Leverage, Multiple Income Streams and Innovation

Many of the discussions on this board have dealt with 'Leverage' and 'Multiple Income Streams' but what about 'Innovation'? I believe it was business guru Peter Drucker that said businesses only make money through two activities "Marketing and Innovation". Marketing is discussed on many boards...but innovation? hardly a word. Granted there are a few people out there that do innovate and then they go on the Internet to sell an ebook or course or manual on how you can 'copy' their innovation and make money with it. But that's not what I'm talking about here. I'm talking about how you can do what you are currently doing, innovate it (throw in some old-fashioned marketing on top of it) and then make money because you are doing something different in the market and people are willing to trade currency for your innovative differences. Are you doing something different? Something innovative? or is it the same old affiliate program or ebook concept that has been done to death?

In the April 2002 edition of Inc. magagzine there is a terrific article on how one company is innovating. They 'spied' opportunities and took advantage. Now you might be thinking "Sure that's easy for a company to do because they have tons of resources." Not in this case, the company did not have a lot of cash to innovate. They took on debt...they partnered (sort of a joint venture) and let the chips fall where they may. A very small cash outlay has turned into a gold mine. They do all the things we talk about on this board...using leverage...creating multiple income streams and now...innovation. This company has continued to innovate (and please don't call 'optimizing' your business innovation, because it isn't...read the article). The company has continued to innovate and create addition business units (i.e. multiple income streams) and have continued to leverage their assets. And guess what they don't succeed all the time either. Out of the 39 businesses they've started since 1990, 17 no longer exist. They are willing to make mistakes...take minimal chances. The other day I heard someone make a terrific point (I just don't remember who it was!). They said "Business is a Contact Sport". Nail on the head. If you aren't out there getting some contact in then you probably aren't doing business.

I thank you for your time,

Mike Winicki


"The Innovator's Rule Book"

Hi Mike,

Thanks for pointing out that terrific article!

By the way, Jack Stack (the author of the article and CEO of SRC) has an interesting-looking book called "The Great Game of Business". I've read through it partially, it has some great insights too - like his article. (I haven't seen his new book yet, "A Stake in the Outcome".)

I especially like this highlighted quote from the article:

"If you sell a pen, you can make a dollar. If you sell a pen company, you can make $10 million. When you play the game of business at the highest level, you understand that ultimately the company is your product, not the pen."

This seems like an eye-opener in itself.... I'm aware of a few "small-time" entrepreneurs who have really hit the "big time" by realizing this, and who nowadays create and eventually sell their (profitable) businesses. I'm talking literally millions of dollars here....

There's a lot of value in that article.... Thanks Mike!

- Dien Rice

> I especially like this highlighted quote
> from the article:

> "If you sell a pen, you can make a
> dollar. If you sell a pen company, you can
> make $10 million. When you play the game of
> business at the highest level, you
> understand that ultimately the company is
> your product, not the pen."

That quote should be posted on the desk/monitor of every entrepreneur everywhere. Quite often when we are trying to earn a couple bucks here or there we are missing out on the mother load just under the surface.

Take care,

Mike Winicki