That Will Never Work

1. “You simply can’t know how things are going to behave until you’ve actually tried them. Go ahead and write up a plan, but don’t put too much faith in it. The only real way to find something out is to do it.”

2. “You see, a startup is a lonely place. You are working on something that no one believes in, that you’ve been told time and time again will never work. It’s you against the world. But the reality is that you can’t really do it on your own. You need to enlist help. Bring others around to your way of thinking. Let them share in your enthusiasm.”

3. “The truth is that no business plan survives a collision with a real customer. So the trick is to take your idea and set it on a collision course with reality as soon as possible.”

4. “Most engineers can choose where they want to work, and the way they make their decision boils down to two questions: 1) Do I respect the people I’m working for? 2) Will I be given interesting problems to solve?”

5. “Focus. It’s an entrepreneur’s secret weapon. Again and again in the Netflix story—dropping DVD sales, dropping à la carte rentals, and eventually dropping many members of the original Netflix team—we had to be willing to abandon parts of the past in service of the future. Sometimes, focus this intense looks like ruthlessness—and it is, a little bit. But it’s more than that. It’s something akin to courage.”

6. “When an opportunity comes knocking, you don’t necessarily have to open the door. But you owe it to yourself to at least look through the keyhole.”

1. Embrace the Power of 'Naive' Ideas

Netflix started with what seemed like a crazy idea—mailing DVDs when everyone said it would never work. The most transformative businesses often begin with concepts that experts dismiss as impossible or impractical. Don't let conventional wisdom stop you from pursuing ideas that feel right to you.

2. Test Everything, Assume Nothing

Before launching Netflix, the founders tested whether DVDs could survive postal delivery by mailing a CD to themselves. Every assumption about your business model should be validated through small, inexpensive experiments. Data beats opinions every time, especially when entering uncharted territory.

3. Culture Eats Strategy for Breakfast

Netflix's success came not just from good strategy, but from building a culture of freedom, responsibility, and high performance. Hire adults, treat them like adults, and give them the freedom to do their best work. Strong culture creates sustainable competitive advantage that's harder to replicate than any product feature.

4. Be Willing to Cannibalize Your Own Success

Netflix disrupted its own DVD business by moving to streaming, even though streaming was initially less profitable. Companies that survive long-term are willing to abandon what made them successful when they see the future heading in a different direction. Don't let past success blind you to future opportunities.

5. Focus on What You Can Control

Netflix couldn't control postal delivery times or internet speeds, but they could control their algorithms, user experience, and content quality. Successful entrepreneurs obsess over the factors within their influence while adapting to external constraints they can't change. Channel your energy where you can make the biggest impact.