Singles vs. Home Runs

I was talking with a good friend yesterday about a business opportunity that has come across my plate.  He has been very successful, and seems to have a knack for making really good decisions.

I described the opportunity and asked him how he would evaluate it and what he looks for.  He said (paraphrasing a bit) “I look for things that are a win for me if it’s a single.  If it has to be a home run for me to benefit materially, then I typically say no.”

I thought it was a pretty good lens through which to value a next move or decision, at least in business.  There are other factors to consider, of course, besides the financial impact.  However, having some clarity on at least one facet of the decision is beneficial.