Insights from ‘Zero to One’ by Peter Thiel

Question 1

What is the core principle of a startup according to Peter Thiel?

Answer 1

A startup operates on the principle of working with others to achieve a goal while staying small enough to be manageable.

Question 2

What is the primary strength of a startup?

Answer 2

The ability to support a new way of thinking about the world.

Question 3

What is the Engineering Question startups should answer before launching?

Answer 3

Do we have a technology that is 10x better than the competition?

Question 4

Provide an example of a startup that offered a ‘10x better’ solution.

Answer 4

PayPal improved eBay transactions by allowing immediate payment instead of waiting 7-10 days for a check.

Question 5

True or False: A startup idea is best if it was possible and not special three years ago or in the next three years.

Answer 5

False

Question 6

What is the Timing Question that should be answered before starting a business?

Answer 6

Is now the right time to start this business?

Question 7

Why was Tesla’s timing perfect in 2010 according to Thiel?

Answer 7

Tesla secured a $465 million loan from the U.S. Department of Energy, a unique opportunity that would not have been possible a few years earlier or later.

Question 8

What is the Monopoly Question for startups?

Answer 8

Are we starting with a big share of a small market?

Question 9

How did Tesla initially dominate a market?

Answer 9

Tesla dominated the high-end electric sports car market with its Roadster, which later enabled expansion into the luxury electric sedan market.

Question 10

Fill in the blank: ‘A successful startup team needs the right balance of ______ and ______ talent.’

Answer 10

engineering; sales

Question 11

What is the People Question to consider for a startup?

Answer 11

Do we have the right team?

Question 12

Why does Tesla manage its distribution differently than other car manufacturers?

Answer 12

Tesla owns its entire distribution chain, selling directly to consumers, which strengthens its brand and control over the customer experience.

Question 13

True or False: A startup’s distribution plan is less critical than its product development plan.

Answer 13

False

Question 14

What is the Distribution Question startups should consider?

Answer 14

Do we have a way to deliver our product?

Question 15

What is the Durability Question for startups?

Answer 15

Will our market position be defensible 10 years from now?

Question 16

Name one way a startup can create a defensible market position.

Answer 16

By building a strong brand, proprietary technology, a large network, or achieving economies of scale.

Question 17

What is the Secret Question for identifying a unique business opportunity?

Answer 17

Have you identified a unique opportunity that others don’t see?

Question 18

Why was Tesla’s brand attractive to wealthy consumers according to Thiel?

Answer 18

Wealthy consumers wanted to appear ‘green,’ and Tesla tapped into this social phenomenon more than environmental necessity.

Question 19

True or False: Building a startup around a unique behavior that people don’t recognize is part of answering the Secret Question.

Answer 19

True

Question 20

What are the ‘7 Questions’ a startup must answer before launching?

Answer 20

Engineering, Timing, Monopoly, People, Distribution, Durability, and Secret Questions.