Article Overview: I'm getting tired of writing about lies, so today I'm covering truths. Specifically, the truths of innovation. I hold these truths to not be self-evident; hence we see so little innovation.
Free Download - How to Persuade People By Guy Kawasaki
The Art of Innovation
I'm getting tired of writing about lies, so today I'm covering truths. Specifically, the truths of innovation. I hold these truths to not be self-evident; hence we see so little innovation.
1. Jump to the next curve. Too many companies duke it out on the same curve. If they were daisy wheel printer companies, they thinkinnovationmeans adding Helvetica in 24 points. Instead, they should invent laser printing. Trueinnovationhappens when a company jumps to the next curve--or better still, invents the next curve, so set your goals high.
2. Don't worry, be crappy. Aninnovatordoesn't worry aboutshippingan innovative product withelementsof crappiness if it's truly innovative. The first permutation of ainnovationis seldom perfect--Macintosh, for example, didn't have software (thanks to me), a hard disk (it wouldn't matter with no software anyway), slots, and color. If a company waits--for example, the engineers convince management to add more features--until everything is perfect, it will never ship, and the market will pass it by.
3. Churn, baby, churn. I'm saying it's okay to ship crap--I'm not saying that it's okay to stay crappy. A company must improve version 1.0 and create version 1.1, 1.2, ... 2.0. This is a difficult lesson to learn because it's so hard to ship an innovation; therefore, the last thing employees want to deal with is complaints about their perfect baby. Innovation is not an event. It's a process.
4. Don't be afraid to polarize people. Most companies want to create the holy grail of products that appeals to every demographic, social-economic background, and geographic location. To attempt to do soguaranteesmediocrity. Instead, create great DICEE products that make segments of people very happy. And fear not if these products make other segments unhappy. The worst case is to incite no passionate reactions at all, and that happens when companies try to make everyone happy.
5. Break down the barriers. The way life should work is thatinnovative productsare easy to sell. Dream on. Life isn't fair. Indeed, the more innovative, the more barriers the status quo will erect in your way. Entrepreneurs should understand this upfront and not get flustered when market acceptance comes slowly. I've found that the best way to break barriers is enable people to test drive your innovation: download your software, take home your hardware, whatever it takes.
6. “Let a hundred flowers blossom.” I stole this from Chairman Mao. Innovators need to be flexible about how people use their products. Avon created Skin So Soft to soften skin, but when parents used it as an insect repellant, Avon went with the flow. Apple thought it created a spreadsheet/database/wordprocessing computer; but, come to find out, customers used it as a desktop publishing machine. The lesson is: Don't be proud. Let a hundred flowers blossom.
7. Think digital, act analog. Thinking digital means that companies should use all the digital tools at its disposal--computers, web sites, instruments, whatever--to create great products. But companies should act analog--that is, they must remember that the purpose ofinnovationis not cool products and cool technologies but happy people. Happy people is a decidedly analog goal.
8. Never ask people to do what you wouldn't do. This is a great test for any company. Suppose a company invents the world's greatest mousetrap. It murders mice better than anything in the history of mankind--in fact, it's nuclear powered. The problem is that thecustomer needsa PhD to set it, it costs $500,000, and has to drop off the dead, radioactive mouse 500 miles away in the middle of the desert. No one at the company would jump through those hoops--it shouldn't expect customers to either.
9. Don't let the bozos grind you down. The bozos will tell a company that what it's doing can't be done, shouldn't be done, and isn't necessary. Some bozos are clearly losers--they're the ones who are easy to ignore. The dangerous ones are rich, famous, and powerful--because they are so successful, innovators may think they are right. They're not right; they're just successful on the previous curve so they cannot comprehend, much less embrace, the next curve.
Guy Kawasaki is a managing director of Garage Technology Ventures, an early-stage venture capital firm and a columnist for Forbes.com. Previously, he was an Apple Fellow at Apple Computer, Inc. where he was one of the individuals responsible for the success of the Macintosh computer. Guy is the author of eight books including The Art of the Start, Rules for Revolutionaries, How to Drive Your Competition Crazy, Selling the Dream, and The Macintosh Way. He has a BA from Stanford University and an MBA from UCLA as well as an honorary doctorate from Babson College.
Related Forum Posts Cash Comes from Creativity
- These days, income from your 9 to 5 job can only get you so far. Gas is gold and it seems all are bemoaning the effects of economic recession. The question foremost on everyone’s mind is this: how on earth can we survive this financial crisis?
Before, money-making is defined as having enough capital to start a business --- that or you make sure you are employed by the richest and most benevolent boss on earth! Those days are over though--- you don’t always have to rely on savings/ capital or the generosity of other people to have sustainable income. All you need is yourself---and your ideas!
That’s right. The new model for business is innovation: the ability to successfully exploit great ideas. Innovation brings income; creativity brings cash.
We live in a world where almost every good or service is readily available. If you search a product on the internet for example, say laundry detergent, you are likely to come up with several hundreds of brands and variations of the same product. And with consumers nowadays being so fickle from the many choices available to them, your market can change their minds about their preferences in a matter of seconds. If you want to survive in the global marketplace you need to be able to do two things: stand out and think on your feet.
Ask yourself: what can you offer the world that others do not? What would make things easier, more convenient or more sensational for today’s busy people? What are your simple solutions to everyday problems that deserve to be replicated? What is an outrageous idea you have that may actually work?
