Are you a juggler? Or do you like to focus on one thing at a time? This is the classic conundrum for an entrepreneur. True confession. My personality is such that I could become easily bored if forced to focus on only one thing. I flourish when I am juggling 67 balls and trying to keep every single one of them in the air. There are times when juggling is not only useful but necessary. And there are times when intense focus is mandatory. Mind you, I can focus like a laser when I absolutely must. But I do not really like to do this day-in and day-out.
In the start-up world, venture capitalists often advise entrepreneurial founders to focus on a single product or service. This is generally sound advice. Too often, founders “flit” all over the place with a million ideas and are masters of none. I understand this. At the earliest stages of the corporate lifecycle, we are searching to find the right product; the right features; and the right market. As a result, we may tend to cast a wide net over many products, many features, and many markets, looking for the right combination in the process. And so, the juggling act begins.
There is a fine line between juggling to fine-tune a product or service and juggling a panoply of unrelated ideas that we think are opportunities. One of our business units is focused on acquiring market-rate apartment properties across the country. This product set has been painstakingly refined and our team is very disciplined within the parameters that have been established. This strategy calls for purchasing properties of 200 to 600-units, built in the 1980s to 2000s, and located in larger markets in the Midwest, Southeast and Southwest. I am very supportive of this approach. A couple years ago I suggested that we purchase some smaller properties in the same markets for a different group of investors wishing to write smaller equity checks. Fortunately, our team knows my proclivities and accommodated my suggestion. I think they would prefer to maintain their focus on the larger properties. But they understand that this second product set provides some diversification as well as some operating efficiencies. Needless to say, this additional strategy has caused a certain amount of juggling to accomplish.
Many of the great companies have started with a single product. Amazon sold only books in the early days. One could order hard copy books and eventually digital books that could be read on Amazon’s e-reader, the Kindle. It was years before Amazon began juggling in the sale of other products. Apple did the same thing with a personal computer. Again, it was years before they started selling MP3 players, phones, and other electronic devices. Somewhere along the line these companies had to begin juggling in a more robust manner. What was the inflection point? If you are an entrepreneur, have you found the inflection point where juggling more opportunities is appropriate and perhaps even necessary?
Working within a team structure is critical to discovering the right time to begin juggling more and more opportunities. Debating and discussing a multitude of ideas is healthy and will lead to the right decision. One thing I appreciate about our team is the fact that while willing to juggle, they will say “no” to opportunities they do not believe are productive. They test each idea and opportunity against our corporate vision and mission. This is the most important factor of all. Earlier in my career I grabbed at everything. That was before our vision and mission was clear. It is much easier now to juggle while still remaining focused when understanding which opportunities are truly a fit.
As entrepreneurs we are destined to juggle. But we must know when to be singularly focused and when to look at many ideas and opportunities. Using a team approach to make these decisions and testing each idea and opportunity against the corporate vision and mission is the ticket to success.
This blog is being written in tandem with my book, “An Entrepreneur’s Words to Live By,” available on Amazon.com in paperback and Kindle (My Book), as well as being available in all of the other major eBook formats.