How to build a business using Peter Thiel’s, PayPal Founder, strategy. 

I finished reading ‘Zero to One by Peter Thiel Founder of Paypal a month ago. If you’re a business minded or would like to develop one, I recommend you read the book. 

Before we delve into this, I would like to outline that the reason I am telling you about the gains in the book is that I like to help my social community be more knowledgeable.

I have learned through the years that to be the richest happiest person is through acquiring knowledge for nothing is more satisfying than learning about everything there is about life. 

The internet is full of so much information that I many times find it information-less as I read once ‘too much information equals no information’

But it’s helpful if you focus on very few bits of information at a time; such as reading a book or two, following an influencer or an entrepreneur at a time, taking one course you’re interested in, learning one skill at a time and so on. If you don’t control the temptation to follow every thing on and offline you will end up with shallow mind; to test if you’re a shallow minded (like I am sometimes) or not; open your facebook, if you find yourself scrolling down for more than 10 seconds without clicking on a link to read and learn from, you’re wasting your time.

Another thing I want to highlight is this blog is for mostly people around my age who would like to build a business that help make our world a better place; its not about building a billion dollar company or how to get financially rich; although I used to think like that when I first started getting into all of this but I learned that if you put money before value in your line of thought you’re heading towards a dead end. Value has to be on top of the list and the by product will follow aka money. 

That was quiet an introduction; I hope you are not that bored yet but read on I promise this will be of value.

Mr. Thiel starts off with two business models 1- Horizontal progress: where people copy a service and a product and multiply it going from 1 to n. For example, if you introduce a new pen into the market that all it does is write; that’s horizontal progress. 2- Vertical progress where people develop and create new things going from 0 to 1. For example, if you invent a cure for a terminal diseases that’s vertical progress.

In order to better understand the method of vertical progress we depend mainly on technology. With advanced technology we can shape and create a better future; we can design an easier way of living and we can find solutions to problems that we currently face such as diseases, hunger, homelessness, and many other factors that negatively affect every individual on this planet.

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Buy the book

It’s also worth noting that the term developed and developing countries is arguably a media invented term to manipulate society as if developed nations have reached the climax of creativity and technology and that everyone’s living in such places has his needs completely developed and that the developing countries need to catch up.

Our world is full of limitless amounts of natural recourses such as energy, agriculture, waters, etc but we need technology to generate and sustain these recourses. 

And who best at coming out with ideas for new technology? you bet; Start-Ups.

Unlike big corporations where it’s all about bureaucratic hierarchies and who moves up the ladder the fastest; Start ups is all about ‘small groups of people bound together by a sense of mission to change the world for the better’ Thiel adds ‘Start ups operate on the principle that you need to work with other people to get stuff done, but you also need to stay small enough so that you actually can. A start up is the largest group of people you can convince of a plan to build a different future.’

To be a success in the pool of new start ups; you have to incorporate one element in every thing you do and this is; New thinking.

To execute a new business we need to have these 3 things chronologically in mind

1- Make small micro steps; Improve at least 1 % every week or month. This is guaranteed and less risky than bigger incremental ones.

2- Be flexible; always incorporate change and trial and error in your business model; this is how great workable ideas are generated.

3- Improve on the current competition; for instance if you want to sell a new computer; target those who already use one by improving your products and offering a better competition; don’t go all out and make a better google glass cause it won’t work;

‘The reason why Google glass didn’t work and Snapchat’s new spectacles worked so well is because Evan Spiegel, Snapchat’s founder took a page out of Apple’s launch of the iPod 15 years ago; Instead of focusing on the product, the launch focused on the customer. Why would someone want Snapchat spectacles? just to shoot 10 second videos? No. Because they’re fun to use and cool to wear’ says Roger James Hamilton, New York Times Bestseller author, educator and social entrepreneur.

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Courtesy of Roger’s Facebook page

This was a summary of the two chapters in the book; I highly recommend you grab a copy yourself as the value you will gain to develop a business mind is only attainable through reading his story.

 My name is Sherif; I am a dayenjoyer. 

Thanks for reading. 

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