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    The Average of the Five Around You

    Photo of Erik Reagan Photo of Inda Deleon

    by Erik Reagan and Inda Deleon

    Average of five blog

    "You are the average of the five people you spend the most time with" - this well-worn phrase, often attributed to Jim Rohn, has made its rounds in entrepreneurial circles for decades. But for business owners, the reality is more nuanced and the stakes are considerably higher.

    Research from Harvard Business School has shown that entrepreneurs with strong professional networks are better positioned to identify opportunities and secure resources crucial for scaling their businesses. More importantly, the quality and diversity of these connections often matter more than the sheer number of contacts.

    Think about your own business journey. As you've scaled from startup and beyond, how has your inner circle evolved? Who do you turn to when you're wrestling with a significant decision or planning your next phase of growth?

    The truth is, at your level of business, it's not just about surrounding yourself with "positive" people – it's about strategically cultivating relationships that challenge your thinking and expand your possibilities. As John Maxwell notes in The 15 Invaluable Laws of Growth, the most valuable connections are with "people who are ahead of us professionally... and above all, people who are growing."

    But here's what most advice misses: Building the right environment at the top can be lonely and complex. When you're running a thriving business, everyone wants something from you. Finding peers who truly understand your challenges – and can help you navigate them – requires intentional effort.

    Sara Blakely, founder of Spanx, has spoken extensively about the importance of intentional relationship building in her journey to building a billion-dollar company. She actively sought out mentors who had built global brands, not just successful local businesses, understanding that her environment would shape her vision of what was possible.

    Your environment either expands or constrains your vision of what's possible. Consider:

    • When you look at your closest business relationships, are you the one pushing the boundaries, or are they pulling you toward bigger thinking?
    • In your current peer group, how many have successfully navigated the next level of growth you're targeting?
    • Are your key relationships mainly transactional, or do they challenge your assumptions and push you to evolve as a leader?

    If you need to make changes in yourself and your environment, don’t dwell on your past. You can’t change it. Don’t worry about your future. You can’t control it. Focus on the current moment and what you can do now.

    John Maxwell, The 15 Invaluable Laws of Growth

    Network research consistently shows that entrepreneurs who regularly engage with high-performing peers are better positioned to identify new opportunities and secure strategic partnerships. The key is being intentional about building these relationships.

    But here's the crucial part – you don't have to overhaul your entire network overnight. Start by identifying one key relationship to cultivate this quarter. Look for someone who:

    • Has successfully scaled beyond your current level
    • Operates with values aligned with yours
    • Has overcome challenges similar to those you're facing
    • Demonstrates a genuine commitment to growth and learning

    Your business has evolved significantly since you started. Isn't it time for your inner circle to evolve too?

    Take a moment today to assess your professional environment honestly. Map out your five closest business relationships. How do they align with your vision for your company's future? More importantly, how do they align with your vision for the leader you want to become?

    Remember, at this stage of your journey, it's not about cutting people out – it's about strategically adding relationships that can help you and your business reach new heights.

    What's one relationship you could cultivate this quarter that would significantly expand your possibilities?

    References

    1. Hochberg, Y., Ljungqvist, A., & Lu, Y. (2007). "Whom You Know Matters: Venture Capital Networks and Investment Performance." The Journal of Finance, 62(1), 251-301.
    2. Maxwell, J. (2012). The 15 Invaluable Laws of Growth.
    3. "How Sara Blakely Built Spanx Into a Billion-Dollar Business" - Forbes (2012)

    Opening photo by Kimson Doan on Unsplash

    Photo of Erik Reagan Photo of Inda Deleon

    by Erik Reagan and Inda Deleon