Always Han Blueprints #3: Navigating Growth and Learning from a $200,000 Lesson

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Lesson: My $200,000 lesson

In the journey of entrepreneurship, unexpected lessons often present themselves. My $200,000 lesson came during the tenure of the pool cleaning company. Originally, our ambitions were modest, guided by conservative and moderate assumptions. However, the business exceeded expectations, making $1 million in the first nine months. This initial success inflated my expectations, leading to decisions that would later prove costly. Unfortunately, the growth trajectory we experienced initially did not sustain in the second year.

Insight: The Dichotomy of Growth

The profound insight here is that any business has the potential to skyrocket, but a crucial consideration is your readiness for continued investment in that growth. Are you prepared to bear the consequences if the growth doesn't follow the expected trajectory? Reflecting on my experience, I realized that my risk propensity wasn't aligned with the hockey stick growth I unknowingly aspired to. Overinvesting, overbetting on a trajectory not in line with the original thesis, led to substantial financial consequences. In my case, it was absorbing capital expenditure for trucks and premature hiring.

A 20% month-over-month growth is commendable, but forecasting and planning for 100% growth proved to be impractical. The lack of solidification in my core values contributed to this misstep, necessitating a year of backtracking. This expensive lesson has ingrained in me the importance of a solid understanding of core vision and purpose, acting as a guide to avoid ventures unprepared for.

Action Item: Preparing for the Unexpected Growth

As entrepreneurs, it's crucial to consider scenarios where your business experiences exponential growth. What if your business 10x tomorrow? Understanding your value propositions, having clarity on your end goals, and determining what you're willing to invest versus retain are pivotal. Aligning your risk propensity with growth expectations ensures a more sustainable and calculated approach.

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