Most entrepreneurs get so caught up in the day-to-day grind of running their businesses that they rarely step back to consider the bigger picture. Ray Dalio, founder of Bridgewater Associates, offers a framework that might change how you think about your entire entrepreneurial journey.
In a recent presentation, Dalio outlined three distinct phases of life that every person—and every entrepreneur—goes through. Understanding where you are in this arc isn’t just philosophical edification. It can fundamentally shift your priorities and approach to business.
Phase One is dependence and learning. You’re absorbing knowledge, making mistakes, and figuring out how the world works.
Phase Two is where most entrepreneurs spend the majority of their careers. Early on, you’re focused on building success and climbing the ladder. But here’s where it gets interesting: later in Phase Two, your primary goal should shift dramatically. Instead of asking, “How can I succeed?” you should be asking, “How can I help others succeed without me?”
This transition is crucial. Dalio compares it to parenting. At first, you guide and help, but eventually you want your children to thrive independently. The same applies to your business and team.
Phase Three is freedom from obligations, where you’re no longer needed for day-to-day operations and can focus on legacy and giving back.
For entrepreneurs, this framework offers perspective. Are you still trying to do everything yourself, or are you building systems and developing people who can succeed without your constant involvement? The answer might determine whether your business survives the next downturn.
Understanding your life phase can help you make better decisions about delegation, succession planning, and long-term strategy. After all, the most successful entrepreneurs don’t just build businesses. They build businesses that can thrive without them.
