first-principles

What does "first principles thinking" really entail?

There's a difference between being a smart person and doing smart things. Smart people have the ability to absorb info well, use it, apply it, etc. But that's way different than doing smart things.

Doing smart things requires being able to separate yourself out from everything. This is the skill most people lack, including and especially many smart people.

There's this quote that really nails it I think, by Bobby Axelrod from the show "Billions":

“What is it you do that you’re the best in the world at? You offer a service you didn’t invent, a formula you didn’t invent, a delivery method you didn’t invent. Nothing about what you do is patentable or a unique user experience. You haven’t identified an isolated market segment, haven’t truly branded your concept. You need me to go on?”

Why is this so meaningful? Well, because if you can have the presence of mind to remove your wants, your identity, your education, the continuity of your goals, and all of that from the thing you are looking at, then you can think clearly, ask the right questions, and be critical of your approach.

IF you're familiar with the term "entrepreneur" that's what it is... it's smart people who are unable to make the leap from being smart to acting smart.

For instance, if you look at my company Bidet New York, there's a company that sells a product I didn't invent, using a formula I did invent, but really isn't hard to replicate, is not patentable, and does offer a unique experience, in some way, because I build a certain way, but overall what you'd expect from a service like this without a unique spin. However, I have identified an isolated market segment, and I am the one working on it now. Is it worth pursuing? Maybe... It's not a question of whether I can build something--I can. And I can probably make some money--but, how much? How long before there are other entrants in the market drinking my milkshake? I can get it going here in New York, but how long before someone conquers Boston under my nose?

Those are impossible questions to answer. However, the answer is that someone will eventually--many will. So, what's my moat? If I grow faster than any of the others, I will be able to provide the largest inventory of available products, at the lowest price, with the most assurances.