There are various powerful reasons why the concept of “black sheep“There is, one such reason is to never follow the herd.

I was chatting with a valued client when the client made a valuable suggestion about how the inevitability of herd behavior is over-discussed. This was a valid point, as herd behavior will always be part of our reality. However, the goal is to be aware enough of this syndrome to be able to avoid it during critical moments. One of the best ways to achieve this is to always have a balanced strategy in making financial and strategic commitments. To shed more light on the importance of having one balanced consciousnesslet's examine the story of a seasoned professional and how his supposedly unique demeanor became a weakness.

Understanding herd mentality and maintaining a balanced business strategy

of herd mentality it is found in every area of ​​our daily activities as humans. But as an entrepreneur, you can't afford to blindly follow trends or rush into saturated markets without a clear plan. You can argue that copying what has been proven effective by others is a safe and secure way to enter the market, but you also deny yourself opportunities for innovation.

Having said that, this does not mean that you should throw all caution to the wind and deliberately go against general or mainstream ideas. The trick is to maintain a balanced business strategy. Perhaps one of the greatest stories that teaches this moral is the story of George Sorosan investor who made a name for himself by taking bold and high stakes stands against popular opinion. In the memorable bull market of 1987, he predicted an immediate decline in the Nikkei market and a more sustained rise in the S&P 500; he positioned his stock accordingly. Unfortunately, the opposite happened and Soros' bold stand against the herd had essentially become a disaster for his entire business operations.

The Soros story is a critical illustration for business leaders; failure to strike a balance between reason and strategy is enough to cause decline.

Related: Your value increases when you separate from the herd

5 Reasons Why Entrepreneurs Shouldn't Blindly Follow the Herd

1. Authenticity matters

The biggest danger of following the herd is that you start to lose touch with yourself and everything that makes you unique. By conforming to mainstream expectations, your values, beliefs, and passions begin to take second place in your life and decisions. The truth remains that only by honoring your individuality can you get personal satisfaction and build real relationships.

Personal example: Being passionate about sports, I invested in a new sports management business despite having limited experience in the sports industry. The experience had many ups and downs with an eventual successful exit 10 years later.

2. Creative freedom

Herd mentality is one of the biggest obstacles creativity and innovation. It's hard to get new ideas when you're following the conventional path. But by getting away from the crowd, you can explore new ideas.

Personal example: Against the advice of my financial advisor, I went into business cooperation in the art industry. It turned out to be one of my best decisions, one that I wouldn't have made if I had stuck with the usual.

3. Critical thinking

Following trends or being part of the herd denies you the opportunity to improve your critical thinking skills. By exploring your independence, you are able to sharpen your mind and make informed choices after careful analysis of any situation you find yourself in. In the long run, you are able to make deliberate choices that align with your goals.

Personal example: I have been able to examine and understand the things that are best for me, I now prioritize the well-being of my mind, body and spirit through practices such as meditation and Qi Gong.

Related: Hustle Culture Is Killing Your Greatness

4. Personal growth

Another benefit of breaking away from the herd is that you become more aware of your own personal growth. Because you're not doing the usual things, you're forced to face your fears and test your limits. These experiences teach the importance of being authentic even when you face challenges and are crucial in shaping the type of person and entrepreneur you become.

5. The unique path to success

One of the truths that you will have to come to terms with very quickly if you want to be successful is the fact that success does not have a universal definition; it varies for each person. You need to remove yourself from the outside noise and create something unique that matches your passion and strengths. Simply put, you need to define success on your own terms.

Way forward for entrepreneurs

• Prioritize risk management and diversification. Soros failed to manage his risk and this led to his downfall. Always be strategic and never overdo it with a single strategy.
• Work on your emotional intelligence. An emotionally intelligent business leader can recognize when external factors are influencing decision making. This leads to a more deliberate and rational choice.
• Recognize that you have cognitive biases and that they can distort decision making. A deep understanding of these potential biases can help reduce their impact.
• Educate and embrace adaptive strategies that enable you to adapt and pivot accordingly in the dynamic business environment.

Related: New entrepreneurs and seasoned professionals alike will not succeed unless they develop this skill

Final thoughts

The idea of ​​breaking away from the pack is not just an elitist abstract principle, but the smart way to live a purposeful and authentic life. Doing what everyone else is doing is usually a very convenient and easy way to do something, but if not done strategically, this method can easily backfire. As a business leader and entrepreneur, you should be conscientious and analytical enough to know when an advantage can become a disadvantage.

The only real way forward is to balance the risks by being critical and adaptable. And this is what separates exceptional leaders from the rest. They can take a step back to critically analyze and evolve depending on the situation they find. By embracing these qualities, you are one step closer to your greatest achievements.