Let's imagine that we are tasked with chopping down a very large and imposing tree.
Attempting to do so, with a blunt axe, would not only be difficult, but futile.
We would expend infinite amounts of time and energy, in return for nothing but disappointment and failure.
Our interests would be better served, by getting back to first principles and coming up with a more efficient solution.
For example, we would achieve far more favourable results, in exchange for far less time and energy, if we were to sharpen our axe, before starting to swing it.
Likewise, we would improve the process, by at least one order of magnitude, if we were to use a mechanised chainsaw, instead of an axe, regardless of how much we sharpen the blade.
These same principles can and should be applied, to our business and wealth building efforts.
As Josh Kaufman outlines in The Personal MBA, every business is a collection of five interdependent processes, each of which flows into the next:
Attempting to do so, with a blunt axe, would not only be difficult, but futile.
We would expend infinite amounts of time and energy, in return for nothing but disappointment and failure.
Our interests would be better served, by getting back to first principles and coming up with a more efficient solution.
For example, we would achieve far more favourable results, in exchange for far less time and energy, if we were to sharpen our axe, before starting to swing it.
Likewise, we would improve the process, by at least one order of magnitude, if we were to use a mechanised chainsaw, instead of an axe, regardless of how much we sharpen the blade.
These same principles can and should be applied, to our business and wealth building efforts.
As Josh Kaufman outlines in The Personal MBA, every business is a collection of five interdependent processes, each of which flows into the next:
- Value Creation - discovering what people want or need, then creating it
- Marketing - attracting attention and building demand for what you've created
- Sales - turning prospective customers into paying customers
- Value Delivery - giving your customers what you've promised and ensuring that they're satisfied
- Finance - bringing in enough money to keep going and make your effort worthwhile
As business owners and entrepreneurs, we have to ensure that all 5 of these balls are juggled simultaneously and in perfect harmony.
I like to think of this, as independent musicians on a concert hall stage. If left to their own devices, the audience will be subjected to the most ear-splitting racket. If effectively conducted, such that they play in concert with one another, the audience will delight in the magic of a symphony, which has been perfectly arranged.
Now I don't know about you, but even if my life depended on it, I couldn't simultaneously juggle 3 balls. Forget about 5. Likewise, I couldn't simultaneously hit the right notes, at the right time, across 5 different instruments.
I'm all for supporting entrepreneurs and small business owners. After all, they are the life blood of our great nation.
That being said, I cannot, in all good conscience, endorse the efforts of entrepreneurs, who have chosen to engage themselves in a fight, which they simply cannot win.
There is simply no sense or honour, in attempting to juggle too many balls and, in doing so, wasting months or years of your life, in conjunction with countless thousands of pounds, only to be confronted with failure and dejection.
I'm privileged to have been part of some great teams in my life. Indeed, I am currently engaged with the most high performance team, which I have ever had the good fortune to be part of.
Likewise, I am guilty of having wasted countless thousands, and many years, as a miss-guided lone ranger, in the entrepreneurial wilderness.
If you find yourself in this barren wasteland, either now or in the future, I would encourage you to pause, take stock of your situation and consider carefully, whether you are engaged in a futile enterprise.
It is far better to become an expert, in a clearly defined niche and collaborate with one or many trusted individuals, who bring complementary skills and experience to the table, than it is, to expend all your energy and resources, producing noise, rather than music.
With all this having been said, I would encourage you to take a step back.
Set your blunt axe aside.
Fire up your power tools.
10X your return on energy and let the good times roll.