Week 97 - "Monopoly is therefore not a pathology or an exception. Monopoly is the condition of every successful business" - Peter Thiel

Why you just need to get it right once

There’s this idea in early-stage startup culture that although you always run the risk of failure, startups are inherently special because the output they provide can not only amplify the initial input by 2 or 3 fold but can sometimes provide a 1000x return on how much money and work was put in. This makes any other time they may have failed worth the eventual payout.

This is so interesting to me because it’s not like many other pursuits in which your output can outmatch your input so greatly.

For example, in physical pursuits, training in any capacity provides stimuli that can only do so much. Your muscles will only grow as much as your body will allow them to, and you’ll only get as fast as your legs will move. Even subtle technique changes might result in only a 5 or 10x improvement in overall efficiency and eventually performance.

For these pursuits, those input-output ratios are great.

If anything, they make sense.

But business isn’t the only endeavor in which you can have wildly disproportionate input-output ratios.

Let’s look at relationships.

You never know where a relationship with someone may go. Sometimes, they can forever remain an acquaintance or, hopefully, grow to something more, and actually bring you some value.

These kinds of outputs are usually equal to the input you get from them.

If you don’t spend the time needed to grow closer to someone, your relationship will only be as strong as the effort you put into it.

But let’s look at the example of a romantic partner.

Although this type of relationship requires much more input to make work than every other relationship, the potential output wildly outweighs any amount of work you may put in.

We all know that the process of courting and remaining in a relationship is anything but easy, but when you think about how much a spouse brings you from when you’re together till death does you part, it seems laughable to think it’s hardly worth working for.

And just like in business, the one time you do meet the one makes all the times you didn’t, worth all the pain and lessons those people may have given you.

But the thing that’s hard with both relationships and business is that you never know if the one you’re with or working on is the one that’s going to give you that 1000x output.

Statistically speaking, it’s actually more likely than not that that person or venture won’t. I mean, most people(hopefully) date more people than they marry, and most serious entrepreneurs have more failed/pivoted businesses than successful ones.

So knowing this, how does one proceed?

It’ll differ for everyone, but I think it starts with realizing that longevity in both fields is the primary metric to optimize for. If you start looking at your next career/business decision or relationship in the macro instead of the micro, it should be easy to figure out what really matters.

If that means doing nontraditional things that others might not believe in to make something work, so be it.

The only way to even out an unfair life is to find ways to get more out of what you put in. Business and relationships aren’t the only ways to do this, but they are among the ones that can have the biggest impact on your life.

And to those who say you only get out what you put in, I recommend finding a better investment.

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