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The Ergodic Assumption is Dangerous for your Business

You may be making it every day.

The ergodic assumption is the belief that over time, things will "even out." 

This is dangerous for your business because it lures you into a false sense of security

Here’s some warning signs that you may be assuming ergodicity. Beware!

 

I. Expecting That Your Current Processes Will Always Work

The world changes, and relying on processes that worked last year might fail under new conditions. 

If your business systems don’t adapt, you’ll find yourself falling behind competitors who innovate and evolve.

 

II. Assuming Future Revenue Will Mirror Past Success

A sudden shift in client needs, technology trends, or market conditions could dry up that pipeline unexpectedly, leaving you scrambling without a backup plan.

 

III. Ignoring the Impact of Losing Key Employees or Partners

Losing a key team member with deep client knowledge or industry expertise can cause a drop in quality, client trust, and business reputation, leading to ripple effects that can be hard to recover from.

Some mistakes can’t be fixed: they become an absorbing boundary—something that doesn’t just "even out."

 

IV. Thinking That Market Trends Will Self-Correct

Sometimes, trends signal deeper market changes, and waiting for the old normal to return could mean you're left behind.

 

V. Assuming That Cash Flow Problems Are Temporary

Cash flow issues can snowball quickly.

Delays in client payments, unexpected expenses, or a decrease in new business can create a situation where your operations are constantly on the edge of collapse, without enough buffer to sustain you through tough times.

 

VI. Underestimating the Long-Term Damage of Negative Reviews

Negative feedback can have a compounding effect, where even one bad experience ripples across social media or review platforms, deterring potential clients for months or years to come. 

It's not just a blip—it could be a long-lasting dent in your reputation.

 

You can’t always recover from the consequences of an ergodic assumption.

But you can grow your capacity to catch yourself from making it.

Visit www.evolutesix.com/ergodicity101

Avoid making the ergodic assumption.