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The basic premise of this article seems to be that, yes, entrepreneurship is not physics, mainly because human behavior is harder to model than things like moti
by justiceforsaas 6y ago
The basic premise of this article seems to be that, yes, entrepreneurship is not physics, mainly because human behavior is harder to model than things like motion and forces. So the TLDR (according to the author) is:
"The point is not to ‘not fail’, the point is to fail quickly and fail often in non-lethal ways so you have pragmatic, real-world knowledge to help you guide your decisions."
I liked the part where they also talk about "asymmetrical risk" and creating experiments where you may risk 10% of your capital, but if that thing works, it will double your business. I think this applies to all aspects of entrepreneurship, not just building the product. For example, I write about acquisition channels that consistently work for founders [1] and found the most successful ones place "small bets" that can potentially have "big results". Like mentioning their idea in a FB community where they could get 1000s of potentially interested people. Time invested: 10 minutes. Results: 1000+ potential users. Not bad.
Nassim Taleb also talks about this "asymmetrical risk" concept [2] and a lot of his "Antifragile" book was about it. I'm really curious who originally came with this concept (it seems to go by different names, the OP calls it "asymmetrical risk", Taleb calls it "convexity), and it seems the first person who came up with it was someone from the finance industry decades ago.
[1] https://firstpayingusers.com https://firstpayingusers.com
[2] https://www.advisorperspectives.com/articles/2013/07/16/nassim-nicholas-taleb-to-prevail-in-an-uncertain-world-get-convex https://www.advisorperspectives.com/articles/2013/07/16/nass...
- rjyoungling 6y agoAuthor here. Thanks for your kind comment. Excited to go through the resources you've provided, tomorrow. As for who came up with asymmetrical risk, great question. I'm not sure where I heard it first? I think it might have been Vinod Khosla of Khosla Ventures.