ABOUT THE BOOK:
Blog Title: Zero to One Summary By Peter Thiel
Name: Zero to One: Note on Start Ups, or How to Build the Future
Author: Peter Thiel
Download Man’s Search for Meaning at: Audible
Buy Zero to One: Note on Start Ups, or How to Build the Future at: Amazon
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Book size: 320 pages
Rahul was a Great Chef, he was fond of cooking, his made food was liked by many, hence his dream was to become a huge chef, to fulfill his dream, he thought to work as a chef first, while searching for jobs, he got an awesome opportunity to give An interview to world’s biggest franchise mac Donald, he was immediately selected after an interview, Rahul never eaten a single thing from mac Donald, so for the first time he ordered a burger, he thought price was too high for such a small burger, after eating that burger he was more disappointed because he didn’t like the taste of that burger, while eating, he thought he can make much better burgers than this big restaurant and that too with high-profit margin, why not I should start selling my burgers instead of working here,
So with his dream, he has taken a huge risk and didn’t joined Mac Donald and started his own restaurant by taking some loan, at start the biggest difficulty which he faced was, less customer, even though having such an awesome burgers with high quality and less price, people were not aware of his burgers and work, at that time he realized how important marketing is, so he doubled his hardwork and started doing marketing on himself in various social media platforms with different offers, he did marketing for some months as a result of which, few more people started coming to his restaurant, but as many people started arriving his restaurant Rahul again faced the problem, he wasn’t able to handle every work single handedly, like handling money, making burgers, cleaning stuff etc. after understanding everything in detail such as profit budget, so finally he hire one person for his support, he thought everything will be alright, but things didn’t work out the way he thought, it became more complicated,
Because the person he hired was very lazy, even after teaching his very nicely and properly, he used to make and serve bad burgers to customers that too by taking a lot of time and he never used to maintain cleanliness, Rahul used to manage marketing, counter, accounts and various other works because of which he wasn’t able to give more attention to that employee, because of which customer started complaining about the low quality hence Rahul finally fired that employee, and again started handling everything on his own, After few days again he realized, working single handedly will not work, hence he again hired one person for his support, and fortunately that work was good, after few month Rahul realized that he and his work can’t handle everything, they were not able to handle things properly so he again hired another person.
After doing so much, his profit margin becomes less, he wasn’t able to handle employee salary, expenses and other expenses properly, because of which instead of earning a profit, he was started getting into loss and debts, so finally, he decided to close or shut down his restaurant.
Hence this type of various other problem arises at the time of creating or building a successful business, because of which most of the businesses fail, In fact as per research, even after having so much of information and knowledge, 8 businesses shut down out of 10 that too just in the starting of 18 months, and these failures happen because of various reasons, myth and misunderstandings, the very first myth is if you understand business technical things nicely then you can make that business work, which isn’t true at all, because the fact is, running a business and to be a good technician has a huge difference, author says to run any business successfully, owner must have three qualities or there must be 3 people involved in any business,
1st Entrepreneur, 2nd Manager and 3rd Technician, Entrepreneur is someone who gives vision to a company and decides a goal, make plans and think about companies future and always make company or company people energetic changed, all these things are important for sales, entrepreneur basically thinks and focus on company’s future.
2nd Manager is a quality or a person who runs business in proper order, manages employee and customers, and takes the responsibility to manage everything in proper order because of which a company can get consistent and effective outcome, a manager or manager’s quality understands company past and as per that takes action.
And last quality or person is Technician, Technician is someone who handles the most important work, example, In Rahul’s Business Burger making was technician’s work, suppose if there is an app developing company so the person who will do coding and develop app, that person will be the technician etc., Rahul knew how to make burgers that too in lesser price, this quality of Rahul was good, but the misunderstanding which Rahul had, like knowing how to make burgers means Technician quality is good hence running a business would be easy, there is a huge difference between making and selling, hence to create successful business, it’s really important to have an entrepreneur, manager and technician in any business or to have one person with all three qualities. And these qualities are not seen in many people just like Rahul.
