Children ask questions like ‘Why do vegetables go in the fridge?’ or ‘Why do we feel sleepy after eating?’ — innocent curiosity that fuels their learning. But as adults, we trade this wonder for convenience, accepting ‘how things are done’ without question. A 2022 Harvard study found that 85% of professionals admit to relying on outdated methods simply because ‘that’s the norm.’ This mindset isn’t just limiting — it’s a creativity killer for entrepreneurs and CEOs.
The good news? A powerful antidote exists: First-Principles Thinking. Used by visionaries like Elon Musk and Airbnb’s founders, this method forces you to dismantle problems to their atomic truths, and then rebuild solutions from scratch. It’s not just thinking outside the box — it’s realizing there was never a box to begin with.

What is the First Principle of Thinking?
First Principle Thinking is a method of thinking that helps you break down complex problems into their most basic elements and then rebuild them from the ground up to find creative solutions.
Instead of accepting “this is how everyone does it,” they dig deep into the core of the problem and ask themselves:
What are the fundamental elements that make up this issue?
Is there a better way to solve this problem?
For example, when Elon Musk set out to develop rockets for SpaceX, instead of purchasing components for millions of dollars from suppliers, he asked himself:
Why are rockets so expensive?
What are the basic materials needed to build a rocket?
Can I manufacture these components myself to reduce costs?

The result? Musk discovered that the raw materials for a rocket only account for about 2% of its market price. This led him to the decision to produce the components in-house, significantly cutting costs and establishing SpaceX as a leading force in the aerospace industry.
Similarly, Richard Feynman—a brilliant physicist—developed a simple yet highly effective approach to problem-solving. His method, often referred to as "Feynman’s Algorithm," consists of just three steps:
Write down the problem.
Think really hard.
Write down the solution.
Feynman’s genius lay in his ability to simplify complex problems. As Danny Hillis once explained:
"He always started by asking very basic questions like, 'What is the simplest example of this problem?' or 'How can you tell if the answer is correct?' He kept questioning until the problem was reduced to its fundamental puzzle."
This way of thinking enabled Feynman, Musk, and many other visionaries to create groundbreaking innovations.
>>> To explore more examples of First-Principles Thinking in action, check out How First-Principles Thinking Helped Airbnb, Netflix, and Tesla Rewrite the Rules.
Key Steps in First Principles

Identify the Problem: Clearly define the issue or challenge you're facing.
Break Down the Problem: Deconstruct the problem into its fundamental components. Ask yourself, “What do I know to be true based on facts?”
Challenge Assumptions: Question existing beliefs and assumptions about the problem. Are they valid, or are they based on outdated or incorrect information?
Rebuild from the Ground Up: Use the fundamental truths identified to create innovative solutions. Think creatively about how these basic elements can be recombined in different ways.
First principles thinking is different from traditional problem-solving methods because it makes us welcome a beginner's mind. Breakthrough innovations often emerge when we challenge established norms and explore what's possible, though learning through imitation helps in many aspects of life.
This approach's versatility makes it special. First principles thinking provides a framework to understand complex systems and develop original solutions in business strategy, product development, or personal growth. We position ourselves to create innovative changes by breaking away from thinking by analogy and focusing on fundamental truths, rather than following established patterns.
>>> Discover how to apply first principles thinking to create breakthrough solutions
Why Entrepreneurs and CEOs Need First Principle Thinking
In the startup and business world, applying First Principle helps you find breakthrough solutions rather than just following old models. Here are some reasons why this method is so important:
Creating new business models: Not just improving what already exists but developing entirely new approaches.
Optimizing processes: Reducing costs and increasing efficiency by eliminating unnecessary components.
Uncovering hidden opportunities: Understanding the core of a problem helps you identify weaknesses in the market that others might overlook.
Making accurate decisions: By analyzing a problem from its fundamental roots, you make decisions based on data rather than emotions.
Many successful companies have used First Principles Thinking not only to improve existing processes but also to create entirely new industries.

Applying First Principles to Your Work
Are you starting a business? Analyze your business model from the ground up instead of copying competitors.
Are you a CEO? Challenge old assumptions to discover new, optimized solutions.
Are you a creator? Don’t limit yourself to what “has always been done.”
The first principle of thinking not only helps you break free from conventional thinking but also enables you to build a creative, efficient, and competitive business.
Conclusion
As Feynman once said: "If you can't explain it simply, you don't understand it well enough." First-principles thinking forces you to understand — truly understand — before you act. This isn’t a mindset for the lazy, but a weapon for those brave enough to think and act differently.
Today is the day you test it. Whether you’re a CEO, a startup, or a creative — ask yourself again: "What truly matters here?" Chances are, the answer will open the door to a revolution you never expected.
Start today and discover new opportunities that you may never have thought possible! Join the 4MGI to access more valuable insights and resources to help you grow and succeed in business.
Reference
The Great Mental Models: General Thinking Concepts" (2019) - Shane Parrish (Farnam Street)
Vance, Ashlee. Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future (p. 354)
Sykes, C. (1994). No Ordinary Genius: The Illustrated Richard Feynman
Gallagher, L. (2017). The Airbnb Story. Houghton Mifflin Harcourt.
https://www.forbes.com/sites/petercohan/2013/04/23/how-netflix-reinvented-itself/