Think Beyond Business

Welcome to my newsletter #11

Addressing the Conception Challenge

I refrained from commenting on the horrifying terrorist attack on October 7th initially. However, I did share some posts because it seems the world is unaware that it's playing with an insatiable monster. This creature could turn against them with a flip of a coin and without a second thought.

Why doesn't the world realize it's in a dangerous game? I'd wager that many demonstrators can't locate Israel on a globe, let alone explain the Hamas charter. If they did, they'd realize they're next in line, labeled as pigs and monkeys by Hamas, slated for elimination. Do they grasp the danger they're in?

Unfortunately, the sad answer is NO. They remain oblivious even when the facts suggest otherwise. This phenomenon is what we call conception, and here in Israel, we've learned this bitter lesson twice. Fifty years ago, we entered a painful war not because we were caught off guard – intelligence was available. The problem was our reluctance to believe it. We preferred indulging in unreal nice dreams rather than facing harsh reality. That's when we first encountered the term.

On October 7th, we faced the issue again. The attack by Hamas wasn't a surprise; the intelligence was there. Yet, people didn't want to believe it, opting for a different narrative. Those trying to sound the alarm were threatened with jail because this knowledge clashed with the image high-ranking officers had.

It's wonderful to hope and dream of a better world. The issue arises when we start living in this dream world, turning our backs on reality until something bad smacks us in the face, revealing the painful truth.

Business life often mirrors this problem in a different guise. Capable and knowledgeable leaders concoct baseless reasons for their lack of success, sometimes adopting them from questionable sources. These leaders confine themselves, only to later complain about their constrained performance.

We can't eliminate conceptions; they're part of our nature. However, we must learn to identify these mental blocks and tackle them one by one. This is what I've been doing for over 50 years, and it's what I help my clients achieve success with.

Remember, conceptions and mental blocks aren't your essence; they're things you've somehow adopted. If you're genuinely committed to success and ready to step out of your comfort zone (or call it your straitjacket), I'd be delighted to discuss it with you. If you want to know more, book a call https://calendly.com/d/3s8-3pr-23n/30min

Looking forward to hearing from you,

Isaac

Now, let's delve into the GoPro story as analyzed in the previous newsletter.

Navigating the Startup Rollercoaster

Let's dive into the thrilling saga of GoPro – a tale that mirrors the journey of many startups making it big on the public stage. In this wild ride, startups find themselves caught between two demanding crowds: those snagging their products and those clutching their shares. Customers, loyal to brands built over years, appreciate the stability and reliability. These companies, etched in the annals of success, can charge a premium just for their name.

Now, contrast that with the stockholders, the forward-focused bunch. They're all about future narratives, promises, and dreams spun from the company's present reality. Imagine being an institutional investor presented with a rock-solid financial report, a sterling reputation, and a compelling story – it's hard to resist. A captivating narrative paints a vivid future, enticing investors to jump on the bandwagon.

The allure of these stories can be so potent that they capture public attention, even when the reasons for going public seem a bit off. Take GoPro, for instance, claiming it needed cash to pay back $110 million in debt. Odd, right? Especially for a company swimming in profits, having sold billions, and recently injected with a cool $200 million.

But every good story has its climax. The tale that once ignited hope eventually reaches its end, leaving investors in suspense. The thrill fades, and although the company may still be solid, the stock takes a nosedive. This is the rub: the conflict between pleasing investors with promises and keeping the cash flow churning.

Faced with this dilemma, many founders succumb to stock market pressures, frantically chasing lofty goals at the expense of the loyal customer base. They're torn between the dreamers and the cash producers. The result? A chaotic mix of calls for innovation, expansion, restructuring, and management shuffles – all in a desperate bid to conjure the next big thing.

Every business has its risks, and startups like GoPro are no exception. They're in the business of selling not just products but a future bathed in optimism. There's nothing inherently wrong with this, as long as investors recognize it's a dream. Living in a dreamland without a reality check can lead to a rude awakening when everything crumbles.

Rather than dwelling in dreams, it's time to make the transition from fantasy to reality. Life might not be as picture-perfect, but that's the real deal.