First Principles

A "first principle" is a basic assumption that cannot be deduced any further. Over 2000 years ago, Aristotle defined the first principle as the "first basis" from which a thing is known.”

While the concept of first principles originated centuries ago, it still holds true today, and no one embodies the philosophy of 'First Principles' more effectively than entrepreneur Elon Musk. In fact, he applied the method to justify his venture for Tesla. The prevailing argument was, of course, that electric vehicles could never work because the cost of batteries was too high. This represents an analogy. The cost of batteries is high, therefore electric vehicles are not economically viable. Musk explains that by looking at the battery and thinking in terms of first principles, you quickly realize a new truth. By purchasing the individual parts of a battery separately and assembling the battery yourself, you can dramatically reduce the cost. By using first principles, he realized that the cost of batteries is not a barrier. He started with the basic elements of a battery and arrived at a very different solution. Take a look at the interview below:


The story of Tesla and batteries brings to the fore one of the benefits of first principles: the ability to deconstruct complex problems. First-principles allow us to take any idea, no matter the complexity, and break it down into its parts and then break those down further, until we get to the core building blocks.

While this process is not easy, it is valuable. You are able to see things from a different perspective that allows you to uncover solutions and approaches that were otherwise invisible.

We could benefit from first principles a lot if we think about it. From understanding why a startup is successful in making better career decisions to wrapping your head around politics. But that’s not where the value ends. First-principles are also incredibly useful when applied as a way to live your life.

written by JAMES CLEAR | MENTAL MODELS | Aly Juma
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