When we talk about entrepreneurship, we often tend to mention the importance of innovation and unique approach that all startups must embrace in order to keep up with the fast-changing and demanding business world. Innovation by itself is essential for all new companies, which are trying not only to enter specific market, but to be impactful and dominant in their niche. As much as being innovative matters, only through innovation sustainable growth can’t be constantly achieved. It is important that small companies focus on execution and the development of their products as much as they focus on planning, strategizing and research.
“Success is a lousy teacher. It seduces us into thinking we cannot fail.” Bill Gates
There is one basic question, which many entrepreneurs often ask themselves after they succeed to develop effective product, and this question is: How to continue to innovate and explore new ideas (even new business models) and still manage to effectively run the company?Read also: The Importance of Pivoting in Entrepreneurship
Companies fail. We often say that failure is inevitable part of success, yet it is not a desired outcome after people put so much effort in their work. Failure is useful only if you learn from it. There are lots of examples of companies, which fail to achieve growth and overcome the obstacles that the time and the changes in the business world offer them. These failures can be prevailed if the management and the leadership of the businesses manage to achieve the perfect balance between two important components of success: exploration and exploitation.
Even experienced CEOs fail to overcome the inevitable changes that come along the way of achieving growth and expanding the companies that they run. When this is the case for people, who have years of experience as managers and team leaders, what is it to expect when it comes to entrepreneurs with no or little experience.
“The real, real solution to quality growth is figuring out the balance between two activities: exploration and exploitation.” Knut Haanaes
During his TED Talk, business strategist Knut Haanaes talks about the importance of achieving balance between exploration and exploitation, the two main elements of company growth, and talks about the ways this balance can be reached. Watch the full talk in the video below and feel free to leave your comments in the comment section.]]>