The World's Best Book Summaries
What happened when the dot-com bubble burst? How did investors react to the crash? When the dot-com bubble burst in 2000, investors became skeptical of any company that had aspirations of shaping the future. And their newfound skepticism became part of the new conventional wisdom. Here’s why that wisdom was misguided, according to Peter Thiel.
How do you determine your target market as a startup? Should you engage in head-to-head competition? Entrepreneur Peter Thiel offers advice on these and other startup matters in his book Zero to One: Notes on Startups. He shares strategies related to choosing a target market, dealing with competition, and building a monopoly. Continue reading for four startup tips from the book.
What was the dot-com bubble? What can it teach us about tech startups? The dot-com bubble of the 1990s was the biggest bubble since the one ending in the Wall Street crash of 1929. The “lessons” of the dot-com dictate the way we think about tech today. Continue reading for Thiel’s insights on the dot-com bubble and its lessons for entrepreneurs.
What is the power law? How should it influence your planning? The power law is an exponential growth pattern that illustrates how power or size is distributed. The principle has particular application for startups and venture capital, and it can inform investing in general. Keep reading to learn about the power law and how it applies to business and investing.
How much should startup employees be paid? What about the CEO? Is it better to reward employees with equity than with high salaries? In Zero to One, Peter Thiel addresses the issue of startup salaries. He explains that the CEO’s pay sets the bar for everyone else, so you must exercise caution. He also shares his advice regarding equity distribution from the outset. Here are some things to consider when setting your employees’ salaries.
What should a startup’s culture be like if you want to succeed? How do you build unity? What factors make people feel more connected? At PayPal, Peter Thiel fostered a team that was so close that people called them the “PayPal Mafia.” In Zero to One, Thiel shares his wisdom on how to cultivate a healthy and effective startup culture, drawing from the lessons he learned at PayPal. Keep reading to see how Thiel’s insights can benefit your startup.
What is the best organizational structure for a startup? Who should have equity and how much? Who should make the executive decisions? Structure impacts performance, so how you organize your business at the start is critical. Peter Thiel asserts that you must make the right decisions in three areas—equity, direction, and operation—to cultivate organizational alignment and growth. Here’s how to get your startup structure right at the start.
What sets up a startup business for long-term profitability? What qualities must it have? Why isn’t having a monopoly enough? In his book Zero to One, entrepreneur Peter Thiel presents creative monopolies as the solution to destructive competition, but he also cautions that creating a technological monopoly does not in and of itself guarantee the success of your startup. Thiel measures the worth of a startup by considering how much profit it has the potential to bring in ten or twenty years down the road. He identifies four traits common to startups that achieve long-term success. Keep reading to learn
Is competition good for business? Is there such a thing as “healthy competition”? Entrepreneur Peter Thiel believes that the idea of healthy competition is a myth. But it’s a myth that is so deeply ingrained in our society that it tends to exercise a destructive influence on our business strategies. As such, Thiel spends a chapter in his book Zero to One exposing and debunking the myth. Keep reading for Peter Thiel’s take on why competition is bad.
What revolutionary truth do you know that no one else agrees with? What discovery could you make if you challenged assumptions? Peter Thiel believes in secrets—truths that no one else has. He contends that there’s more knowledge to be discovered and new opportunities to be explored. But, to find them, we have to believe they exist and look for them. We have to challenge assumptions in order to discover something new. The place to start, he contends, is with the contrarian question. Here’s how Peter Thiel’s contrarian question can help you uncover the secret to success.