The Parable of the Two Arrows: A Guide for Entrepreneurs on Mindset and Resilience

As entrepreneurs, we sign up for a journey of uncertainty, risk, and challenge. We’re driven by the vision of building something from nothing, turning ideas into reality, and forging our path. Yet, along the way, we face obstacles we never anticipated. Competitors emerge, market trends shift, partnerships fall apart, and unforeseen events throw us off course. In the face of these challenges, we often ask: How do we regain control when so much seems beyond our grasp?

To answer this, let’s turn to an ancient Buddhist parable—the Parable of the Two Arrows. It teaches a profound lesson for entrepreneurs: While we can’t control everything that happens to us in business, we can always control how we react and how we frame these events in our minds.

The First Arrow: The Uncontrollable Chaos of Business

In the parable, the Buddha asks his student, “If a person is struck by an arrow, is it painful?” The student nods, of course—it hurts. This first arrow symbolizes the inevitable challenges and setbacks in life and business.

For entrepreneurs, the first arrow could be:

• A promising deal unexpectedly falls through.
• A sudden economic downturn disrupts your plans.
• A key employee resigns at the worst possible time.
• A new competitor threatens your market share.
• A product launch doesn’t go as planned.

These are the uncontrollable events—the external forces that hit us out of nowhere. The first arrow hurts because it strikes deep, undermining our confidence, plans, and momentum. The mistake many entrepreneurs make is assuming they should be able to control this arrow. They get stuck in the “why” and “what if,” asking themselves, “Why did this happen to me?” or “What could I have done differently to avoid this?”

The truth is that as much as we plan, prepare, and strategize, the first arrow is unavoidable. In business, chaos will happen. Challenges will arise. But it’s not the first arrow that defines us—it’s how we respond to it that truly matters.

The Second Arrow: A Matter of Choice

The Buddha continues, “If a person is struck by a second arrow, is that even more painful?” The student again nods. The second arrow represents our reaction to the first—our mental and emotional response to adversity.

Here’s where the lesson becomes essential for entrepreneurs. The second arrow is optional. It’s not the external event that derails us but how we internalize it. If we allow ourselves to dwell in the frustration, anger, or disappointment of the first arrow, we fire the second arrow ourselves—deep into our open wound.

When hit by a setback, many entrepreneurs fall into the trap of the second arrow. They let the initial blow define them, creating a spiral of negative thinking:

• “I’m a failure because this deal didn’t go through.”
• “I should have seen this coming.”
• “Why does this always happen to me?”
• “I’m not cut out for this.”

This self-defeating narrative is the second arrow. It turns the first pain into prolonged suffering, derailing an entire business. But here’s the liberating truth: The second arrow is entirely within our control. As the parable teaches, we can choose not to fire it.

Between Stimulus and Response: Creating Space

Viktor Frankl, the famed Austrian psychologist and Holocaust survivor, once said, “Between stimulus and response, there is a space. In that space is our power to choose our response.” This idea aligns perfectly with the lesson of the two arrows.

When the first arrow hits—when adversity strikes in your business—there is a moment, a space, where you get to decide what happens next. In that space lies your most extraordinary power: the power to control your reaction.

The key to mastering this space is creating enough distance between the event and your response. Here’s how entrepreneurs can do that:

1. Pause: In the heat of the moment, when things go wrong, our natural reaction is emotional. Whether it’s frustration, anger, or panic, we often make poor decisions when emotions are in control. The first step is to pause. Give yourself time to cool down and regain perspective, whether it’s a few minutes, hours, or even days.
2. Reset: Acknowledge the pain of the first arrow. Allow yourself to feel the frustration or disappointment—it’s human. But then remind yourself that the second arrow is entirely within your control. You get to decide how this story ends. This reset helps you reclaim your sense of agency and power.
3. Choose: With a calmer and clearer mind, choose your response. This is the most critical part. How will you frame this event in your mind? Will you let it define you as a failure, or will you see it as an opportunity to learn and grow? By choosing a balanced response, you avoid firing the second arrow and instead turn a setback into a stepping stone.

The Entrepreneur’s Superpower: Reframing

Every great entrepreneur has faced adversity. What separates those who succeed from those who don’t isn’t the absence of challenges but the ability to reframe them. They understand that failure is not a dead end but a detour, that setbacks are part of the journey, and that every arrow—whether painful or not—holds within it a lesson.

Reframing is a superpower for entrepreneurs. It’s the ability to look at any situation and ask, “What’s the opportunity here?” Instead of seeing challenges as obstacles, see them as a call to innovate. Instead of dwelling on the loss, focus on what you can learn. Instead of bemoaning what went wrong, think about what could go right moving forward.

Embrace the Power of Choice

The Parable of the Two Arrows teaches us a timeless truth: In business and life, we can’t control everything that happens to us, but we can always control how we react. The first arrow is inevitable—the chaos, the disruption, the challenge. But the second arrow? That’s a choice.

As entrepreneurs, we must embrace the power of that choice. We must learn to create space between stimulus and response, to pause, reset, and choose a productive, forward-thinking reaction. By doing so, we avoid the second arrow, master our mindset, and turn adversity into opportunity.

Mindset ultimately separates those who thrive from those who merely survive. The second arrow may be optional, but success is not. Choose wisely.