Innovate Not Invent

Many entrepreneurs fail to develop profitable business because they’re fixated on creating something “new.” In comparison, profitable entrepreneurs don’t chase the new, instead they innovate.  These entrepreneurs understand that its not enough to be new.  The Ford Edsel was new and it tanked.  “New Coke” failed.  Pets.com was “new” and it was also out of business in two years. Successful entrepreneurs know that for an idea to have value in the marketplace it has to be both new and useful to consumers.

In the film, Social Network the central question is whether or not Facebook founder, Mark Zuckerburg stole the idea for his site from fellow Harvard students, the Winklevoss twins.  Zuckerburg had to settle Winklevoss twins’ lawsuit against him not because he did anything illegal but because a jury wouldn’t like him.  It was likely that a jury would penalize Zuckerburg for being an arrogant, underhanded jerk.  

In truth, the Winklevoss’ Harvard Connection idea wasn’t a new or even unique.  MySpace already existed and on the Ivy League front, Columbia University’s CU Community was already up and running. Facebook became successful because Zuckerburg transformed the idea of social networking. Unlike conventional social networking sites, Facebook made it easy for people to connect and communicate with their “friends,” and potential friends.    

Entrepreneurs need to remember that there’s nothing new under the sun.  Building on existing models is the best pathway to create the next big thing. 

Here are three things for entrepreneurs to consider:

1) Successful Entrepreneurs Expand On An Existing Use
Microsoft wasn’t the first computer company. In the 1970s most computers took up entire rooms and were owned by large organizations. Bill Gates however was the first person to envision personal computers, small enough to sit on a desktop and to build a company to support that idea. 

So, how can you add more value, functionality or relevance to an existing product or service?

2) Successful Entrepreneurs Expand their Market. 
The Levi family, Jamaican immigrants owned a small bakery in Crown Heights, Brooklyn owned. In 1975 When the Levis needed to find a lot more buyers for their Jamaican beef patties, they turned to local pizza shops.  They rightfully assumed that since it’s not just Italians who eat pizza or Chinese who eat egg rolls, Americans would eat beef patties. Today, their company, Tower Isle is the largest meat patty makers in the world.

Which other groups or type of consumers could you be marketing your goods and services to?

3) Successful Entrepreneurs Put Their Name on It:
Donald Trump isn’t the first real estate developer but he stand out because he puts his name on every one of his buildings. The George Forman grill wasn’t the first portable grill, but “The Forman” became the name consumers remembered.  John Gray isn’t the first relationship expert but, he’s created a lucrative “Men are From Mars, Women are From Venus” book and lecture franchise.