Solve these three logical equations, and your company will be great:
(1) Innovation = Invention + Commercialization
Nothing is “innovative” until that thing has been validated in the market by customers. It may look fanciful, technologically advanced, etc, but unless customers have bought it, validating that it has value to fix their frictions, it is nothing but an “inventive” product. So, you must commercialize and generate revenue.
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(2) Great Companies = Great Products + Superior Execution
All great companies are known for great products. Yes, no company can become great without amazing products or services. And great products typically have superior operating teams who engineer efficient and effective combination and recombination of factors of production. When a great product meets a great operating team, a company moves into the track of greatness.
(3) Business Momentum = Size of Business x Speed of Growth
To sustain momentum (in physics, a product of mass and velocity), a business must become bigger even as you ramp up the speed of growth. When you meet a fast scaling, high growing company, you see greatness on the horizon. Indeed, momentous efficiency where the rate of growth of revenue is well ahead of the growth of expenses.
Remember: ScalableGrowth heals and cures most problems in companies because when a company is fast-scaling, everyone is a star, and happiness in valuations, paychecks, job security, profits, etc is enthroned.
This week, I wish you a scalable growth. Happy Sunday.
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It’s an edifying and refreshing way of thinking what a business enterprise should be. Can you innovate? Can you execute? Can you keep the momentum? These are the issues.