Business Education

The Most Important Lesson Wernher von Braun Taught Small Business Owners

One of the most challenging things for business owners is admitting when they’re wrong. It’s a human trait, and most people struggle to accept their failings. After all, no one wants to appear uninformed or to have made an enormous miscalculation. It’s not only embarrassing; it also indicates that someone isn’t as savvy or sophisticated as they ought to be.

However, when an entrepreneur gets something wrong and refuses to admit it, a small mistake can become much worse. Put another way, when a business owner doesn’t own up to a mistake, it erodes trust among the team. What’s more, it lets employees know they’re working for someone with a serious character flaw.

One of the best ways to illustrate this is through a critical event that literally changed the course of history and put the United States ahead of its chief adversary in the Space Race. In a single situation, the most celebrated innovator of the time met an unexpected challenge and did something no one could have predicted.

The Strategic Wisdom of Concession and Adaptation in Entrepreneurship

Egos and reputations often clash with unyielding ambition. This is particularly true in space exploration. And one pivotal, historic moment stands as a testament to intellectual humility.

Wernher von Braun, the visionary engineer who propelled America’s rocket program from wartime origins to lunar aspirations, faced a crossroads in 1962. His preferred approach to reaching the Moon—Earth Orbit Rendezvous—garnered widespread support among his peers at NASA’s Marshall Space Flight Center. Yet, a solitary voice challenged the consensus.

John Houbolt, an aeronautical engineer at Langley Research Center, advocated for Lunar Orbit Rendezvous, a method that promised greater efficiency despite its apparent risks. When both concepts were laid bare before the team, von Braun did not entrench himself in defense of his own design.

Instead, he acknowledged its limitations, recognized the superiority of Houbolt’s alternative, and enthusiastically endorsed it. This act of concession not only accelerated the Apollo program’s success but also illuminated a profound lesson for leaders in any field. Small business owners, navigating their own competitive landscapes, can draw invaluable insights from this episode; it underscores the peril of clinging to flawed ideas and the power of yielding to better ones.

Why Small Business Owners Often Dig In

Entrepreneurs, much like engineers, invest deeply in their visions. A business idea—be it a product design, marketing strategy, or operational model—often feels like an extension of one’s identity. When facts contradict this vision, resistance arises. Psychological factors compound the issue; confirmation bias leads owners to favor evidence that supports their preconceptions, while the sunk cost fallacy discourages abandoning invested resources.

However, such entrenchment can prove counterproductive. Markets evolve rapidly; customer feedback, competitor innovations, or economic shifts demand adaptability. Clinging to outdated concepts risks stagnation or failure, as seen in countless ventures that ignored warning signs.

Von Braun’s example counters this tendency. He possessed unparalleled authority—his Saturn V rocket would become iconic—yet he prioritized collective success over personal vindication. Small business owners must cultivate similar discernment, recognizing that concession is not weakness but strategic wisdom.

Steps to Cultivate Intellectual Humility

To apply this lesson, adopt a structured approach. First, foster open dialogue within your team. Encourage alternative viewpoints, as NASA did by convening panels to evaluate competing methods. Solicit input from employees, advisors, or even customers; diverse perspectives illuminate blind spots.

Second, evaluate ideas objectively. Use data-driven metrics—sales figures, user analytics, or pilot tests—to assess viability. When Houbolt presented calculations showing Lunar Orbit Rendezvous’s fuel efficiency, von Braun weighed them impartially. Similarly, benchmark your concepts against industry standards; avoid emotional attachment.

Third, practice graceful concession. Acknowledge superior alternatives publicly, as von Braun did, to build trust and morale. Endorse the better path with enthusiasm; this galvanizes your team and accelerates implementation.

For instance, consider a restaurateur wedded to a traditional menu amid shifting dietary trends. Initial resistance might stem from pride in signature dishes. Yet, upon reviewing customer surveys revealing demand for plant-based options, concession leads to menu revisions—boosting patronage and revenue.

Examples from Entrepreneurial History

History abounds with parallels. Kodak, once dominant in photography, dismissed digital technology as inferior to film, even as it pursued internal innovations. Bankruptcy followed in 2012. Conversely, Netflix pivoted from DVD rentals to streaming, conceding the obsolescence of its core model. This humility propelled it to global leadership.

