My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Back to Mental Models
Higher Success Probability with Own Business
The probability of making money starting your own business with 50-100K is higher than angel investing the same amount
Decision Rule
Choose starting your own business when you have distribution and operational capability
How It Works
Own business success relies on your execution and market understanding, while angel investing depends on other founders' execution and power law outcomes
Failure Modes
Overestimating your own operational abilities
Underestimating market competition
Not having sufficient distribution advantage
Example Decision
“Instead of making 10 angel investments of $10K each, use $100K to start a business in your area of expertise and distribution”