Risk and Reward

Reading – Zero to One by Peter Thiel

“Every single company in a good venture portfolio must have the potential to succeed at vast scale.”

An entrepreneur, in a very direct way, is investing in themselves. The time, emotion, and capital a new venture requires builds the investment. Every activity must contribute towards a potential massive return. If you are providing a service (like product design), customers should have the potential for scale. The logic translates well to product development. Two products may have similar developments costs in time, cost, tooling, and prototyping. One is a niche product with a solid market and decent, low-volume returns. The other is still a niche product but with great margins and unbelievable scale (thinking of selfie stick).

All products face risks of failure.

All products face risks of competition.

All products have limited timeframe of appeal.

Although the examples are extreme, we should focus our activities on creating disproportionate value and scaled returns for effort.

Side Note

Networking events are going tremendously well. I am meeting interesting people doing interesting things. The schedule is rough. I am searching for a balance between morning and night.

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