Wryt
Sign Up
Wryt
Sign Up
About    Privacy    Terms
About       Privacy       Terms

Zero-One

profile
Pulkit Gupta
Apr 18, 2019   •  3 views

Main Theme:

  • Zero To One = Creating something NEW vs. copying things that work

  • How to build and scale a business that will thrive for decades

Key Takeaway #1 – Build a creative monopoly instead of trying to compete

  • Capitalism = profits get competed away, Monopoly = keep profits

  • If you want to create a business that will stand the test of time, don't build an undifferentiated commodity business (e.g. mortgage company)

  • Creative monopoly = new products that benefit everybody and sustains profits for the creator.

  • Competition = no profits for anyone, no meaningful differentiation, and struggle for survival.

  • Four characteristics of a monopoly:

  • Proprietary technology (PayPal)

  • Network effects (Facebook)

  • Economies of scale (programmers versus yoga instructors)

  • Branding (Apple)

Key Takeaway #2 – Find the perfect market

  • The perfect market = small group not served by competitors

  • Scale into slightly broader markets

  • Don't disrupt – avoid competition

  • Last mover advantage – if you make the last great development in a market, you'll enjoy a long sustainable profits

  • If you focus only on near-term growth and profits, you'll miss the most important question which is: will this business still be around decades from now.

Takeaway #3 – Every business must answer these seven questions

  1. The engineering question – can you create breakthrough technology instead of incremental improvements.

  2. The timing question – is now the right time to start your business?

  3. The monopoly question – are you starting with a big share of small market?

  4. The people question – do you have the right team?

  5. The distribution question do you have a way to not just create but deliver your product?

  6. The durability question – can your market position be defensible decades to come

  7. The secret question – have you identify the unique opportunity that others don't see?

Final Thoughts

  • Innovate or die – Zero To One.

  • Dominate, don’t compete.

  • Put a lot of thought into the beginning – 3 characteristics of a monopoly and 7 questions of successful businesses.

0


  0