Invention is Reinvention with entrepreneur Eric Ryan | A Bit of Optimism Podcast

Here are the top 10 key takeaways from Simon Sinek's conversation with entrepreneur Eric Ryan on the "A Bit of Optimism" podcast, where they explore the essence of innovation, entrepreneurship, and building successful brands that resonate with consumers.

1. Innovation is creative thinking applied to business

Eric Ryan defines innovation simply as "creative thinking applied to business." He suggests that many companies overcomplicate innovation or use it as a buzzword to charge more or take greater credit. True innovation solves real problems and makes things easier, not harder.

Innovation often fails when it's technology for technology's sake, like replacing functional dials and switches with touchscreens that are actually less intuitive. Ryan believes the best innovations maintain simplicity while addressing genuine needs. He mentions how Method's 10X concentrated laundry detergent with a pre-measured pump was technically brilliant but failed because customers didn't believe such a small amount could clean effectively.

2. Entrepreneurship is about inspiring people to create change

Ryan defines entrepreneurs differently than small business owners. He sees entrepreneurship as fundamentally about "inspiring a lot of people" to create change, whether inside an existing company or in a new venture. This definition focuses on leadership and vision rather than simply owning a business.

This perspective frames entrepreneurship as a transformative role that requires bringing others along with your vision. Ryan mentions that facing challenges in creating something from scratch requires partners who believe in you personally, not just your business plan. When fundraising for Method, he noticed entrepreneur-investors like Howard Schultz (Starbucks) and Jim McCain (1-800-Flowers) focused more on him as an individual than his business plan.

3. Start with categories, not ideas

Eric Ryan doesn't start with specific product ideas or personal passions. Instead, he looks for entire categories that show signs of staleness or missed cultural shifts. He calls these "clues" to "dig here." For Method, he noticed cleaning products missed the cultural shift toward home styling and sustainability.

Ryan specifically looks for "seas of sameness" in retail aisles where all products look alike, suggesting opportunity for disruption. With Olly vitamins, he saw stressed customers in vitamin aisles and recognized that millennials viewed health as a lifestyle pursuit. This approach allows him to find opportunities objectively rather than being limited to his personal interests or expertise.

4. Steal concepts across categories

A key part of Ryan's innovation approach is "stealing" design concepts across categories. For Method, he borrowed aesthetic elements from housewares (vase-like shapes) and personal care (fragrances, colors). With Olly, he applied beauty aisle design principles to vitamins, which traditionally had poor visual appeal.

This cross-pollination creates products that feel fresh yet familiar. Ryan explains that successful innovation typically involves taking something familiar and adding just one novel element. Too much novelty can fail to connect with consumers. His approach helps identify opportunities that established companies miss because they're too focused on their existing model.

5. Choose business partners based on character and shared values

Ryan emphasizes the importance of selecting business partners based on character rather than just financial terms. He shares how he rejected an investment offer that doubled overnight after he questioned the valuation, seeing this as a poor foundation for a relationship. Instead, he chose to work with someone he felt had "incredible integrity."

Partnership quality becomes particularly crucial during inevitable business challenges. Ryan explains that creating anything from scratch requires iteration, not linear progress. The best partners understand this reality and work with you through difficulties rather than looking to dismiss you when obstacles arise. Character and shared values provide the foundation for weathering these storms together.

6. If it's hard, it's probably wrong

One of Ryan's most powerful entrepreneurial insights is that excessive difficulty often signals the wrong approach. He notes, "When I look back at my career when something failed, it was the same pattern over and over of like, it was really hard and we kind of forced our way through it." Conversely, he believes ideas that flow quickly and easily are usually right.

When describing a recent failed pharmacy product line, Ryan observed that every aspect was difficult: design challenges, manufacturing problems, and vendor relationships all felt like "moving water uphill." This contrasted with a new product he conceived on vacation that came together effortlessly and was immediately embraced by retail partners. His intuition suggests that good ideas shouldn't require forcing.

7. Trust your gut when something seems "painfully obvious"

Ryan describes successful innovations as ideas that feel "so painfully obvious that it scares me." The fear comes from disbelief that no one else has already implemented such an apparent opportunity. When testing new concepts, skeptics often reject them solely because no one has done them before, mistaking novelty for risk.

This insight connects to Ryan's perspective on naivete as a superpower. Being "just stupid enough" to believe you can create change allows you to approach problems with fresh eyes. He advises new team members to share ideas quickly before they know too much and lose their beginner's perspective. This beginner's mindset helps entrepreneurs see opportunities that industry veterans might miss.

8. Success requires great people, great products, and good capital stewardship

Ryan distills entrepreneurial success to three essential elements: "great people, great products, and being a good steward of capital." He believes focusing on these fundamentals increases your chances of getting the luck necessary for a successful company. This framework helps maintain clarity amid the complexity of building a business.

The emphasis on capital stewardship differs from the common focus on simply raising money. Ryan understands that how you manage capital matters as much as having it. His experience with Method and Olly demonstrates that even when competing against massive incumbents with "150 year head starts," focusing on these fundamentals can lead to market breakthroughs.

9. Entrepreneurial identity drives serial founders

Ryan explains that his drive to start multiple companies stems from entrepreneurship being core to his identity. After selling Method to SC Johnson, he felt "grumpy and rudderless" despite financial success. He realized that starting and scaling companies wasn't just about financial outcomes but about who he fundamentally was.

This identity aspect explains why serial entrepreneurs continue despite already achieving financial success. Ryan notes that entrepreneurship is unique because "exiting" is celebrated, unlike other life pursuits. For him, starting Olly reestablished his identity as a founder and entrepreneur. This sense of purpose and identity transcends specific business ideas or categories.

10. Bring childlike wonder to serious categories

Simon Sinek identifies the essence of Ryan's approach as bringing "childlike wonder" to categories that take themselves too seriously. This creates products that make customers smile and connect emotionally. Ryan confirms this philosophy, noting that it's "childlike but not childish" and represents his formula for success.

This approach manifests in Ryan's products having strong sensory elements - visual appeal, tactile satisfaction, and overall experience. He connects this to a childhood memory of creating a blue ice rink that was visually striking and experientially memorable. His talent lies in finding joy in seemingly mundane categories by approaching them with fresh eyes and sensory awareness.

The conversation concludes with both men agreeing that many businesses and people take themselves too seriously. Most products aren't "saving lives," so bringing joy and wonder creates meaningful differentiation. Ryan's success across multiple categories demonstrates the power of retaining childlike curiosity and wonder in business innovation.