Sunday 7 June 2009

A product is not a business

How many times do you get excited about an idea. And you think you are going to make a fortune. And how many times do you land up going nowhere. We all know this movie.

The next time you have a "eureka" moment think about what goes into building a business. Is your idea about starting a new company, or is it more about a product that will fit into someone else's company?

I often get people telling me, with great excitement, about an idea they have for a movie. But the truth is, most often, what they have is a scene for a movie. One great scene does not make a movie. Just like one great idea does not make a company.

There is a difference between creating a business and creating a product. A business generally needs a sales department, as opposed to a product, which can be licensed to a company that already has the infrastructure in place to take that idea to market.

I think most people who come up with great ideas generally are oriented to developing a product. But developing a business is a whole other story. Not to say the same people can't develop a a business, but it is a different journey altogether. Just like with artists, developing a screenplay is different to putting a film project together.

Posted by Ronnie Apteker