Peter Thiel needs no introduction; this investor, who was also the co-founder of Paypal, summarizes in this book what he taught at Stanford University. It is, in fact, based on the support of one of his students that this book is written.
The first point Peter Thiel teaches us is to have a certain modesty and to adopt smallness. That is to say, it’s better to have 100% of a market of 100 people than 1% of a market of a million people. In the first case, you can continue to grow, whereas in the second, you’ll be swallowed by those who have 99% of the market.
The second point to remember is the pursuit of 1, not n. From zero to one expresses the most important phase of a business, which is to find a viable and scalable solution to an identified problem, and then be in a position to become a monopoly.
The third point is that the essential thing is not necessarily to do something new at all costs, but to do it better than others. Google was not the first search engine, but it was the best. Facebook was not the first, but it was the best.
The fourth point is that monopolies often enjoy exclusive technology, network effects, economies of scale, and brand image.
The fifth point is that being the first is not necessarily the best thing. What matters is being the first to be able to generate flow. If you can’t do that, you’ll certainly be displaced by the latest entrant.
Peter Thiel also devotes a very interesting chapter to the team, which he calls the “Foundation”. Without a good foundation, any building collapses. Having studied Civil Engineering, I can certify that the slightest differential settlement in one place can cause a lot of damage, not only in that small place. In the world of business, it’s the same. It’s better to start alone than to be surrounded by the wrong people. If the project works, then people will want to work for you. Peter Thiel takes the example of the “Paypal mafia,” one of whom is Elon Musk, another co-founded Linkedin, another Youtube… But these young people had many common characteristics when they joined the Paypal adventure.
His discourse differs from that of Eric Reis and others who advocate for successive iterations. Peter Thiel has a clearer vision; you must be able to project yourself into the distant future. “Forget about ‘minimum viable products.’ We must set goals. Iterations of minimum viable products are not enough. To conquer large markets, you must innovate, take risks.”
Finally, Peter Thiel poses a series of questions that everyone must answer to create a startup:
- Are you capable of creating disruptive technology instead of making simple progressive improvements?
- Is the timing right to launch a business like yours?
- Are you entering with a large share of the market?
- Do you have the right team?
- Do you have the means not only to create but also to deliver your product?
- Will your market position be defensible in ten or twenty years?
- Have you identified a unique opportunity that others haven’t seen?
Peter Thiel advocates for monopolies; this argument will provoke some people who advocate for competitive markets where multiple actors engage in fierce battles. However, monopolies are wanted by the market, and the market is you.
You can buy it on Amazon right now.
