Among others, I've read Jeff Jarvis' book "What would Google do?", and I was inspired by it as I'm building a new web service these days. Currently I'm working on funding and recruiting, so I'm at a very early stage.
"Why keep secrets?", Jarvis asks, and he rephrases: "Why keep more secrets than you have to?"
The most common answer is of course that we don't want our potential competitors to steal the ideas. That would also be my answer.
Illustration photo by courtesy of Andrew Magill / CC BY 2.0But is the risk of being lifted for ideas greater than the risk of failing by not being transparent? I asked myself this question, and after some consideration my answer is "No". I'll explain why.
Yesterday I spoke to a friend who's managing one of Norways biggest web development departments in a major media concern. He said that in his department the challenge is not the lack of good ideas. They have more good ideas than they will ever be able to put into realization. Most of the ideas rest in the heads of the employees, or as archived emails. He said their success will not depend on the amount of ideas, but their ability to realize them.
I believe he's right. I've had many ideas for start-ups through the years. But I haven't realized any of them, other than the ideas I've realized working for others. Except this time, as I've quit my job as a manager and web editor to work full time on my business idea.
OK, so having great ideas is not my biggest challenge right now. It's the ability to evaluate them, and then realize them, which will be my greatest struggle in the months and years to come.
So, how can being transparent help the ability to execute the ideas? As it is today, I can have a perfectly nice job life working as a consultant, making good money. But it won't be satisfying. I want to create, to build, to realize my ideas.
Right now I'm alone with my ideas. I don't have any employees yet. A lot of my time goes into satisfying the bureaucracy, and other practical doings. Of course I have to lay all the ideas on the table to the public and private funds I'm applying for. But I'm not able to discuss my ideas with them, instead they are right in focusing on my ability to execute them.
Therefore, I guess, the best way to get my ideas analyzed and criticized, is to let them out in the open. And what is more open than the World Wide Web?
In addition to getting feedback to my ideas, through blogs and social media, laying them out publically will also kick my butt. As long as I write in my blog, or state in an interview, that I'm going to do this and that, I make a commitment to my readers. There's no difference whether I have one or a hundred readers. A commitment to one is as binding as a commitment to two or a thousand. And if I don't fulfill my commitments, I can't be trusted, and my business will fail.
That's why I'll risk it. From now on I'll be transparent and reveal more and more of my strategy in this blog. As long as I keep making commitments, it's no way back, not until I go bankrupt (and maybe not even then).
And that's why I'll be transparent as long as you promise to kick my butt. Deal or no deal?
What do you think of this strategy? Does it apply to all businesses or to all start-ups? Should I change strategy when the business grows?
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9 kommentarer:
I appreciate your specific focus on transparancy. The subject matter could apply to many catagories, one of them being the Evangelical church of America today. Transparancy is a subject I would like to read more about--a subject I would be happy to live. Thank you.
Arild,
I subscribe to your idea. Being transparent is an essential element of breaking through the initial stages of your startup. Some entrepreneurs are tempted to keep their business idea hidden from everyone and they don't realize that the discussion about the concept is what generates the value. Discussing and having different perspectives about a business is what is going to validate what value the idea is bringing to the table. I have seen over and over situations, where entrepreneurs are afraid of having their idea stolen, sometimes requiring even non-disclosure agreements to talk about it. They forget that the idea is only 2% of the equation. The remaining 98% is execution. To implement a business opportunity to its full extend, it is required to have a good management team, a good board of advisors and people who know how to execute a project. It is virtually impossible to keep things secret if you want to recruit the brightest to help create a dream startup. Yes, I agree with you, transparency is essential.
Regards,
Rodrigo Caetano
www.invisiblebalance.com
Thank you for the comments, appreciate them. Mr. Caetano writes:
"I have seen over and over situations, where entrepreneurs are afraid of having their idea stolen, sometimes requiring even non-disclosure agreements to talk about it. They forget that the idea is only 2% of the equation. The remaining 98% is execution."
