[ad_1]
Opinions expressed by Entrepreneur contributors are their own.
There are different powerful reasons why the concept of "black sheep" exists, one of such reasons is never to follow the herd.
I was conversing with a valued client when the client made a valid suggestion about how over-discussed the inevitability of herd behavior was. This was a valid point, as herd behavior is always going to be a part of our reality. However, the aim is to be conscious enough of this syndrome that we can steer clear of it during critical moments. One of the best ways to achieve this is to always have a balanced strategy in making financial and strategic commitments. To shed more light on the importance of having a balanced consciousness, let's examine the story of a seasoned professional and how his supposed unique behavior became a weakness.
Understanding the herd mentality and maintaining a balanced business strategy
The herd mentality is found in every area of our day-to-day activities as humans. But as an entrepreneur, you can't afford to blindly follow trends or rush into saturated markets without a clear plan. You might argue that copying what has been proven effective by others is a sure and safe way to get into the market, but you also deny yourself opportunities for innovation.
Having said that, this doesn't mean you should throw all caution to the wind and deliberately go against general or common ideas. The trick is maintaining a balanced business strategy. Perhaps one of the biggest stories that teach this moral is the story of George Soros, an investor who made a name for himself by making bold, high-stakes stands against popular opinion. In the unforgettable 1987 bull market, he predicted an immediate market downturn on the Nikkei and a more lasting growth of the S&P 500; he positioned his stock accordingly. Unfortunately, the opposite was the case and Soro's bold position against the herd had inherently become a catastrophe for his entire business operations.
The story of Soros is a critical illustration for business leaders; failing to strike a balance between reason and strategy is enough to cause downfall.
Related: Your Value Soars When You Separate From the Herd
5 reasons entrepreneurs shouldn't blindly follow the herd
1. Authenticity matters
The biggest danger of following the herd is that you begin to lose touch with yourself and everything that makes you unique. By conforming to general expectations, your values, beliefs and passions begin to take the back seat in your life and decisions. The truth remains that only by honoring your individuality can you get personal satisfaction and build genuine relationships.
Personal example: Being passionate about sports, I invested in a new sports management business despite having limited sports industry experience. The experience had many ups and downs with an eventual successful exit 10 years later.
2. Creative freedom
Herd mentality is one of the greatest barriers to creativity and innovation. It's difficult to get new ideas when you're following the conventional path. But by stepping away from the crowd, you can explore new ideas.
Personal example: Against my financial advisor's advice, I went into business collaboration in the art industry. It turned out to be one of my best decisions, one I wouldn't have made if I had stuck with the conventional.
3. Critical thinking
Following trends or being part of the herd denies you the opportunity to enhance your critical thinking skills. By exploring your independence, you're able to sharpen your mind and make informed choices after careful analysis of whatever situation you find yourself in. In the long run, you're able to make intentional choices that align with your goals.
Personal example: I have been able to examine and realize the best things for me, now I prioritize the well-being of my mind, body and spirit through practices like meditation and Qi Gong.
Related: Hustle Culture Is Killing Your Greatness
4. Personal growth
Another benefit of stepping away from the herd is that you become more self-aware of your personal growth. Because you're not doing the conventional, you are forced to face your fears and test your limits. These experiences teach the importance of being authentic even when facing challenges and are crucial in shaping the kind of person and entrepreneur you become.
5. Unique path to success
One of the truths you're going to have to come to terms with very quickly if you're to be successful is the fact that success does not have a universal definition; it varies for each person. You need to cut yourself from the outside noise and carve out something unique that aligns with your passion and strengths. In simple terms, you need to define success in your own terms.
Way forward for entrepreneurs
- Prioritize risk management and diversification. Soros failed to manage his risk and this led to his downfall. Always be strategic and never over-commit to a single strategy.
- Work on your emotional intelligence. An emotionally intelligent business leader can understand when external factors are influencing decision-making. This leads to a more intentional and rational choice.
- Recognize you have cognitive biases and that they can distort decision-making. A deep understanding of these potential biases can help reduce their influence.
- Nurture and embrace adaptive strategies that make it possible for you to adjust and pivot accordingly in the dynamic business environment.
Related: New Entrepreneurs and Seasoned Pros Won't Succeed Unless They Hone This One Skill
Final thoughts
The idea of dissociating yourself from the herd is not just an abstract elitist principle but is the smart way to live a purposeful and authentic life. Doing what everyone else is doing is usually a very convenient and easy way to get something done, but if not done strategically, this method can easily go against you. As a business leader and entrepreneur, you need to be conscious and analytical enough to know when an advantage can become a disadvantage.
The only true way forward is to balance risks by being critical and adaptable. And this is what sets exceptional leaders apart from the rest. They can take a step back to critically analyze and evolve depending on the situation they find themselves. By embracing these qualities, you're one step closer to your greatest achievements.
0 Comments