Stop moving the Goalpost.


While working towards our personal or work goals, something we often end up doing is – we move the Goalpost further as soon as we reach closer to the goal we had initially set.

For instance, let’s look at Amad’s story. Amad started a Kirana Store in a Tier 2 City.

Amad sets the first month’s sales goal as 10,000 INR and achieves it in record time and keeps achieving monthly goals he has planned for the next twenty-four months.

After the twenty-fourth month, Amad’s monthly revenue has exponentiated to 2,00,000 INR a month, and the store is EBITDA +ve.

Amad is not happy, though; he is tasted sweet growth and success. He does not want to stop just yet. 

He starts experimenting with different strategies to increase his turnover.

– Increases the available range of SKUs
– Distributes promotional pamphlets in nearby residential colonies
– Starts offering a discount to high-volume customers

Despite all attempts, Amad is unable to grow his topline. 

And well, there is no business lesson here apart from accepting the strength of current macro tailwinds.

Amad understood that currently, due to increased inflation and decreased disposable income – many households have cut down their demand for non-essential items.

Since most of the items Amad’s store stocks are perishable – his debt started increasing.

Amad realised it’s best to sustain the current demand where there is a certain equilibrium (EBITDA +ve) and use the excess funds to create a second income stream.

In economics, this is known as the law of diminishing returns. This means that post a specific limit, no matter how much inputs are infused into a system – the returns are diminishing. (in the short run)

A simple way to combat this is to stop moving the Goalpost and celebrate the goals which you’ve achieved.

What do you think? 

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