1 TEL EPISODE #014: The Business Idea Factory with Andrii Sedniev Show Notes: Welcome to The Entrepreneurs Library, the only book-centric podcast that reviews all the topselling business books and shares author s perspective, firsthand. This is your resource to finding the next great book that will enable you to grow personally and professionally. Welcome your host, Wade Danielson. WADE: Before we get started, I want to preface that the audio quality on this one was not the absolute best, but for those that were looking to get information on this book, I wanted to publish it anyway so that you guys could listen in. So here s Andrii. Thank you for joining us on The EL. Today we have Andrii Sedniev, author of The Business Idea Factory. Welcome, Andrii, and thank you for joining us on The Entrepreneurs Library. ANDRII: Hi, Wade. Nice to meet you. WADE: Will you take just a moment to introduce yourself and tell us just a little bit about you personally? ANDRII: Sure. My name is Andrii. Originally I started my career as a networking engineer at Cisco Systems, so I have my MBA degree from the University of Michigan, Ross School of Business. Then I worked as a product manager also for a couple of years at Cisco Systems Headquarters in the Silicon Valley. I m right now an entrepreneur and author of five self-development books. One of them is The Business Idea Factory. And right now I live in Tennessee. WADE: Okay, very good. Thank you for sharing that. Now let s jump right into your book, The Business Idea Factory, which was just made available for purchase on November 5th of Andrii, we re going to move quickly, but here are some of the top questions our listeners would love to get answered.
2 The first one is, what was the inspiration behind writing The Business Idea Factory? ANDRII: I personally am absolutely convinced that coming up with ideas is absolutely essential for business. It s not just coming up with your business idea; a true entrepreneur is solving dozens of problems every day, and you need a lot of excellent ideas to make your business successful. Being able to create great ideas is a very essential skill, which I tried to develop in myself for over a dozen years. The problem I faced after having attended a lot of training, a lot of books about entrepreneurship, is that this topic isn t very well covered. Firstly, there are no books at all and I can say that straight about creating business ideas. Most books about entrepreneurship, you can find just one or two pages about it which say just do something you like, find a need and meet this need. I couldn t find something about creating business ideas at all. In the area of creativity in general, like how to come up with ideas in general, I found some information, but a lot of it wasn t practical and a lot of it wasn t relevant for coming up with business ideas at all. I really wanted to create some source for a person who wants to become the best he can or she can in the area of creating business ideas. I did extensive research, a lot of testing, and came up with a system I would call this book a system which includes all the techniques and stages of creating business ideas. I m sure that, for myself, at least, personally, I know enough about creating business ideas to do that more effectively than 95% of other people. And my readers hopefully and many of them say so say that after reading it, they become much more effective in generating business ideas. WADE: Andrii, you basically already covered the second question, which was what are some differentiators between your book and others.
3 I think we ll move right on to #3, which is my favorite question. Let s move into the deep dive of your actual book. If you can really take us through, give the reader and listener a great idea of what your book s all about. ANDRII: Okay. I think the best thing I can give to people who are listening to this podcast, I will give them several samples of ideas so that they can apply them right away, and then will give one technique in the end as well. If you will think about generating ideas, what it is, what happens when you create a business idea? Basically, in order to create a great idea, you need several things. The first thing, which is really important, it is raw materials. The ideas don t come from thin air; that s why when you create a great idea, no matter how creative it is, you combine several already existing ideas, or you merge them, or they are combined in some way. Some aspect from one idea, some aspect from another idea, or it could be even three or four different ideas. That something you create from it is a creative, innovative, new idea. That s why a person who has more personal experiences in different areas of life is much more likely to come up with a great idea or many great ideas than a person who has very little personal experiences. For example, if you re trying to write nonfiction books from different areas, you are meeting a lot of different people, you re traveling, you re trying different hobbies, you re going to the conferences, you re experimenting in your life, trying things that you have never done before. You are accumulating much more personal experiences from which you will be later creating ideas from, and you will be much more creative than people who don t have raw materials. So the first thing for ideas are raw materials. That s the first thing. The second thing I would say really important for generating ideas is programming your mind. Programming your mind basically is a fancy word for just thinking. I ll just give you an example of what I mean: in many companies, people think, Hey, we need a new idea, need a new product; let s meet once a year for 3 hours, 15 people in a room. Let s do brainstorming, write all the ideas on the blackboard, pick the best one, and this will be an idea for our business.
