The Good Enough Principle

In 2007, the Flip Ultra video camcorder became the best-selling camcorder on Amazon capturing 13% of the camcorder market. It didn’t record on video tape, it had limited recording storage, and it lacked most of the features of other camcorders. Basically, if you remember, you pointed your Flip camera at your target and clicked the red button to record. The Flip was a great example of the Good Enough Principle.

The Good Enough Principle, when applied to running a business, emphasizes that perfection can be the enemy of progress. This principle suggests that achieving a standard that is “good enough” for the task at hand is often more beneficial than striving for perfection.

The Good Enough Principle is really an extension of the Eighty-Twenty Principle. It’s a software design concept that states that consumers mostly use products that are good enough, even though they may not contain the latest technologies or advanced features. Here’s how it applies to business:

Efficiency Over Perfection: Focus on delivering products and services that meet customer needs and expectations, even if they aren’t perfect. This helps in avoiding unnecessary delays and reducing costs associated with endless revisions.

Iteration and Improvement: Launching a “good enough” product allows you to get feedback from customers early. This feedback can be invaluable for making iterative improvements, ensuring that the final product better suits market demands.

Resource Allocation: By embracing “good enough,” you can allocate resources more effectively, balancing quality with time and cost constraints. This is particularly crucial for startups and small businesses with limited resources.

Time to Market: Getting to market faster with a product that meets basic requirements can give you a competitive edge. It allows you to start generating revenue and gaining market share while you continue to refine your product or services.

Avoiding Burnout: Perfectionism can lead to burnout for you and your team. The Good Enough Principle helps maintain a healthier work-life balance by setting realistic standards and expectations. This is especially important for micro-business owners.

Business Strategy: As in the example of the Flip cameras, the Good Enough Principle can be a great business strategy. Finding an underserved problem or need of your customers and creating a good enough product that is easy for your customers to understand and to use.

In essence, the Good Enough Principle in business is about finding a balance between quality and efficiency, enabling you to move forward, adapt, and grow without being paralyzed by the pursuit of perfection. It’s a pragmatic approach that encourages action, learning, and continuous improvement.