Introduction: Zero to One
About the Author: Peter Thiel & Blake Masters
Book: Zero to One by Peter Thiel & Blake Masters
Zero to One: Notes on Startups, or How to Build the Future is a 2014 book by the American entrepreneur and investor Peter Thiel co-written with Blake Masters. Wikipedia
|Zero To One by Peter Thiel & Blake Masters
Book Summary: Zero to One
- Successfully obey the exponential distribution instead of the normal distribution, and the most successful start-up brings more venture capital returns than the rest.
- The secret of success: avoid competition, fight for monopoly, start from monopolizing a small market to grow bigger.
- The importance of planning. If the author of this book is not a billionaire investment giant or a PayPal helper.
Excerpts from the original text
Book Review & Analysis: Zero to One
Chapter One "The Challenge of the Future":
Chapter Two "Party Like It's 1999":
- Play the incremental security route;
- Trial and error, rather than plan for the future;
- Play competitive games;
- Do not pay attention to sales).
Chapter 3 "All Happy Companies Are Alike":
Chapter 4 "The Ideology of Competition":
Chapter 5 "Last Mover Advantage":
- technological advantage (10 times better than the second place),
- network effect (requires scale, but the scale of a large market is more difficult to obtain, so it is necessary to enter a small market at the beginning), and
- economic scale ( Many traditional products are difficult to achieve scale effect, and the scale effect of network products is relatively obvious),
- brand (brands are dependent on products, and technology companies with only brands are not feasible, such as Yahoo's Mayer install cool).
The path to creating an innovative monopoly is:
Chapter 6 "You Are Not a Lottery" Ticket":
In addition, Thiel also complained about two things in this chapter:
Chapter 7 "Follow the Money":
Chapter 8 "Secrets":
- Common sense cannot bring advantages, so it cannot be used to create a company. Unreachable knowledge cannot be realized, so it cannot be used to create a company. Fundamentalism prevents people from pursuing secrets. Fundamentalism may be due to the fact that most places on the earth have been explored by humans. So people also feel that the same is true in other fields.
- Another reason why people dare not pursue secrets is the fear of making mistakes.
- The third reason is complacency. The teachers and parents of the school convince students that as long as they follow the path of the school, their lives will be fulfilled.
- The fourth reason is the lack of self-confidence caused by globalization. The power of globalization directs people's attention to undifferentiated competition and makes people not believe that they can discover secrets. (These four final conclusions are a bit of the feeling that the current generation cannot keep up with the previous generation).
Chapter 9 "Foundations":
The first one is a partner.
The second is the problem that the separation of equity, operators, and executors will cause.
The third is to work full-time
The fourth is the salary issue.
The fifth is the question of vested interests.
Chapter 10 "The Mechanics of Mafia":
Chapter 11 "If You Build It, Will They Come?:
Then, several general sales techniques are explained:
- Products between US$1 million and US$100 million are sold by the CEO. This kind of sales requires careful preparation, superb personal skills, and people like the CEO.
- Grade; For products between USD 10,000 and USD 100,000, it is necessary to recruit sales staff to sell. This sales method must also follow the principle of "getting a monopoly from the most urgent small market, and then further expanding the results";
- A product of around US$1,000 is more difficult to sell, so the cost of sales is greater than the sales benefit. Small business software is generally in this range, which is why the development of small business software is very slow.
- Sales of popular products. Rely on TV advertisements and various mass advertisements.
- Virus sales. Viral Sales are the process by which one user will bring another user after using the product.
Chapter 12 "Man and Machine":
This chapter explains two points of view:
Chapter 13 "Seeing Green":
Chapter 14 "The Founder's Paradox":
Reading Notes: Zero To One
Chapter Name: Chapter 1-8 Author's Main Points of View
- A company with a complete monopoly is an unprecedented and high-value company. Monopoly here does not mean an illegal monopoly but has reached the pinnacle of its innovation. No other company can provide similar substitutes.
- It is not enough for a company to create value. It depends on how much value you can obtain. Large companies may not do business well. For example, American Airlines created a value of 160 billion U.S. dollars in 2012, and they could only earn 37 cents from each passenger, while Google only created 50 billion U.S. dollars in value, but Its profit accounts for 21%.
- Both the judges and competitors rely on distorting the facts to defend their own interests. Competitors exaggerate their own uniqueness, while monopolists fabricate stories to disguise their monopoly.
- The competitive system makes people become cold and even die. In business activities, evenly matched competition means stagnation and stagnation means death.
- Competition is an idea, rooted in the ideology of the entire society, distorting people's thinking.
- The competition will cause companies to blindly repeat past models, making people think that where there is competition, there are opportunities.
- Competition means that no one is profitable, close to each other, fighting for survival.
- The competition will also make people focus on their competitors and ignore the really important and meaningful things, that is, focusing on their own development is the primary goal.
- If you can't beat the opponent, sometimes the better option is to merge.