4 But in real life, this approach doesn t give good results, because in order to create a good idea, people need time and people need a lot of ideas. The difference between the person who has hundreds of great ideas and the person who doesn t generate good ideas at all is asking yourself questions. If you give your brain a task, every day you ask yourself Hey, I need this idea. I need a good title for my book, the next day, I need a good title for my book. Please think about it or How can I beat the competition? How can I cut costs on my product? if you ask yourself questions, you program your brain to work, and it thinks in the background while you are not thinking about the problem. So the program of the mind basically works like this. You are thinking about the question you need answers for for just 2, 3, 5 minutes, and that s a moment when your brain gets a task. The brain understands, I need to think about that idea. Then you go to your everyday life, work on other tasks, go on vacation, whatever, and then at the moment when you expect this the least, right ideas flow into your mind. In order to keep your brain constantly operational, and to not let it waste time, you need to reprogram it periodically. If you just think a couple of times per day for 5 minutes about your problem, your brain will be actually thinking about the problem 24 by 7. The best time for programming your brain is before you go to sleep, because a lot of research has shown that while we sleep, our conscious brain isn t active, and our subconscious brain, which is responsible for creativity, is very, very active. During the time we sleep, the creative brain works really, really well. If the last thing you do before you go to bed, you think about your problem or task, then you can be sure the next morning or the next day, you will get some great ideas. So the first thing we covered was we need raw materials to build ideas from; second thing is we need to ask regularly ourselves questions to not keep our brain idle. Our brain is the most powerful computer in the world. However, it is idle, it
5 doesn t think about ideas, it doesn t do anything unless we ask it questions. In order to keep it busy, we need to ask ourselves questions regularly. The third thing probably which I would say is incredibly important to understand for generating ideas is the formula which says quantity equals quality. Creativity works only this way. Quantity generates quality. It s impossible, absolutely impossible, to come up with one excellent idea. This is the biggest problem most people do. They think, Hey, I want to start my own business, and I need one successful idea. I need to generate one really brilliant idea and I will start doing this business. It never happens this way. Never happens. Even for the most successful people in the world, like Bill Gates or Steve Jobs, they had a lot of unsuccessful ideas before they started a really successful business. The same happens for most creative scientists, like Einstein or Edison or others. Majority of ideas they have, the most smart and creative people in the world, the majority of ideas they have are bad. They are low-quality ideas. But a few, perhaps, or a couple out of hundreds, are brilliant. And those ideas make those people incredibly successful. So I would say in general, you need always to aim for quantity. Because our I will just explain it this way: our conscious brain can evaluate ideas, but our subconscious brain, the other part which is the creative one, can only generate ideas. It can t evaluate them. However, if you re judgmental when you re generating ideas, you re evaluating them and thinking This one is good, this one is bad, you re blocking your subconscious brain, and it doesn t work. So in order to generate great ideas, you need to put aside your judgments and generate all kinds of ideas, but really aim only just for quantity. These could be stupid ideas, valueless ideas, but the only thing while you are creative you need to aim for is quantity. You need to make as many ideas as possible, and you shouldn t care about their quality. It could be dozens of ideas, hundreds of ideas, as many as you can generate. It s better to generate them over some long period of time, perhaps several days.
6 Once you have a lot of ideas on your paper for example, you want to start a small business; you have a hundred ideas. Only once you have all the ideas written, this is the time when you can really evaluate them. Basically what happens, after 100 ideas, you could probably right away evaluate and understand that 80 ideas are absolutely valueless, you don t need them. Then you have 20 left, right? Then you go to your creative body partner, whoever, the other person who you trust. It could be your spouse, a business partner, or somebody else. You share your 20 ideas with him or her. He or she will tell you, Hey, I see this problem with this idea. Maybe this is not a good idea. And then you take into account those suggestions, and you can probably write off another 10 or 15 ideas. Then once you have three or four or five ideas left, this is a time when nobody ever in the world will be able to tell you which one of them will be successful, unless you test them in the real world. So you take those three or four ideas and you implement them. The chances are that three or four out of five of these ideas will fail. You need to make them fail early so that you don t waste a lot of time, money, and resources. When they fail, the one that is left, this will be an idea that can make you a millionaire or a famous scientist or that can bring you a lot of good things in life. So let s summarize what we have covered. Ideas are built from raw materials; raw materials are experience and information you know about the world. Second thing, you need to ask yourself constantly questions to make your brain think. The third thing, you need to aim for quantity, because in creativity quantity equals quality, and in order to generate one brilliant idea, you need a lot of mediocre or average ideas. The fourth thing which I ll probably cover, as we have some more time, is I think extremely important. It s writing ideas down. You should absolutely get in the habit of writing all your ideas down, even bad ones. If you will ask me personally what I do, I have a lot of different files for the beginning, you can just open one
