Murder

First Draft | Sixth Chapter from: The Book of Principled Entrepreneurship

The way we treat each other, as exemplified by the commandment “Do not murder,” is fundamental to building a just and moral society. It's crucial to understand this commandment properly—not only for interpreting the Bible but also for promoting justice in our world. This begins with recognizing the distinction between murder and killing.

I want to begin by emphasizing that while it’s natural for a business to reach the end of its life, it should never be deliberately destroyed.

What do I mean by this? Human nature often inclines us toward self-sabotage, and entrepreneurship is no exception—especially when things don’t go as planned.

Life is tough, and entrepreneurial leadership is even tougher. But with grace comes wisdom, and wisdom requires an unwavering commitment to our principles—such as remaining a humble leader, a steadfast protector, and a generous provider.

The challenges of entrepreneurial leadership never truly end—unless, like in life itself, you choose to give up.

Pro Forma?

That being said, recognizing a business’s natural end often begins before it even starts. I’ve lost count of how many first-time entrepreneurs have approached me after depleting their own resources—before ever generating revenue— seeking private investment.

The pattern is always the same: they had a big vision and limited capital to spend but struggled to transition from a consumer (the fun part) to seller (the hard part) mindset, a challenge I call the "Corner Store Effect."

The "Corner Store Effect" metaphorically occurs when a first-time entrepreneur decorates their business to suit their own aesthetics rather than maintaining a sharp focus on the needs of their future customers.

Sometimes, the best products and services don’t require a fresh coat of paint or elaborate decor, if that makes sense.

That’s not to say you can’t personalize your space once you’re profitable; just remember not to let decoration take precedence over what truly matters in the beginning.

One simple rule of thumb to avoid this pitfall, it’s essential to determine how many services or products you need to sell just to cover your salary goal before moving forward.

Again, I have lost count on how many first-time entrepreneurs have approached me after investing their families' life savings into their micro-business or startup, only to discover they’re receiving zero real compensation for their daily efforts due to a lack of financial acumen.

I often feel that one of the most valuable services economic developers in our communities could offer—something I haven't seen yet—is a program that provides anyone considering renting commercial space or hiring locals with a redeemable coupon from the city manager's office. This coupon would allow first-time entrepreneurs to present it to a consultant or accountant, redeemable by the city, to create a usable Pro Forma Income Statement, Balance Sheet, and Cash Flow Statement for the founder. The first step would be to outline a clear path to achieving their desired salary, detailing how many tasks they need to manage simultaneously and the products and services they would need to sell annually to make it all work.

Founderitis

In 2015, I wrote an article for a business magazine about a phenomenon known as "founderitis." Founderitis happens when someone appoints themselves as the entrepreneurial founder but lacks the essential emotional intelligence (EQ) competencies needed to effectively lead in that role.

These competencies include emotional self-awareness, emotional self-control, adaptability, achievement orientation, positive outlook, empathy, organizational awareness, influence, coachability, conflict management, teamwork, and inspirational leadership.

Founderitis, in its other form referred to as leadershipitis, is commonly seen in both private and public leadership. However, there is usually a much lower sense of urgency to address it, as leaders in political or corporate executive roles are responsible but not accountable, as I mentioned earlier.

This often results in a situation influenced by the Peter Principle, where incompetence goes unaddressed, and the truth is easily overlooked, especially when some leaders are oblivious to the fact that they have been placed in their positions through nefarious influences.

Similar to public and corporate leaders, entrepreneurial founders often have a high intelligence quotient (IQ) and believe they can lead effectively based solely on that intelligence and their own hubris—until they realize that no one of substance is following them.

Fast forward a decade, and there’s truly no excuse for not addressing founderitis once you recognize it within yourself, especially given the wealth of low-cost knowledge and various tools for continuous self-improvement at our disposal, as we transition from entrepreneurship to principled entrepreneurship, and internalize the significant difference between the two.

Fortified with both the knowledge and tools of financial modeling through your personal pro forma—instilling a newfound sense of urgency in your efforts—and your commitment to principled entrepreneurship, the next step is to embrace a fundamental truth: anyone, truly anyone, can start a business and go from zero to one, yet many never progress beyond that point.

While many can successfully manage an established business beyond any number above two, they often struggle to lead a startup from one to two—despite their education, credentials, and access to vast resources online and through business schools—due to a left-hemisphere-dominant mindset that, in most cases, falls victim to the Peter Principle.

This challenge is further obscured by a societal structure that equates power and wealth with the prestige of higher education, making it difficult to recognize the creative and pattern recognition limitations that come with a left hemisphere dominant mindset.

