The Entrepreneur's Weekly Nietzsche - Book Summary

Uncover how an iconic philosopher's insights can revolutionize your entrepreneurial journey.

Friedrich Nietzsche — a name that echoes through the corridors of history, immortalized by his monumental contributions to philosophy and the arts. His intellectual breadth, spanning across domains such as ethics, politics, music, poetry, and art, paints a colorful tapestry of genius. But, have you ever considered that his wisdom could influence entrepreneurship?

Although the philosophical titan has deeply impacted thinkers ranging from Sigmund Freud to Salvador Dalí, his influence hasn't quite permeated the entrepreneurial landscape — until now. Prepare to embark on a journey that unearths Nietzsche's relevance to the world of entrepreneurship, innovation, and disruptive thinking.

Drawing parallels to Nietzsche's quest to dismantle deep-rooted biases and prevailing thought patterns, entrepreneurs too must strive to disrupt stagnant industries, questioning the norm and initiating change.

In this transformative exploration, we will delve into:

- The reasons that make Nietzsche an entrepreneurial luminary,

- The value deviant characters bring to start-ups, and

- The ways in which Nietzsche can enhance your sales pitch.

Discover the entrepreneurial spirit in Friedrich Nietzsche's disruptive philosophy.

Picture an entrepreneur seeking advice, and Friedrich Nietzsche, a 19th-century philosopher, isn't the first name that comes to mind. His body of work centered around ethics, politics, and arts, devoid of explicit strategies for managing an emerging start-up or developing revolutionary business ideas. Furthermore, Nietzsche was openly critical of the business class, dismissing merchants and manufacturers as unambitious and petty. Could such a character truly offer meaningful insights to the 21st-century entrepreneur?

The answer is an emphatic yes.

Friedrich Nietzsche, in essence, was a master disruptor.

He shares a common thread with all successful entrepreneurs — the relentless pursuit of disruption. Instead of challenging lackluster industries, Nietzsche's target was entrenched beliefs, perspectives, and thought systems.

Nietzsche's primary philosophical objective was the audacious "revaluation of all values". Empowered by his potent mind and persuasive language, he sought to destabilize moral judgments that had remained unquestioned for ages. Consequently, Nietzsche aligned himself more with the future's promises rather than the past's comforts — a mindset every true entrepreneur can resonate with.

A crucial element of Nietzsche's effective challenge to conventional beliefs was his astute understanding of human nature. Even though his moral proclamations may come across as severe or cynical compared to earlier thinkers, they are more often than not, compelling.

These keen psychological insights underscore why entrepreneurs should delve into Nietzsche's wisdom. A clear-eyed comprehension of human nature is essential for entrepreneurial success. You need to grasp what drives your customers, what their desires are, and why these desires matter to them. You must understand why consumers maintain loyalty to specific brands, and what factors might influence them to switch.

While Nietzsche never explicitly tackled these issues or penned treatises on business strategy or management approaches, his disruptive philosophy has had a broader influence, making his works an essential read for entrepreneurs, whether they are seasoned pros or novices testing the waters.

Difference and divergence pave the way for progress.

Friedrich Nietzsche, in his 1878 work "Human, All Too Human," expressed the pivotal role of 'deviating natures' in the journey of progress. But, how does one interpret this statement, and what entrepreneurial wisdom can we glean from it?

Progress — a concept commonly equated to improvement, betterment, or positive transformation. But, who are the architects of this progress, these "deviating natures"?

In essence, to "deviate" denotes differentiation or divergence — an individualistic path veering away from the crowd. A person embodying a deviating nature inherently embraces this differentiation — it becomes an inescapable inner calling. This trait may render them unpredictable but also tremendously valuable.

The principle takeaway is: Difference and deviance underpin progress.

In entrepreneurship, differentiation is the beating heart. Rarely does success knock on the door of enterprises that merely tinker at the margins of existing products or services — that's far from the entrepreneurial spirit. To be an entrepreneur is to harbor a vision, a vision that sees things done differently.

That's precisely where deviating natures step in. Individuals prone to deviance often harbor divergent, disruptive ideas — the kind of notions that catapult enterprises to new heights when executed effectively.

