Stubborn and Stupid or Strong-willed and Visionary

I have been working with entrepreneurs for most of my life and have, for the past twenty years, been an entrepreneur myself. Over this time have learned to appreciate that entrepreneurship is both art and science. The successful ones have managed to balance these two - well enough - for long enough.

One question still eludes me, however, and I suspect will continue to do so for years to come. Given the fact that an entrepreneur is making ongoing losses, and given the fact that there is no positive trajectory in the business, how do you know if he should give up or not? How do you know if he is being plainly stubborn and stupid, or strong-willed and visionary?

Too often, I have seen businesses that are on their knees - no hope in sight - with an entrepreneur that is not prepared to face reality. The accountants have told her that she is technically insolvent and that it is unwise to keep her business open for even another day and yet she smiles, acknowledges their reality and carries on regardless. Six months later, much to everyone’s surprise, except her, her business is flourishing.

Other times I’ve seen businesses hover above and below the profit line, month after month, year after year. It’s a little cruel, I think, because every time the entrepreneur is considering giving up he, miraculously, produces a profitable month. Of course, there is never the commensurate cashflow to ease the pain, that is, unfortunately, always in catch-up mode. And then one of two things happen: either the entrepreneur finally gets so exhausted that he gives up, or he wins that one catalytic deal that launches the business.

In analysing the ones that made it, there seems to be a common conscious or unconscious process that took place. There was the ability to read feedback from the market and subtly adapt the strategy accordingly. The changes were subtle and, often, a constant re-calibration to the new information. To the outsider’s eye there seemed to be no change in strategy, but to the entrepreneur these shifts were vital to finding the right formula.

So now I don’t try to answer the question as to whether the entrepreneur is stupid or visionary. I try to assess whether they have the ability to read feedback and take quick and subtle action. And, if they can, I encourage them to keep on fighting until it’s their time to shine.

This Week’s Challenge

Read feedback; make subtle change