Definition
The Seven Questions of Business is a diagnostic checklist developed by Peter Thiel to evaluate the viability and long-term success of a startup. Used to analyze the failure of the cleantech bubble, these questions identify the seven critical dimensions every company must master to go from 0 to 1 and capture monopoly profits.
Why It Matters
Thiel’s seven questions are the ‘viability audit’ for any startup; they force founders to confront the hard truths of technology, timing, and distribution before they waste years on a business that was never built for success.
Core Concepts
- The Engineering Question: Can you create breakthrough technology instead of incremental improvements? (Strive for 10x better).
- The Timing Question: Is now the right time to start your particular business? (Distinguish between linear growth and exponential takeoff).
- The Monopoly Question: Are you starting with a big share of a small market? (Dominate a niche first).
- The People Question: Do you have the right team? (Technical founders, not just salesmen in suits).
- The Distribution Question: Do you have a way to not just create but deliver your product? (Address CLV/CAC).
- The Durability Question: Will your market position be defensible 10 and 20 years into the future? (Last mover focus).
- The Secret Question: Have you identified a unique opportunity that others don’t see? (Avoid the conventional).