How do you turn a brilliant idea into a sustainable business?
It is a question that has caused much head-scratching and heartache over the years – and with the emergence of technology, many of us harbour an original concept that we believe could change the world.
Richard Law is an investor in Manchester-based car finance firm Zuto, which has the potential to grow to achieve unicorn status – in other words, become a billion-dollar tech company.
He told BusinessCloud that selling an idea can be particularly challenging within the tech industry.
“Once you have a good idea, the first thing is to create a compelling vision and a simple story,” he said.
“I hear so many tech ideas which are overcomplicated with jargon.
“Tell a story really well and really simply because along the road you’re going to have to attract great people, great investment and great customers.”
Once a business is off the ground, the hard work really starts. Start-ups are notorious for sucking up massive amounts of time.
It is important for fledgling entrepreneurs to keep their eye on the ball, according to Law.
“The next stage is plan ahead – but be agile and prepared to improvise,” he continued.
“If you start without a plan you’re doomed to fail – and if you stick rigidly to plan you’re also doomed to fail.”
Even then, it can be rare to get all of these things to work together.
“It’s a roll of the dice,” he says. “How do you know the idea is a great one? How do you get the best people?
“How do you know the plan is the right plan and how do you know that under pressure you’ll get it right, and make sure the people are the best and keep them?
“And how do you execute it all?
“So within all these things there is throwing the dice and coming up with a six. It’s only when you can throw six sixes that you get the unicorn.”
It is then important that companies don’t use unicorn status to become complacent, he warns.
“It’s perfectly possible that companies that get to a billion dollars valuation may not be based on strong foundations, so this principle of throwing six sixes applies not only through the establishment of the business but through its entire evolution and growth,” he said.
Law, who went to work digging coal in Yorkshire after leaving school, now heads up Chester-based identity intelligence specialist GB Group.
He has grown GBG’s valuation from £5m to £350m but has decided to retire once a suitable successor is found.