Closer to small businesses, a boutique retailer might resist e-commerce, favoring in-store experiences. However, pandemic-driven realities forced many to adapt; those who conceded thrived through hybrid models. Remember, von Braun’s endorsement of Houbolt’s idea not only succeeded but also inspired future missions—evidence that concession amplifies aggregate potential.

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Help! My Business Partner doesn’t Help Run Our Business!

May 6, 2021 No Comments

It’s said that the only ship that won’t sail is a partnership. Outside law and medical practices, few partnerships thrive, let alone survive. There’s a slew of reasons partnerships don’t work out. But, most entrepreneurs go into them because they’re optimists by nature. After all, it’s easy to imagine a worthwhile scenario, particularly when it’s someone who is trusted. However, many of these ventures fail and when it starts to go bad, it’s time to take action. The Most Common Challenges Partnerships Face The most common problems partnerships face are incompatibility, money issues, distrust, and then there’s a list of life events. These include death, drug abuse, disability, divorce, and other personal experiences. If that’s not enough, there’s always a divide between visions — one person wants to take the joint venture one way and the other, in another direction. In an ideal business partnership, everyone contributes their time and labor toward making the company a success. When a partner isn’t pulling her weight, it’s essential to address the problem before resentments develop and the business suffers. In many cases, simply having a frank discussion can resolve your issues. —Houston Chronicle Small Business What’s more, egos can also become a huge problem — especially when one person is the single source of inspiration. Or, disagreements about staff, expansion, and just about everything related to the operation and future of the business. How to Deal with a Lazy Business Partner Fortunately, there are ways to deal with a partner who becomes a bit lazy. If he or she is slacking off or just not producing whatsoever, there’s most definitely an underlying reason. Depending on the circumstances, you can try one or more of the following to deal with a lazy business partner: Have an honest discussion. Like it or not, you’re going to have to confront him or her, but not necessarily in a confrontational manner. Don’t go into the talk with a bad attitude, or even one of superiority. Any hint of a negative vibe will only serve to turn them off and not cooperate. Talk about your visions for the company and all the good things that will come out of working together. Then, listen carefully to what he or she has to say. Offer some temporary help. It could very well be that he or she is just going through some personal difficulties. Or, feeling a bit helpless and hopeless amidst the economic disruption. These are very common feelings and the good news is that they will usually pass. Offer him or her a little extra help and support, but put a time limit on it. Provide a little flexibility. If it is just a temporary situation and he or she will bounce back quickly, don’t let him or her get overwhelmed too soon. Instead, provide them a little bit of flexibility and that can really work wonders. Consider a total buyout. Obviously, not all circumstances will warrant staying in business together, there are most definitely situations that simply won’t work out, no matter how much effort you put in. So, explore your options to sever the business relationship, and a possible buyout scenario. What other suggestions do you have for dealing with a lazy business partner? Please take a few moments to share your thoughts and experiences so someone else can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Use Your Past to Build a Better Future

