First Principles
Break down complex problems into fundamental truths.
Explanation
Most people solve problems by copying what others have done before (reasoning by analogy). First principles thinking means breaking a problem down to its most fundamental truths and building up solutions from there. Elon Musk made this approach famous—it's how you escape conventional thinking and create breakthrough innovations.
Real-World Example
SpaceX: Everyone said rockets cost $65M. Musk asked: What's a rocket made of? Aluminum, titanium, copper, carbon fiber. Raw material cost? $2M. Why the 30x markup? Because that's how aerospace works. So SpaceX built rockets for 10x less. Uber: Taxis are expensive. Why? Medallion system, dispatch overhead, idle time. What if we removed all that? Just connect drivers directly to riders via phones.
How to Apply
Step 1: State your problem clearly. Step 2: List ALL your assumptions. Step 3: For each, ask 'What if this wasn't true?' Step 4: Break down to basics (physics, human needs, economics). Step 5: Rebuild from scratch. Example: 'Cloud storage is expensive' → Why? → Break down actual costs: hard drives ($20/TB), electricity ($0.10/kWh), bandwidth ($5/TB). Build your own for 10x less.