Questions

Everyone knows idea worth a dime but having how many are too many? Also, should we serve multiple ideas at the same time? What are the things you would watch going down this path? tactics to stay laser-focused, product and efficient with 30% shared resources among ventures, but having independent developers, UX/UI per startup. I am executing three ideas at the same time!!!

Indeed a very good question, I will try to keep my answer simple.

Lets consider an example, suppose you have 1 Kg of raw material for baking cakes. You can either make two cakes of 500 grams each of 4 cakes of 250 grams each, or at max 5 cakes of 200 grams each.

You want to make many cakes as you don't know which cake customer will like. Let's keep the sales price of cake as $100 per Kg, assuming the cost of cake to be $60. That gives you $40 profit on total sales.

The more cakes you bake, more efforts you have to put in, there may be a case that you end up spoiling all the cakes as you may not be able to focus.

Case 1: Suppose you made 5 cakes of 200 grams and customer liked 2. You will get $20 per cake, that equals to $40 total. You will end up with a loss of $20.

Case 2: You made 2 cakes, customer liked only one, you get $50 bearing a loss of $10.

Case 3: You made only one cake, you focused and devoted all your time in making it best. Customer bought it for $100 fetching you $40 profit.

In each case reward is linked with risk. I would recommend you to execute only one idea at a time. You can filter out all the ideas and choose the best, then execute it. Believe in yourself and take risk. Even if it fails, it will give you a lot of ground for the next idea.

All the best.


Answered 6 months ago

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