Luke Kanies, the founder of an IT automation company named Puppet, attributes his enterprise's success to his own deviant disposition. Prior to Puppet's inception, Kanies was acutely aware of the disarray plaguing the field of system administration, as was the rest of the industry. During conferences, he would frequently encounter colleagues bemoaning the endless hours wasted on mundane, repetitive tasks they would have gladly bypassed.

While there were those who recognized the potential for automation of these tasks, they often fell into the trap of endless debates over theoretical solutions, which never saw the light of day.

But not Kanies. He was unable to overlook the issue, and his growing frustration with the inefficient status quo drove him to create Puppet — an automation framework that replicated the monotonous work traditionally undertaken by system administrators themselves.

Kanies's determination to solve an ongoing issue, coupled with his irritation at his colleagues' inaction, eventually led him to build a successful business. In Nietzschean terms, his deviating nature was the catalyst for progress.

Stay vigilant against the hazard of collective thinking as businesses scale.

Entrepreneurial journeys often start with a single man or woman. However, as the business grows, so does the workforce required to sustain this growth. While expansion signifies success and naturally elicits celebration, it may also warrant a moment of caution.

Friedrich Nietzsche, in his book "Beyond Good and Evil," stated that "Insanity in individuals is something rare — but in groups, parties, nations, and epochs it’s the rule." In essence, individual wisdom often dwindles when people aggregate into groups.

We usually function rationally as individuals; collectively, not as much.

The core insight here is: Stay vigilant against the hazard of collective thinking as businesses scale.

If you suspect the existence of groupthink within your organization, then pause and recall recent crucial decision-making instances. How were these decisions made? Did everyone converge on the same page? Was there a unanimous conclusion every time?

If yes, you might need to heed Nietzsche's warning. If there's universal agreement, your organization could be on the brink of slipping into the "insanity" of groupthink. Though universal agreement may sound ideal, it often leads down a perilous path.

Instead, businesses should strive for alignment over agreement. When an organization is aligned, it implies that all employees understand the current goals and fulfill their specific roles in accomplishing them. It doesn't necessitate everyone sharing the same viewpoint, or even appreciating all decisions made by management. The critical factor is coordinated action.

The danger with universal agreement is the absence of voices that flag wrong decisions. While harmony is desirable, it's far better to have healthy disagreements and thrive rather than unanimously heading towards bankruptcy.

To counteract the development of unanimity within your organization, foster a culture that values alignment over agreement. Encourage diverse opinions until a decision is reached. Once the decision is made, it's time for everyone to step in and execute their responsibilities.

Master the art of acknowledging your errors without ego.

Leadership calls for self-assuredness. Entrepreneurs, artists, philosophers, or politicians — no matter their arena, leaders require robust self-esteem and unwavering confidence in their abilities. Absence of this confidence could trigger self-doubt, leading to indecisiveness and eventual failure.

Moreover, an evident lack of self-confidence could deter potential followers. After all, if you are not confident about succeeding, why should anyone else believe you will?

However, just like any other trait, confidence too must have its limits. Overconfidence and conceit don't breed exceptional entrepreneurship — they yield poor decisions and unaccountable leaders.

The crux of the matter is: Master the art of acknowledging your errors without ego.

In his work "Beyond Good and Evil," Nietzsche cautioned readers against self-deception: "'I did that,' says my memory. 'I could not have done that,' says my pride, and remains inexorable. Eventually — the memory yields.'"

What does this quote imply? Essentially, if an error we commit clashes with our self-esteem, we often persuade ourselves that we never made that error. Our pride remains "inexorable" — unwavering and obstinate — until we finally delude ourselves and bury the embarrassing memory.

Although most of us don't outright deny and falsify our actions, we often resort to a different tactic to safeguard our pride and self-esteem: We make excuses for ourselves and our mistakes, thereby explaining away our failures. In the entrepreneurial world, this approach could be fatal.

Persist on this path, and over time, you'll be seen as an unreliable leader — one incapable of admitting faults and hence, unable to change. No one wishes to collaborate with such a person. So, what's the better way?

