My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
All businesses are loosely functioning disasters that happen to make money
The Reasoning
Businesses are collections of people, people are inherently messy, and when you combine messy people the complexity compounds exponentially creating constant operational challenges
What Needs to Be True
- Human nature doesn't fundamentally change
- Business complexity increases with people count
- Most operational challenges stem from people issues
- Even profitable businesses have significant dysfunction
Counterargument
Well-run businesses with strong systems and culture can minimize dysfunction and operate smoothly
What Would Change This View
Consistent examples of large businesses (50+ people) operating without significant people-related problems for extended periods
Implications for Builders
Lower your expectations for business perfection
Budget time and energy for constant people problems
Focus on systems that work despite human messiness
Don't be discouraged by operational chaos - it's normal
Example Application
“When evaluating business acquisition, don't expect to find perfect operations - instead look for profitable businesses despite their dysfunction and plan to gradually improve rather than fix completely”
Related Knowledge
Stacking Golden Geese
Sequential acquisition strategy where each successful business acquisition funds and de-risks the next, creating compoun
High Authority vs Delegated Authority Model
Binary leadership approach where you either operate with complete top-down authority or delegate full decision-making au
Acquire first cash-flowing business with minimal capital
Own a profitable business generating $200K-500K annual free cash flow that doesn't require your daily presence within 2
Just-In-Time Learning
Learn skills and knowledge precisely when you need them for specific situations rather than trying to learn everything u
Constraints-First Decision Making
Start any major decision by clearly defining your constraints rather than exploring all possibilities
Small business acquisitions offer superior risk-adjusted returns to public markets
Individuals should consider business acquisition over index investing if willing to do the work