- First principal thinking
- some things that most people beleive but is wrong. e.g.: most people beleive x, but the opposite of x - y - is true.
- a new company's most valuable and important strength is new thinking
- if you can identify a popular delusional beleif, you can identify the contrarian truth behind it.
- don't describe your market too narrowly so you own / dominate it by definition
- rivalry causes us to over emphisise old opportunities and slavishly copy what used to work in the past.
- spot trends early and ride the wave.
- generally avoid competition, but if you have to compete / fight, you should fight and win decisively
- Question: will the business still be around 10 years from now? 20 years?
- high future cash flow businesses are very valuable
- 4 keys: 1. propriety technology, 2. exponential growth from a network effect, 3. economies of scale, 4. branding and marketing
- your tech must be at least 10x better than the existing market
- start small in a small niche and monopolise it, then expand out
- look for opportunities by digging deeper than anyone else has into a specific subject or field
- look for subsidies and legaslative penalties that create market conditions and opportunities.
- attack a really narrow niche in a massive market
- if you think your initial market might be big, it almost certainly is.
- the perfect starting target is a market that is a small group of particular people concentrated together in one place and served by few to no competitors.
- disruption is over rated. when you craft a plan to expand, don't disrupt. avoid attention of big companies and competition generally, as much as possible.
- Emerson quote: shallow men beleive in luck, in circumstance. Strong men beleive in cause and effect.
- re-read final paragraph of page 69 and 81.
- iteration without a bold plan won't take you from zero to one.
- you should focus on something you're good at, but before doing so, think long and hard: will it be valuable in the future?
- think long and hard before starting your own venture, most of them fail after all. Instead, consider opportunities of equity stakes in small and growing start-ups.
- if you do start your own company, remember the "power law" and operate it well.
- you must beleive in secrets in order to be able to find them
- every great company is built on a secret that's hidden on the outside.
- a startup that's messed up at it's foundation is cannot be fixed.
- founders should share a pre-history together otherwise they are just rolling the dice.
- small boards of directors are more effective at making decisions
- keep peoples interests aligned. for example, equity stakes. - but this goes much deeper that just equity.
- if you can't count durable relationships among the fruits of your work, you haven't invested your time well.
- why would somebody join your company as the 20th enginineer, when they could join google for more money and prestige
- you'll attract employees you need if you can explain why your mission is compelling (not important in general)
- you should be able to explain why your company is a match them, personally.
- startups should make thier early staff as personally similar as possible
- on the inside, every individual should be sharply distinguished by her work / role.
- if you've invented something new but haven't invented a way to sell it, you've got a bad business.
- if you can get just one sales channel to work, you have a viable business. if you try multiple, they will all flop.
- the most successful businesses of the coming decade will be those that seek to empower people, not replace them.
The 7 questions every business must answer:
1. can you create a breakthrough technology instead of incremental improvements?
2. is now the right time to start your particular business?
3. are you starting with a big share of a small market?
4. do you have the right team?
5. do you have a way not just to create, but also to deliver your product?
6. will your market position be defensible 10 and 20 years into the future?
7. have you identified a unique opportunity that others don't see?
- plan to be the last mover: ask yourself what will the world look like in 10 to 20 years? and how will your business fit into it?
- the best projects are likely to be overlooked by the crowd, not trumpetted. the best problems to solve are often those nobody else is working on.
- consider CLV and CAC when deciding on a sales strategy.