May 16, 2017 No Comments

Mistakes, missteps, adversity, hurt, and failure. All of these are negative experiences, at least, at first impression. We’ve all dealt with heartache and heartbreak, with disappointment and resentment. So many pessimistic experiences and impressions can easily discourage to the point of apathy. It’s choosing another path to deal with such occurrences that’s one of the single most difficult things to do in life, and in business. There’s just no avoiding the fact that mistakes will be made, perhaps even to the extent of leading to outright failure of a company, even for entities that are established and realizing a profit. No matter the size or presence of a brand, it can deteriorate and ultimately flounder to the point of no return. We’ve seen this before in the business world, particularly in giants: Blockbuster Video, Circuit City, Borders Books and Music, Radio Shack, Montgomery Wards, Steak & Ale, the list goes on and on. Use Your Past to Build a Better Future One obstacle to overcome is being creatures of habit. Sure, these definitely differ from person to person, but regardless, remain part and parcel of our day-to-day routines. It’s quite easy to let this phenomenon creep into a business environment, and sometimes, with the best of intentions. Habit (read: practice and procedure) can be a good thing. It can also be a death knell, and when you can’t pinpoint the root cause, make you susceptible to more than one failure. The more clearly you understand your strengths and how they enabled you to get to this point, the more effectively you can leverage them into a bright and fulfilling future. It’s important not to regret the past. Instead, you must appreciate all of your positive experiences and find a way to learn from the negative ones. —Business Insider Our past is part of who we are, but, it doesn’t have to define who we are or what we can become. If you think about it for a moment, your past is one of the most valuable weapons you have in your arsenal leading you into the future. This is so understood, it’s actually become a set of quintessential cliches. We see these motivating messages all the time and get a lift. That feeling subsides and it’s human nature to let the past work its negativity on us. I share with my clients that although my successes are something I appreciate, it is my failures that provided me the learning to excel and help others accelerate their success in less time and less mistakes. Failure is the precursor to success. Failure is an event so do not let it define who you are. Use your past to empower yourself and move forward with your future: Change small things, one at a time. There’s a technique in the world of psychology known as, “solution focused brief therapy.” In short, it works by putting focus on building solutions instead of problem solving. It works in a splendidly simple way: you change one small thing at a time. It could be waking-up 10 minutes earlier, exercising just a little every day, or working on this or that skill. Whatever it is, when you become better at it, you’ll feel a genuine sense of accomplishment. Take-on tasks you regularly avoid. Speaking of exercise, this is one thing many people avoid, though it certainly isn’t the only one. You might not like talking on the phone, going-over or creating certain documents, or some other task. Here again, whatever it might be, incremental change is key. Know and accept your weaknesses. You might not be good at this or that, and that’s perfectly okay. For entrepreneurs, this is a very difficult concept to accept. Being natural self-starters, optimists, and enthusiasts, not being able to excel at something is foreign and frustrating. When you do accept your weaknesses, you’re actually demonstrating your own strength, particularly if you bring-in someone else that has those exact skill sets. Look at yourself through another’s eyes. You probably get compliments from time to time, though these might not be overt. Take stock in each one by accepting them for what they are, and know it’s how the person who gave it truly feels about you. [shareaholic app=”follow_buttons” id=”26833294″]

Business Pros and Cons of Furloughing Employees

April 14, 2020 No Comments

Thinking about furloughing rather than laying off your employees? It’s an all-too-common conundrum right now, amidst the coronavirus pandemic shutdown. But, it’s something that a large majority of businesses must consider, given the present and quite uncertain circumstances. Read on to learn more about the upsides and downsides of furloughing your employees. Employee Furlough Disadvantages We’ll begin with the most problematic cons of furloughing team members. Doing so puts your company at-risk for permanently losing your top talent. Furloughs also undermine employee morale and may even damage it further, and if you have applied for the SBA Paycheck Protection Program, one of the conditions for the loan to be forgiven, is that you keep your employees on your payroll. An employee furlough is a mandatory suspension from work without pay. It can be as brief or as long as the employer wants. Furloughs can take place in both public and private institutions. An organization will furlough employees as a cost-saving measure when it doesn’t want to lay off staff but lacks the resources to continue paying them. —The Street.com Then, there’s the trouble of re-opening your business. Even after a short-term period, it takes a substantial amount of time to get things back up and running. Additionally, the cost savings might not be as significant as you might believe because it’s for a short time frame and not necessarily long enough to be worthwhile (though it can certainly prove helpful). Employee Furlough Advantages Since furloughs are happening in many industries right now, the temporary change can’t be all bad. There are advantages to furloughing employees, like the following: Avoids layoffs. The most obvious upside to going with furloughs instead of laying people off is that you avoid the latter. In other words, you aren’t terminating team members. Instead, you’re temporarily removing them from the business without pay. Reduces rehiring. Another benefit of furloughs is the fact that you won’t have to go through the trouble of rebuilding your workforce from scratch. Rather, you can just reassemble your team, either one-by-one or in small groups. Saves compensation costs. Of course, when you furlough employees, you don’t pay their wages or salaries. Since labor is most typically the largest business expense, this can really help your company financially. (Though, you may still opt to furnish them with benefits during their furlough period.) It allows you to better plan. Yet another benefit of furloughing instead of firing employees is that you can formulate a more workable plan during that time. The longer it goes on, the better grasp you’ll have of what to keep and what to jettison. To put it another way, you can use the opportunity to streamline things in order to make your business more productive and more profitable. What other business pros and cons of furloughs would include? Please comment and share your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.