Getting around the 'shiny object' trap

The shiny object trap has caught many a founder in its time. One of the easiest mistakes to make in business is chasing whatever looks exciting at the time, says Praeva’s Mark Sherman. But the risks of operating without a clear strategy are high - and even more so in a start up.

“I’ve seen businesses be crippled by the constant distraction from the next shiny thing more times than I can recall,” said Mark. “Every decision is justified but delivered in the absence of a concrete strategy, which is when it becomes paralysing. It often stems from the assumption that each opportunity is too good to pass up, particularly in new businesses where you meet great people all the time and come across partnership opportunities or new investment opportunities, all of which are exciting and carry the potential to become something amazing.

“The point is that everything feels worthwhile in the moment. But without a clear strategy there's nothing to measure those decisions against. Eventually, the business loses direction.”

There are - of course - times when an unexpected opportunity deserves attention.

“We all need a licence for creativity, and sometimes an opportunity outside your plan is too good to ignore. But without a plan, these decisions can't be tested or gated and they cease to become strategic choices,” Mark adds.

Often founders are too close to the grindstone to see the picture clearly. Most founders have a decent enough vision for their businesses growth, but it’s rarely stress tested to a high enough degree or committed to paper in a way that makes the next decision obvious. “This means that every new conversation, every interesting introduction and every adjacent opportunity gets evaluated in a vacuum: shiny object syndrome.

“The truth is that businesses without strategic oversight and discipline don’t appear creative and opportunistic - they appear unfocused. It makes it difficult for a business to grow, because it’s hard to understand how it’s going to get from A to B."
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Here's where it gets interesting - and where most businesses get it badly wrong.

If you don't know what you're building, how do you possibly anticipate what people you need?

Without a clear plan, hiring becomes reactive. You hire someone to solve today's problem rather than thinking about the business you'll be running a few years from now. Those decisions are expensive because they shape culture, influence how the business operates, and often create management challenges that could have been avoided.

The best founders and the best investors think about the people architecture of a business before they need it. Mark explains, “They can provide a clear answer to a simple question: what does this business need to look like in three years, and do the people around the table today get us there?”

“A surprising number of businesses can't answer that question,” Mark says. “It isn't because they're lacking ambition or intelligence. It's because they haven't done the work of turning an idea into a plan. Good strategies don’t limit options; they provide a framework to judge them against.”

When it comes to people - the hires, the advisors, the board members, the leadership team who will propel your business forward - a plan is the only honest basis for a conversation. Without it, you're not hiring for a vision.

Build the plan first. The people question will answer itself.

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