From Optimization Obsession to Embracing the Bigger Picture

I used to think the ultimate goal of a business was maximum efficiency. Back when the pandemic began, I jumped on the opportunity to create an e-commerce business selling COVID-related supplies. My mind was in overdrive – optimizing my website, streamlining shipping, perfecting every tiny detail. I was making some money, but I couldn’t shake an uncomfortable feeling that this wasn’t it.

My friend Dwayne planted a seed of doubt that changed everything. “Effectiveness is much greater than efficiency,” he’d say. I didn’t fully grasp it then, but his words hung over me. As I poured endless hours into minor tweaks, their meaning grew clearer. Was I climbing the right ladder? Or just getting really good at climbing the wrong one?

The Optimization Trap

Like Max Levchin, the founder of PayPal, famously noted, you have to be careful about the projects you pick. It’s tempting to keep tweaking and refining, chasing that elusive feeling of perfection. But there’s a tipping point where further optimization yields little return. What’s more, you can miss the forest for the trees – the chance to tackle a problem with real impact.

With my e-commerce business, I was laser-focused on operational minutiae instead of asking the tough questions. Was the market large enough for explosive growth? Was I solving a problem that truly mattered to people? The answers, deep down, were no.

Hitting the Wall

Eventually, I sold the business. While I had some revenue, the feeling of “doing something small” and the subconscious knowledge that I wasn’t creating meaningful value lingered. I’ve been without an income ever since. The irony is, that desperation for money keeps tempting me back into the familiar territory of e-commerce.

But here’s the thing: I now crave work with a deeper purpose. I want to solve a BIG problem, something that makes a tangible difference in the world. That shift in mentality is what’s been holding me back from diving headfirst into a venture with limited potential, just for a quick buck.

The Path Forward: Effectiveness First

This journey hasn’t been easy, but it’s been transformative. Here’s what I’m learning:

• Prioritize Problem-Solving: Before thinking about product or optimization, I focus on identifying major pain points people face. What am I passionate about fixing?
• Embrace the Potential for Impact: Can I build a business with true scalability? Does it provide lasting value beyond simply generating revenue?
• Effectiveness, then Efficiency: Doing the right things is paramount. Once I’m confident in the direction, then I’ll bring in that operational optimization mindset.

The truth is, I’m still figuring this out. But the insights from Dwayne and Max Levchin have been invaluable guides. If you’re an entrepreneur, remember: efficiency is essential, but effectiveness is how you change the game. Don’t get trapped optimizing a venture with no real soul.

Add On Just because something is hard to obtain, does not mean its valuable.