Very well written! And regarding the non-disclosure agreements (NDA): When I tell people about the business idea I'm trying to execute, they ask me if I'd want them to sign a NDA first. At first I wasn't sure, but now I'm certain. I'll save both them and me the hassle.
Dear Arild,
Nice toe meat you on the net. I see many matches between your situation and mine. I just sold the goodwill of my old little company to start something comletely different: a new concept foor student residences (name untill now = MASTERROOM). I'm also alone, being thinking, writing plans, and talking to as many people as I can. Because the experience is that the concept is improving by these assesments and opinions from professionals and non-professionals. The devolepment stage will take about 2 or 3 years.
I also read WWGD (even twice)in this august. Very inspiring. I already start to twitter, try to 1start a blog, so it really 'kicks your butt' as you say.
But honoustly I have the same doubts to start spreading my plan on the internet. I believe in the growing value of sharing your plans. The difference between planning a businessconfersation with someone you know, or is known by a friend, is that you know the person.
I agree in the advantages of transperancy, but wonder if it only works if everybody think in the same way. And I'm for sure that not every potential competitor already red WWGD.
Anther doubt is: will there be a diffrence for a starter in steda of a consisting company. The project StarbuckIdeas is not threatening the company.
You see, I'm a 90% googlethinker (but to monthe ago I was a 0% one).
Beste regards,
Marc Winters
Groningen, The Netherlands
PS> with excuse of the 'limited' English, but always better than my Norwegian.
Dear Marc,
thank you very much for your comment.
I'm sure many of our potential competitors haven't read WWGD. And if they have they're not obliged to follow the "rules" of transparency. That's the risk, and I'm aware of it. That's why don't reveal 100 % of my plans. For instance I might explain in public what I hope the result to be, but I will not explain exactly how I'm planning to do it. So, of course, we have to use common sense.
In other words: We might tell the world what our house looks like on the inside, who's living there and what they're doing. But we might not trust our readers enough yet to give them the key to the front door.
I believe the principle is the same for both new and old companies. Old companies can start today by being transparent about their ongoing projects. I don't expect Coca-Cola to hand over their recipe. But on the other hand, much of their success comes from branding. I guess, if Coca-Cola's competitors would like to get their hand on the recipe by using illegal methods, they might succeed. The difference is the ability to execute the production, and not least: Building the brand.
In Norway, the ferries over the fjords are famous for their thick pancakes, called "svele". For many years the recipe was a guarded secret. But then Fjord1, which the company is called, decided to free the recipe. Now it's printed on magazines and posters. And, although you can make the svele at home, you still buy them while you're on the ferry. Freeing the recipe didn't treaten their revenue at all, instead it helped in branding the company as a sharing, caring company.
I wish you all the best in building your new company. A good start to spread the word is to comment on i.e. student blogs and websites, asking for comments like "What what your perfect student residence look like?", "Do you mind sharing bathroom with others?" and so on. And then link to the homepage for your project.
Good luck! Would love to hear about your progress.
Arild.
I agree with Rodrigo. The idea is really a small part of it. If an idea constitutes the majority of your innovation, then it probably isn't that strong of an idea.
Part of the reason I'm doing my Swarm project very openly is that I feel like my ideas are only a part of the project. The implementation of them is something that the other companies in the market are unlikely to risk attempting because their current infrastructure is geared towards a very different approach. In other words, my innovation changes how companies in the market operate which makes it difficult for existing companies to adopt.
"If an idea constitutes the majority of your innovation, then it probably isn't that strong of an idea."
Well said, Mike!
Dear Arild,
Thank you for your reaction. I was already busy, last week, to try to start a blog (campuzz.nl). The comments on your blog motivates me to continue with the blogplans.
And you're all right about transparancy. And another reason: you are the only one who's motivated for 200%. And the one who steals your concept can't even approach alittle percentage of this level of motivation.
Best regards,
Marc Winters
The Netherlands
Yes, Marc. Motivation is crucial.
But transparency isn't necessarily easy. Have a look at the majority of negative or skeptical comments to this post:
Employees, Freelancers and Entrepreneurs – How to recession-proof yourself, where Carsonified mixes business advice with their own lay-offs.
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