When ideas meet a reality check

Welcome to my LinkedIn Newsletter to get your dose of entrepreneurial inspiration! I will share some intriguing facts, captivating stories, research insights, and ideas on entrepreneurship that I personally find fascinating and inspiring. Who knows, it may also spark your curiosity!

Debunking one misconception about ideas

In my entrepreneurship classes, I stress the importance of hands-on learning, guiding students along the entrepreneurial path. Once, a student asked me if they could work on a project in secret without talking about it in class to protect their entrepreneurial idea from being stolen by other teams.

I'd like to shed some light on this misconception. First, ideas are everywhere and anyone can access them. A quick internet search gives numerous ideas, as I mentioned earlier. But do we take action right away when we find a great idea? Do we rush to implement one of those "Best business ideas for 2024"? Probably not.

Next, what counts as a "great" idea varies from person to person. That is why opportunity evaluation is a dynamic process that depends on an individual's unique mix of background, knowledge, and skills; and external factors.

I am a big believer in knowledge sharing and co-creation. Instead of hiding ideas, put them to the test. Market research is critical to ensure that your idea is not merely an illusion or a figment of your imagination.

The best way to validate an idea is by engaging with potential customers, conducting market research, and seeking feedback. Check if your idea is attractive, timely, durable, and anchored in a product/service that creates value for others. Timing matters. When you find a great idea for you and the “window of opportunity” is open, take action.

BeReal: Is this a promising opportunity?

In December 2019, two French entrepreneurs, perhaps building on the trend towards authenticity and the rising criticism of Instagram, launched BeReal, a social media app. The app, released in 2020, focuses on unfiltered and uncurated content, encouraging users to share their real photos. Users must post their photo within two minutes after receiving a notification from the app. BeReal became widely known in 2022. Today, it has around 25M daily users, however, Techcrunch recently noted a decline in the number of active users.

Critics have raised doubts about the concept of authenticity on the Internet. They argue that BeReal's focus on spontaneous, unfiltered moments distracts users from their real-world experiences. While some people find the idea of being real on social media intriguing, others find it boring and some even "beg to be fake again". Perhaps, it is a reflection of human nature, shaped by evolution - a craving for beautiful images.

Concerns have emerged about BeReal's addictive nature, privacy issues, and its business model. Currently, the app is not making a profit prioritizing building a significant user base before moving to monetization. On social media, BeReal competes with Snapchat, TikTok, and Instagram, and the key question that comes up is whether the company can maintain its seized opportunity in the long run.

Authenticity and the rise of deinfluencing in social media

The idea of authenticity appeals not only to BeReal. TrendHunter, for instance, says that people want honesty and deeper connections when they buy things. Many young folks want to be influencers, but influencers often make money from sponsored promotions. The tricky part is staying true to yourself while doing these ads. If you don't, people might perceive it as "a failure of authenticity".

In response to the materialistic nature of influencer culture, there is a trend known as "deinfluencing". Essentially, influencers use their influence to discourage their followers from buying certain things. This trend is becoming popular, with a massive 888.4 million views under the #deinfluencing hashtag on TikTok.

The word "deinfluencing" might sound a bit confusing because it implies a certain level of influence on the purchase decision, but it all actually points to a rising interest in genuine and unfiltered content. Whether this desire for authenticity will continue to shape online culture remains to be seen.

The right time and action: Evidence from academic research

Wondering how your great idea can become a real business? Many people think about starting their own business, but not everyone actually does it. Some give up early on, while others get stuck at the "still trying" stage, never managing to make it a real business.

There is a new article in the Journal of Business Venture (check the date, it's from the future!) that discusses how time and action play a big role in the entire process of launching a business. The authors call it "temporal enactment." Basically, it's about when and how you do things when you start a business. Do you rush into things or take your time? What steps are you working on and in what order? All of these things matter.

This study, based on a large dataset of people trying to start a business, reveals that both the timing and the types of things you work on are crucial. People who take their time and work on the right things at the right time are more likely to turn their ideas into reality. You might wonder, what are the "right" actions to take and in what order? In the early stages, the order can go like this:

1. Get people involved: like forming your startup team and seeking external funding ("stakeholder enrollment activities");
2. Plan things out: such as identifying your target market and creating a prototype ("planning activities");
3. Establish your business boundaries: like registering your company and buying inventory ("boundary creation").

In other words, if you want your business idea to succeed, you need to manage your time and choose your actions wisely and strategically.

Learn more about this research in: Lewis, T., Hechavarría, D.M., Williams, D.W., Cardon, M.S., 2024. Doing the right things at the right times: The role of temporal enactment in venture outcome attainment. Journal of Business Venturing 39, 106344. https://doi.org/10.1016/j.jbusvent.2023.106344

In short, once you have found an idea that resonates with you, take action. Do your market research and start talking about your idea. Here are some other steps to get you started:

• Create a landing page with a detailed description and an option to join a waiting list;
• Connect with industry professionals or those doing similar projects; follow their updates.
• Craft an engaging social media post about your business idea. With nearly 4.8 billion social media users who spend about 2.5 hours there daily, you have a great chance to connect with your target audience and build a successful venture.

If you don't find an opportunity in one idea, move to the next one and keep exploring. Most importantly, don't stand still. As the saying goes, "Water does not flow under the lying stone".

Until next time!