Small business start-ups and quick results: Part 1

It seems to be human nature that when we start a new business venture we’re inclined to seek – or, perhaps, to quietly hope for – quick results. This is in spite of the fact that we know new businesses take time to get established, and that a slower trajectory is likely.

So what is it that causes this striving for quick results?

It turns out there are a few causes. I’ll discuss three of the main ones in this blog.

It will hardly come as a shock to hear that a key driver of the search for quick results is inadequate start-up capital. Countless new businesses are simply undercapitalised, and they fail because they can’t finance their operations for long enough without revenue. They therefore chase quick results because they desperately need quick results!

But even here there’s a deeper psychological driver. For how is this still possible, when the media is saturated with scary statistics about the failure rate of business start-ups and the importance of adequate start-up capital? Everyone knows you need a substantial capital base when you start a new business.

Unrealistic expectations
A peculiar kind of egocentricity seems to drive this phenomenon. While new business owners might understand the theory, and even be able to spout the statistics, they seem strangely inclined to believe that the theories and statistics are more applicable to others than to themselves – that they, for some reason, will be different. That the rules which apply so obviously to others will not apply to them.

Unrealistic expectations about personal prospects therefore remain a key psychological driver of the search for quick results.

Achievement goal perspective
A further driver is known as “achievement goal perspective” and this driver has been shown to have a profound impact on outcomes in many different domains (eg. in business, in sport, in artistic performance etc.). Achievement goal perspective is important because it influences the way we think about achievement, and also the decisions we make and the actions we take when we’re pursuing success.

There are two main achievement goal perspectives, which are known as “ego orientation” and “mastery orientation”. People with an ego orientation are vulnerable to the search for quick results because they’re highly competitive. They like to demonstrate superior competence by outperforming others. If someone they know started a business that became profitable in 10 months, they want to achieve the same outcome in 5 months. Success for people with an ego orientation is about achieving greater success than other people. In fact, they only really feel successful when they’re outperforming others.

People with a mastery orientation are quite different. They’re motivated primarily to develop skills or knowledge. They pride themselves on their effort and they strive for ongoing personal improvements. People with a mastery orientation feel successful when they can see concrete improvements in personal competence, or when they deliver a personal best. People with a mastery orientation are less likely to strive for quick results because, for them, it’s all about the journey.

Fear
Having eased you into the topic somewhat, I now come to what is arguably the most powerful psychological driver of the search for quick results: fear.

Many new business owners look for quick results, even when they have adequate capital resources and no need for instant success, because they’re desperately seeking reassurance that the new business is actually going to work.

Starting a new business is scary. New businesses bring uncertainty about future outcomes – for there are no guarantees in business – and wherever there’s uncertainty, there’s fear.

To up the ante even further, new business owners typically have much more than just money at stake. They usually make significant emotional investments too, and emotional investments can be at least as psychologically powerful as any financial imperative.

With so much at stake, tangible results are, for many people, the one thing that can provide sustainable relief from anxiety.

This is the main reason why new business owners continue to seek quick results, even when they know that a longer-term approach is more prudent. Quick results alleviate anxiety and bolster confidence. And when you’re struggling with anxiety and facing a seemingly endless stream of challenges, nothing is more welcome.