You’re likely familiar with good business being explained as an art form — the art of negotiating, networking, adapting, and so on. People tend to view successful founders more as charismatic or inventive public figures and less as STEM-centric figureheads. But in truth, the best founders leverage both sides of our brains, the creative side and the logical side, to found and nurture great companies. That’s because there’s a very real scientific component to any business: the first two laws of thermodynamics. 

The First Law of Thermodynamics, also called the law of conservation of energy, states that energy cannot be created or destroyed. It can only be converted from one form to another.

The Second Law of Thermodynamics states that entropy (disorder and decline) always increases in any closed system over time.

Both laws relate to how energy is created and expended. From tiny organisms to entire ecosystems, the laws of thermodynamics apply. Similarly, these laws play out in societal constructs every day, including resource reallocation, emerging social movements, political instability, and stock market crashes.

In that respect, we can view both laws of thermodynamics through the lens of business development: In a very real way, you grow or you die. There’s really no in-between here. And so every day, in a thousand different ways, founders choose to either convert energy into growth or remain stagnant and allow entropy to take over. 

Read more in Grow or Die: The Physics of Business.

Perspectives

“The only things that evolve by themselves in an organization are disorder, friction, and malperformance.”

“You try something, it doesn't work, and maybe people even criticize you. In a fixed mindset, you say, 'I tried this, it's over.' In a growth mindset, you look for what you've learned.”

Mark My Words

Drawing on physics or other scientific laws can often help reframe the way we view different aspects of running a company. With so many variables and unknowns in today’s world, reflecting on and leveraging universal truths — from thermodynamics to evolution to Newton’s First Law of Motion — can be a powerful tool for navigating the uncharted waters we as founders experience with each new business venture. I find comfort and clarity in the absolute certainty these principles provide when developing the strategies and contingency plans that shape a company’s future.

Remember: Your company either grows or it dies. As a founder, your role is to have the right people and processes in place to help move the dial forward and combat entropy. Commit yourself to growth and watch your efforts become revenue. To surrender to inertia is to give in to disorder and deterioration. 

The choice is up to you. What will it be?

Stay Tuned

Find out why prioritizing structure before people is crucial for building an enduring Stage Five organization. The second installment in our Grow or Die series covers the foundational importance of structure and shows you how to create a company that’s set up for long-term success and sustainability.