It Is About Rapid Cycles of Transformation

by Jay Deragon on 03/23/2012

Rapid transformation is fueling the entrepreneurial economy. Small start ups wishing to become big. They are forming at rapid rates but only the few make it big because they pursue rapid transformation cycles.

Ever wonder what the difference is between those that make it big and those that don’t. Besides having a unique product or service there is indeed a process that sets the winners apart from the losers. The winners defy conventional wisdom about starting a business and raising money. Business plans aren’t the winning formula because in today’s marketplace plans change at rapid rates. By the time you write the plan market dynamics change, technology changes and you lost the most important element of a plan, time.

It Is About Cycles of Transformation

In Just Start!, a new book Schlesinger coauthored, he looks at how serial entrepreneurs who built businesses with revenues ranging from $200 million to the billions—actually behaved when starting a business. And, contrary to the popular image of entrepreneurs as swashbucklers who routinely take crazy risks, many turned out to be pretty careful and analytical. “What surprised me, quite honestly, is the fundamental difference between the myths we structure for entrepreneurs and the reality,” he says.

The first thing serial entrepreneurs do when starting a business, the authors found, is to take a small, “smart step” toward something they desire to achieve. Next, they stop and reflect on what that action accomplished. Finally, they decide if they still want to move forward, given what they have deemed to be their “acceptable loss”—or, as Schlesinger put it recently— “how excited you are about an idea against what you have in time and money.” With each step they take, they go through the process again until they either bail out, shift in another direction or succeed. Of course, they act quickly. Moseying through the steps doesn’t work in a fast-paced, global economy. via The “Small Steps” It Takes to Build a Multibillion Dollar Business – Forbes.

The driving force of entrepreneurial success in today’s marketplace is rapid adjustments to market responses. Adjustments in the design, delivery and message behind your product or service. The same holds true even for old line businesses well established but facing changing dynamics within their niche.

The critical talent required to win is the ability to assimilate meaningful market data, customer intentions and technological advancements that enable an organtion to change at the click of a mouse. Big and slow is being replaced by small and fast.

The new game is about rapid cycles of transformation. If you don’t understand what that means you lose.

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