another example of a heuristic you can have that helps you route around the principal-agent problem is the deal with the smallest forms possible. So for example, when I'm hiring a lawyer or a banker or even accountant to work on my deals one of the things that I become very cognizant about is the bigger firms all other things equal are generally worse. Yes. They have more experience. Yes. They have more people. Yes, they have a bigger brand but what you'll find is that the principal and the agent are highly separated and very often. The principal will sell you and convince you to work with a firm but then all the work will be done by an agent who simply doesn't care as much and you can end up getting substandard service. So I prefer to work with boutiques and my ideal Law Firm to work with is a law firm of one. My ideal Banker to work with is a solo Banker. Now, you're making other sacrifices and trade-offs in terms of that person's resources and you are betting big on that person, but you've got one throat to choke. There's no one else to point fingers to there's nowhere to run. The accountability is extremely high.
Work With the Smallest Firms Possible; In Large Firms, the Principal and Agent Are Too Separated
Principal-agent Problem: Act Like an Owner - Naval Ravikant