We all know this couple. Or maybe we are a part of this couple. You know the ones: the couple who has a new idea for making money every time you come over for dinner. Last month it was a taxi service, this month it’s a handmade curtains business. Next month it will be something else. Each time they are just as excited, and just as SURE that this idea will be the one to MAKE THEM RICH and get them OUT OF DEBT. Problem is, these ideas tend to contribute to the reason this couple is in debt in the first place.
These kinds of spontaneous money-making ideas rarely succeed for several reasons. For starters, there is too much emotion involved from the get-go. The money making idea is just so BRILLIANT and GREAT it is SURE TO WORK. So the marketing research and test products are skipped. Why waste time? This idea is so great, WE NEED TO GET STARTED RIGHT AWAY.
Then the money is spent. Oh, boy. Expensive equipment and pricey marketing materials and supplies are purchased in massive quantities. With all of this great stuff, the money-making idea is SURE TO WORK!
Now the depressing part: the idea doesn’t work… right away. Because there was so much emotion and excitement over the new venture, there is a major let-down when the profits don’t start pouring in from the get-go. In fact, the couple will start to feel the hit from all of the money they just spent on their idea, so it begins to not seem worth it when it doesn’t start paying off immediately. What a disappointment.
So they think of another idea.
No business model is an instant hit. A successful idea takes time, product development, marketing research, and a long while to build up a customer following. If you want to stop being a member of the “money-making idea couple,” then you need to take an emotional step-BACK from your next big revelation. Before you go out and buy a bunch of expensive equipment and supplies, you need to evaluate the existing market (is it too saturated? is there enough demand?), figure out your costs (including promotional and time costs) and how they stack up against what you will gain. You need to come to the realistic conclusion that you will not become a millionaire overnight, and that it will probably take longer than expected to start making decent profit margins. Unless you can REALLY stand to wait that long and put in that much WORK, maybe your idea isn’t worth what it will cost you.
Yeah, I know, taking the practical approach isn’t very fun. But it might save you a ton of debt and disappointment in the long run.