Navigating the decision between sticking to your original plan or shifting gears can determine whether a startup succeeds or fails. Unfortunately, many startups don’t make it past their first year. As someone who launched a media agency called Bonsai in 2009 after the recession, I can tell you it wasn’t easy. I saw job opportunities but believed I could create something better on my own. While there isn’t a surefire formula for startup success, there are a few things founders should keep in mind when planning their next steps.
Sticking with something can be as important as knowing when to change it. One prominent TV entrepreneur once suggested that success is just a mix of analysis, capital, and execution, but that perspective overlooks the need for passion in the face of doubt. As I grew my startup to over a million dollars in revenue, I saw different challenges at every stage. Initially, growth seems straightforward as you’re starting from zero, but as you expand, it’s harder to scale. Having a solid strategy from the beginning helps, including hiring the right people, setting up operations, and planning for taxes and legal issues.
Despite friends and family advising me to quit and join a major tech firm, I stayed true to my business, Bonsai, because it was my dream, not theirs. Sometimes you have to persevere when others throw in the towel, as success might be just around the corner. However, persisting in a failing direction can also lead to problems. Deciding whether to stick to a plan or make a change isn’t always easy.
Knowing when to adapt is crucial too. Back in 2013-14, I developed an app to assist high school students with college applications and even secured a partnership with a school district. However, a trademark dispute occurred, causing internal conflict and a significant revenue drop. This experience taught me that cutting my own salary and moving into the office wasn’t the right choice. It led to health problems and stress. I realized creating a supportive environment was essential, whether through enjoying small pleasures or spending time with family. Eventually, I had to make the tough decision to pivot from that business.
Having regular check-ins with yourself and your team helps you assess whether it’s time to stay the course or change direction. Set long-term goals for up to 15 years, and then break them down to quarterly or three-month targets. If you’re not hitting your milestones, it might be time to reconsider your approach. Learning from the experiences of others is invaluable too. Peers and networks like EO and Vistage allow for meaningful discussions where you can gain insights from others’ journeys.
Balancing perseverance and flexibility is crucial. Sometimes sticking to your vision is the way forward, but being open to change can also bring new opportunities if what’s currently in place isn’t working. Fostering an adaptable mindset and engaging with others can help shape your decision-making process.
People become entrepreneurs for many reasons: control over their work-life balance, the desire to solve a problem, or the drive to achieve something significant. Whatever your motivation, you need an environment that supports your goals, including self-care and openness to change. Remember why you started. For me, creating Social Bee wasn’t just about financial success; it was about making a positive impact, which is why I invested heavily in it.
Having clear goals and a strong sense of purpose guides you through entrepreneurship’s ups and downs. Even if making money is your primary goal, keeping sight of your broader impact is critical. Often, the distinction between failure and success in a startup lies in how well you balance perseverance with the need to pivot when necessary.
Jason LaBaw is the Founder and CEO of Social Bee, an augmented reality travel app. He’s an experienced entrepreneur with a background in digital marketing, previously running Bonsai Media Group and working with major brands.