Moving a startup from one to two is a completely different challenge—one that is nearly unattainable without a dominant right-hemisphere mindset. This is why left-hemisphere-dominant thinkers, despite their impressive titles and credentials, often struggle to cross this critical chasm alone unless extremely well funded.

Instead, they gravitate toward executive roles centered on responsibility rather than the accountability-driven path of a principled entrepreneurial founder.

The journey from one to two—crossing the chasm—is reserved for entrepreneurial founders with a dominant right-hemisphere mindset, especially when bootstrapping from zero to two—and ideally, for those committed to principled entrepreneurship.

With a dominant right-hemisphere mindset, perseverance, and an "earn and learn" approach to your acumen and craft, you can ultimately master the path of a serial principled entrepreneurial founder and respected community leader.

By committing to a life of service, you unlock your full potential with confidence. And in doing so, you’ll embrace the second fundamental truth: A students with left-hemisphere-dominant mindsets work for C students with right-hemisphere-dominant mindsets. Within this dynamic, the perfect co-founder emerges repeatedly on both sides—a pattern that becomes unmistakable once you learn to recognize it.

Note:This is also why, when public investments are at stake, I advocate for the introduction of Chief Entrepreneurs within publicly funded institutions. This ensures that innovation and economic development are guided by right-hemisphere-dominant leaders, rather than being overwhelmingly shaped by left-hemisphere-dominant mindsets.?

So what do I mean by zero, one, two and beyond??

Zero to One

To move from zero to one, simply follow these clear DIY steps in order:

1. Decide on the products or services you want to offer.

2. Draft your for profit social enterprise business model canvas, value proposition, and pro forma financial statements.

3. Register your legal business name with the appropriate government agency.

4. Purchase a URL for your online presence and direct it to your web server.

5. Set up your email addresses.

6. Design your user experience and user interface.

7. Create graphics for your brand.

8. Optimize and automate your digital processes.

9. Engage in digital marketing efforts.

10. Implement search engine optimization (SEO) and search engine marketing (SEM).

11. Utilize social media platforms to reach your audience.

12. Enhance your Google My Business profile for better visibility.

13. Launch targeted advertising campaigns to attract customers.

14. Create and submit your incorporation agreement and articles to the relevant government agency.

15. Open a business bank account, ideally with a line of credit and a business credit card.

16. Establish key functions such as marketing, business development, revenue, operations, human resources, people operations, financial tracking, legal compliance, and standard operating procedures, along with go-to-market playbooks.?

17. Develop your product and service offerings and start testing your go-to-market strategy, continually seeking opportunities for improvement through customer feedback as far upstream as possible.

18. Implement a customer relationship management system to track customer interactions and feedback.

19. Develop and execute growth strategies, including transitioning out of the CEO role as quickly as possible. Recognize that, despite feeling the need to be the CEO as the founder, this may not align with your strengths. In fact, many founders would prefer to take on roles as CTOs or CMOs if given the choice.

20. Alternatively, you can outsource some or all of the process.

Note: contact me at [email protected]. if you want to co-think about any of the above in your own situation as I am happy to be of service.

For some, their ultimate goal is to become a serial principled entrepreneurial founder—an aspiration we hope you achieve with a sense of urgency—while prioritizing continuous improvement and mastering authentic leadership.

The serial journey involves embracing the role of a principled entrepreneurial founder who also values flat hierarchies, employee ownership trusts, venture philanthropy, and a commitment to serving others in their family, business, and community.

Above all, maintain an unwavering commitment to avoid harming the business when challenges become overwhelming or difficult.

One to Two?

Both big and small mistakes are inevitable, regardless of annual revenue, investment traction, growth rate, or team size. However, when embraced and reframed as teachable moments, they become invaluable lessons on the journey to mastery—just like any craft.

True mastery demands confronting challenges with growing wisdom and unwavering accountability to your principles—a path for those who stay curious and boldly navigate uncharted territory with ever-greater finesse step by step.?

Note: Seek out master serial, principled entrepreneurial founders—knowing they've made every mistake in the book before you and will never judge you. You'll discover that being authentic with them is not only welcomed but encouraged, fostering an atmosphere of unwavering confidence. When problem-solving together, if you remain coachable, curious, and honest, you'll find a level of support unlike anything you've experienced as you both navigate the various stages of your own entrepreneurial journeys.

For me, the driving forces include a steadfast commitment to serving others, a passion for vertical learning curves, boundless, child-like curiosity, continuous process improvement, and alignment with incentives.

