Navigating the Rapids: Finding the Fast Moving Water in Business

Navigating the Rapids: Finding the Fast Moving Water in Business

Introduction:
In the fast-paced world of entrepreneurship, finding the fast moving water can be the key to success. This concept, often communicated to founders, emphasizes the importance of assessing the speed and direction of the industry surrounding their business. It goes beyond product-market fit and helps determine who the target customers should be and what the company should be building. In this article, we will explore the idea of finding the fast moving water, identify common points, and provide actionable advice for entrepreneurs.

Identifying the Fast Moving Water:

1. Technology Shifts:
   One way to identify the fast moving water is by looking for technology shifts that enable something new to happen. For example, the rise of mobile phones, blockchain, GPT-3, and machine vision have created dislocations in various industries. These technologies create currents that can shape the future of businesses. For instance, the availability of AI platforms is creating a current around "Generative Tech," pushing software to generate novelty on the edge. Keeping an eye on such shifts can help entrepreneurs align themselves with the fast moving water.

2. Low-Quality Examples:
   Another indicator of the fast moving water is observing low-quality examples that are suspiciously doing well. Many iconic companies were born from a second-mover advantage in these currents. Despite copying an existing business, companies like Uber surpassed their predecessors. This success can be attributed to better teams, building network effects first, better products, and slightly better timing. Recognizing when a low-quality example is gaining traction can be a signal that the fast moving water is present.

Taking Action:

1. Incorporating the Fast Moving Water in Decision Making:
   When deciding on what company to start, it is crucial to add an analysis of the fast moving water to the thought process. Understanding the industry trends and currents can help entrepreneurs choose the right direction from the outset. By aligning with the fast moving water, the chances of achieving success increase significantly.

2. Embracing Red Oceans:
   Red oceans, often associated with intense competition, can actually be a sign that there is a significant market demand for a particular product or service. Navigating these crowded waters can be challenging, but it also presents an opportunity to build a network effect and gain traction. It requires courage and a refusal to settle for mediocrity. Entrepreneurs should not be afraid to challenge their teams, partners, and investors to move towards the fast moving water and pursue greatness.

3. Pushing for Action:
   Procrastination can be detrimental to a business's growth. Instead of waiting for the right moment, entrepreneurs should have the courage to seize opportunities and move towards the fast moving water. Waiting for the perfect conditions can result in missed chances and falling behind competitors. Pushing oneself and the team to take action now can lead to better outcomes.

Conclusion:
Finding the fast moving water in business is a skill that every entrepreneur should cultivate. By identifying technology shifts, recognizing low-quality examples that are succeeding, and incorporating the fast moving water in decision making, founders can position their companies for success. Embracing red oceans, pushing for action, and having the courage to navigate towards the fast moving water are crucial for long-term growth and achieving the desired outcomes. So, don't wait—dive into the fast moving water now and steer your company towards success.