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Back in 2015, I introduced a concept to turn business byproducts into growth opportunities that I dubbed, “The Sawdust Principle.”
At the time, I was mentoring Tuckerman & Company, whose mission is to create high-quality, environmentally sustainable clothing and fight back against the wastefulness of fast fashion. This got me thinking about how to be more sustainable in my own digital consultancy business. It’s easy to think about recycling things, but it’s a more interesting exercise to focus on recycling intangibles.
Lots of industries have realized that byproducts can be bounty. The name “sawdust” is inspired by lumberyard owners, who, when faced with rising costs and competition, realized that their most significant “waste product” — sawdust — could be used to make all sorts of things, from kitty litter to particle board.
Today, thanks to digital culture, we’re seeing more and more opportunistic ways to earn revenue by recycling, reusing, and remixing what you already own. It’s common to see people turn their cars into a food delivery or taxi service (Uber), convert their homes into hotels (Airbnb), and upcycle their old clothes for charity or profit (Thredup).
This is why I’m remixing the Sawdust Principle and reintroducing it to today’s businesses. Your “trash” holds hidden treasure that can boost your bottom line. Unlike sawdust, which covers your floor and is often, quite literally, in your face (and your hair and clinging to your clothing), you might not think about all the places you can find value in your outgrowth.
Here are some surefire ways to spot your sawdust.
Go prospecting in your production.
One of the best ways to spot your sawdust is to look at any repetitive business activity that isn’t automated (but can and should be) or that produces a byproduct that isn’t usable or useful to the end product itself.
