A startup can use the framework of managing overall project risk instead of individual experiment risks to grow by setting a budget that considers each experiment's impact on the overall portfolio's long-term optionality, near-term impact, resilience, and performance. The startup should create a spread of experiments with high and low impact and high and low success rates. Clear rules for when to initiate and stop experiments should be established. This approach allows the startup to manage risks at a project level, which can lead to more strategic decision-making and potentially higher growth.

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Potential obstacles companies might face when trying to manage overall project risk include lack of understanding of the overall project risk, focusing too much on individual experiment risks, and not having a diverse spread of experiments with varying impact and success rates. To overcome these obstacles, companies should focus on the overall project risk instead of individual experiment risks. They should also create a diverse spread of experiments with high and low impact and high and low success rates. Additionally, they should have clear rules for when to initiate and stop experiments.

A startup can use the concept of long-term optionality to grow by setting a budget that considers each experiment's impact on the overall portfolio's long-term optionality, near-term impact, resilience, and performance. The financial goal should be to manage overall project risk instead of individual experiment risks. The startup should create a spread of experiments with high and low impact and high and low success rates. Clear rules for when to initiate and stop experiments should be established.

A retail business can apply the approach of managing overall project risk by setting a budget that considers the impact of each experiment on the overall portfolio's long-term optionality, near-term impact, resilience, and performance. The financial goal should be to manage the overall project risk instead of individual experiment risks. The business should create a spread of experiments with high and low impact and high and low success rates. Clear rules for when to initiate and stop experiments should be established.

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