Why Creativity is Important in Business (Competitive Advantage)

ZACH DE GREGORIO, CPA
www.WolvesAndFinance.com

Last week, I made a video that business schools should spend more time teaching creativity. And in that video I made a bold claim. I said, “Your ability to harness creativity is directly related to how successful you are in business.” That is not something a lot of people talk about. But I want to dig into this idea more, of why creativity is important in business.
The reason is actually very simple: it is because of competitive advantage. Creativity enables innovation, and innovation creates competitive advantage. I really want people to realize that there is a straight line between creativity and competitive advantage that impacts how much money you make.
So let’s talk a little bit about innovation, because innovation is one of those terms that people throw around a lot. But I have a very specific definition for innovation. Innovation is a new idea. It is imagining something of value that does not exist, and making it a reality. Innovation is really hard, and you have to develop those creative muscles in order to innovate.
Why is this important? This scale contributes directly to competitive advantage. The more innovation you have, the easier it is to compete. Just think about it. If all your company did was deliver best practices, it is really tough to compete. Your competitor can just go online, download the same instruction book you are using, and sell the exact same product. You end up in price wars. If you can innovate, and create a brand new product, you can charge whatever price you want, because nobody can compete with you. And if you can keep innovating, you will always be one step ahead of the competition.
And that brings us to the big question. What do you do to build your creative muscles? It is very simple… you get a hobby. That is what art is for. Art teaches you to dream, use your imagination, and build those creative muscles.
So that is it. Pick a hobby. Develop your creative muscles. And you will find that you will be able to apply those skills at your work to help you be successful in business. And do not lose focus on what this is all about. The role of business is to be that force that generates progress in society. People look to business to improve the way we do things, create better products, and raise our quality of life. That requires innovation. And that is why creativity is important in business.

Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.

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