Thinking In Small Bets, And How To Get Started.

Big bets are overrated, think small.

There’s some times in life when you need to take the plunge. Committing to a life partner. Raising a child. Doing your first skydive. These are all occasions where you are either in, or you are out.

How To Get Started Making Small Bets

Create The Business, Don’t Run The Business

When most people hear that I have 5 different side projects, they immediately wonder how I balance it all. This is because people mistake having equity in a business, for running that business. Clearly, it would be impossible to run 5 businesses.

  • Find some mates who would be a great fit for the business, get them on board with a good slice of equity (perhaps foolishly I usually just split this down the middle)
  • Work like a dog for the first month getting the initial momentum going.
  • Put a process in place for the founding team.
  • Put in max 5 hours a week into the business as it ticks along, obviously some weeks you need to put in more, but this is the exception.

Get The Right People

I can’t stress enough how important it is to have the right people supporting you if you are going to be placing multiple small bets on different projects.

Prove Hypothesis Early

If you are taking multiple small bets you want to fail often, and fail early. You always want to be protecting your most precious resource time, as each bet you are invested in has an opportunity cost. Each bet you say yes to means you are saying no to another bet.

Co-founder, Chief Product Officer, Lithium Ventures. Web 3.0 Enthusiast.