Why Are You An Exception?

Know More: Entrepreneur Mistakes

I love working on business plans with aspiring and serial entrepreneurs. The enthusiasm and creativity they have is invigorating. I enjoy my role as the one who helps point out inconsistencies or minor mistakes. I like to help them make the plan better. There are always differences in style but I think that is useful. If all BPs looked the same, they would get very boring very quickly.

I don't always enjoy the role of pointing out big errors or mistakes. At times, the error is just a miscalculation or missing explanation. Those are easy. It is the times where reason has left the discussion that I find most difficult. When a person does not understand that a population of 200,000 people will not all run to a store the day it opens, or that everyone will not buy a product simply because it is obvious to the inventor that the product is superior.

How do you tell someone their baby is ugly?

Why do some people think that they will be the exception to the rules? I hope they are the exception, but it seems better to plan for things to proceed in a normal or worse than normal manner. I try using a financial argument. Trying to get them to see the math does not work. I try to reason with them - you cannot work 100 hours a week for 5 year and expect everyone else to as well. Why would someone loan you $3 million at 0% interest just because they will be able to get their money back?

Just once, I would like for someone to provide me with an acceptable reason as to why they, when no one else is, will they be the exception to the rules or norm?

Roger,

I have never met an exception to the rule when it comes to money. However, today we are reading about those exceptions. They are the lenders bleeding red ink for conducting lousy business practices regarding loans.

Posted by: Lewis Green | March 25, 2008 1:01 PM | Permalink to Comment

Lewis,
Thanks for your comment. You extended the concept which is good. I think we are all guilty of trying to be the exception if we look around at our spending, eating, or exercise habits.

Posted by: Roger Anderson | March 25, 2008 3:32 PM | Permalink to Comment

Hi Roger:

If a baby is ugly, then I'm all for saying it's ugly. I've never backed away from that, because if you end up being wrong, it does no harm -- people get over the initial shock and respect you for intellectual honesty and will make a better case for why their baby is really beautiful, which actually helps them. You can always apologize for not understanding later.

But not saying a baby is ugly when it is can be very hurtful. Those companies or business plans or products won't go anywhere if they rely on false assumptions. There are some things that are exceptional, but the reason they are is because they're rare (by definition), and I think we mostly recognize them right away -- if you don't have that tingle, or a feeling of resonance, you know it isn't.

You're reference to exceptional is different though. I think you really mean "No one defies reality". Not so much exceptionalism as illogical, magical, mystical and possibly surreal. Of course, none of those things has a place in a business plan.

Don't you find that the entrepreneurs who are destined to succeed welcome this perspective ("your baby is ugly") and want to hear everything you have to say? I find it an excellent predictor, and perhaps the reason is they are truly in touch with their markets, understanding deeply what the unmet or underserved needs are, and are constantly on the lookout for new information and changing conditions.

Posted by: Paul | October 6, 2008 7:46 AM | Permalink to Comment

Every Company Needs a Good Map

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