The Unfair Advantage

“Hard work won't always guarantee success, but knowing and using your unfair advantage might.”

1. Everyone Has an Unfair Advantage

Everyone possesses a unique quality or circumstance that can be leveraged for success. While wealth or connections may seem like the most obvious benefits, less visible traits like creativity or resilience can also provide an edge. These advantages are often rooted in your background, experiences, or natural abilities.

For instance, Evan Spiegel, the co-founder of Snapchat, grew up with affluent parents who provided access to a network of wealthy mentors and investors. On the other hand, Ash Ali, the book’s co-author, lacked wealth and formal education but found his advantage in his entrepreneurial spirit and street smarts honed in a tough neighborhood.

It’s not about following a single formula for success; instead, it’s about reflecting on your strengths and context. Whether it's your upbringing, a unique skill, or an understanding of an untapped market niche, identifying what sets you apart is the first step to building something exceptional.

Examples

• Evan Spiegel leveraged wealth and mentorship connections to launch Snapchat.
• Ash Ali started a business with no formal education by relying on his entrepreneurial instincts.
• Many founders succeed because of seemingly minor traits, like being part of a specific demographic that understands a niche market.

2. Money Helps, But It's Not the Only Resource

Money can ease the journey of starting a business by covering upfront costs, hiring talent, and providing a safety net in case of failure. Yet, plenty of successful entrepreneurs started their ventures without considerable financial resources.

For instance, WhatsApp founder Jan Koum had $400,000 in personal savings from his career as a developer, enabling him to focus fully on building the platform. Others, like Mark Zuckerberg, tapped into their networks, securing funds from friends and family until external investors were interested.

Even without large savings or wealthy backers, founders can create businesses that require minimal initial investment, such as service-based ventures or small-scale startups. Alternative options include monetizing personal skills to fund larger dreams or crafting compelling pitches to attract investors.

Examples

• Jan Koum used sizeable savings to fund WhatsApp during its early stages.
• Facebook got its first funding through Mark Zuckerberg's family and friends.
• Service-oriented businesses often start with little initial capital and rely on skills instead.

3. Intelligence Goes Beyond IQ

Success in business isn't just about having a high IQ or being academically gifted. What matters even more is practical intelligence, people skills, and creativity—all of which can be critical for navigating challenges and spotting opportunities.

The Collison brothers, founders of Stripe, had impressive cognitive skills and academic achievements. Still, history also shows the importance of emotional savvy. Nikola Tesla, a genius inventor, failed to commercialize his ideas because he lacked the social intelligence to protect himself from exploitation.

Equally important is creative thinking: seeing connections between seemingly unrelated fields. Steve Jobs famously credited a college calligraphy class for inspiring the elegant fonts that became a hallmark of Apple products.

Examples

• Stripe founders Patrick and John Collison turned their intellect into billion-dollar companies.
• Nikola Tesla’s lack of social understanding led to financial struggles despite groundbreaking inventions.
• Steve Jobs harnessed creativity from unexpected courses, like calligraphy, to fuel product innovations.

4. Problem-Solving Begins With Strong Insights

The best businesses solve specific, meaningful problems. Entrepreneurs often gain these understandings through personal experiences or by closely observing their target market.

Tristan Walker, founder of Walker & Co., created grooming products for people of color after experiencing firsthand the difficulties of shaving with products not designed for his needs. Similarly, Will Shu of Deliveroo rode bikes to deliver orders himself, learning exactly where the company could improve for riders, customers, and restaurants.

Great entrepreneurs develop their ideas by getting close to the challenges at hand, empathizing deeply, and using that knowledge as a foundation for their ventures.

Examples

• Tristan Walker’s shaving brand was built from personal struggles with ill-fitting products.
• Deliveroo's founder Will Shu personally experienced delivery work to refine his business model.
• Ryan Graves became Uber’s first CEO after recognizing the inefficiencies in urban transportation.

5. Timing and Location Impact Success

Being in the right place at the right time often determines whether an idea sinks or swims. For example, Silicon Valley provides unparalleled startup resources, from top-tier talent to venture capital. Companies like Google and Facebook thrived in this ecosystem.

