Michael Bluth opening a clearly marked dead bird
You’ve thought of an industry shaking idea. You’re about to turn the tables on your competitors and disrupt the entire field, leaving you on top when all the dust settles. But is your innovation actually going to change things, or have others stayed away from it for a reason? Here are our top 3 ways to determine if you’re new idea is a goldmine, or just a “dead bird”.
How Much Risk Is Involved?
This is probably the most important question to ask. Measuring the amount of risk involved will give you a general guide of where to go next. Is your idea low to no risk? It likely makes sense to try it out even if it doesn’t come with a ton of reward. High risk? Then you better make sure that your return is going to be worth it, or find a way to reduce your risk.
Of course, for innovations that fall in the middle of that spectrum, it’s time to move onto the next question!
What Does Your Industry Think?
Not just the businesses that are benefiting from the status quo. Do other startups think that what you’re doing is a bad idea? Are there best practices in your industry that recommend against it? Adversity itself isn’t an issue, but there is much to be learned by those who have tried similar ideas in the past.
Look for stories of others who have attempted to pursue related ideas. Did they succeed? Or did they fail? Take their hard-earned lessons into account and plan your own ventures accordingly.
Do The Numbers Line Up?
Even if others think what you are doing is a bad idea, and the risk is high, there is still one saving grace. The data. If your research is thorough and your plan is well put together, it might still make sense to go through with it anyway. After all, many of the greatest innovations flew in the face of competitor adversity.
Sometimes A Dead Bird Is A Dead Bird
If your idea turned out to not be so great, don’t worry! As an entrepreneur, you’ll have plenty more, and it’s better to let one go than to drag down your business for a small reward. If everyone is saying that an idea is bad, sometimes it is, but don’t let that stop you from checking it out yourself to see if you could do it differently.