A budding entrepreneur sent me a few questions the other day and I wanted to blog one of my answers up for you:
How do you decide when to pull the plug in one way or another?
This is a hard decision as well, with no obvious answer. I always tell people that the most important part of being an entrepreneur is know when to pivot. Every business plan is a little (or a lot) wrong and what you are doing that first two or three years is trying to figure out what dimension of wrongness you did. The hard part is that even when you are doing it right, it is usually quite hard, so the key moment for an entrepreneur is:
“I have been banging my head against this wall for a long time. One of two things is true at this point, either I should keep banging my head and the wall will crumble soon, or I should do something different and hope things get better.”
Einstein once said, “insanity is doing the same thing over and over and expecting different results.” Entrepreneurs must be insane because every entrepreneur will tell you that there comes a time when you have to keep pushing. So there you go: Do you keep pushing or do you pivot? Is this moment one of those moments? Is is incredibly hard to tell. People tell you to push and they tell you to pivot, but recognizing which of those you are supposed to do at any given point in time is incredibly hard.
I won’t try to fool you and tell you that the great entrepreneurs know the difference. My impression is that it is mostly luck.
You never really know.