Why is innovation important for growth?


Innovation is crucial for growth as it allows companies to adapt and thrive even under challenging market conditions. For instance, in a tough market, companies like Bravado innovate by creating new roles like a commission-only sales position, which was not previously available in their industry. This approach enables them to continue acquiring customers without the financial risk of hiring full-time salespeople, thereby fostering growth despite economic slowdowns 1.

Furthermore, innovation is vital not only for adapting existing products but also for driving down costs and increasing their reliability and desirability. This continual improvement attracts more customers and sustains a company's growth over time, as highlighted by Matt Ridley’s discussion on turning inventions into practical and widely used products 2.

Additionally, fostering a culture of innovation within a company ensures that the business does not stagnate as it scales. Companies need to continuously innovate to find new growth levers, which is essential for long-term sustainability and success 3.

The Importance of Growth

Sahil Mansuri discusses the importance of growth for companies, even in tough markets. He shares an innovative approach taken by Bravado, creating a commission-only sales role to acquire customers during a slowdown. This new model of sales is made possible by the current supply-demand equilibrium in the job market.

Lenny's Podcast

How to hit revenue targets in a recession | Sahil Mansuri (Bravado)

Overall, innovation is the engine that powers growth by enabling companies to adapt, improve, and efficiently meet the changing needs of the market and consumers.