"When you start a company, economies of scale are working against you......When you have Enough, the extra money means very little."
The first few years of a company’s existence are a terrible awkward adolescence. You will work like a dog. You will spend a large percentage of your energy on stuff that will eventually be thrown away. You will live on the edge of poverty.
But here is the worst part: Every company that you are competing with has an advantage over you. They know the industry. They have customers and revenues. They have their payroll system set up. You know how “fresh eyes” and “the beginner’s mind” are often touted as advantages? Well, 99.4 percent of the time, they are a liability.
When you start a company, economies of scale are working against you: Having one employee introduces just as much overhead as having a hundred. The value of specialization is working against you: You will spend hours doing something that would have taken someone else 10 minutes. (I have done every job at Big Nerd Ranch, most of them poorly.)
When you have Enough, the extra money means very little. I’ve been broke, and being broke sucks balls. Having Enough is awesome. How would I define “Enough”? Enough means that you can take a friend out to a nice lunch and not have to worry about how much it costs. I have hung out with a couple of billionaires—my experiences indicate that being a billionaire is just incrementally better than Enough.
Thus, as you look at your future, the question should not be, “How can I become a billionaire?” You should ask, “Where can I get Enough?”