Timing matters too. Dropbox succeeded in cloud storage because it launched when fast internet connections had become widespread. Earlier attempts at similar services failed due to lagging technology.

If you’re not in a startup hub, opportunities can still arise locally, depending on your market's specific context. Entrepreneurs must assess how their timing and location can either help or hinder growth.

Examples

• Silicon Valley remains a hotspot for investment and tech talent.
• Dropbox triumphed by introducing cloud storage when tech infrastructure supported it.
• Dubai-based Huda Kattan built a global beauty brand by leveraging her surroundings and audience.

6. Education Brings More Than Knowledge

A degree can open doors, but the relationships, reputation, and expertise developed along the way often make even more difference. Elite schools like Harvard or Stanford not only offer prestigious diplomas but also foster powerful networks.

Bill Hewlett and David Packard met at Stanford and went on to found Hewlett-Packard together. Even beyond formal education, skills honed in specific fields can provide immense advantages. Co-authors Ash Ali and Hasan Kubba learned and tested their expertise through real-world projects, using books and online courses.

Education—whether formal or self-directed—becomes meaningful when applied effectively to spot opportunities and build credibility.

Examples

• Stanford connections united Hewlett-Packard’s founders.
• Many billion-dollar startups originate from elite universities.
• Ash Ali used self-taught web design to kickstart an online business.

7. Social Status and Connections Matter

In business, who you know can sometimes matter more than what you know. Connections built in elite schools, workplaces, or social circles can open doors to partnerships, funding, and mentorships.

Snapchat’s Evan Spiegel had access to venture capitalist Peter Wendell through his family, who introduced Spiegel to influential figures like Google’s Eric Schmidt. Relationships like these can provide a head start, though deliberate networking can also build such connections.

For those lacking status or established networks, blending into different social groups and being adaptable can often create opportunities to climb the professional ladder.

Examples

• Evan Spiegel capitalized on wealthy family connections to grow Snapchat.
• Tristan Walker learned to navigate elite circles by attending boarding school on scholarship.
• Genuine networking helped entrepreneurs like Bill Gross connect with helpful mentors.

8. Creativity Unlocks Untapped Potential

Creative thinkers excel at seeing the world from a new angle. If you can think outside traditional constraints, you can develop ideas that others overlook and solve problems in fresh ways.

Steve Jobs continually emphasized connecting disparate disciplines, such as blending art and technology at Apple. Similarly, entrepreneurs with wide-ranging knowledge often identify opportunities others might miss, as creativity flourishes when different fields intersect.

Pushing for originality doesn’t mean inventing something entirely new; often, it involves rethinking how existing ideas are applied—or solving problems more efficiently than anyone else.

Examples

• Steve Jobs merged design with technology to create Apple’s iconic products.
• Combining art and business, Tristan Walker expanded his brand with authentic storytelling.
• Entrepreneurs like Huda Kattan turned personal hobbies into lucrative creative ventures.

9. Insights Shape Winning Strategies

Developing a deep understanding of customer pain points or untapped needs can position your brand for success. Observing, questioning, and testing assumptions helps refine ideas before going all in.

Bill Gross, the founder of Idealab, observed how timing made or broke startups. Meanwhile, Deliveroo succeeded because its founder learned about customer and employee challenges firsthand. The ability to grasp what customers truly value is a powerful tool in creating lasting businesses.

Research and empathy drive better decision-making, ultimately leading to ideas that resonate deeply with audiences.

Examples

• Deliveroo founder Will Shu’s delivery experience taught him to see the customer perspective.
• Dropbox adapted to the market by waiting for the perfect technological moment.
• Procter & Gamble’s acquisition of Walker & Co. validated its founder’s market insight.

Takeaways

1. Reflect on your strengths. Look at your background, resources, or unique qualities to identify what you can use to your advantage.
2. Build partnerships. Partner with complementary co-founders or advisors whose skills and connections fill your gaps.
3. Stay curious and adaptable. Constantly seek learning opportunities, whether through formal education or hands-on experience.