A VC in Vacationland

Image via Wikipedia

I rarely hear a bad idea when an entrepreneur presents their new, new thing to me.  All sound very plausible, and make me interested in hearing more. But where the rubber hits the proverbial road–detailing their business model, or how are you going to monetize the idea–I am often disappointed.

Please, budding entrepreneurs, just because you have a "good idea", don't show up on my (virtual) doorstep and expect me to draft your business model. Don't be insulted when I say that I cannot understand how the idea will make money. I am not necessarily calling your baby ugly. I just do know know how you are going to pay for all the food, toys and diapers needed to keep the baby happy over the coming years.

Do some homework on successful business models. See how others have monetized their ideas. Draft a preliminary model of your own–how you are going to attract customers, what are you going to charge them, what will they get in return, why will they choose you over rivals, how you will keep them as customers long term–to name a few questions the business model must answer.

I am more than happy to comment on your business model and tell you where I think improvements are needed. But please, don't just show up with a good idea….

http://static.zemanta.com/readside/loader.js