🚀 The Parable of the King and the Chessboard
A king, captivated by the invention of chess, offered its inventor any reward he desired. Rejecting gold or jewels, the inventor sought a seemingly modest reward: one grain of rice on the first square of the chessboard, two on the second, four on the third, doubling on each subsequent square. The king, amused by what he perceived as the inventor's naivety, happily agreed.
Initially, the reward seemed trivial – a mere 255 grains of rice by the end of the first row. But as the task progressed, the King looked on in a mix of amazement and frustration. By the 64th square, the total grains required amounted to 18,446,744,073,709,551,615 – a figure surpassing the kingdom's entire rice production. The king's amusement turned to astonishment, as he grappled with the enormity of his promise.
To put that number in context, if a grain of rice were a second, the number of seconds would be 130 times longer than the earth has been in existence.
This tale, though varied in its telling, echoes a powerful message: the human brain struggles to grasp the concept and silent power of exponential growth.
🌟 The Eighth Wonder: The Magic of Compounding
Einstein allegedly called compounding the "eighth wonder of the world". What fascinates me most is the profound impact of the latter stages of exponential growth.
Consider Warren Buffett: according to Barron's, a staggering 90% of his net worth was amassed after his 65th birthday.
Let’s look at a numerical example:
Take, for example, the impact of regular investment. By investing £1,000 monthly in an asset yielding a 15% return, over 30 years, you'd accumulate an impressive £5.6 million. If you can squeeze an extra 1% and get 16% annual return, a massive windfall of £8.8 million awaits you at the end of 30 years. All for a comparatively modest £360k cash outlay.
🔍 Why Discuss Rice and Savings in a Tech Context - Starting Fast?
Because early incremental gains in any positive transformation are crucial. Let's revisit our investment scenario but assuming we park our savings plan for five years. While seemingly insignificant, that delay would halve your potential nest egg. You would need to double your monthly investment outlay to bridge the gap.
It is often said, improve yourself by just 1% a day and you have a staggering self-improvement of 37.7 times your original state. Formula One call this marginal gains, where the small tweaks of thousands of components add up to that all important one or two second improvement round the track. What is not said about our 1% improvement is, delay starting your improvement by just a month, and you have a 27.7 times improvement; still impressive, but you could have had 36% greater returns by starting earlier, a compounding effect you will never regain.
This principle of starting early is pivotal for businesses wanting to grow. Early, small-scale enhancements in technology and processes can yield disproportionately larger benefits over time, especially when compared to playing catch-up later.
Don’t allow yourself to stall. Start now.
So, if you’re excited to get started, why should you start small?
🌊 The Virtue of Starting Small
Consider the formation of the Amazon River, spanning 8.5 million years, or the gradual sculpting of the Grand Canyon. These monumental natural wonders were shaped not by sudden, cataclysmic events, but by the persistent, incremental work of nature. Were you to drop 1,500 cubic miles of water, said to be the annual waterflow through the Amazon, in Peru 11 million years ago - I can guarantee you a meandering river would not appear. Just as only the steady impact of drops of water carved these marvels, transformative change in business often requires a 'start small' approach.
Due to human tendencies, we frequently postpone significant decisions, and similarly, businesses often procrastinate or prolong the initiation of major projects. Equally, big projects often carry big risks. By beginning with smaller steps, you allow the power of exponential growth to do the heavy lifting.
🚀 Conclusion: Embracing the Exponential Potential And Start Fast
Just as the chessboard inventor leveraged the power of exponential growth, we too can harness this force in our professional and personal lives. The key lies in recognising that monumental achievements often stem from humble beginnings.
By adopting a mindset that values consistent, incremental progress, we position ourselves to unlock potential that can far exceed our initial expectations. Whether it's in the realm of technology, business, or financial planning, the principle of starting fast and small is a proven pathway to success.
Remember, the greatest transformations don't always require grandiose beginnings. Instead, they demand a willingness to take the first step, no matter how modest, followed by the perseverance to keep moving forward. You just need one grain of rice to get started.
🌟 If you're intrigued by the idea of harnessing this 'eighth wonder of the world' and want to discuss how small data or process automations can have a massive impact on your business, let's connect. Book time with Mark Hart: Mark Hart - MJ Solution Consulting - 30 minutes. And if you have any great examples from your own experiences, share them below! Move fast and start small.