"You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits."
- Ben Graham
I’ve always loved the stock market. Noticeably so even here in the office. I’m always talking about company earnings, trying to explain option strategies to faces that couldn’t care less, and making fun of tech companies that raise huge amounts of capital behind egotistic founders with no sustainable revenue streams. Hilarious!
My love of capital markets naturally spawns an admiration for the companies that do achieve the goals that they lay out. Their ability to do this, whether as an early-stage company or a mature one, fosters crucial investor confidence. On the flip side, companies that over promise and under deliver precipitate their investors and employees to run for cover.
Sequential maturity is key for any business in any stage of growth. Being able to set a clear goal, achieve it, and move on to another sounds simple enough, but let’s not get ahead of ourselves. Benjamin Graham, widely known as the “father of value investing” laid out the problem with scope creep perfectly! All too often, a good idea morphs into a Frankenstein monster of itself through its planning and execution, causing the idea to go from being tightly contained and solving one problem well, to the very idea of political pork!
Branching off of Graham’s wisdom, let’s ask ourselves a simple question that defines a limit.
“If we could solve ‘X’, it would be amazing!”
Answering this question takes us back to the original thesis. Now, we can define the breadth of our scope, estimate effort, desirability and feasibility, and get on with it!
As an aside, Littlelines can help you do these things! Feel free to give us a call or shoot us an email. Let’s create something awesome together.