Explained: Incremental Edge is the idea that a small edge in the short or near term can result in a sizeable advantage over time.
- Compound Interest - Imagine starting with £10,000 to invest. With an annual interest rate of 5% held for 30 years you would end up with £43.219 if you raised that to 6% it would = £57.434 and 10% = £174,494.0. As you can see a short term increase of 10% would equate to over £160,000 in gained earnings over 30 year period of compound interest vs 0 without that edge.
- High Frequency Traders - Use microsecond advantages that the distance that they're high speed internet speed took to reach markets in order to skim pennies of the top of large trade orders amounting to profits of Billions of pounds with no risk.
- Companies often remove minor hurdles in their sales funnels which result in drastically higher conversions. One site was able to increase it's sales by 45% by removing a sign up process that since implementation, is estimate to have made the company over 300 million in additional profits.
- A young professional who spends the early part of their career focusing on their craft and seeking top quality projects, vs other leisure activities that result in no tangible assets, will often put themselves in an advantaged position that will see them attract the best work opportunities longer term.
Recommended Action: Look at what you do day to day, and try and identify small changes you can make that over time amass into a large advantage. Use this edge to attract the best opportunities and barrel roll that for future success and upside.