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How business giants like Jeff Bezos, Elon Musk and Warren Buffet think

  • Your comfort in an uncertain and unpredictable world.
  • They understand that they can hardly ever know exactly how something will turn out.
  • They accept uncertainty
  • Instead of focusing on being safe, they try to find out how insecure they are by making their best guess about the chances of different outcomes occurring.

Now, I would like to highlight the work of Elon Musk and how you apply your Principles Thinking model to your business success. But first we have to know what the Principle Thinking model is about: It is a very effective strategy used to break down complicated problems and generate original solutions. It could also be the best approach to learning to think for yourself.

The first principles approach has been used by many great thinkers, including the inventor Johannes Gutenberg, the military strategist John Boyd, and the ancient philosopher AristotleBut no one embodies the philosophy of first principles by thinking more effectively than the entrepreneur Elon Musk. In 2002, Musk began his quest to send the first rocket to Mars, an idea that would eventually develop into the aerospace company SpaceX. He was met with a great challenge from the beginning. After visiting various aerospace manufacturers around the world, Musk discovered that the cost of purchasing a rocket was astronomical – up to $ 65 million. Given the high price, he began to rethink the problem.

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Elon Musk’s wealth increased by nearly $ 8 billion in a single day.

Elon Musk in an interview he said “Physics teaches you to reason from first principles rather than by analogy. So I said, okay, let’s look at the first principles. What is a rocket made of? Then I asked, what is the value of those materials in the commodity market? It turned out that the cost of the materials for a rocket was about 2% of the typical price. “

Instead of buying a finished rocket for tens of millions, Musk decided to start his own company, buy the raw materials cheaply, and build the rockets, thus SpaceX was born. In just a few years, the company had reduced the price of a rocket launch by almost 10 times. Musk used their thinking first principles to break things down to the basics, avoid the high prices of the aerospace industry, and create a more effective solution.

So first principles thinking is the act of unzipping a process down to the fundamental parts that you know are true and building from there.. Do you dare to be like Elon Musk?

Introvert engineer, thinker and trainer. He has been helping professional financial advisors, insurance agents and salespeople grow their sales for 15 years. He works training business leaders. Author of Sales For The “Introvert” (which was a best seller) and Business Habits.

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