Can Lady Luck, Innovation and Risk Management Grow a Brand?

“Luck is the key to everybody’s success. If you are successful, you are lucky.”

This quote from Connor Crook, CEO of Diamondback Toolbelts, does give the impression that the destiny of your business is squarely in the hands of fate. However, I attribute this mindset of his to the noble goal of embodying modesty or humility. It was his innovation and risk management that created his good fortune, which you can adapt and apply to emulate Diamondback’s success.

Why Is Innovation So Critical?

Without new goods or an improved customer experience, consumers will default to established purchasing practices and vendors. This can be good for steady income but fails to generate growth. This also carries the risk that clients will be lured away by those who do innovate.

Although it is understandable for people to focus solely on the product, all areas of a business can benefit from new ideas and fresh approaches. This includes marketing and advertising, where new customers are actively sought out. Hiring and management changes can fill skill gaps and streamline operations. Anywhere time is spent or money is invested is an opportunity to innovate.

Crook was able to implement positive changes in all the fields mentioned above. His team instituted a process where customer feedback on concepts or prototypes was used to improve those products. Without paying an outside firm, Diamondback was able to cater its designs to perfectly meet customer expectations.

For advertising, Crook utilized social media as the main conduit for communication, at a time when this wasn’t a widely used practice. He was able to get established on Instagram, just as the service was just beginning its heyday.

From this, Crook was able to exercise his courtroom lawyer roots to convince people to buy Diamondback products, growing his company’s footprint in the DTC market. His posts showcased the quality and features of the toolbelts, training customers while simultaneously intriguing them.

As growth and changing markets made the DTC market unable to sustain Diamondback’s trajectory, Crook hired new employees who were experts at selling to dealers and wholesalers. This was a skill that he fully acknowledged was absent from his repertoire, and embraced.

How Does Risk Management Minimize Business Hazards?

Risk exists in all aspects of life. There is a chance you will get into a car wreck on your way to work. There is a chance you will choke on your breakfast. Risk management is a crucial tool for everyone, and it is happening continuously without a second thought. This concept also applies to businesses, but there are additional complexities that an owner must consider. These often manifest as second and third-tier effects and can be difficult to foresee or predict.

For example, a new enterprise management system could have numerous new features and capabilities that make it very appealing. However, after switching, the overall IT system needs major modifications, since this new program isn’t compatible with other existing software or established websites. Customers could be plagued with a learning curve on ordering products or services.

Before Crook even owned Diamondback, he exercised sound risk management. He reviewed his family’s financial situation before determining that he could afford to purchase an existing company. When it came time to buy, he weighed the pros and cons of two different companies that were available. He decided to move forward with the smaller and more manageable of the two, which was Diamondback.

When his customer-driven product design process was compromised, with competitors stealing ideas, he compartmentalized the procedure. Without a complete view of the finished product, he was able to greatly lower the risk of theft, without scraping a cornerstone of his product development strategy.

When government regulators challenged his claim that Diamondback was a U.S.-made product, due to certain materials coming internationally, he evaluated the impact of foregoing a potential branding advantage against losing the best or most affordable components.

Be a Brand That Creates Good Luck.

Despite giving overwhelming credit to lady luck, Crook, CEO of Diamondback Toolbelts, is an ingenious and adaptive businessman. His embrace of novel ideas and approaches to problems, both common and unforeseen, made his company evolve to capitalize on new technologies, shifting markets, and internal changes inherent with strong growth. This embrace of fresh approaches was tempered with rational management and mitigation of risk.

He assessed his options with every problem encountered and selected the best course of action available. This unique balance has allowed Crook to lead his company in spectacular fashion, and his example is one that can be mimicked for similar achievements.