Schlep Blindness Framework

A concept from Paul Graham about how people overlook major problems and opportunities because they seem too difficult or mundane to tackle.

Core Concept of Schlep Blindness

• People are psychologically blind to the biggest problems in the world
• These problems often appear too difficult or tedious to solve
• The tendency to ignore these problems creates opportunity for entrepreneurs

Paul Graham's Investment Philosophy

• Focuses solely on maximum potential outcomes
• Ignores all possible negative outcomes
• Evaluates companies based on their potential impact if everything works
• This approach works well for seed investing
• Must somewhat "delude yourself" to maintain this mindset since most startups fail

How This Applies to Flexport

• Paul Graham saw the massive potential in logistics/freight
• Recognized the industry size and importance created huge opportunity
• Helped sell this vision to:
  • Other investors
  • Potential employees
  • Press and media
  • Engineering talent

Value of Early Believers

• Early supporters provide "conviction loans" to entrepreneurs
• They believe in founders more than founders believe in themselves
• This conviction helps entrepreneurs push through difficult periods
• Successful entrepreneurs can then pay it forward by providing similar support to others

Framework for Evaluating Companies

• Must create wins for 6 key stakeholders:
  • Customers
  • Vendors
  • Employees
  • Investors
  • Regulators
  • Communities
• Companies should aim for high scores across all stakeholders
• Poor performance with any stakeholder creates long-term risk
• Sustainable success requires maintaining positive relationships with all groups