There’s no greater feeling for a pioneering, principled, serial entrepreneur than seeing an uncharted path come into focus.

In my experience, this mindset can be developed to a superhuman level—especially when rooted in a right-hemisphere dominant perspective that enables you to move faster and more precisely over time.

As you can see, moving from one to two is not just a checklist; it’s a mindset and a dedicated approach to navigating challenges moment by moment, and it’s definitely not for the faint of heart.

Understanding that there is no checklist helps clarify why left-hemisphere dominant mindsets, which often seek well-worn paths and proven models, struggle with the gap between one and two—especially when they need to bootstrap and find creative workarounds daily without giving in to defeat or exhaustion from relentless obstacles.

You need a "burn the boats" mindset—fully committed, no turning back. It’s like playing hot potato while metaphorical molten lava barrels toward you.

Entrepreneurship can feel like an Olympic-level test of emotional intelligence when crossing the chasm, so when you don’t have to go it alone, don’t.

Some days will be pure chaos, while others will go exactly as planned—learning to embrace both is the key to entrepreneurial longevity, especially for serial founders mastering the leap from one to two, time and time again.

Two to Three

If you’ve made the leap over the chasm as a principled entrepreneurial founder or joined as a principled leader at stage two or beyond—whether through an Entrepreneurship through Acquisition Search Fund or family succession—here’s what to keep in mind as you step up as a principled executive or principled entrepreneurial founder.

First, take a moment to acknowledge the transition and celebrate your success with generosity.

One way to do this? Consider setting up an Employee Ownership Trust.

Now that you’re no longer stuck in stage one—walking a financial tightrope, juggling endless tasks, and firefighting around the clock—You can now shift your focus to strategy and sustainable growth, with human flourishing within planetary boundaries as your guiding star.

That means it’s time to level up your Financial Planning and Analysis (FP&A) approach, moving beyond the basic pro forma you started with.? As a principled entrepreneurial founder, your pattern recognition has been key to your success.

But here’s the game-changer for stage two: sharpen your entrepreneurial financial acumen—knowing it’s fundamentally different from how a left-hemisphere dominant chief financial officer views finance. Recognizing this distinction and leveraging this relationship is crucial as you scale rapidly.

They don’t have a crystal ball—but you do. That’s what makes you entrepreneurial.?

As a principled entrepreneurial founder, accountability means pushing yourself to make bold investments and unconventional predictions—often against the cautious advice of your more risk-averse executives.

They may not yet have honed their instincts to the level you have (or were simply not born with them). That’s another superpower that sets you apart. At the same time, remember that principled executives are exceptional in their own right.

When trust and respect flow both ways, they won’t just support your vision—they’ll help you accelerate it at the speed of light. Take the time to foster mutual respect and build unwavering trust with the people around you.

Before rapid scaling, consider bringing in fractional executives—they provide flexibility and expertise without long-term commitment.

Also, consider establishing a flat hierarchy early on and maintaining a disciplined approach to hiring slowly and firing quickly making fractional executives especially valuable at stages one and two.

For example, we use a Net Promoter Score (NPS) for our fractional executive hires, allowing all staff to evaluate fractional executives weekly. This ensures alignment and enables us to reposition executives when a better fit emerges.

Stage two is all about refining your seventh generation principled culture, and assembling the right team—one that aligns with your grounding vision—while making strategic investments by blending your instincts with executive insights and market demand.

This is the time to reinvest profits into rapid prototyping, engaging loyal customers in innovation, and ensuring unwavering excellence in products, services, and the customer experience by empowering your staff with atonomy to deliver impeccable, and I mean impeccable service—without exception.

Three and Beyond

For serial principled entrepreneurs, stage three is all about succession.

For example, as a serial principled entrepreneur, my focus is on making continuous micro-adjustments for improvement as the company expands, while confidently entrusting the rest to capable executives with the training, experience, and left hemisphere dominant mindsets.

Meanwhile, I reset to zero and start fresh—right where people like us truly thrive and belong.

As principled entrepreneurial founders, I encourage you to recognize your unique superpower and embrace the idea of returning to zero repeatedly, even if it feels like Groundhog Day.

One to two—that, I believe, is the greatest gift we can give to society.

And of course, owning equity in multiple companies led by exceptional executive teams you've helped build and now coach is pretty great—especially when you realize that with more resources, you can do even more good for society.

Never give up, and I mean it—never give up, and consider going serial, as you won’t be disappointed.

END?