Sara Blakely's case illustrates the importance of balancing risk and security in innovation. She took a significant risk by investing her savings and time into developing footless pantyhose, a novel idea at the time. However, she also maintained her full-time job, providing a safety net. This approach allowed her to innovate without the pressure of immediate financial survival. Her success with Spanx underscores the potential rewards of this balanced risk management strategy. It suggests that innovators can benefit from taking calculated risks in their areas of innovation, while ensuring stability in other aspects of their lives.

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Originals

Learn how innovators and original thinkers across time developed their novel ideas, mitigated risks, persuaded others, and changed the way we all see...

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The key here is having a balanced risk portfolio: having a sense of security in one realm gives us the freedom to be original in another. When we cover our bases, we are freed from the pressure to pursue a half-baked idea or launch an untested business. This does not mean always aiming for the safe middle ground—it means taking extreme risks in one arena and offsetting them with extreme caution in another. When Sara Blakely came up with the idea of footless pantyhose, she invested her entire savings and worked nights and weekends to build the prototype; but she kept her full-time day-job for two years while she worked to found her company—Spanx eventually made her the world's youngest self-made billionaire.

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The idea of footless pantyhose led to the creation of a billion-dollar company, Spanx, through the dedication and balanced risk-taking of its founder, Sara Blakely. She came up with the innovative idea and invested her entire savings into building the prototype. However, she also maintained a sense of security by keeping her full-time day job for two years while she worked on founding her company during nights and weekends. This approach allowed her to take extreme risks in the development of her product while offsetting them with extreme caution in her personal financial stability. Her efforts eventually paid off, making her the world's youngest self-made billionaire.

Traditional businesses like retail or manufacturing can apply the concept of a balanced risk portfolio by taking calculated risks in one area while maintaining stability in others. For instance, they could innovate and experiment with new product lines or business models, while ensuring the core business operations remain stable and profitable. This approach allows businesses to explore new opportunities without jeopardizing their existing operations. It's about balancing the pursuit of new, potentially lucrative opportunities with the need to maintain a stable and reliable business operation.

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