#### #### Links [Transistor](https://share.transistor.fm/s/3a411bea) [Spotify](https://open.spotify.com/show/3DBRCVFep0YbYeLPcVVXQv) [Apple Podcasts](https://podcasts.apple.com/ca/podcast/essential-dynamics-with-derek-hudson/id1542392917) [Podcast Addict](https://podcastaddict.com/podcast/essential-dynamics-with-derek-hudson/3153944) #### Summary Dave and Derek discuss how the principles of [[Essential Dynamics ]]apply to early-stage startups. It's all about the [[quest]]: [[purpose]], [[path]], and [[people]]. #### Concepts - [[Purpose X and Purpose Y]] - [[Value Creation System]] #### Quotes >Essential Dynamics is based on this idea of being on an epic quest. And of course, epic quests are hard and you have all kinds of unexpected challenges and you might get hurt. So that's one side of it. And then the other side is, you're doing it for this high, noble purpose. And, that's the best way to look at entrepreneurship: people, step into it because there's something that they really want to accomplish, and they know it's gonna be hard, and they're excited about the challenge. >You're on this epic quest that's hard, but you're energized and you have this great motivation, and those are the ingredients to have flow. And you can look at entrepreneurs. And when they get into it and they get working so hard, they have flow. They find their groove for sure. >It's finding the balance and the tension in there - Purpose Y, Purpose Y; having that clarity at the front is is such a touchstone for the entire entrepreneurial journey. It helps so many decisions down the line. >You don't need to stop, and sit down, and and draw out your your system and all the pieces and do the analysis on it. That comes in time as it evolves, but it's understanding that value and how you create value and how you give value to your customer. You are creating your system then. You're creating a value creation system without stopping and defining it that way. >If you prove to the world that it's a lucrative business to be in, you'll get squeezed out if you don't understand how you uniquely create value. >If the key operation in your value-add process is something that's not easy to scale, you're gonna have a difficult time scaling your business. >When we go back to purpose, path, and people, they're not siloed. They're a system. So bringing your purpose and your process into how you're viewing the people and how they're engaged in the organization is absolutely critical. >If you're on a quest, and you have this lofty vision of really changing the world with your product, and creating this wake of value that spreads everywhere...if that's what you want to do as an entrepreneur, from day one you have to be thinking, what's our system for adding the value? And, and how do our people fit into this? >If you didn't build the people up properly from the beginning, you're building a system that limits value because you're the centre of it. >Be clear in your Purpose X, Purpose Y at the beginning. Be clear on how you're generating value, and be clear on the relationship with your people. And if you take care of those, you are going to grow into these organizations that we're talking about that have these well understood and well functioning systems. And then you'll get flow. #### See also - [Threshold Impact Venture Mentoring Service](https://thresholdimpactvms.com/) - [Innovation Masterminds Edmonton](https://www.imyeg.com/) %% >This is a fundamental decision you have to make as an entrepreneur: are you an entrepreneur because you're trying to make money? Are you an entrepreneur because you have this thing to offer the world? And there are both kinds. And you have to figure out which kind you are. >If you stop to say, how am I generating value, and what is the value to the customer? Then how am I generating it? You start to focus in on, what are the key pieces of that value creation? What are the key inputs into it? What's the key, the magic sauce inside the black box? And it just it allows you to focus on what's important. And unknowingly, you're building your system. You're defining it. You're focusing on the the driver and the constraint.