Profit for purpose and avoiding 'passion's blind spot'

In the world of 'startup,' we love founders who are deeply passionate about making their chosen fields better.

It’s inspiring to see the level of dedication, but I believe passion can sometimes act as a double-edged sword—both propelling founders forward and, in some cases, holding them back.

Passion’s blind spot

Many founders when either passionate about an industry or directly out of that industry rely on personal experience to understand customer needs, assuming they already know their market inside and out. While this passion-driven familiarity is a strength, it can also create blind spots, causing key market signals to be overlooked or dismissed.

Balancing vision with profit-first thinking

Focusing on profitability doesn’t mean abandoning the vision or mission that inspired the startup—it’s about grounding that passion in sustainability. Many founders begin with a “build it and they will come” mindset, thinking their passion alone will sell the product. However, successful founders take a different approach: “How do I build something that not only solves a problem but also generates the revenue to fuel its growth and impact?”

Prioritising profitability isn’t just about making money—it’s about creating a foundation that allows founders to scale their impact. With a profit-first mindset, founders can make sharper, more strategic decisions that ensure their innovations thrive in the long term.

The evolution of a founder into the startup world: Adopting a profit-for-purpose mindset

A profit-for-purpose mindset challenges founders to dig deeper—validating their ideas against real customer demand and understanding what people are truly willing to pay for. This shift is critical: making money is not a distraction from purpose but a means to amplify it. When founders embrace this approach, they present not only a compelling vision but also a viable business model that investors and customers can rally behind.

Broadening perspectives through collaboration

Founders passionate about their industries can benefit from stepping outside their silos and seeking insights from other fields. Collaboration with innovators in unrelated sectors often sparks fresh ideas and uncovers unconventional solutions.

The founders driving the most transformative change often aren’t industry insiders. Think of companies like Uber, Airbnb, Stripe, Tesla, and SpaceX. These were created by individuals who didn’t come from the industries they disrupted. Instead, they brought fresh perspectives, challenged traditional norms, and reimagined what was possible.

For any founder, the lesson is clear: look beyond the familiar, embrace external insights, and think bigger. Building something truly transformative often requires balancing a deep love for the industry with the willingness to question its status quo.

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Last updated:
20 November 2024