I have a mixed view of this book. On one hand I loved the simple questions that any person who wants to build a start-up should consider. The questions seem simple; they are not simplistic. On the other hand - I expected more depth. More examples and more rigorous study. That is perhaps not a fair expectation though. After all, the author is writing from his experience and not from an academic point of view.

My thoughts on the various points mentioned in the book -

‘Every moment in business happens only once.’

I agree on this. However, it is difficult to guard against being too early to the party. Like the many failures -

  • Vine vs Tiktok
  • Napster vs Spotify
  • Skype vs Zoom
  • Google wave (does anyone remember this?) vs Slack

The offerings are not exactly the same but on the same continuum; so they can be compared.

What company is nobody building?

The author asks this question but also cites facebook and google which technically at first only improved on myspace and yahoo search.

The lesson on not building undifferentiated commodity business.

The blue ocean strategy is about making strategic moves that render competition irrelevant. Shades of this philosophy can be seen when asking questions about what a start-up should look to build. Very relevant and thought provoking. If this is not answered well, chances of the start-up being successful are next to nil.

Monopoly (but disguised)

Creating a successful company that will solve a unique problem in a specific niche and then grow from there (and cleverly disguising the market monopoly).

Identifying a Target Market

A small or niche area which is served by few of no competitors.

First mover advantage

There’s no use of being a first mover in a market if anyone can come and unseat you very easily. This point is re-iterated many times from different angles. Be the last mover than a first mover. Don’t focus only on near-term growth. Consider how the world will be like in 10-20 years and where will your business fit in? (Chinese manufacturing or easily copied technology?)

On valuation

“The value of a business today is the sum of all the money it will make in the future.”

This point boggles the mind and I am not sure I agree. It is something for a VC to consider rather than a start-up. Because this sets up a model where you keep pouring in money and don’t see returns for a very long time. Too many things can go wrong.

On hiring

Not to pay very high salaries to CEOs. Consider people who would like to own some part of the company because it shows commitment to increasing the company’s value.

Distribution and Selling

The importance of this cannot be understated. Too many products fail due to inadequate sales and distribution channels, not necessarily due to bad products.

Founder

A founder is not the person whose work has the most value (or only value) but someone who brings out the best work from everybody.

To me - this is the definition of a good manager rather than a founder.

Last but definitely a most important point -

No sector will ever be so important that merely participating in it will be enough to build a great company.

Participating in what seems to be a happening space, is not enough to make your start-up successful !!!

The book is a good primer for basic questions to be answered when considering building a startup but not comprehensive enough to make a business plan.