I'm an avid sailor and have been racing sailboats for over 12 years. We have certain nautical terms that we use when racing that differ from those that typical sailors use when cruising (getting from A to B in safety and comfort). I like to compare the steps it takes to succeed as an entrepreneur to two common terms we use when we race off-shore. Those terms are VMG (Velocity Made Good) and VMC (Velocity Made Good on Course).
VMG is the speed at which a boat can sail upwind (close hauled). Many sailors use a VMG calculation to get the best speed out of a boat with any given wind conditions where every boat has a different VMG. VMC calculates (using the same input as VMG) the perfect angle or course between 2 points, which may not be a straight line.
In some way I've had to make the same choice in my decision to start a company. Do I rely on VMG or do I trust my VMC. Many entrepreneurs calculate VMG, they know the general direction they need to go (into the wind) and work on getting there at the best speed possible with complete disregard for the wind direction. The know they need a plan, but their scope is so broad they can't hit the target. They know they need revenue so they put together custom solutions for every customer while never getting a standard product out the door.
The VMC method of building a business is to have a destination in mind and the ability to adjust to changes in business conditions, customer needs, or the wind in order to get there in the shortest possible time, while not necessarily the shortest path.
VMG focuses on speed with no clear destination other than "into the wind"
VMC focuses on speed but also calculates the best course although it may not be the shortest in length.
Which model do you subscribe to?
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