therefore every decision you make must be aligned to achieving your business goals. Ideas alone will not create success. The decisions you make and the actions you take will either lead you closer to or further from those goals.
Decision and idea both separate entity in business plays vital and unique role at different-different level and sure thing is that both are connected to each other. lets take example everything is energy you cannot stop energy it always take or acquire new identity or it will take new space. same is in business you cannot stop anything, if you stop anything without giving any new direction or space, the place where you stopped would be spoiled and some type of mutiny would began. you always have to be with new or unique or way or space whether it is matter of people management or thing management or anything.
Managing any thing involves decision and if you want to make any decision you must always have to be with idea so that your decision become driver of your desired output.
Good idea are needed in making decision so that your decision become good decision.
Good decision would let you to success.
The best ideas are not bringing any success if the decisions are wrong - see all those fantasic ideas inventors, creators, people have, but never take off.
Why is it that some companies are worldwide successful with mediocre products while the ones with the better product go bankrupt, even if they sell for a lower price?
Because they took the right decisions!
Logically in the best case both comes together - but there aren't many Steve Jobs' and Zuckerberg's (And please note - the Tablet was't invented by Apple nor was the 'Social Network' created by Zuckerberg - but they took it big - with the right decissions ! , purposeful, consistent, determined, reckless and without mercy)