Break complex things into the most fundamental truths to reason.
First principles is kind of a physics way of looking at the world, and what that really means is, you … boil things down to the most fundamental truths and say, “okay, what are we sure is true?” … and then reason up from there.
― Elon Musk
Most job descriptions seek candidates with a can-do attitude. Teams with this mindset often accomplish great things. First principles thinking is one of the most important models and a critical tool to amplify a can-do attitude.
When dealing with complex problems, a person with a can-do attitude believes there are always ways to do it. But thinking positively is not enough. One can’t chop wood with their bare hands, even if they think they can.
By using the first principles approach, they can avoid assumptions and conventions and have confidence that almost all problems can be solved. They can break a complex problem into smaller fundamental truths, reason from them, and ultimately solve the whole puzzle. This contrasts with reasoning by analogy, which relies on existing models or examples.
There was the chopstick tale. A father gave his sons and daughters a bundle of chopsticks and asked them to try cracking them. Although his children attempted many times, they all failed: the chopsticks were too strong. The father then showed them how to take the chopsticks out and break them one by one easily. Similarly, dividing the problems into smaller pieces, into the fundamental truths, makes the problems easier and helps us see them more clearly.
When working on something new I know little about, I often tell myself, “Okay, this is hard, but it’s business, and I understand business. What should I do to make this business profitable?” Then I answer the basic business questions (e.g., supply, market).
Another example is on the cover photo. It illustrates how Elon Musk cracked the maths of making a rocket. Instead of buying rockets from existing suppliers, he reduced the rocket’s cost by finding ways to lower its component prices. He realised that it was simpler for him to comprehend the parts that made up a rocket.
Yet, Elon’s story is quite familiar, as many have written about it. If you are a founder, chances are you are often tasked with new challenges. How do you apply first principles thinking to your work? Comment on your case, so I can update this post and link the example to your site :).