PLEASING PERSONALITY 625people who had no direct contact with each other. Examples include the airplane,
the integrated circuit, and the computer-each invented concurrently by two
people at remote locations from each other.
What transforms an idea into an opportunity that will interest investors, says
Clark, is determining a use that consumers really want, then being able to imple-
ment it at an affordable price. Most entrepreneurs just devise an interesting
concept, conduct market research by asking their friends what they think, then
use that feedback to justify leaving their jobs and starting a business.
Clark explains that what they should do first is identify a specific market
need, conduct extensive market research to verify the strength and price point of
that need, then develop a marketing strategy to meet the demand-before
approaching financiers. A failure to first prove the viability of a market for their
product is one of the most common mistakes that many entrepreneurs make.
As for management and resources, Clark says that when financiers scrutin-
ize a potential business deal, the first thing they look at is not the opportunity but
the strength of the management team. According to George Doriot, one of the
founders of modern venture capital, "Always consider investing in a grade A
entrepreneur with a grade B idea, but never invest in a grade B entrepreneur with
a grade A idea. "
If you don't present the image of experience-the appropriate background
as well as a detailed understanding of your market-investors will never provide
you with the resources.Idea Number One
If, for example, you wanted to manufacture toys, you would have to
determine what sort of toys to manufacture and where to get the
capital with which to operate the business.
First, go to your local toy store and find out what kinds of toys
are currently selling best. If you do not feel competent yourself to
make improvements on some of the toys now on the market, advertise
for an inventor "with an idea for a marketable toy" and you will soon
find a person who will supply this missing link.