You May Have a Good Idea for an Innovative Product, But….

At the suggestion of a colleague, I checked out an episode of “Shark Tank” with my daughter last night.  I don’t watch too much commercial TV, but this was actually better than I had imagined.  I agree with most of the VCs’ reasoning, especially on things like valuation, but sometimes they go after a business concept that I think is asinine.  But who knows?  I’m often wrong about the market demand for consumer products.   

Here’s an idea I’m not wrong on, however, and it’s interesting how often it comes up: having a good idea and being a world-class manufacturing company are two entirely different things.  In general, entrepreneurs with innovative products need to outsource manufacturing, though they’re normally unwilling to take a hard look at this very obvious concept.  I wish I had a dollar for every time I’ve advised my clients on this exact point, with words like: “Give me a day or two and I’ll find you five companies that can build this far better and cheaper than you could ever hope to.”