Most of us at some point think about starting a company. We fantasize about what that might look like, then fear usually kicks in and we go on with our lives. We have this misbelief that if only we had a brilliant idea, then we could start a company. We watch shows like Shark Tank and we get the impression that great companies only start by a great product idea and the backing of large investments.

In reality, most great companies do not start out with a large capital investment, or a great product idea.

In the book Built to Last, Jim Collins and Jerry Porras summarized their results after studying the habits of visionary companies (companies that lasted). Collins and Porras compared the habits of similar companies that didn’t do as well over time, with the habits of visionary companies. One theme they found was that most of the visionary companies didn’t have a great idea in mind when they first started.

The notion that founders must have a “Great Product Idea” to start a successful company is a myth.

Collins and Porras actually found that waiting for a great idea may be a bad thing, because it prevents people from starting companies. A central theme of visionary companies was that they focused not on single product or idea. These companies believe the greatest creation was the company itself.

The following is a short excerpt from Bill Hewlett, co-founder of Hewlett-Packard, one of the most successful information technology companies in the world:  “When I talk to business schools occasionally, the professor of management is devastated when I say that we didn’t have any plans when we started-we were just opportunistic. We did anything that would bring in a nickel. Here we were, with about $500 in capital, trying whatever someone thought we might be able to do”.

 

References

Hewlett-Packard Company Archives, “An interview with Bill Hewlett,” 1987

About the Author: Mike MacIsaac is the owner and principal consultant forMacIsaac Consulting. Mike provides leadership as an IT Project and Program Manager as well as an Agile Scrum Master. You can follow Mike on Twitter@MikeMacIsaac or subscribe to Mike’s blog