For entrepreneurs, a brilliant new business idea is like your first crush. You can’t stop thinking about it, you’re excited to tell all your friends, and you’re certain the love will last forever. “This could be the one!” you think. But after the initial novelty fades, you’re left with an imposing question: what next?
Before diving in too deep, the first step is to figure out what might go right versus what could go wrong. Excitement, enthusiasm, and energy are all normal responses, but they’re temporary emotions and can dangerously cloud your decision-making. Before you start a new business, first identify why it won’t work, not why it will.
WHAT MIGHT GO RIGHT?
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It’s easy to get carried away thinking about all the money you’re going to make, what model of Ferrari you’ll surely buy, and what you should name your first private island. That’s the fun part! And because it’s so exciting, it’s easy to get charged up about serving customers, creating community, and expanding opportunities. There’s nothing wrong with this line of thinking – it’s what motivates entrepreneurs to take risks and create innovation – but it’s also not actionable.
“With the right conditions, any business can be successful.”
But picking out only the positives is not just unhelpful; it’s foolish. The truth is, with the right conditions, any business can be successful. Most new entrepreneurs think, “Can I make money at this?” The short answer is almost always yes – any business can make money if perfectly executed. But ideal conditions rarely exist, especially for a first-time founder. Instead, to make meaningful progress, the success of your company should be more than circumstantial. And answering that question requires a more daring approach.
WHAT COULD GO WRONG?
Answering this question will probably cause you to squirm. If the solution were pleasant or straightforward, somebody would be doing it already. But confronting uncertainty and engaging discomfort are keys to successful entrepreneurship, and wrestling with them can help to prevent disaster.
Value is created by solving problems. Therefore, the first step to start a business is identifying what could go wrong and forcing yourself to address it directly. The more daunting the challenge and the more compelling your solution, the more valuable your idea.
Here are a few examples to spark meaningful reflection:
Why is nobody already doing this?
Do I have the skills to achieve this?
Do other people care as much as I do?
Is this something I enjoy?
Why do I want to do this?
This is not a comprehensive list, because every industry has its unique pitfalls. But the point is to avoid getting so caught up in the shallow excitement of a new business idea that you miss the hazards lurking just beneath the surface. It’s this depth of thought and willingness to think practically that separates outstanding founders from ordinary hobbyists.
Here’s the secret formula: figure out why it won’t work, not why it will. It may not sound romantic or create love at first sight, but will set an enduring foundation for any lasting relationship.
Adapted from Greg’s upcoming book, The Entrepreneur in You →