Peter Thiel is a billionaire entrepreneur, venture capitalist and the founder and former CEO of PayPal. He once gave a lecture on start-ups and business at Stanford University. In that lecture he shared some important principles to create a multi-million dollar industry like he did. Here I will be sharing some of those principles.
Go from 0 to 1. This means that we should not focus on copying ideas and spend time on improving the existing ideas. Instead we must create new ideas that trumps over the existing one. It means we must focus on vertical progress rather than horizontal progress (1 to N). Horizontal success will give you very little success and for a very short period of time. In the business world, every big event occurs only once. The next Bill gates will not create an operating system; the next Mark Zuckerberg will not create another social network.
Become a monopoly and avoid competition. Our education system has always taught us to be competitive. Doing better than someone else has always been our way to go about things. But to be honest, competition will always incur loss for you. It is the same in business. The more competition you have the less profits you make. If we combine together the profits of all the US airline companies, it will still be less than the profit made by Google. Why? Because Google is a monopoly market. Therefore, to be successful you must create a monopoly with your product and services.
Start with a Niche market and then dominate. Let’s take an example of Amazon. It started with selling only books and then after gaining little success it started exploring other areas and today it it the largest online marketplace in the world.
“I don’t think success is complicated; if you do something that works, then it’s a success.”
– Peter Thiel