EXPECTATIONS

EXPECTATIONS

The initial expectations that you set inside a business will ultimately become the mental framework through which you view your ability to absorb more pain inside of said business. A major disparity between where you believe you are supposed to be and where you actually are, is a silent killer of entrepreneurs. Striking a happy medium between aggressive goals, and statistical realities is a bedrock for building a solid emotional foundation in business.

Charlie Munger has said that the key to a happy, fulfilling life is to have chronically low standards, so as never to be disappointed. On the other hand, someone like Grant Cardone fervently preaches to overpromise and overdeliver. While track records speak for themselves - it is difficult to compare the two based on the sheer scale of Munger's accomplishments. I agree to varying extents with both. What I mean by that is as follows.

1). Set low short-term expectations framed by median performance indicators. Setting high expectations initially is a recipe for misery since you are probably going to be terrible in the beginning. Base your initial goals not off of outliers but off the mean of the data for similar businesses. If that sounds like tolerance for underperformance - it is not. It is pragmatic.

2). Set high, audacious long-term goals after building momentum in the company. You need these measurable 5-10-year targets to excite you to keep moving forward. However, if you set these targets too high too soon and do not meet them you will be far less likely to have the desire to attempt it again. This is why low expectations initially are important because they build confidence and a belief that the targets are attainable.

Expectations for the performance of an organization is only half the picture, the other half being the expectations of you, for how difficult it will be for you to hit your targets. The short explanation is that what you expect will not scratch the surface as to how hard the process will be. You will need to re-frame your definition of what hard means. This can only be done when you are in the midst of the pain, asking yourself "Is it really supposed to be this hard?" Respond to your own question by retorting "What did you expect it to be?" You can probably guess the natural response. Answer by finally saying "Okay, you expected it to be hard, well this is what hard feels like." Instantly your understanding of the word has completely shifted, diffusing the perceived disparity.

I will close with words from the gifted parliamentarian Benjamin Disraeli.

"I am prepared for the worst. But hope for the best. "