Entrepreneurship: The poles and pitfalls
Entrepreneurship is sometimes described as the process of turning ideas into successful businesses. It’s more than just starting a company; it’s about solving problems, creating value and taking calculated risks.
Entrepreneurs take their ideas, test them and figure out ways to make them work in the real world.
However, entrepreneurship is rarely a straight path. Entrepreneurs face numerous challenges and difficult decisions along the way. In the book “Entrepreneurship: The Four-Gate Model” (by Josiah Go, Chiqui Escareal-Go and Calel Gosingtian), these challenges are broken down into four key stages or “gates”—preparation, marketing, execution and self-leadership. At each gate, entrepreneurs face shared tensions, pitfalls and solutions.
Tensions include the poles between perfectionism and impulsiveness, overpromising and undercommunicating, micromanagement and neglect and self-criticism versus complacency. Pitfalls include the pace paradox, credibility erosion, control trap and burnout spiral. Solutions include action-oriented validation, authentic communication, trust-based leadership and a continuous growth mindset.
1. Preparation: Avoiding perfectionism and impulsiveness
In the preparation stage, entrepreneurs often struggle with perfectionism (wanting everything to be perfect before taking action) or impulsiveness (rushing into the market without testing ideas). Too much perfectionism can delay progress, while impulsiveness can lead to costly mistakes.
Perfectionism often stems from the fear of failure. Entrepreneurs may want to be absolutely sure that their offer and supporting operations are perfect before launching. However, spending too much time perfecting it can result in missed opportunities, stagnation and a failure to respond to market changes or customer feedback. On the other hand, impulsiveness comes from the desire to move quickly. Entrepreneurs might feel the pressure to meet self-imposed deadlines, outpace competitors or seize opportunities, but rushing without proper research and validation can lead to overlooked details and potential mistakes.
Pitfalls to avoid include the pace paradox, where entrepreneurs oscillate between rushing to make decisions and delaying action due to overthinking or fear of failure. Solutions to overcome these pitfalls include action-oriented validation, which involves setting a clear timeline for research and validation, and quickly testing their key assumptions to ensure that the value proposition is desirable and that the business model is viable before committing to full-scale production and funding.
2. Marketing: Avoiding overpromising and undercommunicating
Once entrepreneurs have a desirable product or service, marketing becomes key. Entrepreneurs face the tension between overpromising (exaggerating the benefits) and undercommunicating (not promoting it enough). The right focus helps build trust while attracting customers.
Overpromising happens when entrepreneurs are passionate but exaggerate features to attract attention. Undercommunicating occurs when entrepreneurs are insecure or unsure about their product, causing them to not promote it enough.
Pitfalls to avoid include credibility erosion, which occurs through misleading advertisements that undermine credibility and a failure to communicate clearly with the target audience. Solutions to overcome these pitfalls include authentic communication, which focuses on being transparent about product value, leveraging real customer feedback and adapting marketing messages based on customer responses. By committing to ethical marketing practices, entrepreneurs not only protect their reputation but also foster repeat purchase and long-term customer loyalty, ensuring that their brand remains credible and trustworthy in the eyes of their target audience.
3. Execution: Avoiding micromanagement vs. neglect dilemma
When it’s time to execute, entrepreneurs often face the challenge of micromanaging (controlling every detail) versus neglecting (overlooking critical tasks). Finding a balance ensures that the business runs smoothly without causing burnout, waste, or missed opportunities.
Micromanagement happens when entrepreneurs don’t trust their team and try to control everything, which can cause stress and stifle creativity. Neglect occurs when entrepreneurs become overwhelmed and ignore critical details, leading to mistakes.
This stage is also where team dynamics come into play. Entrepreneurs must foster a collaborative environment, resolving conflicts quickly and promoting healthy communication among team members. Failing to address conflicts or team issues can cause long-term damage to morale, productivity and relationships.
Pitfalls to avoid include the control trap, where micromanagement leads to diminished team morale and critical tasks are overlooked. Solutions to overcome these pitfalls include trust-based leadership, which emphasizes building a strong, reliable team, granting them autonomy, regularly checking in and using project management tools to maintain focus without resorting to micromanagement.
4. Self-leadership: Avoiding self-criticism and complacency
The final stage, self-leadership, is about managing your mindset. Entrepreneurs often struggle with self-criticism (being too hard on themselves) or complacency (becoming too comfortable after early successes). It’s important to find a balance between pushing for growth and celebrating achievements.
Self-criticism can stem from high expectations and a fear of failure, leading to burnout. Complacency happens when entrepreneurs stop pushing forward after achieving some success.
Pitfalls to avoid include the burnout spiral, which results from constant self-critique and the risk of becoming complacent after achieving initial successes. Solutions to overcome these pitfalls include adopting a continuous growth mindset, which involves setting personal growth goals, seeking regular feedback from peers and celebrating small wins while always looking for opportunities to improve.
Entrepreneurship is not just about launching a business; it’s about constantly navigating these challenges. By understanding these tensions and applying solutions, entrepreneurs can better manage their journey, making decisions that lead to long-term success.
Regularly check in with yourself to see if you’re balanced and focused. Are you moving too fast or too slow? Are you pushing yourself enough or overdoing it? Take time to reflect, evaluate and redirect. Surround yourself with people who can give you honest, unfiltered advice and help you navigate challenges.
As entrepreneurs grow their businesses, ethical decision-making becomes critical. They must ensure their decisions align with their values and contribute to long-term sustainability. Ethical dilemmas can arise at various stages, and choosing the right path often requires considering not just short-term gains but the broader impact on stakeholders, such as customers, employees, owners and others—sometimes summarized as “CEO.”
******
Josiah Go is chair and chief innovation strategist at Mansmith and Fielders Inc. He coauthored with Chiqui Escareal-Go and Calel Gosingtian the book “Entrepreneurship: The Four-Gate Model,” officially endorsed by Go Negosyo and JCI Manila, which will be launched on Oct. 11, 6 p.m. at the mid-level east wing of Shangri-La Mall, Mandaluyong. The event is open to the public.
