I just started reading the book SuperFreakonomics today and at the beginning they talk about how the success of their first book, Freakonomics, has made finding material for their second book so much easier as readers bring ideas to them. The term cumulative advantage, in the economics profession, describes a situation where previous accomplishments result in seemingly unfair advantages for future situations. Immediately, this made me think of serial entrepreneurs with a win under their belt.
Some cumulative advantages for serial entrepreneurs include:
- Previously proven executives and employees to draw from (assuming non solicitation has expired)
- Relationships with partners and distributors
- Existing network of trusted vendors like legal and accounting
- Easier access to capital as investors are more apt to invest in entrepreneurs with a track record
I recommend working on relationships and expertise that result in building a personal cumulative advantage.