Just like Rahul many people make the same mistake they feel technician skill is the only and the most important thing, If we talk as per percentage, then most of the owners failure will be seen like, 70 percent technician quality, 20 percent manager quality and only 10 percent entrepreneur quality, instead for big success the no. of percentage should be 33 percent for all three.
Now another important thing you must understand very carefully and that is 3 phase of business
Business becomes big due to three phases, the first or stage amongst three is Infancy stage, most of the business starts this way only, where everything works as per owners plan and permission, not as per what will be beneficial for business, in this stage owner do most of the work by himself, example, when Rahul started a business at that time he was the only manager, technician and entrepreneur and this how most of the people work,
And when everything works well then comes the 2nd stage adolescenes stage- this stage comes when business starts growing, and when owner understands that working single handedly is not possible, hence owner hire other people to make partners to grow business example, when Rahul hired one person, he was in this stage only, everything was good till here problem started after this, because usually people get three outcome after reaching this stage, First back to stage one, when owner starts giving his work to others, at that time they usually had to come out from their comfort zone, the work they feel only they can do nicely they have to give to others, most of the people can’t handle it or take it, and many times people don’t like the outcome of it, hence they come to the previous stage that is to stage 1 again, and start working single handedly which isn’t a nice option.
2nd outcome company starts growing very fast or rapidly, because of which owner and employee don’t able to handle it properly and things become out of control which eventually makes business fall.
And lastly 3rd outcome, where entire business becomes the big or huge war, where they used to work daily by putting lot more efforts to make it stable because of which they don’t enjoy anything and not even able to bring their business to the next level.
All three outcomes don’t grow any business, until the time this kind of outcome comes, a business can never reach the 3rd level which is known as maturity level.
Maturity level is the ultimate level for any business, where every big company reaches, if you want to create multi-millionaire or Billionaire Company then you have to bring your business to this level, and to bring your business to this level you have to follow some points, such as
1. Think as a Franchise
Mostly when people start Technician business, they think for short term and start their business, they usually don’t have any idea where exactly they want to see their business after 2 to 3 years, they only think about maximum customers through which they can earn lot of money, which doesn’t allow them to grow, hence if you want to create a big business then you must think since start how you can make your business into franchise, you must think your business as franchise prototype which can easily scale in your future.
2. System dependent
Mac Donald has not become so famous and big because it makes an awesome and tasty burgers, instead they have made their system so simple and easy so that even a college student or any person without any experience can work and can maintain store, and there is no need of expert or smart people always in mc d, This is the best way to create such an awesome system, and it is really very important for franchising.
The biggest mistake created by many at the start of business is that they make their business people dependent instead of making it system dependent, meaning their business totally depends on some special and loyal people, example, when business reaches to infancy stage, at that time owner was the special person on whom entire things get dependent, if owner stops working entire business will stop. At adolescence stage their employees or partner becomes their special people, now many people would think that making system at start isn’t possible, so for this author says, business becomes big because they understand that having a system at any stage is really very important, mc Donald created system from very start and then they able to create such business which can get scale easily, hence even you since start thinking and try making your business as a franchise model like system dependent, yes you need to be dependent on some people, but aim to make your business system dependent not people dependent.
3. Work on business
If you make your business depends on you, then you are not creating a business but you are creating a job, Reason behind starting a business is to create a good lifestyle for yourself, not to create a difficult job on which you spend your entire life. Hence the biggest core principle of this book is you should not work in the business, but on the business, meaning with the help of system by documenting things start creating step by step process, do not get into business and keep on working without any thinking or understanding, do create a business model which gives consistent predictable output without depending on you or any other person.
These were some principles from the very awesome book E myth revisited by Michale Gerber.
If you have any interest in creating a business or developing your business then do read this book, this is one of the best book in business category, if you want to buy this book then can go below link, and if you want free audio book of this book can buy through audible: