The Liquidity of Ideas: Part I

Liquidity has two major definitions in the financial world: 1) the degree to which an asset or security can be bought or sold in the market without affecting the asset's price, and 2) the ability to convert an asset to cash quickly. The first definition has a far more extensive metaphor which could be applied to it, but let’s focus on the second for logistics and effort’s sake.

Harvey S. Firestone, famous American industrialist, asserted that:
“If you have ideas, you have the main asset you need, and there isn't any limit to what you can do with your business and your life. Ideas are any man's greatest asset.”

Given this truth, can we consider the liquidity of ideas (as assets), and make better entrepreneurial decisions as a result?

Yes (otherwise, I’d be done already).


In the next few posts, I’ll discuss liquidity with respect to an idea’s commercialization and monetization timeline. The smaller the timeline, and the smaller the effort required, the greater the idea’s liquidity. The greater the liquidity, the closer the idea is to reaching physical (cash) and tangible (consumer awareness, loyalty) success.

Delving into the benefits of a liquid idea is simple enough, but how do we affect the liquidity of our concepts and innovations? How can we achieve the “melting point” of our current solid ideas and significantly decrease the time to market of our soon-to-be product/service?


To be discussed.


…And, by the way, welcome to my new blog…