I recently read Zero to One by Peter Thiel. In one of the chapters, he lists down seven questions that every business must satisfactorily answer –
- The Engineering Question – Can you create breakthrough technology instead of incremental improvements? A 10x improvement over existing solutions.
- The Timing Question – Is now the right time to start your particular business?
- The Monopoly Question – Are you starting with a big share of a small market? Figure out the appropriate market and it’s size – whether it’s local, national or global.
- The People Question – Do you have the right team?
- The Distribution Question – Do you have a way to not just create but deliver your product? Building a kick-ass product is one thing, getting your target market to buy/install/use it is another.
- The Durability Question – Will your market position be defensible 10 and 20 years into the future? What sequence of events in the future can kill your business?
- The Secret Question – Have you identified a unique opportunity that others don’t see? Basically, a perspective that only you and your startup team share which others don’t know of.
The Chapters I enjoyed were – #11 If you build it, will they come and #5 Last mover advantage.