Check out Naval’s Episode Page & Show Notes
This podcast clip is part of an ongoing conversation between Naval Ravikant and Babak Nivi. Unless otherwise noted, quotes are from Naval. For reference, check out Naval’s famous How to Get Rich tweet storm.
- Accountability is important – it’s how you get credibility, leverage, and equity
- “When you’re negotiating with other people, ultimately if someone else is making a decision about how to compensate you, that decision will be based on how replaceable you are”
- If you have high accountability, that makes you less replaceable (and you’ll likely get more equity)
- Equity holders take on greater risk but in exchange, they get nearly unlimited upside
- Why is their risk so high?
- They’re the last in line to get paid behind people who take a salary and the debt holders who lent money to the company
- Taking accountability for your actions is the same as taking an equity position in all of your work
- “In modern society, the downside risk is not that large….so there’s not really that much to fear in terms of failure. People should be taking on a lot more accountability than they actually are.”
- In a business sense, people generally forgive failures as long as you’re honest and made a high integrity effort
- These days – accountability risk happens more around integrity than it does around economic failure
- As long as you’re honest, you’ll be fine
- Accountability is reputational skin in the game
These notes were edited by RoRoPa Editing Services