Innovation is the new Procrastination.
Yup. You read that right. I had a busy day and I stumbled upon some true greatness.
In business as in life you have to make moves. You have to make decisions fast when necessary and be prudent always. Gutsy moves are useful as well- but innovation trumps almost anything.
-By innovating you create a wealth stream that you weren’t expecting as people weren’t doing what you are. And this also gives you an advantage as you get there first. Now you may not be first per say but your innovation will be. The man who invented the paper clip got one hundred thousand dollars ($100,000.00).
The man who improved upon it got five hundred thousand ($500,000.00). So as we can see from this true story the money and success can be found through innovation.
-By innovating you create a solution that wasn’t there. You create an answer that people are looking for. An answer that is needed. I saw an auto show and they needed a piece of body trim for some Eleanor Mustang remakes. They went nuts! This small oversight now needed molds to be fabricated, specs, die-cast metal molds and then approval and manufacturing time. One of the major players said why don’t we put a piece of sheet metal on that we can cut right now? And we can also make it optional so as to appeal to a broader market and raise more money in sales. Genius right?! He solved the problem, made more sales appeal, and made a marketing move possible all with a piece of metal! This guy didn’t look at the problem. He looked at the solution needed and innovated in real world time. Profits grew at a minimum of cost. Sales could increase easily now as well. At every point in his choice/idea there was innovation that solved problems and created wealth. Sounds ideal doesn’t it?
-One more example to paint the picture:
So my parents bought a new pool for the backyard and needed help getting the assembly completed. And as the male heir I rise to the occasion as I think all sons should ( ladies you can too, just speaking for my gender). In the final leg of assembly I notice a cove was created by pre-cut foam pieces to give the edge a shape. I was amazed by this, and here’s why:
– pool cover: pre-cut for clients is a seventy dollar add on ($70.00). Even at a thirty dollar ($30.00) cost per set there is still a forty dollar ($40.00) profit per set. This means that for every thousand (1000) sets ,they make more money than on pools by a small margin of cost. They can even outsource this task and reduce cost by ten percent and still win. Also they don’t have to sell more pools to increase profits. The added cove is desirable as well as cost efficient which will mean that for a majority of sales they increase profit margins every time. This is an example of pure innovation. It shows how we can not only survive but thrive as businessmen (Hint, hint- #thriveorsurvive). Remember this one cove set costs them pennies but makes seventy thousand dollars ($70,000.00) given the earlier example. So innovation doesn’t just save time or money. It makes you money when properly applied.
-Small ticket item making big profits.
Just to rehash- small ticket items are pure profit. When you convert a if to a yes you win and when you can add on even one dollar you are even better off.
-Labor can be subcontracted.
Yup, that’s right. You don’t have to lack infrastructure to subcontract. I’d its easier and lower cost than get it done asap. Time waits for no man so tap into your network and utilize resources.
“A hunch is creativity trying to tell you something.” Frank Capra
#thriveorsurvive.
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