This is probably the #1 Strong Towns rule: Grow Incrementally. There are several examples in Deadwood.

The Shop - Seth Bullock and Sol Star show up in Deadwood looking to start a hardware supply shop. The evolution of the shop can be seen throughout season one. First there is a property negotiation with Town Boss, Al Swearengen. Al is surprised they want to buy and not lease a prime piece of property. Buying a piece of prime land on day one in Deadwood in 1876 probably be counted as a brash gamble. It was met with suspicion by Al, who suspects the newcomers of trying to set up a competing bar/brothel. Probably because nobody has yet attempted to make money by selling goods in the town.

The shop starts as a tent. If the shop had failed this would have represented a small gamble and Seth and Sol could have hitched up their horses and moved on with little loss. Further along in season one you see the two business partners hammering a wood frame together. It can be assumed that business was good enough to commit to the next incremental level of investment. Finally, the shop has glass window panes and has taken on a permanent look.

Tents on the outskirts of town: More than a few tents can be seen on the outskirts of town. Men including the Reverend H.W. Smith and (presumably) many prospectors start out with a tent as their only living space. The prospectors hope they will find enough gold to rent a room or build a shack. If they do not, then they have risked very little on their lodging and are not in severe debt. The Reverend hopes that enough people will listen to his sermons to necessitate building a church.

Bella Union Saloon: The second Saloon to open in Deadwood is a more upscale version of Al Swearengen’s place. Al is fiercely territorial, but he respects Bella Union owner, Cy Tolliver, as a business man. Swearengen recognizes that there is enough business in town for the both of them. After a small negotiation where it is agreed each saloon will keep a monopoly over specific gambling games, the two men part ways. Al Swearengen is a smart man. He recognizes that other businesses coming to town means the town is successful and he likely realizes this makes his own property more valuable.

3. Public Investment Should Follow Private Investment