Marc Andreesen’s post about the psychology of entrepreneurial mis-judgment made the rounds awhile ago. I re-read it recently and want to highlight the following graf because of its eminent logic:
In my view, entrepreneurial judgment is the ability to tell the difference between a situation that’s not working but persistence and iteration will ultimately prove it out, versus a situation that’s not working and additional effort is a destructive waste of time and radical change is necessary.
I don’t believe there are any good rules for being able to tell the difference between the two. Which is one of the main reasons starting a company is so hard.
(And yes, I know Seth Godin wrote a whole book on this topic.)