Knowledge Marketplace
My First Million

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 Takes

Talent is the highest return on capital investment for entrepreneurs, delivering 10x-100x returns reliably

Spiciness
investment_thesis

The Reasoning

Great talent can multiply output exponentially while poor talent can destroy value. The leverage potential of human capital exceeds other asset classes for entrepreneurs.

What Needs to Be True

  • You can identify truly exceptional talent
  • You can create environment where talent thrives
  • The role has leverage potential for outsized impact
  • You have capital to invest in top-tier talent

Counterargument

Technology and systems might provide more predictable returns with less management overhead

What Would Change This View

Evidence that automated systems consistently outperform great people, or if talent management costs exceed returns

Implications for Builders

Prioritize hiring budget over other investments

Develop talent evaluation skills as core competency

Build systems to attract and retain A+ players

Pay above market rates for exceptional talent

Example Application

Hire one exceptional salesperson at $200K rather than two average ones at $100K each - likely to generate significantly more revenue with less management overhead