Those questions are critical to building a business which will be able to capture value in the long run. In fact, according to Peter Thiel the value of a business isn’t to go from 1 to n but to real value is to go from Zero to One. In short, build a company that creates new things, rather than building a business based on the existing “best practices,” which according to Peter Thiel leads to dead ends.
This framework of going from Zero to One can be summarised in seven questions to answer if you want to have a great business plan. In fact, you don’t need complicated Excel models or reasonings. You only need to address now these seven questions.
Indeed, that is how Peter Thiel puts it in Zero to One:
Whatever your industry, any great business plan must address every one of them.If you don’t have good answers to these questions, you’ll run into lots of “bad luck” and your business will fail. If you nail all seven you’ll master fortune and succeed.
- The Engineering Question
- The Timing Question
- The Monopoly Question
- The People Question
- The Distribution Question
- The Durability Question
- The Secret Question
The Engineering Question
Can you create breakthrough technology instead of incremental improvements?
The Timing Question
Is now the right time to start your particular business?
The Monopoly Question
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?
The Durability Question
Will your market position be defensible 10 and 20 years into the future?
The Secret Question
Have you identified a unique opportunity that others don’t see?
How to get started with your business:
- Business Strategy: Definition, Examples, And Case Studies
- What Is a Business Model? 26 Successful Types of Business Models You Need to Know
- What Is The Best Business Model For A Small Business?
- What Is a Business Model Canvas? Business Model Canvas Explained
- Business Model Tools for Small Businesses and Startups
- What Is a Value Proposition? Value Proposition Canvas Explained
- What Is a Lean Startup Canvas? Lean Startup Canvas Explained
- What Is the Minimum Viable Product? Why Use the Exceptional Viable Product Instead
- How To Build A Business Model Based On The Market Leader Weakness
- The Marketing Lessons Learned from Rand Fishkin
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