What's More Important, The Idea or The Money?

Replies to This Discussion

Permalink Reply by Matt Urdan on January 25, 2008 at 10:01am

I think it's all the execution. There are a lot of great concepts that have a lot of money that don't do very well. Each entrepreneur gets an idea, get's financial backing, and keeps working the hard way reinventing the wheel and misses the opportunity to hit the ground running. Every new concept or startup is going to have a breaking-in period where the idosyncracies and cuverballs that hit new operations seem to throw endless challenges at the owners and operators. Working out all the details can be hard. Which is why a site like this is so awesome, you can get so much advice for dealing with these issues as they arise from professionals who have been there.

But it's how the owners and management team responds to these challenges and how creative they are and how willing they are to listen to ideas and build a team committed to the success of the new restaurant and how well the opening and first year are executed in every category of metrics that will determine the success. Not necessarily the concept, not necessarily the food, and not necessarily dependent on how much money is thrown at the project.

I would strongly recommend anyone considering to start a new concept to first read Danny Meyer's Book, "Setting the Table", which I've uploaded a "Matt's Notes" version to learn from his wisdom. Mr. Meyer created the Union Square Cafe and a host of successful restaurants in New York City. He shares the issues he had to deal with and the various challenges and how he overcame them. I believe his book sets the standard for not just a how-to in opening a restaurant and establishing a concept, but also for inculcating business principles that are applicable to any concept or industry where customers or guests are the cornerstone of the business.

Cheers!

Permalink Reply by Ken Bianchi on February 22, 2008 at 11:30am

I have to believe, between the two, the more important factor is the idea. Without the idea, you can have all the money in the world and never succeed. With the right idea, and then developed and executed correctly, you will gain the money through financing in some way that will allow the idea to fly.

After you have the idea and the money to get it off the ground, then it becomes all about how well you execute it. Make sure you put it in the right location that has the best opportunity to gain the attention of your target consumer. Staff it with the right people, keep it clean, consistent, and the customers will return.

Permalink Reply by Ray Villaman on June 30, 2008 at 1:02pm

EXPERIENCE... money backs experience and a track record. The idea obviously has to be the starting point, but you will see no investors unless they believe you can execute. Execution is based on experience and investors will look for that track record.

I currently own several restaurants and make investments in others. So if I wanted to get in to your industry, say bio-tech, as an example...what would I need, the idea or money? I don't think I could find a single investor unless I could convince them that I had the knowledge, experience and track record of success in this field, beforehand.

Surround yourself with people that have successful track records and knowledge in this industry...learn from others mistakes and go get some experience in a restaurant(s).

All the best,

Ray

Permalink Reply by IZCDIAZ on July 6, 2008 at 7:59am

I believe idea, experience, execution, management.
IZC

Permalink Reply by Jessica Riley on April 14, 2009 at 4:51pm

Personally, I feel that the idea is the most important of the two, having the money to get it off the ground does kind of help. Then again, not every idea that has a lot of money does all that great. But definitely the idea is the most important.

Permalink Reply by ken anderson on May 1, 2009 at 6:45pm

Its a catch 22 with out the money the concept goes no where , on the other hand I have had people with plenty of money tell me I need more ( as in a ten year Plan) & have seen their new well funded planed out concept go under in 6 months. I believe success starts at the top with the dynamic & passions of the person(s) in charge