Why Failing Quickly and Starting Today is Crucial
Greetings!
This Week’s Topic: Why Failing Quickly and Starting Today is Crucial
1. The Wisdom of Starting and Failing Quickly
After recently reading That Will Never Work by Marc Randolph (co-Founder of Netflix) and Shoe Dog by Phil Knight (co-Founder of Nike), one key insight stands out: the importance of failing fast and just starting. Both Netflix and Nike—now household names—began as uncertain and intangible ideas. Randolph iterated Netflix's concept multiple times before finding a model that worked, while Knight sold running shoes out of his car with little to no guarantee of success.
Their message was and continues to be simple: Perfection is the enemy of progress. By starting, you create opportunities to learn, adapt, and refine your ideas, but you do so in a tangible way. Waiting for the "perfect moment" only delays your growth. The same principle applies to your financial journey: start small, make mistakes, and adjust. The faster you fail, the faster you learn what works. Waiting until the “perfect entry point” or the “perfect allocation” is as futile as waiting until the perfect time to have a kid. :)
2. The Pareto Principle: Focus on the 20% That Matters
The Pareto Principle, also known as the 80/20 rule, states that 80% of results come from 20% of efforts. This principle is a game-changer when paired with the concept of failing quickly, and I can 100% attest to how much I learned about content creation by just starting. (My early content is beyond garbage, but I posted it… daily…and leave it up for all to see.)
For Entrepreneurs: Focus on the 20% of your actions that drive the majority of progress. Randolph and Knight didn’t waste time perfecting every detail—they prioritized what mattered most: testing ideas, finding customers, and improving incrementally.
For Investors: Identify the 20% of investments, habits, or financial actions that yield the greatest returns. Don’t aim for perfection; focus on consistently executing what works.
By honing in on the essentials, you can pivot faster when things don’t go as planned.
3. How to Apply This Today
Take Action Now: Whether it's starting a side hustle, investing in your first stock, or creating a budget, don’t overthink it—just begin. And if it doesn’t work for you, trust me, you’ll know very quickly. Embrace Small Failures: Each misstep teaches you something valuable. Reframe failure as feedback…always.
Leverage Resources: Need a deeper dive into the Pareto Principle? Read this guide to understand how to identify and act on the 20% that matters most.
Closing Thought
Marc Randolph and Phil Knight didn’t succeed because they avoided failure—they succeeded because they cared about starting way more than they cared about the outcome. Use the Pareto Principle to focus on what matters, start small, fail quickly, and build momentum toward your goals.
Have a great week, and hope you’re all doing well!
Tyler
