Zero to One: Notes on Startups, or How to Build the Future [Peter Thiel, Blake Masters] on echecs16.info *FREE* shipping on qualifying offers. #1 NEW YORK. When you start a new business in an industry that already exists, writes PayPal founder Peter Thiel in his book Zero to One, you are adding more of something to . Who is Peter Thiel. Peter is a German-‐American entrepreneur and billionaire that co-‐founded PayPal. He also Co-‐Founded the Billion-‐ dollar company.
|Language:||English, Spanish, Hindi|
|ePub File Size:||16.85 MB|
|PDF File Size:||12.51 MB|
|Distribution:||Free* [*Register to download]|
Zero to one: notes on startups, or how to build the future / Peter Thiel with Blake Masters. Zero to One is about how to build companies that create new things. Zero to one: notes on startups, or how to build the future / Peter Thiel with BlaNe Masters. Zero to One is about how to build companies that create new things. Peter Thiel shows how to build a great The most successful businesses share one key feature that enables them to innovate at unprecedented scale.
Peter Thiel founded PayPal and was one of the first to invest in Facebook, making him one of the most influential billionaires in Silicon Valley. His unique reasoning for evaluating new business will show you a new perspective on how to set up a startup and be successful. This summary will enable you to know the philosophy and advice of Peter Thiel, which was documented by one of his students Blake Masters in a chair at Stanford college. Thiel is today one of the most important investors in the world. This summary will show you that in a startup, going from "0 to 1" is more important than going "from 1 to n".
While many economists argue that perfect competition creates the greatest value. Thiel shows, how in a perfect competition scenario, the companies battle on price, which brings their profits down and that in turn hinders their capabilities to innovate.
Under perfect competition in the long run, no company makes an economic profit. They go from zero to one. Every monopoly is unique, but they usually share some combination of the following characteristics: proprietary technology, network effects, economies of scale, and branding.
Thiel advocates exponential growth and not linear growth. In order to get to a real monopolistic advantage, the proprietary technology must be at least 10x better than its closest substitute. And the easiest way to create something 10x better is to invent something new. Network effects, e.
Still, in order to attract a large portion of a market, successful products must start with a small market that they can dominate. Economies of scale and a powerful brand can enforce a monopoly.
Sure, first movers get a head start on the competition. But they get caught. Instead, a startup should bide its time until its team senses that the time is right to create the greatest development in a specific market. This will ensure its position as a monopoly. In his view, each VC must find a handful of companies that will go from 0 to 1, that will create vertical progress and then back them with every resource. Every single company in a good venture portfolio must have the potential to succeed on a vast scale.
If you want to build a better future, you must believe in secrets. The founder or founding team is one of the vital parts of a start-up. And devising the inventive method can help make or break a company. This is also true when it comes to employee incentives. A startup is a team of people on a mission, and a good culture is just what that looks like on the insight.
From the outside, everyone in your company should be different in the same way. On the inside, every individual should be sharply distinguished by her work. This also applies to the distribution of your product or service. If you can get just one distribution channel to work, you have a great business. There are 7 questions every company that wants to become a lasting monopoly must answer: The Engineering Question — Can you create breakthrough technology instead of incremental improvements?
The Timing Question — Is now the right time to start your particular business? The Monopoly Question — Are you starting with a big share of a small market?
The People Question — Do you have the right team? The Distribution Question — Do you have a way to not just create but deliver your product? The Durability Question — Will your market position be defensible 10 and 20 years into the future? In a nutshell, Thiel talks about stagnation or singularity.
The most dramatic version of this outcome is called the Singularity, an attempt to name the imagined result of new technologies so powerful as to transcend the current limits of our understanding. As my conclusion, Zero to One is a quick and easy, but polarising book. Zero to One is considered one of the best business books of and I agree with this. Our task today is to find singular ways to create the new things that will make the future not just different, but better-to go from 0 to 1.
Knowing To Sell Is Crucial For Success In general, technologists and engineers prefer to focus on product development, but innovative products are useless unless a market is created to consume them. There are no products that people will download if there is someone to sell them.
To sell a product effectively, distribution is the keyword. That includes not only your sales channels but also the effort and organization to sell your products. To leverage and have effective distribution, you have to consider the potential of each customer before measuring the effort required to make the sale. At the Palantir data analysis company, also founded by Thiel, each contract becomes tens of millions of dollars, usually with clients such as large companies and even the US government and the FBI.
If the contracts do not bring in millions, but hundreds of thousands of dollars each, it would not be a time efficient use for a CEO, but you still need a solid sales force to represent your company. If you are setting up a startup, think from Day 1 about how to put together a competent sales team and how to put your product in front of the end user, always.
The Role Of The Founder Founders are usually not ordinary people or easy to deal with, for their visions are contrary to the established in the world. They tend to be eccentric people, especially in the big cases of success. Among the founders of Paypal, almost all members are a bit eccentric and many of them, as children, had quite unusual hobbies, such as building PUMPS! That is important because business founders have very great responsibilities in creating a culture and vision for a startup and that idea is even more important than best management practices.
