ZERO TO ONE by Peter Thiel | Core Message

I recently read the book 0 to 1 by author Peter teal author Peter teal was the co-founder and CEO of PayPal in 2002 he sold PayPal to eBay for 1.5 billion dollars after the sale the original members of Peter Thiel's team at PayPal people he personally hired and mentored went on to create companies such as Yelp LinkedIn and YouTube these billion-dollar companies have fundamentally changed the way we use the internet today based on the number of successful companies that Peter Thiel has influenced it seems that he knows the secret to building a billion-dollar business and building a better future after reading Peter Thiel's book zero to one I've discovered three counterintuitive ways to think about starting a business and building a better future first bet on a contrarian truth try to answer the following question what important truth do very few people agree with you on Steve Jobs knew the truth about how we would use a smart phone in the future Jobs knew that we didn't need or want a physical keyboard but almost everyone at that time disagreed with him uber and airbnb bet on the contrarian truth that you and I would be willing to get in a stranger's car or stay in a stranger's house Netflix bet on the contrarian truth that most of us love to binge watch TV the best answers to the contrarian question reveal a truth about how people will act in the future in ways they're either unwilling to admit right now or are just unaware of now why is it so important to bet your business on a contrarian truth well if you don't you'll be on the fast track to bankruptcy Peter teal says all failed companies are the same they failed to escape competition when you bet your business on a contrarian truth you'll dramatically increase your odds of avoiding competition mainly because most people will think you're crazy and ignore you long enough for you to build a significant lead in a particular market that will make it hard for anyone to catch you but here's a word of caution make sure you bet on a contrarian truth whose time has come in a late 2000s there was something called the green tech revolution the green tech revolution was based on a contrarian truth that we would all go from non-renewable resources like oil and natural gas to renewable resources like solar and wind it may have been and it still will be a truth of humanity but it was a truth whose time hadn't come yet solar panel technology wasn't where it needed to be to make the green tech revolution feasible at that time so before starting a business ask yourself is my success dependent on out working the competition or being courageous enough to bet on a contrarian truth whose time has come counter intuitive business mindset number two if you want to start a big business start by dominating a small market when Jeff Bezos started Amazon he had the idea of creating an everything store but he didn't start by building an everything store instead he focused on dominating a small niche market that niche market was online book sales it was a great initial market to dominate because all books are roughly the same size and shape so they're easy to ship plus book readers are a great target market because they're well educated and typically have disposable income that they would be able to spend on future goods that Bezos would offer in his everything store because Jeff Bezos could dominate a small niche market he could generate enough cash flow free of competition to help fund his expansion into adjacent markets like online CD and DVD sales and he had the infrastructure in place to go on to dominate those markets when starting your business don't try to get one percent of a billion dollar market instead try to get eighty percent of a million dollar market author Peter Thiel says whoever is first to dominate the most important segment of the market with viral potential will be the last mover in the whole market counterintuitive business mindset number three strive to be a monopoly now you might be thinking wait aren't monopolies evil well yes a but nah Polly that bull these its competitors and takes advantage of its customers is evil but most monopolies today actually don't act like that most monopolies are actually good for the world google has a search engine monopoly and because of that monopoly they can generate so much profit which allows them to give back to society in a big way if Google didn't have a search engine monopoly do you think they would pursue projects like free internet for everyone or Google Maps and self-driving cars when you establish a monopoly you prevent the competition from eating away your profits and that ensures that you stay in business if you aim for anything short of being a monopoly you're aiming to go out of business there are four ways to become a monopoly and secure a high profit margin without bribing politicians or resorting to organized crime to understand these four ways just think of the big four Apple Google Facebook Amazon monopoly method number one brand association what brand comes to mind when you think of an electronic device that makes you look fashionable I'm guessing it's Apple and if Apple is the first brand most people think of when they consider buying a device that makes them look cool it's tough for any other brand to compete in the market of fashionable consumer electronics monopoly method number two proprietary technology why do the majority people use Google instead of Bing well personally I use Google instead of Bing because I feel that my search results are 10 times better on Google since Google's algorithms are ten times better than its competitor and those algorithms are proprietary it's nearly impossible to copy them and catch up to them monopoly method number three network effects why do you use Facebook or Instagram over other new and probably better designs social media platforms I'd guess it's because most of your friends are already on Facebook or Instagram and are unlikely to switch to a new platform the more people on the Facebook or Instagram network the harder it is to compete with them monopoly method number four economies of scale why do you think that Amazon can offer free shipping on a hundred pound sofa when most furniture retailers charge you $50 to ship that same sofa the answer is economies of scale because Amazon has such a large infrastructure in place and ships so many products their fixed operating costs per item are incredibly low which allows them to make more profit on each item and offset the cost of shipping which makes it nearly impossible for smaller retailers to compete with them so in the end if you want to create a high-growth company and build a better future bet on a contrarian truth whose time has come and then build a big business around that truth by first trying to dominate a small market once you've proven that you can dominate a small market expand to adjacent markets and set your sights on becoming a monopoly of a much broader market by either achieving brand Association like Apple using proprietary technology like Google building a superior network like Facebook or reducing your costs through economies of scale like Amazon that was the core message that I gather from zero to one by Peter teal this book is essential breeding for any aspiring entrepreneur I highly recommend it if you would like a one-page PDF summary of insights that I gathered from this book including the 7 questions that every entrepreneur must ask just click the link below and I'll be happy to email it to you if you've already subscribed to the free productivity game email newsletter this PDF is sitting in your inbox if you like this video please share it and as always thanks for watching and have yourself a productive week

Channel: Productivity Game

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Keywords: Zero to one, How to be an entrepreneur, How to start a business, starting a business, how be a successful entrepreneur, Peter Thiel book, Zero to one by peter thiel book, Zero to one peter thiel, Zero to one by peter thiel, Zero to one book summary, zero to one book review, Zero to One Thiel Book, Thiel Book, Zero to One PDF Summary, Zero to One Summary

Id: Hd9pHZC7Sak

Length: 8min 14sec (494 seconds)

Published: Sun Jul 22 2018

Reddit Comments

[u/evilbunny]

Cartea pe scurt.