The document summarizes key concepts from the book "Zero to One" about creating new companies and products. It discusses the importance of vertical progress through creating new technologies rather than just scaling existing businesses horizontally. It emphasizes focusing on a strong mission and attracting talented employees who are inspired by an important problem being solved. Superior sales and distribution alone can create monopolies even without product differentiation. Technology can empower professionals like lawyers and doctors to do more.

1. Out of the BooX
Rajnish G Shirsat

3. About the Book
Key concepts & How to use these

4. Zero to One is about how to build Companies
that create new things.
The next Bill Gates will not build an operating
system. The next Larry Page of Google will not
make another Search enginge or the next Mark
Zuckerberg will not make another social network
site.

5. “Unless they invest in the difficult task of creating new things,
companies will fail in the future no matter how much
their profits remain today”
• How much time are you
spending on “new things”?
• Best time to plan is when
you are not in the red.
• Call for a brainstorming
session NOW.

6. Vertical or
Intensive Progress
(doing new things)
Horizontal or
Extensive Progress
(Copying things that work)
• Horizontal progress is easy to imagine because we
know how it looks like from 1 to “n”
• Vertical progress is doing new things from 0 to 1
• If you make one typewriter and build 100 more –
its horizontal progress
• If you make one typewriter and then build a word
processor, you have made vertical progress
• Are you scaling your business up or
wide?
• Can we list down three things of our
business we can do vertically
different?

7. “ The single word for Vertical, 0 to 1 progress is
technology. In the world of scarce resources, globalization
without technology is unsustainable”
• Think about getting technology in
every aspect of your business – sales, production,
customer experience, quality etc. and create new
opportunities – eg: Uber, Ola, Airbnb etc.
* Call for a session NOW.

8. “ Victory awaits him who has everything in order
– luck people call it.”
• There is nothing like “bad luck”
• Work hard and get everything in order for your business and
good luck will chase you.
• Here again – crawl, walk, run and then fly comes in
• Set your fundamentals in place
• Benchmark your business with global standards
• Eg: Find out best practices followed by top players in your
industry – local and global. Try an implement atleast three
things from them which you are not doing today and see the
difference.

9. “Characteristics of Monopoly:
• Proprietary technology
• Network effects
• Economies of Scale
• Branding”
Google example: its algorithms return better
results than anyone in search engines.
Facebook example: if all are on Facebook would
you join anyother social network?
OR Would you trust anyother navigation than
google maps?
Fixed costs of creating a product (engineering,
management, office space) can be spread over
greater quantities of sales)
Apple products as an example: Known for the
material it uses, price position, design features
- all this makes a great brand creating
monopolies.

10. “ If you choose the wrong partners or hire the wrong people
– it may sometimes take a crisis of a bankruptcy to repair or
correct it . As a founder – your first job is to get the first
thing right – you cannot build a great company on a flawed
foundation.”
• Do not hire or choose on emotions.
• Give merit as top priority in selection
• Look for complimentary skills
• Have you defined KRA / KPI for everyone?

11. “ Talented people don’t need to work for you, they have
plenty of options.You will attract employees if you explain
your mission and why you are doing something important
which no one else is doing.”
• Inspire people to work for you.
• Make your workplace a great platform
• Set meritocracy in your system of appraisal
• Make your company marketable to attract talent
• When was the last time you discussed your
business purpose with your core team?

12. What do you observe?

13. “ All Salesman are actors: their priority is persuasion, not
sincerity .”All in sales have nothing to do with their
designations:
• People who sell advertising are called : Account
Executives
• People who sell Companies are called : Investment
Bankers
• People who sell themselves are called : Politicians
• Look for persuasion skills in interviews of Sales people
• Sell a Pen to me, Why should we hire you, What is one truth which people don’t
agree with you, What did they do when a girl rejected his love offer……….
………..see how they answer these questions to gauge their attitude.

14. “ Superior Sales and Distribution by itself can create a
monopoly, even with no product differentiation”
• This is encouraging for FMCG, Telecom,
Support Sales Companies like Mr. Nitin
Jaswani, Mr. Sanjay Patil etc. – where service
plays a crucial role – they don’t have product
differentiation.
• Have you visited your Sales & Distribution
model lately?

15. “ Better technology in law, medicine and education won’t replace professionals
but it will allow them to do even more”
• LinkedIn didn’t replace Recruiters but empowered them
to screen more candidates effectively.
• Career Counsellors have been helped by technology to
assess a student’s profile and his inclination to choose a
career.
• What aspect of your business can be boosted by
technology? Don’t run away from this question but
embrace it – call for a session

16. Out of the BooX
Rajnish G Shirsat
Co-founder & CEO
Thank you
https://www.youtube.com/watch?v=c23OBLQFcCw