The Physics of Entrepreneurship

The Physics of Entrepreneurship

Entrepreneurship has for a long time been viewed as a creative process rather than a scientific process. However, thanks to work done by the likes of Michael Porter and more recent initiatives such as the E-Myth and The Startup Genome, there have been attempts to create a scientifically verifiable theory about entrepreneurship. However, this is not the case but simply tries to draw lessons from physics and apply the same to entrepreneurship. Following in the footsteps of Dan Cobley, head of marketing at Google, who in a TED Talk, drew some very interesting parallels between physics and marketing, here we compare the four laws of thermodynamics to the entrepreneurial initiative.

Zeroth Law

The law states that if A+B=C then A=B. If you are entrepreneur, the first thing, and probably the most challenging, is coming up with a product that will not only compete well but also create a niche market that is big enough. However, for many people, either due to little market research or to inexperience will jump into a market with a new product that serves a particular market. Unbeknownst to them there is already another product that is already serving that very same market. In terms of the zeroth law of thermodynamics, if your product (A) is added to your competitor’s product (B) to serve the same market (C) then product A (yours) and B (your competitor) are similar and therefore lack differentiation and competitive edge. Lesson to learn: Don’t get into a market unless you can differentiate effectively.

First Law

The law states that there are two types of physical process; energy transfer as work and energy transfer as heat. Starting an entrepreneurial initiative requires a lot of input. For many entrepreneurs, this input is in the form of money and time. There are many tasks at hand and the reality is that sometimes there is too much to do at once. Drawing from the first law, we can therefore conclude that there are tasks that yield results (work) and there are those that result in burnout (heat). Lesson to learn: learn to differentiate between work and busyness; both take up energy but only one produces results.

Second Law

The law of entropy states that physical processes are irreversible. As an entrepreneur, the most important question you must ask yourself is whether you want to be an entrepreneur in the first place. As the law states, there are some things that are actually irreversible. This law can also be looked at in a different way. This law also states that energy cannot be destroyed but is only converted. If you do decide to become an entrepreneur, learn the art of flexibility and adaptation, let no effort go to waste but convert it into a something beneficial, even if only just a lesson learned.

Third Law

The law states that it is impossible to cool a perfect crystal down to exact zero. So yes, maybe you do have a perfect idea and you have the perfect plan to make it work, physics says it’s not going to happen as you think it will. Instead, this law should teach you that even if you have a perfect idea (a perfect crystal), chances are you will not be able to nail it perfectly (cool it to exactly absolute zero). So expect pitfalls, variances and the overarching reality that there will be unavoidable failures coming your way.