That Will Never Work Book Summary

Book Summary

15 min

Brief Summary

Developing a winning idea takes a lot of time and vetting of bad ideas, but it pays off in the long run.

Work on your idea with people who you trust and be open to their suggestions. They will help filter the good ideas from the bad. Once you have positioned your company, find ways to innovate and stand out from the competition by doing something they aren’t. Finally, surround yourself with a good team and build your customer base. Once you have these things in place, you can continue to try out new ideas and grow the company in different directions with success.

About the Author

Marc Randolph is the co-founder and former CEO of Netflix. He has mentored hundreds of entrepreneurs and invested in several successful tech ventures. In recent years, Randolph co-founded the analytics company Looker Data Sciences where he serves as director. He also sits on the boards of several companies including the environmental advocacy group 1% For The Planet.

Randolph is in demand as a public speaker and travels all over the world to speak. When he is not traveling for speaking engagements and work, he lives in Santa Cruz, California.

Topics

Entrepreneurship

That Will Never Work Book Summary Preview

Key Insights

In the last years of the 1990s, Marc Randolph and Reed Hastings came up with an alternative to the traditional video rental store. After throwing ideas around for an endless number of start-ups, they hit on one that would completely alter the concept of home entertainment.

That Will Never Work is the story of how Netflix started and the lessons that can be learned from them. Netflix was able to create true innovation and continue to innovate, but it wasn’t always easy.

To get to a groundbreaking idea, you have to rigorously scrutinize ideas. Taking out the ones that have less potential allows you to focus on the one that can pay off. But an idea needs a good team and work culture for it to thrive. Use the Netflix model to apply to your own ideas.

What you’ll learn

Good ideas take a lot of work and vetting of bad ideas to appear
How to build a healthy work culture
What makes a good team
How to be honest in business

Who this is for

Venture capitalists
Early start entrepreneurs
Business owners
Company managers
Business executives

Analyze your ideas thoroughly to allow you to identify the best one.

Coming up with that million-dollar idea usually doesn’t just happen overnight. It takes time and it takes work. Bounce ideas off someone you trust and don’t be afraid to use them as your sounding board. Even if the ideas are not your best, saying them out loud will help you to see the flaws and the potential.

Even after you have the idea you want to focus on, don’t assume it’s ready to launch. The best ideas need refining, too. Look to a trusted circle to help you build on your idea. This is how you thoroughly vet your ideas.

You might think your idea is foolproof or revolutionary, but to other people, it might not seem that way. Having other people be objective and help you to focus your ideas will enable you to find that one winning idea you’re looking for.

Find a way to innovate a trending industry.

Think of a trending industry and imagine you are in that industry. How do you make sure you are profitable and get enough repeat business to survive? The answer is to think of an angle or a feature that no one else is offering.

For example, Netflix entered an industry that was popular at the time. The DVD rental market had national chains, like Blockbuster, which were dominating. Netflix entered the DVD rental market and had to compete immediately with the giants. But, they offered home delivery, something no one else was doing.

Take a look at the industry of your potential business. What competition will you face? Are there companies or services already established? Think about what your business can provide that others can’t or have not. Maybe it's a unique personalized service or a membership with benefits.

In an emerging industry where everyone is scrambling to stand out, doing something slightly different will separate you from your competition.