Recently we decided to scrap 40% of our plans for 2024 with Superconnectors.
It happened after an introspective session with our advisory board.
We chose to cancel approximately new event formats, some planned events and innovative product ideas.
This decision, albeit tough, was rooted in the profound realization of the importance of compounded effort.
What is Compounded Effort?
Compounded effort is the strategy of applying consistent efforts in the same direction over time, which leads to exponentially greater outcomes.
Just like the concept of compound interest in finance, where earnings are reinvested to generate their own earnings, compounded effort in business means reinvesting resources, energy, and focus into proven areas to build upon previous successes.
Let me give you a simple example:
Organizing superconnectors in a new city is always hard at first.
We need to:
⁃ Find and experience a new venue for our event
⁃ Find relevant superconnectors that go to that exact conference.
⁃ Find local organizations that want to participate with their startups and finally find sponsors willing to support us.
Also every step we go further away from our home city this all becomes harder.
My network is less and less active the further away we go from Rotterdam, the Netherlands, Europe or another continent like the Unites states.
By choosing to repeat the superconnectors event in 10 cities, at the same conferences we just saved ourselves almost 50% of the work.
It allows us to:
– Build a better relation with some of the partners
– Optimize the use of the venue based on previous learnings
– Deepen the relation with superconnectors that will attend the event again.
But to me compounded effort doesn’t stop only at organizing events, let me explain below.
The Three Pillars of Compounded effort
1. Concept Execution Consistency
As I explained in the introduction. The first pillar involves doubling down on what works, such as replicating successful event formats in the same cities.
This approach not only solidifies your brand’s presence but also optimizes operational processes, leading to improved efficiency and effectiveness.
2. Investing in People
Compounded effort emphasizes the importance of retaining and developing the same team.
Consider the example of hiring an intern, and deciding to pay her double in the second period of her tenure. This decision reflects an investment in continuity.
The value of people staying longer cannot be overstated, especially considering that in the first three years, the output and integration of the best talents can significantly impact a startup’s trajectory.
As an experienced mentor of mine once said, “if your company has ten people in it, each year your company gains ten years of experience”
3. Deepening Stakeholder Relationships
Lastly, focusing on deepening relationships with the same clients, suppliers, and other stakeholders is crucial.
This consistency builds trust and reliability, leading to more favorable terms, better cooperation, and opportunities for collaboration.
It also simplifies negotiations and fosters a stable business environment conducive to growth.
The Power of Keeping Things Consistent
The underlying message of our strategic pivot for Superconnectors is clear: there is immense speed and efficiency in keeping 80% of operations consistent.
By focusing on compounded effort, startups can leverage the incremental improvements and deepening relationships that come from consistency.
This approach allows for a more sustainable growth trajectory, where each year’s efforts build upon the last, creating a robust foundation for future success.
In essence, the principle of compounded effort serves as a reminder that while innovation and new initiatives are vital, the real magic often lies in the meticulous improvement and expansion of what already works.
As startups navigate the complexities of growth, remembering the power of compounded effort can be the key to unlocking exponential success.