In essence, take ownership of everything you do, both your triumphs and blunders. This might seem challenging, but it becomes manageable if you learn to differentiate between responsibility and shame. Short-term shame can prompt you to rectify when you cause harm, but it can be destructive over time.

Learn to shoulder responsibility without becoming entangled in shame. Recognize your mistakes, draw lessons from them — and move forward.

Convey complex truths in appealing and tangible ways.

"The more abstract the truth you wish to teach, the more you must allure the senses to it." This succinct insight, plucked from Nietzsche's "Beyond Good and Evil," seems like advice intended for teachers or spiritual leaders — aren't they the ones typically entrusted with imparting "truths"? However, entrepreneurs also play this role quite often. Isn't a pitch essentially an attempt to enlighten potential investors about the "truth" of your enterprise? An opportunity to present the real problems your ideas can solve, or the genuine, long-term worth of your budding company?

To a wary investor, these so-called "truths" might come across as impractical and abstract. Nietzsche's suggestion here is to win them over by appealing to their senses.

The central message here is: Convey complex truths in appealing and tangible ways.

Nicole Glaros can attest to the effectiveness of appealing to investors' senses. In 2010, she was part of a firm called Scriptpad that aimed to digitize medical prescriptions, enabling direct transfers to pharmacies. Rather than articulating their mission in a matter-of-fact, dry manner, Scriptpad opted for a more emotionally charged narrative.

So why should investors take notice of Scriptpad? What was wrong with the traditional pen-and-paper prescriptions? Scriptpad pulled no punches in their pitch: They presented themselves as the logical progression for the medical field, stating that the existing system was causing fatalities.

During their pitch, the team showed the audience a scribbled, almost indecipherable doctor's prescription. To many, such a shoddy prescription would be a familiar sight. But in this case, the presenter emphasized that the sloppy handwriting wasn't trivial — it resulted in a pharmacist dispensing incorrect medication, causing a fatal heart attack in the patient.

This narrative deeply engaged the audience — the intense sense of worry and concern held their attention. When the team noted that similar incidents affect around 1.5 million people each year, the audience was hooked.

By narrating Scriptpad's mission in an emotionally engaging manner, the team ensured the investors were attentive throughout their pitch. They strayed from the abstract and presented their argument in a tangible, gripping, and pressing way, successfully alluring their audience.

Aim for overwhelming victories, not marginal wins.

In Nietzsche’s book, "Human, All Too Human", he ponders the nature of victory that leaders should strive for. He says, "We ought not to desire victory if we only have the prospect of overcoming our opponent by a hair’s breadth. A good victory makes the vanquished rejoice, and must have about it something divine which spares humiliation."

There's much to dissect in this statement, but the essence is clear: Victories shouldn't be desired if they are barely achieved. If we're aiming to win, we should aim for such a colossal triumph that it will leave our rivals in awe and so decisive that it saves them from humiliation.

The core idea here is: Aim for overwhelming victories, not marginal wins.

One critical difference between a startup and a large, established corporation is that an entrepreneur can't bank on minor advantages or improvements.

For a mammoth business, a one percent increase in gross profits might signify millions more in net income. However, entrepreneurs can't afford to play by these rules. They must either disrupt an industry dramatically or risk failing. They lack the support of an existing customer base, economies of scale, or the luxury of slow, incremental changes. Winning by a whisker isn't an option; they need a resounding victory.

Investors understand this. If your startup doesn't seem ready to revolutionize a market, attracting investment will be challenging. Many investors use a rule of thumb that a startup's vision should be ten times better than its competitors' before they consider investing.

You might question whether your competitors will ever "rejoice" at your success, even if you achieve a grand victory. However, in a sense, they might. If your business ideas and models are innovative and refreshing, you'll draw talent from the industry. Employees from rival firms might be eager to join you, celebrating your capacity to invigorate their industry.

Concluding insights

The overarching takeaways from this book:

Even though Nietzsche wasn't a business strategist, his enduring focus on innovation and disruption makes him an invaluable source of inspiration for entrepreneurs and those who thrive on change. Cherish your uniqueness, be wary of conforming to the herd, and if you're aiming for victory, make it a resounding one. But most importantly, never hesitate to challenge the status quo.