So You Want To Start A Business – NOW WHAT?
If you are like every other person on the planet you will want your life to have had meaning. Maybe you worked really hard to become an amazing mom, grandmother, dad, sister, brother and that’s great, because it’s obviously the most important task we will ever face in our life!
But maybe you wanted to make a mark outside of the home and start a business that improves the lives of others and that reflects your personal ambition and desires. If this is a possibility the following article will set you up in the right direction.
7 Principles for Propelling Your Startup to Success
Peter S. Cohan – President of Peter S. Cohan & Associates
OCTOBER 8, 2014
Want a venture to succeed?
I developed seven principles that can help a startup improve its odds at success based on analysis of more than 1,500 public companies that I did for my book Value Leadership.
Companies that followed these principles the most closely (I call them value leaders) grew sales 35 percent faster and generated 109 percent higher net margins than their peers and increased shareholder value almost five times faster than the market in the 10 years before 2003. Companies that do a better job of creating value for key stakeholders, such as employees, customers and communities, also happen to generate more value for shareholders.
The organizations that apply all these principles will outperform those that skimp on some. For example, one of Google’s glaring weaknesses today is its inability to create a significant new source of revenue beyond advertising. That does not seem to hurt the company too much now but it could in the future.
Although I developed the following seven principles years ago, I believe they can help a startup succeed today as has been borne out by recent company history:
1 Value human relationships.
Entrepreneurs can’t do it all themselves, which means they need to hire talented people. Treat talented people with respect and be sure they are a good fit with the values of the company.
For example, Google hires very smart people who fit with its unconventional approach to problem solving. Google has used its famous data-driven approach to decision making to identify traits associated with effective management. And it has used those insights to hire and promote peope who demonstrate these skills.
2. Foster teamwork.
If an entrepreneur hires talented people, he or she should demand that they debate solutions…
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Posted by YSF Staff