It is Often Said that Not Every Reader is A Leader but every Leader is a Reader. This statement is Totally True in Context to the People who Genuinely are Controlling the Society from the Front. We Often Prefer to Read the Experiences of People who Themselves have Achieved a Lot in their Lives and Our Idols. One Such Person is the Founder of Paypal, who Along with Elon Musk Created the Payments Portal. Yes, Its None other than Peter Thiel and he Shares his Vision for Entrepreneurs on how to Proceed through his Book. We have the Zero to One Book Summary by Peter Thiel, a Perfect Startup Guide.
The author of Zero to One Book Sold Paypal to eBay for $1.5 Billion. The People whom he Hired and Trained alongside, went on Creating the Most Successful Startups. Those Includes Ventures Such as Yelp, LinkedIn and YouTube. Based on other Multiple Billion Dollar Companies he is Linked with, such as Facebook(Early Investor), Palantir Technologies and Founders Fund. All of this Concludes us to a point that he is Perfect Mentor one can Get through the Entrepreneurial Journey of a Person. The Same Goes with his Book Zero to One.
What Exactly is Zero to One | Summary
There are Basically two Types of Progress that are Often Carried out by Businesses and Startups. The First one Being Creating something Out of the Box and the Other One improving a pre-existing Conditions by some Changes. The First Kind of progress is called the Zero to One Progress and the Other is Called One to N progress. Here Zero means nothing is Present and 1 Means Every Knowledge is present related to the Market. Peter Thiel Says that in Order to Create a Highly Successful Startup that Lasts for Long, we should Focus on the Zero to One Strategy.
The Next Question that Arises in Our Curious Mind is how to Make the Zero to One Progress? Peter Thiel Says that in order to proceed with it “Bet on a Contrarian Truth”. Try Answering the Question, “What Important Truth Very few people agree with you on?” Steve Jobs Bet on the Contrarian Truth that people wouldn’t be needing Physical keyboard in the Future. While almost everyone disagreed on the Truth. Uber bet on the Truth that Almost Everyone would prefer to Travel on a Stranger’s Car. These Laid the foundation of these Multi-Billion Dollar Companies.
He Quotes that all Failed Companies are the Same, they all Failed to Escape Competition and hence Either Died or are Struggling for Existence. This Question would take you Out of the Competition and give you a boost. A word of Caution to Notice Would be that Make sure the thing you are Building has its Time come. It’s not too Early or Late as per the Market Conditions.
A Big Business is Started by Dominating a Small Market
The Very Immediate Mistake people often make is targeting a Whole Bigger Group of the market in the Very First Go of the Company. They Compare to the Already Existing Organizations and try to Copy them. But that not how the big Companies Started. Amazon wasn’t an Everything Store from its Day 1, Instead, it focused on being the King of the Small Online Book Selling Industry which proved to be a Zero to One Success for Jeff Bezos. He generated enough cashflow through it in order to Fund his Expansion in other Niches and Dominating them. When starting your business, don’t try to capture 1% of a Billion Dollar Market instead focus on being the 80% of a Million Dollar Market. In Simple Words, be a Large Fish in a Small Pond instead of being a Small Fish in a Large Pond.
Whoever is First to be the Dominate the Most Important segment of a market will be the Last One to Move in the Whole Market.Peter Thiel
Strive to be Monopoly | Zero to One Book Summary
Monopoly is Someone or Something when it is the only Supplier of a Particular Commodity in the Whole Market. We are taught that Monopolies are bad, but this is not the case always. Evil Monopolies are those who bully Competitors and take advantage of their Lack of Choice. But most of the Existing ones are not Like that. Google is a Search Engine Monopoly and its Excessive Profits help them to give back to the Society. It is in the form of Free Internet for Everyone, Google Maps and Much More. Aiming for a Monopoly helps you to ensure that you will stay will Business. This will be possible as long as you are innovating enough.
Ways to Be a Monopoly
Branding:- The Very first step to create your significant presence in the Market is through establishing your Own Brand. Consider a Company that comes to your mind when you think of Fashionable Electronics, isn’t it Apple? Its the first Name that comes to our Mind while Considering it. Any other Company can Never take its Position until Apple keeps on Evolving.
Proprietary Technology:- Develop a Proprietary Tech that Beats over others in the market and create your Monopoly. There are Other Search Engines too in the Market but Google is a Monopoly because of its Algorithms which are many times better than its Competitors.
Network Effects:- Why do you Always Facebook and its other subsidiaries instead of the New Social Networks which are better Designed and have Better Specs. The Reason is Very Simple because all of your friends are on the Social Network and its very Unlikely they will make a Switch.
Economies of Scale:- There should not be any Limit on How Big your Business Can Be. In simple terms, the Fixed Cost should remain the Same and Business should scale. Amazon Allows free shipping on many orders which other Manufacturers charge for. This is because Amazon already has its Network Set which reduces it’s per item Delivery Cost and hence on providing free shipping too, they make a lot of money.
Tips to Start a New Company | Zero to One Summary
- Start With a Friend:- Starting your Venture with a Friend eliminates the Risk of any New Conflicts and Disagreements. Hence Saving many New Problems.
- Always Hire Full-Time Employees:- Part Time employees will never care about the company’s Future and Growth. In Reality, they are not fully linked to the Company.
- Clear Roles and Responsibilities:– Decide who is the Legal Owner of the Company and Who will Share which Responsibility among Founding Members in order to Avoid any Conflict at a Later Stage.
- Less Salary to Founders:- If the Company will pay more to the Founders all the Cashflow of the Company will be used in Giving salaries only. This would let Employees Believe that you are More Focused on making Yourself big instead of the Company.
- Don’t Disclose Equity:- If you are Paying your Initial Employees Equity in the Company Never Disclose the Amount. As Others may Think people who are Less Talented than Them are Getting More and can Create a Wrong Work Atmosphere.
This was the Zero to One Book Summary through its Important Lessons. We Hope You Loved it. For More Such Book Summaries Visit Our Particular Section.
For More Such Updates Directly in your Inbox, Subscribe to our Newsletter!