# First Principles Thinking

## Purpose
Break down complex ideas to fundamental truths and rebuild from scratch, removing assumptions and borrowed thinking.

## When to Use
- Testing whether you're copying competitors vs. innovating
- Validating ideas in new or uncertain markets
- When the idea feels derivative or "me too"
- Refining business models or GTM strategies

## Process

1. **Identify the core belief**
   - What fundamental assumption is your idea built on?

2. **Break it down**
   - What are you assuming must be true for this to work?
   - List every assumption (market, customer behavior, technology, economics)

3. **Question each assumption**
   - Is this actually true, or is it industry conventional wisdom?
   - What evidence supports or contradicts this?
   - Has this always been true, or did circumstances change?

4. **Identify fundamental truths**
   - What MUST be true (physics, human nature, economics)?
   - What is merely true today (technology, regulation, market conditions)?

5. **Rebuild from fundamentals**
   - Given only the fundamental truths, what solutions are possible?
   - How does this compare to your original idea?

6. **Synthesis**
   - Is your idea built on fundamentals or assumptions?
   - What would change if you rebuilt from first principles?

## Example

**Idea**: "We need to create a subscription model for our product"

**Assumptions identified**:
- Recurring revenue is better than one-time sales
- Customers want to rent vs. own
- Subscription pricing is industry standard

**Fundamental truths**:
- Customers want to solve their problem efficiently
- Businesses need predictable cash flow
- Value exchange must be fair to both parties

**First principles rebuild**: 
Instead of assuming subscription is best, the fundamental need is *predictable revenue AND customer value alignment*. This could mean:
- Usage-based pricing (pay for outcomes)
- Hybrid model (core product + premium services)
- Annual contracts with monthly value delivery

**Insight**: Don't copy the subscription trend—design a revenue model that aligns with how customers actually derive value.
