Wow! That was just one of those statements that blew me away. It is worth reading again – “Success comes to those who find businesses with great economics and not necessarily great inventions or advances to mankind.”. Now when I started this blog, my thing was really about using innovation to make me rich. I also knew that along this journey to great wealth through innovation I was going to be great lessons, this is one of them. I came across it today whilst doing some research on polishing up my Business Plan and it really stuck.

Lets dissect this statement for a moment. The Success  part of this statement demonstrates that is the primary objective. Success in business simply means more profit period. Of course there are other “sub-success” e.g. customer satisfaction, but the main purpose behind running a business is profit, any other reason then you need to register as a charity. Success in innovation on the other hand refers to both radical and incremental changes in thinking, in things, in processes or in services (Mckeown, 2008 ) – the goal of innovation is positive change, to make someone or something better. 

The next part of the statement is the one that really kicked me in the nuts, its ones of those simple yet brutal statements. Some initial research showed that they have been many great innovations out, some still around today, but these innovations are the worst businesses ever. A good example is the airline industry. I read a report that stated that the cumulative earnings of all airlines since Wilber Wright flew that first plane are less than zero, basically airline losses have been greater than their profits.

So the lesson learnt here is quite simple, as innovators even though we may have fantastic inventions we need to ensure the the business i.e. economics side of things is taken care of. I am sure people in the UK watched the final of The Apprentice last night, and forget who won and the controversy behind it for a moment and lets look at the task they were given. Alex and Helene came up with a brilliant product in my eyes (even though it was actually the designer who came up with it, but theres the point), the product was very practical, heck I would but it. But when the economics were thrown in the industry experts confirmed that production of the bottle would noy be viable and as opposed to the RRP of £29.99 a bottle like that would have cost three if not four times that. So its now not only all about the innovation folks its about the economics of these things. I am glad I started looking for an accountant now.

I wish you wealth, good health, peace and happiness

abillionaire.