The Mahogany Tree: A Metaphor for Experimental Entrepreneurship

By Luis Aguilar 

Esquema Tech – Director and Founder

November, 2025

Among all types of entrepreneurs, there exists a fascinating breed — the experimental entrepreneur. These individuals possess a remarkable ability to adapt and pivot their business models in response to market feedback. Whether they’ve inherited an established company or built one from scratch in sectors where profit margins have been stable for years. This because they were disruptive in their ideas and the competitors are observing and are thus lagging while the experimental mind is in test and error mode, they share a unique gift: the luxury of flexibility. This flexibility most often owes to random factors; time, location, abundance of capital and whatnot.

This entrepreneurial approach is beautifully captured in research published in the Journal of Small Business and Enterprise Development (Startup Decision Making). The study examined what they call the “entrepreneur-as-scientist approach,” and the "trial and error approach" comparing it to traditional business methodologies. Their findings reveal that experimental entrepreneurs achieve superior outcomes and create more value through careful proposition-business model relationships.

Understanding the Approaches

The distinction between these methods isn’t black and white — they can actually complement each other. What matters most is recognizing when different market spaces and conditions favor one approach over the other. In certain cases, certain conditions mean success, such as the nature or history of the services provided, the composition of the team’s human capital, and how sales and promotions are structured. This foundation (the roots of the tree) lasts longer when a new company enters a sector with an established competitive advantage because it was innovative. If you set foot with an innovative wedge this should set roots.

However, when facing fundamentally different market conditions, this equation changes completely. In contrast, entering new sectors without inherited advantages or experimentation capabilities means the business becomes a different machine entirely and it is more restricted for experimental lures. Anyways perhaps a big majority of business people prefers safe places, still waters, however, this does not apply if you are a startup with big ambitions.

The Mahogany Tree Framework

This developmental process mirrors how certain trees grow in nature. Consider the mahogany tree: it begins by establishing a wide root system that provides stability and draws nutrients from diverse sources; this is the experimental stage that is more important for creating a tech or non-tech wedge. Then, the trunk grows strong and tall, reaching upward for several meters with singular focus and strength because the business model was correct. Only after this solid foundation is established does the tree develop its characteristic wider canopy, spreading branches in multiple directions.

This isn’t merely decorative imagery — it’s a precise model for sustainable business growth. Companies that follow this pattern understand something crucial: the best income strategy during early growth stages involves controlled experimentation, especially when entrepreneurs can leverage their existing network and resources before committing to their long-term strategy. These become the roots of the tree, the foundation that feeds everything above. During the tree trunk years, needless to say, there is less experimentation and more company building so to speak, the business model is casted. 

Those early months or years of focused growth aren’t wasted — they’re an investment in developing the machine’s capabilities. The company and its team expand their skill sets and knowledge base, building what might be considered the “trunk” of the organization. Only when this infrastructure reaches sufficient maturity and strength does it make sense to branch out dramatically.

Only then can companies extend their branches into new processes of expansion through micro-innovations that might initially seem far removed from their core business. They might explore completely different ventures — from cloud computing and AI development to entirely new industries like restaurant delivery or space exploration — even when these departures seem radical.

When Branches Become Forests

At that point, and only then, should companies extend into varied micro-processes of experimentation and expansion. These branches might pursue options and opportunities across wildly different sectors with capabilities built on the solid base of the company’s foundation. Perhaps one branch tests AI-powered solutions, another explores new market segments, while a third experiments with alternative business models.

This might sound like permission for chaos, but it’s actually a framework for disciplined innovation. A technology company or a hotel franchise that spent years perfecting its operations now has both the luxury and the capability to experiment with restaurant food delivery systems because they saw a flaw or a gap in the market. These aren’t random pivots — they’re calculated extensions made possible by a strong trunk and deep roots. And of course, a big wallet.

The problem with SMEs or startups is that they can be clogged with distractions of this sort for longer than they should, and not recognize the right momentum to change. Stop with a setback at the right time and grow, or the other way around as there might be other faster pathways to success.

The Right Moment to Experiment

The critical insight here is understanding when you’ve earned the right to such experimentation. You can’t build a wide canopy without first developing strong roots and a sturdy trunk. Attempting to branch in every direction from day one means you’ll likely topple over with the first strong wind. But ignore the branching phase entirely, and you’ll never realize your full potential for growth and impact.

Many entrepreneurs fall into one of two traps. Some never establish their roots deeply enough, constantly pivoting before building real strength. Others grow a magnificent trunk but fear extending their branches, missing opportunities that their strong foundation could easily support. The experimental entrepreneur understands both the discipline required for the trunk (company building) and the creativity necessary for the canopy — a subsequent experimental phase, often delegated to departments as the company is big enough for owners or cofounders to take direct hands on —.

This mahogany tree model offers a powerful lens for understanding business development — not as a linear path or a simple binary choice between stability and experimentation, but as a natural progression where each phase enables the next. Build your roots in tested ground. Grow your trunk with focused intensity within a period of no distractions, with no major testing at all. Then, when the foundation can support it, spread your branches boldly into new territory (and this actually makes perfect synergy with Santoro's "Rhythm of the Bold" theory).

The question isn’t whether to be stable or experimental — it’s about knowing which season your business is in and what that phase demands of you. Nobody will tell you when to do it, as this rhythm is only in your hands; the owner, the founder the CEO. Unless of course, you hire us!