Entrepreneurs and amazing ideas
We have all heard it before in movies and TV shows when entrepreneurs bump into a millionaire in an elevator all they want to do is pitch them their amazing idea. However, this entire obsession with the multimillion-dollar idea that is funded right away just for the sake of its genius has no statistical grounds.
According to the Harvard Business Review, less than 1% of U.S. companies have raised capital from venture capitalists. This very striking number should help change focus to what is actually important: the fact that great ideas with poor execution amount to nothing.
However, average ideas with top-class execution are far more likely to be successful and, therefore, funded.
Average ideas with top-class execution
Let’s face it, Venture Capitalists and Angel Investors aren’t obsessed just looking for the next big idea in a vacuum and the reason why is that they know better than anyone that it takes more than idea to make something work. In fact, what they are actually looking for is great ideas, good ideas, even average ideas… but lead by an excellent team. That’s what can result in a successful combo.
When lifting a company off the ground, we have plenty of evidence that shows it’s a lot more important to have a persistent and knowledgeable team that will fight for the project with grit and expertise, than to have an incredible idea but no one behind it capable enough to bring it to fruition.
The team should be your focus over ideas
Another very important aspect of why teams should be your focus over ideas is the fact that even what could look like brilliant ideas on paper can work or not, but great teams can push an idea into a successful business or, if it doesn’t work as expected, they can pivot, move and even change from one idea to another while leveraging their skillset to make some of that iterations work.
If you think about it, a potential investor is looking for a return, and your company is far more capable of providing that if it relies on a great team and a good idea than if it does so only on the idea.
Twitter as an example
Let’s take Twitter as an example. Many won´t know this, but Twitter started out as Odeo, a podcast idea. However, once they saw the competition was better prepared they readjusted and took a different path and the world of micro-blogging was born. The team was key there.
Understanding the importance of attracting and retaining talent, Twitter has offered their employees the possibility of becoming remote workers forever, and working for the company from any place in the world. A real compromise with its staff that combines professional growth and work-life balance.
In a world surrounded by ideas and obsessed with them, we should pay more attention to the team behind them. That´s why you should be looking into luring talent to your company. And what could help you with that? An amazing location where to settle non-customer-facing teams.
What factors you say? Well, the lowest corporate tax in Europe (4%) and R&D and Innovation aggressive incentives on the economic side (up to 90% cost savings in research expenditure that can be even monetized as cash back).
From the quality of life perspective (which is key to attract and retain employees): magnificent weather all year long, great and diverse opportunities to enjoy life outside work, very short commuting times to improve work-life balance and a strikingly low cost of living compared to Europe’s big cities (according to cost of living leading site, Numbeo.com).
Think about it, pick a location like the Canary Islands and keep your talent happy so they can make any idea work.