7 file on your computer and have just one notebook and write all ideas about all aspects of your life in this book, or your business. Once you have more experience doing that, you ll probably end up doing something like what I do. I have a lot of files on my computer relevant to everything I do. I have a file for each book where I write ideas for each of the books; I have a file for each of my businesses; I have a file with ideas for my personal life. Many different files with ideas. I ll explain to you why it s so important, and I m sure some of you won t do that, because unless you really try it, it s difficult to believe that writing ideas is that powerful. The first thing is if you write ideas, you won t be losing ideas. The average lifespan of the idea is probably 1 ½ minutes or maximum 2 minutes, and if you re driving in a car or anything, Hey, I ve got a good idea, but I will write it down once I come home or sometime later, there s a high probability that you will forget it and this idea will never come to your head again. This happens really often. In situations when you re in the shower or you re already falling asleep or you re sitting in a boring meeting and you think that it s not a very comfortable situation to write down an idea, actually these are the situations when you are really, really creative, and a lot of great ideas come when it s not convenient to write it down. However, if you re in the shower, just get out of the shower, write it down. If you re falling asleep, what I do it s very, very uncomfortable, but just stand up and go turn on the light, write it down. If I m jogging outside, I can keep in my mind three ideas, just repeating them over and over to myself again, using visual associations. And if I have more than three ideas, I really stop jogging and go home, because I value those ideas and don t want them to be forgotten. The second thing is when you write down your ideas, you send your brain a signal: Hey, buddy, ideas are really important for me. Thank you for the job you have done. This signal makes your brain generate the ideas even better. It really
8 works. Once you write the ideas, your subconscious realizes that what it does for you is valuable, and it begins to think even more effectively. And the third benefit of writing ideas is actually generating even further ideas, because once you see your ideas on paper, you combine them in your mind, and out of all these raw materials, even newer ideas can arise, can be born. I will probably add this thing with a technique I want to leave you with, which is called Hundred Dollars Technique. It s one of my favorite techniques for generating business ideas, and I m sure if you will use it, you will have a lot of great business ideas for your business. It s called Hundred Dollars Hour, which means you take an hour and you think about how you can generate an extra $100. Even if you re working in a big company, you re already very successful, just think how you can make an extra $100 or how your business can generate an extra $100. Once you have generated many ideas as I said, you need many ideas you pick a couple that you think are looking most promising, and you do implement them. If you really manage to generate an extra $100, think how you can replicate this success, how you can delegate some of the tasks, and how you can make more out of this idea. Very often, these Hundred Dollars Hours turn into million dollar businesses or really huge business ideas. Why this technique works so well is when you re thinking, Eh, I just want to be the next Bill Gates. I want to build a billion dollar business, your subconscious is scared, it s blocked, and it s very difficult to generate ideas this way. But once you make the task easy you say Just $100, your subconscious generates ideas in a much more effective way. And often these ideas that can generate at least some money can turn into something bigger. WADE: Excellent. Andrii, your book is full of content, and that s what makes the next question somewhat difficult. If the reader could only take one concept or principle or action item out of your entire book, what would you want that to be?
9 ANDRII: I would like it to be the following principle: ask yourself questions regularly. In this way, you will generate a lot of ideas. If you don t give your brain a task, it won t generate you any ideas. If you give your brain tasks rarely, it will generate a few ideas. But if you ask yourself questions every day, you will be certainly one of the most creative people in the world, because there are few people who give their brain tasks every day. Especially creative ones. WADE: Excellent. Do you have a favorite quote that you wrote from your book? ANDRII: Instead of the quote, I would love to give you the following formula which can be also considered as a quote: In creativity, quantity equals quality. WADE: Excellent. Okay, very good. If there was only one book that you could recommend to our listeners based on how it s influenced your life or created a paradigm shift, what would that be? ANDRII: Perhaps one of my most favorite books and the one that has influenced my life the most is the book of Richard Branson, Screw It, Let s Do It. Screw It, Let s Do It, because this is a person who is extremely creative, has a lot of fun in his life, and has started over 400 successful businesses. WADE: Excellent. Andrii, before we depart, can you recommend the best way for our listeners to get more information on you? ANDRII: To get more information on me, you can go look for me on Amazon.com for Andrii Sedniev, or you can go to the website, WADE: Excellent, very good. Andrii, thanks for coming on. We really appreciate your time. ANDRII: Thank you for having me.
10 WADE: Thanks again for listening in today. If you would like to get your hands on The Business Idea Factory or any of the other resources mentioned by Andrii, just look at the show notes at TheELPodcast.com. Looking for your next book idea? Head over to TheELPodcast.com, where Wade shares his amazing resource, The Top 10 Business Books Recommended by Over 500 Entrepreneurs, with you for free. That s TheELPodcast.com. Till the next time, keep it on the EL. LINKS AND RESOURCES MENTIONED IN THIS EPISODE: Check out Screw It, Let s Do It by Richard Branson on Amazon Visit MagicOfPublicSpeaking.com to learn more about Andrii and his book Buy The Business Idea Factory by Andrii Sedniev on Amazon
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The Commission Cutting Report Why they re being cut and what you can do about it! By Mike Ferry Page 1 of 17 THE COMMISSION CUTTING REPORT Why am I writing a report of this type? Why is a report of this
INTRODUCTION The Seven Rules of Highly Worried People WORRYING IS SECOND NATURE to you, but imagine that someone who has been raised in the jungle and knows nothing about conventional modern life approached
Habit 1 Be ProActive * You re In Charge I can t count how many times my kids have whined, Dad, we re so bored! There s nothing to do, as if their boredom was somehow my fault I ll respond with something