There’s more to being an entrepreneur than passion. Of course, passion is essential in your entrepreneurial journey. But you can’t rule out logic. Even if you are passionate about your business, you have to balance it with logic. Otherwise, your business may not stand the test of time. In this article, I will share some tips to help new entrepreneurs balance passion and logic.
Entrepreneurs who run their business based on passion alone always make the wrong decision. That’s because you will always be emotional about your passion, but logic will help you balance it.
Here are some helpful tips to help new entrepreneurs balance passion and logic;
#1. Include Business Metrics in Your Plan
One of the tips to balance passion and logic is to include business metrics in your plan. You may be passionate about making people happy, ending world hunger, or improving the usability of your product, etc.
However, you need to project your ideas and business plan in product margins, volumes, and business growth. In addition to your passion, you need to quantify your objectives with measurements. That’s what will keep you on the path of success.
In reality, most entrepreneurs don’t understand their business metrics. I once asked an entrepreneur about his business cost of customer acquisition. He didn’t know.
If you don’t understand some of these basic metrics, it would be not easy to make great business decisions.
#2. Always Show the Ability to Push Forward
One of the best tips to help new entrepreneurs balance passion and logic is to always show the ability to push forward.
Regardless of how passionate you are, there will always be hurdles in your entrepreneurial journey. That’s the reality, and the earlier you accept it, the better for you.
A time will come when your effort will stall, and you will think you aren’t making progress. But you don’t have to give up. It’s part of the entrepreneurial experience.
Don’t allow emotions to get the better of you; strive to keep things moving even if you are having a bad time in business.
But if you don’t balance your passion and logic, you will become emotional when your business goes through hard times. And when this happens, you can’t make rational decisions.
#3. Demonstrate a Balance Between Instincts and Advice
It’s crucial to balance passion and logic, not just for your business growth. But also to attract angel investors to your startup.
So, as a way of attracting investors, you should demonstrate a balance between instincts and advice. That means you should be willing to follow outside guidance without ignoring your instincts.
It’s unwise and irrational to follow a strategy without also following your instincts. It won’t encourage learning and will affect the long-term survivability of your business.
Trust me, striking a balance between instincts and advice is one of the tips to help new entrepreneurs balance passion and logic. As your business progresses, they may be logical changes. And if you always ignore your instincts, you may not know when to implement the logical change your business needs along the line.
#4. Always Remember What You and Your Team Have to Offer
In the real sense, investors that invest in startups don’t do that because of your business results. Most startups don’t have any business results to show investors.
What every investor wants to see is that you have the right team working with you. So, always mention your skills related to the startup, your network in the niche, your past accomplishments, and more importantly, your experience.
And if it’s your first startup, highlight your leadership experience in the past. And how you were able to achieve milestones for companies or organizations you worked for in the past. Use the STAR (Situation, Task, Action, Result) approach to explain your leadership experience.
Smart investors would want to invest in your experience even if the startup doesn’t have any results to show. The key is in highlighting your value and that of your team.
#5. Pitch a Rational Plan for Expansion and Growth
One of the tips to help new entrepreneurs balance passion and logic is to pitch a rational plan for expansion and growth.
I have seen several businesses with great potential, but because their founders are still running them as passion, they aren’t reaching their full potential.
No matter how novel and promising a business idea seems, it won’t get to its full potential if you aren’t balancing passion with logic.
What most entrepreneurs fail to realize is that building a business is like running a marathon race. It’s not an event. it’s a constant race. You would need to speak with potential partners, employees, suppliers, and more importantly, design a business strategy.
But if you are running your business with passion, you may not think about all these. Instead, you would be more concerned about potential partners and employees whose passion aligns with yours. And this will affect your business in the long run.
#6. Prepare for Competitive Reactions and Your Responses
There’s one thing you can’t avoid in your entrepreneurial journey – competition. Trust me, the business world is brutal, and you must be proactive to stay competitive.
As you disrupt your niche with viable and amazing ideas, don’t expect your competitors to stand still and watch you take over. Always forecast their reactions to your strategy and plan on how to stay ahead of them.