An example that illustrates this well and is quoted by Thiel is the return of Steve Jobs to Apple, 10 years after being expelled from the company.
Shortly after his return, he has already brought in exceptional landmarks like the launch of the iPod. Like this summary? Final Notes: A startup can survive by making incremental improvements to existing products and services, but it will only really be giant if it can get a contrary view of the pre-established system and thereby create a monopoly where its product is so superior to competitors that it can set its prices And have high-profit margins.
You can see the Popular Highlights from Zero to One here. Learn more and more, in the speed that the world demands. Peter Thiel talks in this chapter about monopolies and perfect competition. Google is such an example of a company achieving monopoly for having gone from zero to one.
Basically, they say the opposite: Businesses in a competitive market instead define their markets very narrowly so they can dominate it. But what if the market is not Tajikistani food but simply all the restaurants? Basically, this is the same old principle of the noisiest man in the room: Thiel says monopolies are the best companies in the world.
All happy companies are different because they solved a unique problem or came up with a unique, life-changing product. All failed companies instead are the same: The author says that the wars start for trivial reasons and keep going without any real reason.
Microsoft VS Google is such an example, taking on each other with a myriad of competing products.
Until Apple came along and focused on innovating instead of battling. Thiel says competition is a destructing force instead, and exemplifies his alliance and merger with former competitor Elon Musk to build, together, Paypal.
Peter Thiel takes on the short term culture pervading many startups. He says the most fundamental question instead is: Peter Thiel says disruption has become a buzzword for anything that wants to sound trendy and new.
When you call yourself disruptive you look at yourself through the eyes of other companies that become the old and the enemies. But your act of creation should be the focus, not on disrupting and upsetting this or that industry.
Also, when you see yourself as the dark horse rebel you become focused on roadblocks and enemies.
But seeing yourself as the dark horse upsetting the world only brings trouble. Think about Napster, Thiel says, who wanted to take on the whole music industry. Troublemakers are sent to jail, and troublemaker companies are sent to chapter 11 courts. Don't disrupt: It should be a tactical move, but not your goal. You do that by dominating a niche first and then expanding from there.
He says the phenomenon of successful serial entrepreneur calls into question the luck logic. My Note: Or even thrice. Pretty sure there are several double lottery winners in the world also read: Fooled by Randomness. The author talks further about pessimists and optimists and about Lean Methodologies.
He says six sigma and lean methodology is about incremental improvements and will not get you from zero to one. Thiel says that anyone without a salary or stock options is misaligned with the company interests. The hiring decision should be binary: Another interesting trend the author found which was illuminating for me was that the less the company pays its CEO, the better it does.
Too high salary make CEOs behave more like politician busy defending the status quo. A low salary also sets an example for the rest of the company.
I can so relate to this.
As a kid first learning about Columbus and the explorers I always thought the world by now had it all figured it out. The author says indeed that early mistakes are often very costly. The constitution hardly ever changed even though an update would be beneficial. Similarly early mistakes in choosing your co-founders or even early employees are damn hard to correct. Often the beginning of a relationship is full of excitement, but when it dissipates, if major rifts take place, they can easily take the whole company down.
Thiel says that these days he only invests in startups where the founders share a history and knew each other long before they started pitching VCs. Thiel says that a clear structure and clear responsibilities will help keep people in line in the long run.
A basic structure tells you who:. The author says that distributing ownership in theory gives everyone incentives, but it also multiplies the chances for dis-alignment and internal power struggles. Keep the board small then. Similarly, everyone should be doing one thing and evaluated for that one thing only.
My Note 1: My Note 2: To become a linchpin employee you have to do your one thing and then more core functionalities until you become a key, irreplaceable player. Thiel says equity is a great way of aligning interests and keeping individuals motivated. However, it must be allocated smartly. Giving everyone the same is a mistake, but giving differently and making it public is also a mistake as that will breed resentment. Time is also a huge differentiator in a fair equity distribution.
For example, if the company explodes in value a secretary joining site in would make and own more than anyone else joining in So to avoid any issue… Keep the details secret. The author poignantly asks: The perfect hires are excited specifically with working with your company because of what you are trying to achieve.
And they want to join because they are perfectly in sync with the colleagues already working in there.
When everyone perfectly fits in and is bought into the mission, the company will look like a cult. Better to become a cult.
Or even a mafia. The opposite of a cult are firms like consulting companies Accenture for example. No company has a culture. Every company IS a culture. Click To Tweet. The idea, as wrong as it is, is that if you need to sell a product the product is not that good.
Some great summaries on sales and influencing for you: A product is viral if the core functionality leads you to invite their friends to also use your product. I invite you to check Contagious to learn more on how you can make your product more likely to become and go viral.