Your multi-million money-making opportunity may be lying in quirky little things you take for granted. That effective hangover-remedy you concocted? May just be an affordable alternative to what’s on the shelves these days. That extra-special way you pack your kids’ lunches? May be taught via a webinar alongside with your other Martha Stewart-ish ways. Just look closely at what makes you unique and effective---and think sales. That’s money from your ideas.
Young Entrepreneur Organization - All You Need To Know
- The Young Entrepreneur Organization (YEO) is a global community of entrepreneurs. This non-profit organization aims to make its members successful in their business through networking and training programs. This article tells you all you need to know about the Young Entrepreneur Organization, and the opportunities it makes available to young entrepreneurs from across the world.
Young Entrepreneur Organization: Facts.
1) The Young Entrepreneur Organization has 5,000 members in 35 countries across the world. 2) The organization was founded in 1987. Since then, it has helped many aspiring entrepreneurs with training facilities and getting in touch with the right people.
3) The average age of the members of Young Entrepreneur Organization is 34 years.
4) In order to be eligible for the membership of Young Entrepreneur Organization, you need to be under the age of 40; and be the founder or partner in a business that has annual sales of more than $1 million.
World Entrepreneurs Organization: A part of the Young Entrepreneur Organization, the World Entrepreneur Organization and takes the message of Young Entrepreneur Organization to many additional places around the world. This organization is especially active in the area of education and training for entrepreneurs.
Young Entrepreneur Organization: Objectives.
1) To foster entrepreneurship.
2) To support Young Entrepreneur Organization members by providing them the chance to network and grow.
3) To provide resources to its members so that they can benefit the economy through innovative business ideas.
4) According to Young Entrepreneur Organization, you get to share your story with those who have had similar experiences, and thus gain insight into the best principles of entrepreneurship.
Young Entrepreneur Organization: Facilities.
At the Young Entrepreneur Organization, you get to meet and share views with like-minded people and fellow entrepreneurs. In order to facilitate a free exchange of ideas and growth for its member, the Young Entrepreneur Organization provides the following facilities to members.
1) Forum: Join the forum of the Young Entrepreneur Organization and start networking with entrepreneurs from across the world. Each forum group has 12 members who come together regularly to share their experiences and discuss issues related to entrepreneurship.
2) Mentor: In conjunction with the World Presidents’ Organization, the Young Entrepreneur Organization guides and counsels young entrepreneurs through a mentor program by the best business leaders.
3) Social Innovation: The Social Innovators Program involves Young Entrepreneur Organization member who wish to do something for about social issues. It helps members become socially aware citizens and gives them the opportunity to do something for their community.
4) Marketplace: The marketplace allows members to post business offers and receive replies from other members.
These are just some of the facilities you will get if you become part of the Young Entrepreneur Organization. Others, like meeting prospective clients through trade shows, and special tools to network and meet with the right people are also part of the YEO facilities.
the BDC
- Hi Renee, the BDC is a great lender to many Canadian businesses. I've heard many horror stories from businesses that have had problems with the BDC, but I think it all depends on which account manager you deal with (that's the case with most lenders). Anyways, I have a great relationship with the BDC Toronto office, and was successful earlier this year in getting two service based companies loans under the BDC Innovation financing program ($100,000 and $150,000, both for marketing and growth initiatives).
Here's an article I wrote about the BDC late last year for an Accounting Firm's newsletter:
The Business Development Bank of Canada is a financial institution belonging to the Government of Canada, with the mandate: “to encourage innovation and stimulate the growth of small and medium-size Canadian companies.” The BDC usually looks for companies with a sound management team that possess solid growth potential. The BDC can provide working capital solutions to complement traditional bank financing.
The BDC’s lending practices are somewhat different from the traditional chartered banks. With the BDC, borrowers receive a guaranteed term, meaning that financing cannot be recalled without due cause. As opposed to the chartered banks, where facilities are typically demand loans and can be recalled at any time. The BDC has very flexible repayment terms, including deferring principal payments, amortizing loans for up to an 8 year term, or offering seasonal and/or progressive payment options. This allows businesses to structure their cash flow accordingly. The BDC is willing to lend to companies that are more leveraged than traditional banks would consider. As well the BDC is willing to finance higher loan-to-value ratios than the chartered banks max out on.
The BDC also offers subordinated debt, where they will postpone their claim to a chartered bank. Sub-debt can be very advantageous to many companies, because the BDC ties the repayment terms to the company’s cash flow projections. The pricing model can be setup as normal interest payments, royalties on sales, bonus interest based on milestones, warrants or some combination of these items. The BDC lends sub-debt to businesses based on historical cash flow, management and growth potential. The innovation financing program provides small businesses with funds to carry out marketing and/or growth plans, increase inventory, and/or develop new products.
The BDC funds all types of businesses including start-ups, however will not fund any business that earns 50% or more of their profits from alcohol sales or gambling. The cost of borrowing from the BDC is generally higher than the chartered banks. The BDC’s base rate generally starts at two points above regular bank prime, and then the risk premium is applied to these rates based on each project's potential and the amount of risk involved. The BDC may not be ideal for all businesses, but as an alternative and/or complement to traditional bank financing, the BDC could be a very attractive solution.
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