Chapter 9The Role of Knowledge

The concept of knowledge might seem fairly straightforward. Most would suggest it is having information. Arguably, analysis of information to cull out the relevant from the minutia and the ability to act in order to provide something uncommon may be a more appropriate statement. In the military, the distinction between information and “intelligence” is to have sufficient collaboration by two or more distinct sources that makes the result actionable. Otherwise, most decisions would be made almost purely on assumptions. Many see entrepreneurs as “seat of the pants” types willing to take risks against the long odds; however, those who have created a sustainable business are usually quite risk adverse.

Think of it as gambling at the blackjack table. Starting with a $100 bet and winning against the house three times results in $800. The initial stake may have been small, and if lost, the gambler might just walk away thinking no harm, no foul. If a start-up has nominal costs and ease of entry, this could be likened to the first $100 with many betting and as much losing (if not more) than those winning.

However, if the first bet was $800, the stakes are higher and so is ...

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