Poker and other aspects of life aren’t that different after all. Just think about how terms like “poker face” have entered the everyday vernacular for people. There are definitely strategies that can be honed in one of these worlds and be useful in the other.
Plenty of people compare poker positions and business. Players are left in a certain position based on where they are on the table — and, of course, the cards they are dealt — but the cards don’t dictate everything. AskGamblers has a guide to the poker positions that people may end up in and what this may lead to, as well as how it informs different strategies throughout the game.
Positioning in Poker — More Than Just a Seat at the Table
Position is a huge part of the world of poker. The order in which players act in a hand can dramatically impact their ability to make informed decisions or even control things like betting.
The best position at a poker table is the “button” and this is the last player to act in a betting round. Players in this seat have the advantage of seeing how everyone else plays before making a decision. They can apply pressure on weaker hands or maximize their chances of success if they play a clever game.
Contrast that with the “under the gun” position — the first to act. This player has no information on what others will do which can make their decision-making more difficult and often more conservative. Acting early means taking unnecessary risks or being forced into defensive play.
Great poker players understand how to use position to their advantage. They adjust their betting strategies based on where they sit and how much information they have. Timing becomes as important as the cards they hold, and positioning allows them to make smarter moves even with weaker hands…this can also be extended to business.
In business, timing can play a big part. Think of the way that AI is growing and companies are jostling for positions. Elon Musk’s Grok is one of the bigger names and this business is growing — but positionally you could argue that ChatGPT is in a better position due to the time they arrived at the market.
Positioning in Business — Controlling the Market Like a Poker Hand
Business positioning follows similar principles. Companies that place themselves strategically in the market and react based on competitive intelligence often dominate their industries.
A company’s position determines how it competes and how it responds to external factors and things other players (companies) are doing. Like poker players, businesses must be aware of competitor movements and how aggressive they are with certain elements of expansion.
Some companies position themselves as market leaders — they set the pace and force competitors to react to them. Others play from the edges and wait for opportunities to strike where the big players least expect it.
Knowing When to Hold ‘Em, and Knowing When to Fold ‘Em
We’ve used the full poker term made famous by The Gambler by Kenny Rogers, but the relevance to business is undeniable.
Poker players don’t win by playing every hand. The best ones understand when to be patient and wait for a strong opportunity. They fold often and can keep their resources until they find a moment where they have an edge over the competition. Some would call it keeping their powder dry.
Businesses must adopt a similar approach. Not every opportunity should be pursued and spreading resources too thin can lead to disaster. Smart companies know when to pull back and admit that things just didn’t work.
Think of the way that Google launched Stadia. This business was meant to revolutionize gaming but eventually, they cut their losses. Their statement explained:
“The underlying technology platform that powers Stadia has been proven at scale and transcends gaming. We see clear opportunities to apply this technology across other parts of Google like YouTube, Google Play, and our Augmented Reality (AR) efforts — as well as make it available to our industry partners, which aligns with where we see the future of gaming headed.”
This can help understand how sometimes it is best to withdraw. Google (Alphabet) is one of the biggest companies in the whole world and the addition of a big gaming platform could have been big — but they effectively admitted in their statement that they were letting the other gaming companies lead the way in this respect.
Just like in poker, there are moments where bold aggression is necessary. A well-timed expansion or a calculated product launch can push competitors out of space and establish dominance.
The key? Know when to act and when to wait — which is a lesson that both successful entrepreneurs and poker professionals understand deeply. There are also times to withdraw from a business when people know they aren’t going to be successful. There’s no point in flogging a dead horse, to coin a phrase.
A Constantly Changing Dynamic
A poker player who doesn’t adapt to table dynamics and changing bets will quickly fall behind. Flexibility and willingness to adjust playstyles are crucial to long-term success and it’s definitely something true in business as well.
Markets evolve and consumer preferences shift. Companies that refuse to adapt or cling to outdated strategies often find themselves overtaken by more agile and forward-thinking competitors.
Both poker and business require an ability to pivot and change, not being married to a particular idea so much that they can’t accept what isn’t working (and move on to something that is). The mental aspects of poker can undeniably play a big part in business, too.
