Most startups fail not because the idea is bad, but because the assumptions are never questioned.One of the most widely discussed mental models in modern entrepreneurship is first principles thinking, popularised by Elon Musk. It is a way of reasoning that ignores how things have “always been done” and instead rebuilds solutions from the ground up.This article explains what first principles thinking really means, why it works, and how founders can apply it practically to their own startups.What is first principles thinking?First principles thinking involves breaking a problem down to its most basic, undeniable truths and then reasoning upwards from there. Instead of copying existing solutions or improving them slightly, this approach asks a more fundamental question: what are the core elements that make this problem exist in the first place?The idea traces back to Aristotle’s philosophy, where first principles are truths that cannot be reduced any further. Elon often contrasts this with reasoning by analogy, where people copy what already exists rather than questioning whether it should exist in that form at all.Why reasoning by analogy limits innovationMost industries run on analogy. Companies look at competitors, match pricing, and follow established playbooks. This feels safe, but it also locks… Read MoreYourStory RSS Feed
