Thiel’s Seven Questions Every Business Must Answer

I always enjoy when entrepreneurs share their favorite books. Personally, I gravitate toward entrepreneur biographies, books about startup ideas, and general human interest. When Peter Thiel’s book Zero to One came out 10 years ago, I devoured it and recommended it to all my friends. Since then, I hadn’t re-read it, as I believed it was better to focus on books I hadn’t read before. However, I’m changing that approach and starting to revisit books I haven’t read in many years.

Among the lists of popular startup books I regularly see, Zero to One is consistently included, so I decided to give it another read. It’s incredible and remains highly recommended. For all entrepreneurs, the section on the seven questions every business must answer is invaluable (pg 153):

1. The Engineering Question
   Can you create breakthrough technology instead of incremental improvements?
2. The Timing Question
   Is now the right time to start your particular business?
3. The Monopoly Question
   Are you starting with a big share of a small market?
4. The People Question
   Do you have the right team?
5. The Distribution Question
   Do you have a way to not just create but deliver your product?
6. The Durability Question
   Will your market position be defensible 10 and 20 years in the future?
7. The Secret Question
   Have you identified a unique opportunity that others don’t see?

Entrepreneurs would do well to answer these questions not only before starting a business but to revisit them on a regular basis in the context of their current direction and initiatives. Products and business models are dynamic, just like most things, and it’s easy to get in a rut without zooming out and asking the big questions consistently. Every business must answer these seven questions both for today and tomorrow.