By JONATHON FEIT Journalists, much like venture investors, have a keen ability to see past the glitz and glamour of a press release and get to the truth beneath it all. They ask themselves whether what they are writing about is real, or if they will regret it down the line, much like the story of Theranos. However, they must also strike a balance between cynicism and optimism. They need to stay grounded while still believing in the innovation that has the potential to reshape the world as we know it. This same balanced view is common among entrepreneurs. Intel founder Andy Grove famously said, “only the paranoid survive.” This view underscores the inherent threat of failure. Yet, those who venture forward must be willing to look past the risk and believe that they can conquer that tall summit someday.
Pragmatic entrepreneurs also aim to deliver value in excess of what their clients, customers, or users pay, thus making them willing to pay more than the cost of the product or service which we call profit. However, the focus on profit in recent years has declined, with young companies, particularly in the technology and healthcare sectors, forgetting about it.
The focus is starting to shift back to the importance of profit, as can be seen in the recent Digital Health Innovation Summit. Presenters there emphasized the need for companies to prove their value and convince potential clients that they cannot go another day without their product or service. This summit highlighted the need for genuine relationships and the importance of proving one’s worth, rather than simply competing with overly-polished emails. The focus, therefore, needs to be on building real value through genuine interactions, without getting lost in the noise.
Reiterating the need for genuine, meaningful relationships, the summit also highlighted the need for pragmatism. It’s essential for companies to prove that they deliver value in excess of the cost, and to showcase the good they can do in the world. This can be a tricky balance to maintain, but it is necessary for success.
This reinvigorated focus on profitability and value solidify the importance of these metrics beyond just financial aspects. It is a powerful and pragmatic signal that can influence how a company is perceived by the world. With a focus on proving value and ensuring efficiency, companies can find themselves standing on solid ground ready to fight, rather than struggling with heavy burdens.
In summary, the recent summit highlighted the need to refocus on proving value and building genuine relationships. This shift in focus from competition to genuine interactions has the potential to drive businesses forward in a world where transient solutions no longer cut it. This signifies a positive change in the world of business, where genuine value and relationships hold more precedence than ever before.
