Business FOMO: A Survivor's Guide
- Morgan Hunter
- Jul 8, 2024
- 3 min read
In the competitive business world, the fear of missing out on opportunities—dubbed "BFOMO" by Anil Saxena—can lead organizations to overextend beyond their core competencies. This blog post will explore the history of this phenomenon, its impact on the workplace, the psychology behind it, and provide actionable advice for businesses to stay focused and successful.
"Success in business is not about taking every opportunity, but rather choosing the right opportunities that align with your core strengths."
A Brief History of Business FOMO
The concept of FOMO, or the fear of missing out, isn't new. It's a psychological trigger that compels individuals and organizations to pursue every opportunity, often to their detriment. In the business context, BFOMO represents the anxiety of missing lucrative projects outside a company's expertise. This can lead to overstretching resources and diluting brand value. The "siren song of revenue" often causes businesses to venture beyond their true capabilities.
Impact on the Work Environment
The impact of BFOMO on the work environment can be significant. On the positive side, taking on diverse projects can occasionally lead to unexpected growth and learning opportunities. However, the downsides often outweigh these benefits. Pursuing projects outside core competencies can lead to poor outcomes, client dissatisfaction, and a decrease in overall team morale. Such pursuits lower customer satisfaction (CSAT) and Net Promoter Scores (NPS), and reduce the likelihood of project renewals.
From an organizational perspective, diverting top talent to non-core projects means that when opportunities in your sweet spot arise, the right resources are unavailable. This misallocation can hamper long-term growth and brand reputation.
Why These Things Happen
The psychology behind BFOMO in business is rooted in fear and ambition. Startups and established companies alike fear missing out on potential revenue, leading them to accept projects outside their expertise. This is often driven by a desire to quickly grow and compete in a crowded market. Additionally, there’s a misconception that specializing too narrowly limits opportunities, whereas, in reality, it establishes a company as an expert in its field, attracting the right kind of business.
Addressing BFOMO in the Workplace
Addressing BFOMO requires strategic planning and a firm commitment to your core competencies. Here are some actionable steps:
Revisit Your Business Plan: Ensure that your business plan clearly defines your core competencies and differentiators. Your mission, vision, and values should guide your project selection and strategic decisions.
Set Clear Boundaries: Establish agreements within your team to only pursue projects within your sweet spot. This may involve setting incentives for sales teams to focus on relevant opportunities.
Clean Up Your Pipeline: Regularly review your project pipeline to remove deals that don't align with your expertise. This helps maintain focus and ensures that your resources are dedicated to projects where you can excel.
Partner Strategically: For projects outside your core competencies, consider forming partnerships with other firms. This allows you to meet client needs without overextending your capabilities.
Market Readiness: Launch new services or enter new markets only when fully prepared. This includes having the right messaging, marketing capability, and sales focus to ensure success.
To learn more about managing BFOMO and strategic project selection, tune into our podcast, "Monster in My Closet." Each episode offers insights and real-world experiences to help you navigate the complexities of business. Check out our other blog posts, including show notes from our podcast, for more valuable advice. Stay focused, stay prepared, and listen to the experts who have been there.
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