EE 70 - Idea Lab #9 - Good Idea v Bad Idea

EE 70 - Good Idea v Bad Idea


Idea Challenge Update

If you haven’t started your Idea Challenge, it’s never too late. All you need is one idea that can spark a new business.

Keep sending me your business ideas via email, Twitter, LinkedIn, or Instagram.


Good Idea Versus Bad Idea

If you are taking part in the September Idea challenge you should now realise how ideas are relatively easy to generate. Once you put your mind to it, you can force yourself to come up with ideas.

A few week’s ago I shared my template for generating ideas, you can find that here.

The next step is to run the idea through some sort of filter to separate the good ideas from the awful ones. So how do you do that?

On today’s podcast, I shared the formula that I use to stress test the ideas and see if they are worth pursuing in more detail.

The outline of the formula is as follows.

  1. Online Research - Who else is doing this idea? Quick and easy, a few hours here is enough.

  2. What is my unfair advantage? Why can I make this successful? Think of a great reason why should you be the one to do this and not just anyone.

  3. Do I want to do this? Can it sustain my interest for 5-10 years? Initial enthusiasm will wane so be sure it’s something that will get you out of bed consistently.

  4. Do I have the skills/finances to make this happen? If not, where/how can I acquire them in a short space of time?

  5. The final step is to speak to people with experience in that area if you are entering a whole new sector. This is the quickest way to learn by a factor of 100x. Googling will only tell you so much. Go and speak to industry experts.


Recession-Proof Businesses

Just like not all businesses suffered during Covid, not all businesses struggle in a recession. If you are considering starting a new business, it’s worth looking back to 2008-2012 to see what businesses thrived.

  1. Car/Vehicle Repair

  2. Repair businesses in general, e.g. Zipyard, cobblers, etc.

  3. Affordable Luxury/Cosmetics. (See the Lipstick Effect article)

  4. Financial advisors

We are entering uncharted territory here with a potential recession combined with a global pandemic. However, basic human needs will remain the same. People will also adjust their spending habits to make things last longer so tapping into that is always a good strategy during a downturn.

Let me know what businesses you think will thrive in a recession?


This Week

Listening

Joe Rogan’s interview with Mike Tyson. Surprisingly deep & insightful conversation with Tyson. Even if you aren’t into boxing there’s a lot to be learned from this chat.

Watching

All or Nothing - Tottenham. I love these behind the scenes sports documentaries, especially football ones. This is particularly great as it has Jose Mourinho. Love him or hate him, he is a fascinating character.

You can watch the whole documentary free using the 30-Day free trial of Amazon Prime.

Reading

Elon Musk: The Architect of Tomorrow. A superb long form article profiling Musk. Although published in 2018, highly relevant today and dips into his first principles thinking.


Quote of the Week

“"The first step is to establish that something is possible; then probability will occur."

—Elon Musk

Tweet me your favourite quote of the week @mrgaryfox

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