The Entrepreneur’s Book Guide #1: Zero to One by Peter Thiel and Blake Masters
Book Reviews from one entrepreneur to the others
About the Entrepreneurs Book Guide
Ever since I started thinking about starting my own company, I have tried to fill some of my vast knowledge gaps by reading lots and lots of books. Over time I have recommended quite a few of these books and also given some as a gift to friends or business partners.
At some point I noticed that people started to ask me for book recommendations. This gave me the idea for the Entrepreneur’s Book Guide. I wanted to write book reviews specifically for those of you who think about starting your own company or are already running a startup. In the reviews, I will try to explain what I liked or didn’t like, what was useful and actionable and how this book helped me in building my business.
The reviews do not follow a particular order, but I do plan on creating an index that is sorted by author and also by topic once I have a few of these reviews under my belt.
So without further ado, lets dive into Zero to One by Peter Thiel with Blake Masters
About the author
Peter Thiel almost needs no introduction. Founder and CEO of Paypal for many years, founder of Palantir Technologies, first investor in Facebook and a partner at Founders Fund where he funded unicorns such as SpaceX and AirBnB. Take that for a rap sheet!
Beyond his pedigree as an entrepreneur and investor, which is beyond doubt, Thiel is probably one of the most controversial figures in American business and politics. A die-hard libertarian, Thiel was an early and outspoken supporter of first Ron Paul and then Donald Trump. Hardly a way to make friends in the the Bay area! His personal vendetta against Gawker Media at least contributed significantly to the company’s bankruptcy. While many (me included) can relate to the reasons for Thiel’s wrath, it is hardly uncontroversial when the very rich and very powerful actively work to take down media outlets they take offense with.
Controversies aside, Peter Thiel definitely does knwo a thing or two about building game-changing businesses. So when this guy writes a book, people take notice.
About the book
This book became an instant must-read when it was published — one of the greatest and most controversial entrepreneurs sharing his view of “how to build the future”? Who would not want to read that?
Actually, the book was never intended to be written in the first place. The book was actually developed from notes that Blake Masters, then a student at Stanford Law School wrote down in Peter’s 2012 class “Computer Science 183: Startup”. Blake graciously shared his detailed notes online where they became something of an internet sensation. Thiel then quickly came on board, polishing the script and publishing it with Balke. But if not for Blake’s initial diligence in class, this book would not exist.
Some may find it unfair that Blake Masters gets so little credit for the book — but then again, the ideas inside the book are 100% Thiel. And some provocative ideas indeed!
What do I think about the book?
This book is a bombshell. It’s eye-opening, thought-provoking and an all-out great read. At just under 200 pages you can easily read it in one sitting — and if you are anyting like me, you will. And I am not alone in my praise:
Peter Thiel’s Zero to One Might Be the Best Business Book I’ve Read
(Derek Thompson, The Atlantic)
So what makes this book great?
In my view it is because the key point of Thiel’s business philosophy is at the same time so blatantly obvious as it is contrarian to everything we a generally are taught about markets. Or, as Derek Thompson is his article calls it “an ingenious framing device — just controversial enough to arouse debate, but commonsense enough to make an incrementalist acknowledge its virtue.”
So what is Thiel’s key point?
- Monopolies are good (for the monopolist, that is).
- Competition is bad (for those subject to it).
- As a startup you should strive to build a monopoly.
No need to tell you that this goes very much against the grain of what we have learned in school, business and economics education. The idea made me, an economist by education, cringe. Traditionally, monopolies are portrayed as bad and competition is almost sacred as a value in and of itself. I even wrote so in my master’s thesis!
But, if you are building a startup, Thiel’s view totally makes sense. If you are up against very steep odds anyway you might just need that monopoly return to survive. So start with a market you can dominate, then build out from there. And while the book is neither a step-by-step guide nor a “how to” guide, it does contain quite a few nuggets of insight that are worth remembering on your enrepreneurial journey.
My Rating
- Entertainment: 4 out of 5
This is a really good read. It is well written, easy to digest, without being shallow or repetitive. And above all, its provocative points will keep you intellectually entertained all the way through. - Novelty: 4 out of 5
Nothing Thiel writes is really NEW in a sense that no one has thought of this before. There is just very few people who have the combination of personal clout and the audacity to get some of these points across. - Usefulness: 3 out of 5
Zero to One is useful in a sense that it get’s you thinking. And it does have some very specific advice, i.e. on the sales “dead zone” and scaling a company. - Applicability: 2 out of 5
As mentioned before, this is not a “How to” guide. So while many points will get you thinking, you will have to draw the conclusions from your thoughts yourself. - Overall rating: 4 out of 5
It is just too good, too provocative and too entertaining to not recommend it. Read it. - Must-read factor: Pretty high
While I believe that you can well build a business without having read Zero to One, internalizing some of Thiel’s mantras can help you to build the mental ruthlessness you sometimes need when building a startup. At the very least it makes a great starter for a dinner conversation or a networking event.
Over to you: What did you think about the book? Did you enjoy this review? Want me to go more in depth? Let me know in the comments!