Page 60 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

Nevertheless, the experience curve has valuable lessons for every
company, even those that cannot actually increase production.
Experience can be gained secondhand, through books, videos,
and “mentoring” by individuals who are already experienced.
Alternatively, firms can hire workers that are already experienced
veterans of their industry (although it is usually necessary to pay
higher salaries to such workers). Also, businesses that are currently
inexperienced can use innovation to bring out new products, change
market preferences, and render a competitor’s experience obsolete.

In practice

• Encourage employees to view their job as an active learning

experience.

• Recognize when it is not appropriate to increase your

production—if your demand is fixed, then increased output will
lead to wastage.

• Avoid high employee turnover by finding out why people leave.
• Provide opportunities for workers to gain secondhand experience

(for example, through reading and teaching) as well as firsthand
experience in the production process.

100 GREAT BUSINESS IDEAS • 53