The fallacy of great ideas!
Sep 08
I was having a chat with a business colleague of mine and between us we had a great idea about how to improve some of the businesses that we were jointly involved with. The problem was the idea existed in a ‘vacuum’
I recalled an anecdote to my friend who liked it and I hope you like it as a cautionary tale about some of the problems of having a great idea. It is not meant to be a negative business angel blog, it is just meant to illustrate the need for a dose of reality in great idea generation.
There is a happy community of mice that live in a lovely home. Sadly for them, their happy nirvana is disturbed when a cat moves in to the home. Life is made intolerable for them all. After a while the mice get together to do something about this imposition to their way of life.
After hours of discussions, one of the mice had a magic moment of inspiration. “Why don’t we simply put a bell on the neck of the cat? Then everytime the cat comes anywhere near us, we will be able to hear her approaching and hide”.
Brilliant idea the rest of the mice agreed. The idea was put to a vote and passed. The mice were all celebrating the brilliance of the idea before a wise old mouse asked “who will put the bell on the cat’s neck?”
I apologize if you feel this anecdote is patronizing. The point of the story is that it is all too easy to come up with great ideas. “Thinking outside the box” is fabulous - but sometimes the only tools you have to solve a problem are firmly placed inside the box!
I once saw a great business idea (it was over five years ago - so I trust it is OK to mention it now). The plan started off by telling me how many people go snorkeling and scuba diving every year to see exotic fish. (I myself simply adore snorkeling). The idea was brilliant.
Why not create a massive ‘swimming pool’ just outside London? The pool would be filled with sea water and filled with coral and have some sunken ships. Finally, you would bring thousands of fish to the pool.
As an idea it is compelling. I could see myself visiting the centre occasionally. The problem was that the proposition would not cost millions but a billion. You could never have made any money on it. Even the government could not have justified this expenditure (Although I believe the United Arab Emirates are trying something like this!)
The lesson is - make sure your idea passes the common sense test. If not, seek investors in the UAE!
Hi and welcome to my blog. 
Sep 08 at 14:25
I recently saw a business plan for an indoor aquarium along the lines of what you mention; so either they are still looking for money 5 years later or someone else had the same idea!
I have always wanted to see a break down of the financials for indoor ski centers (e.g. the one at Milton Keynes) for the same reason.
Sep 08 at 17:03
As it happens, I know the person who runs the centre and it is very profitable! The monies required are not on the same level. We should share war stories!
Sep 09 at 01:10
A follow-on of your post is that ideas don’t necessarily make good companies – even if they are good ones! It takes a stellar team and a ready market as well. In fact, when surveyed only about 10% of the failed companies failed because the idea/tech didn’t work out. 90% is made up by the rest.