Adrie's Blog

Re-invent your business

This week, I was reminded again on how special it is if a business is re-invented. I spoke with one of the founders of Secrid Card protectors, a product that allows you to safeguard your creditcards. It does so by allowing you to store them easily, and it simultaneously protects them against scimming of the info contained on the cards. Not unimportant in a era where one can grab data from your cards with the simplest technological tools. I have started to use the Secrid product myself now, and people that know me, also know how special that is as I usually just put everything in my pocket.

The story behind this product fascinated me. The company had been working as industrial designers with the largest companies in the world, when they lost all their major clients, one by one, early on in the financial crisis. Their solution? Do what you are best at and do what you have always done for others - i.e. design a product of your own and launch it! This became the Secrid Card which has sold over 700,000  pieces thus far.

Another example that I have always loved is "laundry new style". When I first heard this in New York, where I was living at the time, my thought was "Why on earth do I need a new laundry?" particularly in a city where you find one on every street corner. But look at www.slatenyc.com, completely modern, eco-style with great campaigns such as "Permission to Get Dirty". A completely new service and product set attached to an old-fashioned laundry. I have always had the utmost admiration for entrepreneurs who take an existing business and can turn it into something new and exciting.

Another example is take an existing business and try to renew it by pumping new money into it. I have experienced this during my career - unfortunately I should say. This was a shipping line in South America. The business plan was all fine, but it needed a large cash injection. The question I had then, is, what happens if you use the same amount of cash and start a new line instead of pumping it into the old one? I finally was convinced to go the old-business route... and it was a disaster. The operation was cash positive very soon, but we got mangled by the old skeletons in the closet and had to close it down.

So if you are every considering changing your business or another business, always think carefully if you should put the money you have to use in the existing operation or whether it is worth starting afresh.

And lastly, even if you have a well-running, smoothly operating company, always continue to look for ways to renew and re-invent. It is easier to free up funds at a time when you are doing well, then when you are doing badly. And to continue for too long depending on one successful product, is like driving at a wall at 200 km/hour...



PS E.Factor members will shortly get a discount on the Secrid Card protector. So hang in there!