Zero to One: Why Competing Is a Trap and What Great Founders Do Differently
This Friday->Zero to One: Notes on Startups, or How to Build the Future by Peter Thiel and Blake Masters [4 min reading]
On Startup Salad I break down a business bookβs key takeaways in a simple, digestible format, just like a good salad!
Hey, itβs Fede!
Those books in the meme are must-reads for startup founders.
But the real question is: how many actually read them?
Entrepreneurs have a lot to do and not much time.
No worries, Fede thought about you.
As for The Mom Test, I already shared some takeaways (click here).
And today?
Letβs talk about another book legend: Zero to One.
Meant for anyone who wants to build the next big thing, it offers a mix of vision and practical advice.
Today's book: Zero to One: Notes on Startups, or How to Build the Future by Peter Thiel and Blake Masters
Pssst: Every time you see a π₯, it means the takeaway is very hot!
Real Innovation Starts at Zero
We often talk about innovation, when in realityβ¦ weβre just improving something that already exists.
Peter Thiel, co-founder of PayPal and author of the book, spends a lot of time explaining this concept.
Going from iPhone 1 to iPhone 2 isnβt innovation.
Itβs just an improvement of something thatβs already there.
Thatβs going from 1 to 2, 3β¦nΒ°.
But creating the first iPhone? π₯
Thatβs 0 to 1.
Something entirely new.
Something that shifts the game, REAL INNOVATION.
And when youβre doing 0 to 1, Peter makes two things very clear:
You wonβt be welcomed with open arms. π₯
Real innovation feels strange at first.
If youβre working on something disruptive, expect resistance, not applause.You have to learn from the best innovators, but you canβt copy.
Learn from them, but trying to repeat what others did wonβt work. What worked for them, at that time, in that marketβ¦ isnβt what you need to do now.
And honestly, thatβs the point.
If it feels too easy, too accepted, too comfortableβ¦
Itβs probably not 0 to 1, and it probably wonβt create the next big thing.
Be Ready to Be Misunderstood
One last point from the book I really want to highlight:
being misunderstood.
Letβs be clear, Peter isnβt giving advice for building SMEs.
His thinking is meant for people who want to create big, world-changing things.
So yeah, itβs not for everyone.
But stillβ¦ from what Iβve seen personally, and from what you read in most books, the common advice is:
βtalk to people, share your idea, validate it.β
And yes, thatβs often useful.
But hereβs the thing:
If youβre working on something truly breakthrough, donβt expect everyone to get it. π₯
Peter says itβs completely normal to feel misunderstood.
Because if everyone gets it right awayβ¦ itβs probably not that bold.
And thatβs okay.
Being misunderstood is part of building something that didnβt exist before.
Competition Kills Your Margins
This is my favorite part of the book.
Everyone in the startup world talks about USP (unique selling proposition), what makes you βbetterβ than others, bla bla bla.
But Peter has a different take on it: π₯
Youβre not supposed to compete.
You should aim to become a MONOPOLY.
Sounds extreme?
Maybe. But hear this.
If youβre starting from scratch, of course you wonβt monopolize a huge market from day one.
So what do you do?
You start with a very specific niche. π₯
And in that niche, you donβt just beat the others, you make it look like youβre the only one.
On a bigger scale, Peter uses Google as an example.
For 25 years, theyβve been the default search engine. Sure, others exist. But based on numbers and perception? Itβs a monopoly.
How to Build a Monopoly
So, how can you do it?
Here too, Peter is pretty clear:
There are many paths to monopoly.
But for tech startups, one rule stands out:
Take one thing of your startup, even something small, and do it 10x better than anyone else. π₯
Not 2x.
Not 5x.
10x.
Thatβs how monopolies are born. That kind of leap doesnβt just make you competitive.
It puts you in a different league entirely.
And why this obsession with monopoly?
Simple: you need to escape competition.
Why?
Because competition kills margins, and margins are what make a business succeed.
In a world of perfect competition, no company would make any profits.
So donβt play the game.
Build your own monopoly.
Thatβs it for today, I hope you enjoyed it, BIG HUG.
The guidelines you need to build your startup:
See you next Friday,
Federico Lorenzon
Spoken by a true libertarian, Pieter Thiel unlocks hypergrowth. Sometimes. Let it not be an argument, however, for not bothering to explain your idea clearly. Otherwise you just become a frustrated genius.