How to start a business
Suppose you want to start a business. There are two approaches many founders take. (1) Pitch the idea to VCs to have them fund the business. (2) Bootstrap the business and self-fund it.
Daniel Vassallo talks about a third approach which is not discussed as often in technology circles: The portfolio of small bets. The problem with both VC-funded and bootstrap startups is that they are big bets. The portfolio of small bets is the opposite.
Tips and techniques Daniel shared
Here are some of the tips and techniques that Daniel shared in this podcast conversation:
1/ What is the portfolio of small bets idea and why does it work?
2/ Daniel’s Portfolio of Small Bets course, which only admits 25 people and is sold out.
3/ Given a choice should you try to limit the downside or maximize the upside?
4/ Between surviving and thriving, which should you choose?
5/ One reason why small wins are better than small losses, and how to use small wins to build a business.
6/ When should you give up on an idea, and a technique that lets you almost never give up.
7/ How to create businesses in a way that turns time into an ally instead of an adversary.
8/ How to evaluate your ideas and figure out the best ones.
9/ How to use the VC-mindset in your small bets portfolio, and how to run multiple projects in parallel.
10/ The advantages of running projects in parallel instead of running them sequentially.
11/ How much money should you save before going independent, and the downside of having too much savings.
12/ An incremental technique for gradually moving from full-time employment to entrepreneurship.
13/ A specific visualization technique that you can use to evaluate bets before starting.
14/ How to evaluate new ideas and how to choose between ideas, even when you have no idea which one will succeed.
Where to find Daniel’s products
Here is link to Daniel Vassallo list of products (his portfolio of bets):