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Finding Success in an Unplanned Direction

A few months ago, I wrote a post on how commanders and explorers differ in both how they navigate and how they process information. A commander sets out with a clear goal in mind; every piece of information that comes in along the way is evaluated as to how it affects reaching that goal. An explorer may set out with an initial goal in mind but is open to changing that goal if a more interesting option opens up in a different direction. And a successful entrepreneur has to be a little of both—able to drive an organization toward a specific goal, but still able to pivot and change direction if a more favorable wind or opportunity unexpectedly presents itself.
In another post, venture capitalist Randy Komisar (a partner at Kleiner Perkins Caufield and Byer) argued that many entrepreneurs deemed “successful” at their ventures had started out with a different product, or business model, that hadn’t worked out. But they were counted as “successes” because they’d been aware enough, and nimble enough, to switch gears and adjust to a related but better opportunity or plan. (His comments were in answer to whether or not entrepreneurs learned from their failures.)  
Jeff Ready of Scale Computing would no doubt agree. In a recent New York Times profile Ready talked about how he and his partners had started the company (then called Volt Capital) to use anti-spam software they’d developed to make stock market forecasts. The need for data storage in that system led them to develop a grid-computer system that was impressive. Granted, it heated up the garage they’d built it in to 120 degrees, so they had to bring in huge, noisy fans to keep the system running. It was clunkier than similar-capacity systems on the market, but it was a lot cheaper, which was the point. The partners built their own storage system simply because they couldn’t afford the $1 million systems on the market. Their garage model had similar capacity, but cost only $60,000.
Unfortunately, they couldn’t get enough business to sustain the company doing trades. So they shelved the idea and started pitching new software ideas. Nobody bought. But people were interested in was this low-cost storage system they’d developed. Eventually, the partners realized that success was right in front of them—just in a different direction than the “sexier” paths they’d been pursuing.
Selling data storage units might not be as exciting to talk about at a cocktail party as computerized high finance trades, but Ready is projecting ales of $2 million this year and $8 million next year.
That doesn’t guarantee long-term success, of course, but there’s still a lesson worth noting in the story. Pilots learn early on that peripheral vision is one of our strongest alert systems. We sense movement far more clearly at our sides than we do straight ahead. And keeping alert to that movement, and staying flexible enough to respond to it, is every bit as important as keeping our eyes on the horizon straight in front of us.
As with pilots, so with entrepreneurs. Or so it seems. Just one more piece of evidence on a point worth keeping in mind.

{ 2 comments… add one }
  • david foster October 16, 2009, 5:19 pm

    A good example here (the Ardent story)
    http://steveblank.com/

  • Steven December 15, 2009, 10:49 pm

    I enjoyed this post. It sounds like you’re also talking about balance.
    A small typo: “but Ready is projecting [ales] of $2 million this year and $8 million next year.”

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