14 lines
3.2 KiB
JSON
14 lines
3.2 KiB
JSON
{
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"HubID": "2547",
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"Date": "5/5/2023",
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"HubTags": [
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"External Platform Posts"
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],
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"Contacts": "",
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"Companies": "",
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"File": "",
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"Image": "",
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"Summary": "Key strategic pitfalls in growing companies.",
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"Notes": "<p>Key strategic pitfalls in growing companies.</p><p>Looking back at all my past ventures, I have distilled down three very key things that either caused my past businesses to fail or not reach their full potential. They are as follows:<br /></p><p>Timing<br /></p><p>Either too early, or too late, but timing risk can be minimized via the next item.<br /></p><p>Runway<br /></p><p>Not enough runway to help maximize potential, which can result from not enough cash/investment, spending too much too early or spending on the wrong things, or unrealistic expectations about when success should occur.<br /></p><p>Personality misalignments, greed, fear and ego</p><p>Personality<br /></p><p>Make sure anyone who is involved in the business has the right personality mix and skill set for their job.<br /></p><p>Greed<br /></p><p>Gets in the way where people get too greedy and look out for themselves more than the business. Minimize this risk through incentives that help motivate the right behavior.<br /></p><p>Fear<br /></p><p>Can play a role where people do not act out of fear when they should act. Minimize this risk through incentives that help motivate the right behavior.<br /></p><p>Ego <br /></p><p>Social standing and rejection. People are afraid of making mistakes and being wrong in the context of how it will make them look towards others. It can be fear of failure, but deeper than that, it is fear of rejection because of that failure. As a result, they strongly trend towards making decisions to protect their reputation, position, status/social standing.<br /></p><p>Irrelevance. People feel pride in gaining knowledge, experience, and senior positions, but when the market changes and their knowledge and experience is not worth what it used to be, or does not provide the value it used to, they are afraid of being cast aside or having to step aside. People have great fear of this and will go to great lengths to protect themselves from becoming irrelevant. It comes back to fear of rejection. <br /></p><p>Identity and beliefs. Often people’s work, experience and life history coalesces to form a certain identity. If that identity is threatened, they will go to great lengths to protect it. That is why facts and data can stare people straight in the face yet people will discount them because they do not fit with their identity and/or beliefs. As a result, they make decisions to protect themselves, their identity and beliefs, but which hurt the company.<br /></p><p>The risks associated with protecting social standing, irrelevance, identity and beliefs can be minimized by creating the proper incentives that will motivate the right behavior that gets people acting in the best interests of the company and not themselves. <br /></p><p>But people also have to take personal responsibility to always be learning new things and keeping up with what the market needs. Companies can help here through incentives that motivate people to keep learning and progressing forward. <span></span><br /></p>"
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}
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