💎 Boundary conditions for 10X bets

Climbing, like many others in tech, has been a fun way to challenge myself, meet others, and become an accidental mountain goat. While most folks in the pandemic were hoarding toilet paper and winning (or losing) big in stocks, it allowed me to focus even more on clinging onto fake walls. But I found myself missing a deeper connection to the sport, more than going outdoors and facing a fear of heights. It struck me one day (likely shortly after watching Free Solo) that I wanted to give myself a new feat: why not scale a pitch so big it would take multiple days?

Talk about a goal that still scares me (and my parents). But there’s something beautiful in this long-term challenge: it gives me willpower. Going to the gym isn’t just to stay healthy now, it has a greater purpose. Taking a lead climbing course. Practicing outdoors. Managing my diet. Daily stretching. These foundational elements are all with the pursuit of eventually climbing a mountain so big, that it will take grit, a leap of faith, several days of sweat, and likely some mental health check-ins. Why do it? Because I want to 10x my life.

This 10x thinking has also applied to business. I’ve worked on turning a cannabis media company into the Uber Eats of weed; making digital collectibles out of consumer rewards, and helping an HRIS system become a tax advisor.

When you start a company, the focus is on your initial offering. Makes sense. There’s a world of requirements to manage. Your customers demand new features. Your team requires better benefits. Your board demands forecasts and velocity updates. Your focus is on the business. You eventually find yourself in the weeds although innovation is where you started.

If this feels like you, it’s time for transformation. When we talk about transformation in a company, what we mean is placing bets. But there’s a crucial difference to the bets you’ll place. Some are foundational, others are transformational. It’s the difference between incremental vs. 10x products.

Let’s talk about transformational bets and healthy boundary conditions for them…

1. They have massive potential

We're not in this game to play it safe. We're here to make the kind of bets that make Vegas look like a kiddie pool. Think of some of the greatest products of our time: iPhone, Netflix, Air Jordans…none of these came from playing it safe. These were the kind of wild, throw-it-all-on-red bets that paid off big time. There was some serious brainpower behind them, sure, but they were pursued because they had the potential to be game-changers.

Making these 10x bets takes a hefty investment and a good chunk of time. It’s like me choosing between sticking to my heated indoor climbing wall or aiming for the scary heights of Yosemite. What’s it going to be? Are you going to stick with a boring screensaver, or are you going to switch to something that requires a leap of faith?

Let’s be clear: these bets are meant to catapult your company into space, aiming to become a big revenue driver or at least contribute 35%+ to your revenue within three years. And if we’re talking hardware, well, strap in for a longer ride. If your ideas feel so big they’re practically coming off-leash, you’re onto something. That’s the sweet spot.

2. They should be focused.

But here’s a fun fact to throw back: shaping the future with your big, bold bets shouldn’t be a full-time circus act. You don’t need to have everyone juggling 24/7. Think of it as the side hustle within your main hustle. It only needs about 10% of your focus. That’s like dedicating just one slice of your pizza to trying a new topping. Not so scary, right?

And when it comes to the research and development – it's not the whole pie either. We’re talking 20% of your R&D budget. Yes, only a fifth. That's like only having to dedicate two out of ten coffee breaks to brainstorming world domination instead of your usual office gossip.

So, when you hear the dreaded "focus" comment, remember: it's not about ignoring the core of your business. It’s about smart allocation, a little bit of daring, and not turning your entire operation into a moonshot factory. Keep the main thing the main thing, but don't be afraid to dream big.

3. You can continue improving your foundation.

Ah, the moment of truth. You've just unveiled your grand plan, your blueprint for the company's next big move – and you're met with a sea of expressions. A few nods (the polite "I'm listening" kind, not the "I totally get it" kind), and plenty of blank stares that scream, "He's finally lost it.”

Trust me I’ve been there. Introducing the concept of a wild bet might as well be like suggesting the office switch to a diet of spinach smoothies (thanks to my dad for this inspo) – it's healthy, but will it make people happy? Probably not at first.

But here’s the secret: Keeping the ship afloat while aiming for the stars is the game. Yes, I’m talking about those pesky bugs that keep popping up, the feature requests that you haven’t gotten to, and that integration you've been avoiding like the boiled Brussels sprouts on your plate.

So, while you're aiming for those moon shots, those big, bold bets that could redefine everything, remember to keep the lights on, the bugs squashed, and the features flowing. Your current customers need them.

If you've been nodding along, thinking, "Hey, I want in on this journey of transformation but wouldn't mind a map," then, you're in luck. Because sometimes, even the most daring explorers could use a guide. Someone who hasn't just been there and done that but also learned invaluable lessons along the way.

I'm currently joining forces with a select group of companies, to help springboard your business to new heights. Together, we'll tackle your annual business plan, weaving your roadmap and financial forecast into a plan for action. Want to learn more? Let’s grab a virtual coffee and have a chat.