Entrepreneurship and the formation of new ventures is a process. It is not a one-time effort. Do not at any point believe that you could work for a few days on a venture, and that would suffice to let the venture move on its own trajectory. Building the venture is an on-going activity requiring constant attention and effort.
There are at least two distinct and contrary parts in which efforts need to be invested in while building the venture. The first part is composed of substantial exploration and efforts in laying a strong foundation for the second part. The second bit is more exploitative in its approach to ensure that the foundation laid can carry the weight and deliver its promise. These two segments have been subtly highlighted in different works.
- In Peter Theil’s book Zero to One, the discussion is primarily in the first direction. The One to N part of it is a completely different beast and needs a different mindset to be adopted for growth.
- When seen through the effectuation lens, the effectual mindset is suited for the initial part, while to build a larger venture, one has to get into a causal mindset.
- From the lean startup school, the first part is considered to be composed of two distinct elements – the problem/solution fit, and the product/market fit; and the latter part is assumed to be designing the scaling of operations.
In the first part, passion fuels the investment of energy into venture building. This energy should be balanced by keeping the flexibility and agility until the venture begins showing a promise of growth. In the second part, the promise is to be converted into a scalable business. All your decisions have to acknowledge the shift in mindset. The kind of people you hire, delegation, the nature of customers you are primarily targeting, the redeployment of profits in your business – in fact everything.
Most entrepreneurs do not sense this difference and continue to play their game plan from the first part, in the second part. This can wreak havoc as you then become the main barrier for your venture’s progress. In such situations, it is important to step aside and be an owner rather than a manager.
Ask yourself:
Have I built the venture to a degree where I need to shift my mindset to allow the venture to realize its growth potential?
What capabilities do I need to develop to be able to exploit the potential promised from my venture thus far? Is there someone more capable than me to take over the reins of the venture and realize it’s potential?
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