Be An Executioner

I’m starting to compile an entrepreneurial checklist for aspiring business owners to prepare themselves for pitching to investors and executing market strategy.  Keep in mind, my experience is limited, but I am simply reflecting on what I’ve packed in through the last few years.

Now that I’m beginning to apply for various summer incubator programs, I’ve been thinking heavily about a no-bullshit explanation of “what it takes.”  Obviously, there are no shortcuts, but it’s important to consider exactly what investors looking for.  More importantly, how do you highlight these qualities in your presentation?

Remember, ideas are cheap.  Really, really cheap.  I’m at the point where I’m not impressed by just ideas, and you shouldn’t be either.  I mean, the internet is full of them, and they are easily replicated.  If there is one thing I’ve learned over the past 6 months, it’s how you execute an idea that measures success.  There are no short-cuts, and there is absolutely no blog checklist that is going to provide you with any answers.  My ideas should just be a tool in the toolbox, if you so choose to use them.

So, be an executioner.  Derek Sivers broke down ideas vs. execution this way:

It’s so funny when I hear people being so protective of ideas. (People who want me to sign an nda to tell me the simplest 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.

That’s why I don’t want to hear people’s ideas. I’m not interested until I see their execution.

(Note:  Looking back at this, I understand why Derek ignored my email a month ago when I offered to pitch him my idea, even though I communicate with him a few times a month.  I had nothing to show for it.  He should have ignored it, and I’m glad he did.  There is a lesson for you in pitching / contacting important people: have something to show for yourself.)

So, how can you be an proper executioner?  The executioner is the bridge builder between idea to actual conception.  Executioners make it happen, whatever “it” may be.  Here are my keys to execution that you should consider before pitching your idea to anyone, investors included:

1.  Market – Why do people need this?  Who else (if anyone) is doing it? How can you do it better / differently?

2.  Management – Does your team have what it takes to stick together, through thick and thin? Are your skills equally balanced?

3.  Momentum – Are you moving yet?  How quick can you get to market?

4.  Moat – What is your defense system?  Are you (or do you need to be) protected intellectually?

This week I’m going to attempt to breakdown the above execution strategies, including market, management, momentum and moat.  This post, and the posts that will follow this week, are concepts that I have experienced and confirmed with seasoned entrepreneurs and venture capitalists.  Like any business idea, my ideas are just as worthless unless execution is attempted.

Related Essays

• Pitching Value
• Where Business Plans Go Wrong
• Avoiding The Value Dilemma

• « Weekly Reading 1/3
• » Be An Executioner, Part 1: Who’s Your Market?

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