Right people with the right idea at the right time and the right funding can do wonders.
But how can you determine what is right?
In the very early stages of idea development, the right people are usually those that proposed the idea. As their idea grows and matures into a new product or business, these people might not be the best fit anymore. Think of a company where founder realised they weren't the best operator anymore and then hired a new CEO.
Same goes for an idea, which should be tested in every imaginable way: strategic fit, organisational fit, market fit, scaling fit, and so on. At every stage of the way you want to test if it is still the relevant idea.
In healthy organisations the time is always right for early stage ideas, e.g. those that can be rapidly tested within three weeks or less. Since innovation is about creating value, it is a fair assumption that most ideas will be about exploiting an existing opportunity. But the market, industry, and society can shift overnight, as we've recently experienced.
Funding is a function of the previous three. If the people, idea, and timing are good, then the right funding will be whatever the people need to get to whatever they defined as the next step. No more, no less. Releasing too much funds, too early usually results in premature bloat and wasted effort. Releasing too little, too late on the other hand often results in higher opportunity cost.
Here is what I hope you take away from the above:
- That right is a dynamic state, not a static one.
- How you determine what is right depends on the internal factors, external environment, and idea maturity.
Oh, and right does not mean perfect. The former will help you move fast and profit, whilst the latter will stall you and create waste.
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