Several times over the last two months, I’ve been approached by people saying something along the lines of, “I’ve got this great idea for a new product that could generate millions of dollars in monthly revenue, but I don’t have the time, money, or expertise to develop it.  What should I do with my idea?”  A similar question was posted on LinkedIn, and I took the time to post an answer.   My answer to the question in turn prompted a small flood of additional requests, and I received, for what it’s worth, the LinkedIn designation, “Best Answers in Business Plans,” by the guy who posted the question.

I encourage you to take a look at some of the other answers that were posted.  For those of you who don’t want to take the time, however, I’ll sum up.  Here are the Top Five responses to what you should do with an idea for which you have no time, money or expertise to develop.

  1. Expect little or no interest and little or no money
  2. Get a mutual non-disclosure agreement (NDA) in place before speaking to anyone.  Otherwise someone may try to steal your idea.
  3. Don’t worry about NDA’s because they’re not worth the paper upon which they are printed. Talk to people, lots of people, who can help you get the idea to reality.
  4. Encourage a trusted friend to develop the proposal into a product plan, business plan, and proof of concept, assemble an initial management team and then prepare the necessary documents to raise an initial investment
  5. Patent the idea, prepare a business plan, and get funding

Answers #2 and #3 present a nice Point:Counter-point.  I tend to agree with #3.  When I’ve got a problem I want to solve or an idea I want to test, I talk to a lot of people.  I figure, if they can execute on the idea better or faster than I can, they deserve the reward.  That said, I still end up signing a lot of NDAs.  Interestingly, I have not once in the past quarter century been asked about my process for ensuring compliance with NDAs, though it seems like a reasonable follow up question.  Answer #4 is interesting, but I do wonder what that mystical trusted friend might have been doing before you bequethed them your idea.   Most great business people are not short on ideas.  Answer #5 implies active involvement, which violates the initial premise, which is “I’ve got this great idea, but no time to develop the business.  Will someone pay me?” 

The most honest and informed answer, I believe, is the first, though it doesn’t really qualify as an action.  Ideas are as plentiful as sand on a beach.  But well-functioning business and development teams, that can bring an idea from concept to a profitable business are rare.  In general, serious investors want to invest in teams, preferably teams with a proven track record.  Two characteristics that distinguish successful entrepreneurs from the the generators of impotent ideas are 1) a willingness to accept risk and 2) a willingness to make a long-term commitment. 

If you are willing to make a commitment, but don’t know what to do next, there are plenty of people who will say they are willing to take your idea and help you turn it into a success.  My only advice here is to focus on two things:

  1. The advisor’s track record for helping others turn ideas into money
  2. How the advisor makes money

Does the advisor make most of his money when you make money?  Or does the advisor make most of his money advising you along the way?   One of the reasons I have biased my own business model towards success fees rather than advisory fees is to demonstrate how serious I am about achieving results for my clients.

So why wouldn’t someone pay good money for an idea that could generate millions of dollars in monthly revenue?  The answer is easy.  How much revenue could I generate if I promised to give you $2 for every $1 that you gave me?  I suspect that I could easily generate millions in monthly revenue.  But as one, lone respondent said, “Revenue doesn’t answer the cost question.” 

There is no magic pixie dust. If you’ve got a great idea and you want to make money off of the idea, you will probably have to stop what you are doing now and  follow the advice of Nike (NYSE:NKE),  “Just Do It.”