Telling your kid her idea’s a dud
Posted: Thursday, August 21, 2008 4:27 PM by Eve Tahmincioglu
Filed Under:
Starting up, Financing, Entrepreneurship
My eight-year-old daughter Circe and her neighborhood buddy Taylor decided to launch their own business venture recently.
I had nothing to do with this, I swear.
The firm is called "TC Patches," and the idea is Circe and Taylor will sell patches they cut out of old jeans and then design with butterflies, flowers, etc.
You all remember patches, right? People used to buy them to mend holes in their pants.
And there's the problem with their business model. People used to buy patches to mend clothing. Today, with our disposable society, consumers are more apt to throw away a pair of $20 jeans they got from TJ Maxx, or some other discount store, and buy a new pair.
But should I share this little piece of entrepreneurial reality with Circe and Taylor?
No.
Why? Because I don't have the heart to tell these enthusiastic little girls that their idea is doomed.
I've often heard entrepreneurs complain they have difficulty finding honest feedback about their business ideas, especially from friends and family. It's the type of feedback that's critical for every budding entrepreneur.
So where do you go to get a brutal dose of honesty?
Elizabeth Gordon, who coaches small business owners and is president of the entrepreneur advisory firm Flourishing Business, says one of her occupational hazards is hearing a lot of really bad ideas.
But she feels compelled to be honest with people, especially her clients: "I feel it's a disservice to say, 'that sounds great, good luck with that,' and send them on their way."
What she recommends to her clients and all of you out there is to put together a peer advisory group. This could be a collection of business owners you respect in non-competing industries that are all looking for constructive, honest advice.
'It's not a support group," she stresses. It's all about giving "objective advice."
There's a good site called Meetup.com where you can find like-minded entrepreneurs in your town, or you could go to your local chamber of commerce and find business owners that are looking to brainstorm ideas.
Friends and family, Gordon found, can be useless when it comes to honing your idea. They are definitely more likely to keep their negative thoughts to themselves and feel an obligation to pump up Uncle Fred's ego.
I guess I'm guilty of this to a degree with my daughter. I figure she's only eight and this patches venture is probably just a passing fancy, just like her Wiggles fixation.
And who am I to judge anyway? Maybe patches will make a comeback.
Circe and Taylor have already made over $20 selling patches to friends, family, and even one construction worker who happened upon their patches stand on the driveway. He bought the patch that had the skull and cross bones on it.
They had enough money to give me so I could buy them the Web domain TCPatches.com.
Of course, they don't have enough capital, or knowledge to actually create a Web site. I did tell Circe she could give her software engineer father a percentage of the business in exchange for him designing the site.
The two young entrepreneurs rejected this option flatly. They want to maintain control, and they have grand plans for the profits.
Turns out Circe and Taylor will share 50 percent of the proceeds, and the remaining money will go to the American Lung Association.
When I asked why she had chosen that organization, Circe said: "Well, both our grandfathers died of lung cancer."
As you can imagine, I got a bit choked up when I heard that, still feeling the sting of having lost my father to the dreaded disease.
Now you know why I can't say anything negative about the great patches venture.
Would you? I look forward to your comments.