There’s a growing divide among business owners today. Some are stuck in outdated methods, imitating their way to success, while the winners are using the scientific method to kickstart growth and banish uncertainty: Scientific Entrepreneurship. Whether you’re launching a startup or trying to revitalize your existing company, the principles of scientific entrepreneurship can help you scale your business faster and smarter.
You could keep guessing, but how has that worked so far? The “brand name” big businesses you’ve heard of rely on massive budgets to test their ideas with focus groups and expensive marketing tests. Until now, these options have often been out of reach for smaller companies.
So, how can you grow your business quickly and with less risk? Here’s the good news: you don’t need to overspend like the big players. I’ve successfully used these strategies to grow five of my own businesses and help countless clients achieve their goals through scientific entrepreneurship.
The Old Way vs. The New Way
The traditional approach to business involves generating an idea, developing a product, and then pouring money into marketing, hoping for success. This results in a “progress mirage,” where success feels random and unrepeatable. It’s no surprise that 23.2% of businesses fail within their first year, and 44% run out of cash even if they make it past the five-year mark.
But there’s hope. Companies that embrace scientific entrepreneurship can break free from this cycle. They build profitable businesses that grow bigger and faster, while minimizing risk.
My Personal Journey
Early in my career, I fell into the trap of the “hope strategy.” I imitated others without a clear strategy and wasted both time and money. I still remember when my wife asked me, “Is this business real or are you just playing house?” That question hit hard because it was true—I didn’t have a REAL strategy. I was making shit up as I went.
That kicked my butt and was my turning point. I founded five companies and generated over $440 million in sales by applying a scientific process that eliminated guesswork by showing me what wouldn’t work before I invested time and money into it.
Introducing the Scientific Entrepreneurship Process
This process consists of three key phases: Evaluate, Experiment, and Elevate.
1. Evaluate
The first step is knowing what to try. Most entrepreneurs jump into execution without analyzing which ideas could be impactful. Using an expected value analysis helps to rank potential strategies quickly.
2. Experiment
Once you’ve evaluated your options, it’s time to experiment. This phase is about testing your ideas quickly and affordably. There are three types of tests you can conduct:
- Directional Tests: Quick and cheap tests to gauge interest.
- Statistical Tests: More in-depth tests to validate your concepts.
- Revenue Tests: Proving profitability before scaling.
3. Elevate
After running your tests, you can elevate the successful strategies into your business with confidence, ensuring a higher probability of profitability.
Real-World Applications
Let’s look at some case studies. I helped a service business that hadn’t grown in years – they wanted to open a new location and were worried it would (again) take years. By applying the scientific entrepreneurship process, they transformed from revenues of just $123,000 in the new location – to over $1 million. In ten months.
Another example: a product business that nearly doubled its revenue through multiple rounds of testing. By focusing on a process that discards what won’t work, they only invested in things that were more likely to work. It starts the compounding flywheel.
Getting Started
How can you implement this in your business? If you’re serious about changing the course of your business, run tests (with the correct design so they eliminate the non-working things fast) on platforms like Meta (Facebook, Instagram) and Google to gather data and insights.
If you want to see how it’s likely to work out for you, check out the Scientific Entrepreneurship Fit Assessment to analyze your company and see how you can apply these principles. This free scorecard will highlight where you can achieve the fastest results.