Little Bets

When you're trying new things it can be worthwhile to make a series of small investments in things to test what will actually work.  It also helps us to protect against getting sucked into the Bermuda Triangle-like sunk cost fallacy. 

Jason Blum has constrained himself to spend a fraction of what a usual Hollywood film budget would be. He has accepted that 40-50% of these films will fail in a given year. It's only by throwing out so many different lures that he is able to land a couple big fish. 

I heard about this story on Planet Money. Very interesting episode that had many great lessons demonstrating the beauty in constraints, letting go of sunk costs (and how easy it is to create a culture that accepts them) and embracing failure. 

 

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