Re-reading Zero to One
I’ve been on a kick of re-reading books—both fiction and non-fiction. This one made a big impression on me back when it was a series of blog posts by Blake Masters.
Though some of the predictions haven’t worked out (AI has a greater impact than Thiel predicts in the book), a few helpful frameworks stuck with me:
Competition is for losers. All great companies are monopolies in some market. Competition drives out profits and makes innovation less profitable.
Thiel loves 2x2 grids, including optimism and investment. I've started using 2x2s more at work because they help frame up a problem:
Finally, Thiel proposes 7 questions to ask to determine whether it's a good idea to start a company. Those questions are:
- 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 starting with a big share from a small market?
- The people question: Do you have the right team?
- The distribution question: Do you have a way to deliver your product?
- The durability question: Will your market position be defensible 10 and 20 years into the future?
- The secret question: Have you identified an unique opportunity that others don’t see?
Overall, this was a worthwhile re-read, especially in light of Thiel's recent appearance on Conversations with Tyler.
Peter Thiel