We all want to do something that people remember us by our name and by our work. So this is a self-help book for entrepreneurs. where you can learn great ideas and for those who start their business.
Peter Thiel is a billion entrepreneur, V.C, founder and former CEO of Paypal. Some years ago he took a lecture about startup and entrepreneurship at Stanford university. He taught about the principles to create a billion dollar industry. A Student named Blake Masters made a detailed note of that lecture.
These notes were getting popular even at the outside of the college as well. Then Peter started working with Blake Masters and improved those notes and made a book of it. So that not only stanford university students or his country can use that knowledge, but also the entire world.
So this how Zero to one was written by Peter thiel and co-written by Blake Masters.
Originally published on September 16, 2014. It’s also a kind of lucid and profound representation of capitalism and achievement in the 21st-century thrift and it’s truly incredible in a great way just how reasonable zero to one feels.
Peter Thiel shows how we can discover singular ways to establish those new things.
Summary of Zero to One Book
Biggest group of people you can persuade is a plan to create various futures.
PayPal was established in 1998 with the purpose of establishing a new Internet current to renovate the $ and organized to boost funds in 2000 right before the dot.com collision.
Principals to Create a Billion-Dollar Industry
Reflect and talk about proficiency they created for themselves not which is taught in our schools but this proficiency which we learn from society and by our experiences.
To become socially undesirable by taking a different posture and also brilliant thinking is extraordinary but strength is in even shorter supply than the champion.
Principal – 1: Go from zero to one
In this book, the author formulates a very valid point for the group to differentiate improvement as we see it nowadays by creating a distinction between vertical intensive progress (technology 0 to 1) and horizontal extensive progress ( globalization 1 to n).
If we go 0 to 1 we will achieve success but if we go 1 to N we won’t achieve any success.
Technology vs globalization
Does Peter mention the one to zero solution to startup for any businesses which are based on Bet on a contrarian truth that says that increasing your work and avoiding competition?
So the most important question here is what important truth do very few people agree with you on.
The best answer to the contrarian question is a truth about how people will act in the future:- who they are unwilling to accept right now or unaware of this.
Peter Thiel said:-all failed companies are the same they failed to escape competition.
Principal – 2: Strive to be a Monopoly avoid Competition
All happy corporations and businesses are different. Each one earns a monopoly by unraveling a unique problem. If we only focus on creating a favorable monopoly and avert competition then businesses will operate very fast.
Peter Thiel also talks about capitalism and competition, they are two opposite phases of one coin.
Capitalism generates profit but competition generates a loss. The more the competition the lesser you will make the profit.
Competition Example:- U.S airline companies. In 2012 they made less business; they earned 37% profit for only one passenger because they tried to compete with other airlines and decreased their ticket prices.
Capitalism Example:- google was earned in the same year 50 billion money and made a profit of 21% because Google creates a monopoly and makes 100% more profit than airline companies.
Create a monopoly with your product or service so that people have no other option.
Example:- Google has a search engine monopoly
4 ways to become monopoly methods
- Brand association
Be the first (and only ) brand people consider in a market so that it’s tough for another brand to compete in marketing or fashionable consumer electronics.
Brand association the consumers to remember your brand on account of it’s unique and incredible properties. It also distinguishes you from the competitors and gives a justification for the consumers to purchase the product.
The brand association also supports creating an optimistic and impactful impression towards your brand or a product.
Why do we use Google instead of Bing? Because we know Google’s result is 10 times better than Bing or any other competitor and it’s impossible to copy Google and compete with Google.
Technology helps businesses thrive and flourish, create connections, strengthen the cogency of institutions, allow people to learn about one another, and greatly affect the way companies convey with prospective consumers.
- Network effect
We all are on social media platforms and we use this to make a network or make friends larger the network more friends we make but the question is why don’t we switch to a new social platform easily.
The more people using it = Less likely people will switch.
So network effect helps scale your business by increasing your consumer base, market percentage, and the overall value recommendation of your product, generating profit if you’re marveling at what a network effect happens when your product increases in value the more people use it.
- Economies of Scale
Did you ever think, Why does Amazon offer free shipping? Because Amazon uses Economies of scale, Amazon delivers millions of product everyday and because of that their fixed oprating cost of per item is incredebly low which allows them to make profit even with free shipping.
Principal – 3 Start with a Niche Market and then Dominates
Once you dominate a niche market expand to a contiguous market ( always expand example Amazon and eBay ).
Jeff Bezos CEO of Amazon wants to sell everything which is available to any other stores but they first focused on a strong niche market. The short market was an online book market.
Their book was available at low-cost prices, they have ideal customers and they also face less competition.
Don’t try to encircle a large market because trying to encircle a big market will be certainly difficult. As there will be a lot of competition and challenge present.
Starting with a small market provides them a solution to their difficulty and then dominates a similar market.
Peter Thiel said:- whoever is first to dominate the most important segment of a market with viral potential will be the less mover in the whole market.
The Sermon for Entrepreneurs
If you like to build and apprehend value don’t build an undifferentiated commodity business.
What important corporation is nobody building.
Important Company – Create value + Capture value
Stagnation or singularity
It’s totally up to us what we choose whether we attain the singularity on a celestial scale is possibly less important than whether we seize the extraordinary chances we have to do new things in our working lives.
There are lots of other books based on entrepreneurship and startups like Zero to one. You should check out those books as well.