Lessons from Innovators: What We Can Learn From Companies That Brought Great Ideas to Life

Ladies and gentlemen, buckle up! Today, we're diving into the world of innovation and business models, and let me tell you, it's a wild ride. We're talking about companies that brought great ideas to life but struggled to turn those ideas into successful, growing businesses. So, let's get started!First things first, let's talk about the elephant in the room: COMPETITION. You might think you know who your competitors are, but think again! Patrick Badolato, an associate professor of instruction in accounting at The University of Texas at Austin's McCombs School of Business, has a different take. He says, "It's easier to add an app to infrastructure than infrastructure to an app." What does that mean? It means you need to think bigger, broader, and consider who can replace you, not just who's competing with you directly. Now, let's talk about trends. Trends are like the wind—you can't see them, but you can feel them. And if you're smart, you can harness their power. Take the meal kit trend, for example. Consumers want convenience and better production, and meal kits seemed to fit that bill perfectly. But here's the thing: just because a trend exists doesn't mean every company in that space will succeed. You need to have a competitive, sustainable advantage. And that's where companies like Blue Apron and beyond meat fell short. They got the trend right, but they couldn't turn it into a winning business model.So, what can we learn from these companies? Here are some key takeaways:1. Expand Your Definition of Competition: Don't just look at who's in your lane; look at who's in the fast lane next to you. Existing infrastructure can come in and take over, so be prepared.2. Align with Consumer Trends: Know what your customers want and give it to them. But remember, trends can be fickle, so stay on your toes.3. Have a Sustainable Competitive Advantage: This is your moat, your secret sauce, your "it" factor. Without it, you're just another player in the game.4. Test Your Ideas: Don't go it alone. Bounce your ideas off others and see if they hold water. You might be surprised by what you learn.5. Stay the Course: Investing is a marathon, not a sprint. Don't panic when the market dips; stay the course and keep your eyes on the prize.Now, let's talk about some specific examples. Take Mid-America Apartments, for instance. Investors got the trend right—they saw that people were moving to the Sunbelt area—but they overbuilt. And when the demand for remote work evened out, the stock took a nosedive. So, what's the moral of the story? DO YOUR HOMEWORK. Know the trends, know the competition, and know your company's strengths and weaknesses. And remember, just because a company has a great idea doesn't mean it's a great investment. You need to look at the whole picture, not just the shiny new toy.In conclusion, folks, the world of innovation is a thrilling place, but it's not for the faint of heart. You need to be smart, savvy, and always one step ahead. So, get out there and make some money! But remember, DON'T GET LEFT BEHIND. The market is a cruel mistress, and she won't wait for you. So, buckle up, stay informed, and let's make some money!