The process of creating something new from “Zero To One”
You can make progress in two forms: Horizontal and Vertical. The choice is yours.
Horizontal progress means copying things that work — going from 1 to n. Horizontal progress is easy to imagine because we already know what it looks like.
Vertical means doing new things — going from 0 to 1. Vertical progress is harder to imagine because it requires doing something else has ever done.
J-Curve progress comes from the Monopoly, not the Competition. A monopoly like Google doesn’t have to worry about competing with anyone.
Every monopoly is unique and shares some combination of characteristics:
1. Proprietary technology: Product difficult or impossible to replicate.
2. Network Effect: product more useful as more people use it.
3. Economics of scale: Business gets stronger as it gets bigger.
4. Branding: creating a strong brand is a powerful way to claim a monopoly.
I think the Last mover advantage is better than the first-mover advantage.
You’re probably heard about the “first-mover advantage”. Being the first mover doesn’t do you any good if someone else comes along unseats you.
It’s much better to be the last mover — that is, to make the last great development in a specific market and enjoy years or even decades of monopoly profits.
Peter Theil said, “A start-up messed up at its foundation cannot be fixed.”
Bad decisions made early on — if you choose the wrong partners or hire the wrong people, for example — are very hard to correct after they are made. It may take a crisis on the order of bankruptcy before anybody will even try to correct them.
As a founder, your first job is to get the first things right, because you cannot build a great company on a flawed foundation.
The best formula of entrepreneurship is — There is no formula.
The paradox of teaching entrepreneurship is that such a formal (for innovation) cannot exist; because every innovation is new and unique, no authority can prescribe in concrete terms how to be more innovative.
The single most powerful pattern noticed is that successful people find value in unexpected places, and they do this by thinking about business from first principles instead of formulas.