Every business creates a byproduct that comes from the operation of the core business. From sawmills to software, we all create valuable byproducts.

A lumber mill’s core business is to cut trees into usable lumber for construction. But the mountains of sawdust they produce every day also have value. It can be sold for fuel, mulch, particle board or gerbil cages. 

I originally heard of this concept from Jason Fried of 37 Signals. He documented his experiences and unique approach to scaling his company through his company’s blog. 

Their core business was creating web-based software. The sawdust they were creating was the knowledge and experience of how to scale a bootstrapped SaaS company. That’s a valuable byproduct for other founders and businesses to learn from. So they packaged it up into books and sold it.

They created a virtuous cycle by selling their sawdust. Their byproduct (books) generate income on their own and also bring new customers to their core product (web apps).

What is being swept up every day at your business but still has value to someone else?