The Third Rail of Entrepreneurship: A shrinking business

In politics, the term “third rail” is used to describe something that is untouchable and comes from the charged train lines that supply power, which should never be touched. As entrepreneurs think about the future there are always two growth options:  stay the current growth course or swing for the fences by taking more risks to grow even faster. Notice, as is the case for entrepreneurs, there’s no notion or possibility of shrinking. Entrepreneurs are focused on growth.

There is, in fact, a third option, and for many entrepreneurs it’s an unimaginable third rail in their mind: a shrinking business. Increased competition, commoditization pressure, and changing marketplaces happen all the time. For entrepreneurs thinking about the future, being forever optimistic is the necessary course of action, even blissfully ignorant at times, but at some point is important to think about the third rail and incorporate that into the decision making process.

What else? Is there another third rail of entrepreneurship?