TAKE ON ACCOUNTABILITY
Embrace accountability and take business risks under your own name. Society will reward you with responsibility, equity, and leverage.
To get rich, you need leverage. Leverage comes in labor, comes in capital, or it can come through code or media. But most of these, like labor and capital, people have to give to you. For labor, somebody has to follow you. For capital, somebody has to give you money, assets to manage, or machines.
So to get these things, you have to build credibility, and you have to do it under your own name as much as possible, which is risky. So, accountability is a double-edged thing. It allows you to take credit when things go well and to bear the brunt of the failure when things go badly. [78]
Clear accountability is important. Without accountability, you don’t have incentives. Without accountability, you can’t build credibility. But you take risks. You risk failure. You risk humiliation. You risk failure under your own name.
Luckily, in modern society, there’s no more debtors’ prison and people aren’t imprisoned or executed for losing other people’s money, but we’re still socially hardwired to not fail in public under our own names. The people who have the ability to fail in public under their own names actually gain a lot of power.
I’ll give a personal anecdote. Up until about 2013, 2014, my public persona was entirely around startups and investing. Only around 2014, 2015 did I start talking about philosophy and psychological things and broader things. It made me a little nervous because I was doing it under my own name. There were definitely people in the industry who sent me messages through the backchannel like, “What are you doing? You’re ending your career. This is stupid.”
I kind of just went with it. I took a risk. Same with crypto. Early on, I took a risk. But when you put your name out there, you take a risk with certain things. You also get to reap the rewards. You get the benefits. [78]
In the old days, the captain was expected to go down with the ship. If the ship was sinking, then literally the last person to get off was the captain. Accountability does come with real risks, but we’re talking about a business context.
The risk here would be you would probably be the last one to get your capital back out. You’d be the last one to get paid for your time. The time that you put in, the capital you put into the company, these are at risk. [78]
Realize that in modern society, the downside risk is not that large. Even personal bankruptcy can wipe the debts clean in good ecosystems. I’m most familiar with Silicon Valley, but generally, people will forgive failures as long as you were honest and made a high-integrity effort.
There’s not really that much to fear in terms of failure, and so people should take on a lot more accountability than they do. [78]
