Why the next book you read should be Zero To One
link at the bottom!
By investing a few hours to read Peter Thiel’s Zero To One, you can potentially save many hours, if not days, weeks, months, and even years of your life.
Before I explain how exactly this book can make one rethink startups, let me make it clear that this review is not a deep analysis or meant to be an alternative to reading. This is because Thiel’s knowledge on the need for innovation cannot be replicated, and so reading his interpretation of “how to build the future” would result in a much more richer understanding. Rather, I will give some insight into why reading Zero to One is time well spent for those new entrepreneurs finding their next book to indulge or anyone curious about creating the next life-changing solutions.
The theme or core of this reading is that the true courageous and genius startup is one that invents a new process of thinking, product, or idea that is revolutionary and one of its kind. That is zero to one. The true essence of innovation.
The alternative is a startup that takes an existing product or service and delivers it in a different fashion. That is one to N. A reinterpretation of an idea that already exists.
Rather than going forward with a tarpit idea, have your company BE the tar: getting customers to stick to your products/services and ONLY yours.
As an entrepreneur (co-founder of PayPal and Palantir Technologies) and venture capitalist (first outside investor in Facebook), Peter Thiel’s unique reasoning is backed by proof in his own ventures. An example of his unique reasoning is his view of monopolies and competition. Thiel demonstrates that not only can he challenge a well-known topic, but also has a fearless ability to present new ideas.
“Perfect competition”, he says, “is considered both the ideal and the default state in Economic 101.” He explains that competition isn’t as sweet as it has been made out to be, for “in the long run no company makes an economic profit.” Too many firms in the market results in an increase in supply, a decrease in prices, and therefore eliminates any chance of profit.
The opposite of this scenario is a monopoly. A monopoly by contrast, owns its market, setting its own prices rather than the market price. With no competition, a monopoly maximizes its profits.
Thiel explains how the monopoly definition of “illegal bullies or government favorites” is not of interest in his book. His definition of monopoly is the kind of company that’s so good at what it does that no other firm can offer a close substitute.
Many readers of Zero to One question Thiel’s interpretation on the impact of a incomparable startup. But reading one of the most successful entrepreneur’s opinion gives the opportunity to exercise critical thinking as well as openness to new ideas. His ideas have the power to stimulate new ones in the mind of a curious wannabe entrepreneur and change the mindset of a long-time entrepreneur.
Going back to how I said reading this book could save a vast amount of time. By following Thiel’s advice and executing that unconventional and crazy idea you have that could change a whole market, you potentially save time from the hassle of competition and efforts of making enough profits to sustain a startup.
If you’ve read Zero to One, let me know what you think, and if not, you know what next to do in your entrepreneurial/creative journey!
