Startup Success Quotes

You have to work on the business first before it works for you.

If you are going to be in business, you must learn about money: how it works, how it flows, and how to put it to work for you.

Monopoly is the condition of every successful business.

Reading is good, action is better.

if you cannot fail, you cannot learn.

As you consider building your own minimum viable product, let this simple rule suffice: remove any feature, process, or effort that does not contribute directly to the learning you seek.

A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.

When in doubt, simplify.

Demand is one of those factors which decide the fate of your business.

There can’t be anything more fatal to a business than making decisions based on somebody else’s assumptions.

Launching a similar product still needs some kind of differentiation.

It’s wonderful to dream big but you still have to be realistic.

The future of your business depends on what kind of decisions you are going to make.

The process of decision-making can become efficient and effective, if the right information is handy on time.

Being successful is not that tough, you just need a little mindset change.

Perfecting a product which is not selling is a waste of time and energy.

Business growth happens when people remember you.

The fear of the unknown is deadly for our personal growth as well as for the growth of our business.

You don’t want to run your business based on mere suspicions and assumptions.

A successful business owner will know their business as good as they know their favorite celebrity, their partner, and even their dogs.

The big question of our time is not Can it be built? but Should it be built? This places us in an unusual historical moment: our future prosperity depends on the quality of our collective imaginations.

Accepting that you’re wrong, shows humility which will set a better example of you as a leader on your team than sticking to something that others can clearly see is wrong.

Become a leader that shows humility and not stubbornness.

Search engines' results aren’t always trustworthy. As a matter of fact, they can be easily manipulated.

While Uber was more a business-like limo car sharing, Lyft was more casual. Though with time, that distinction has become less prominent, but this definitely helped them in the starting stage.

Success is not delivering a feature; success is learning how to solve the customer’s problem.

You need three things to create a successful startup: to start with good people, to make something customers actually want, and to spend as little money as possible.

Innovation is a bottoms-up, decentralized, and unpredictable thing, but that doesn’t mean it cannot be managed.

The most successful companies make the core progression—to first dominate a specific niche and then scale to adjacent markets—a part of their founding narrative.

The lesson of the MVP is that any additional work beyond what was required to start learning is waste, no matter how important it might have seemed at the time.

Timing, perseverance, and ten years of trying will eventually make you look like an overnight success.

Customers don’t care how much time something takes to build. They care only if it serves their needs.

This is one of the most important lessons of the scientific method: if you cannot fail, you cannot learn.

Build-Measure-Learn feedback loop is at the core of the Lean Startup model.

Metcalfe’s law: the value of a network as a whole is proportional to the square of the number of participants. In other words, the more people in the network, the more valuable the network.

Success is never accidental.

If we do not know who the customer is, we do not know what quality is.

Fail soon so that you can succeed sooner.

Today it is cheaper to start a business than tomorrow.

What if we found ourselves building something that nobody wanted? In that case what did it matter if we did it on time and on budget?

I will learn by screwing up.

Leadership requires creating conditions that enable employees to do the kinds of experimentation that entrepreneurship requires.

The ability to learn faster from customers is the essential competitive advantage that startups must possess.

Ask most entrepreneurs who have decided to pivot and they will tell you that they wish they had made the decision sooner.

Peter Drucker said, “There is surely nothing quite so useless as doing with great efficiency what should not be done at all.

Anything those customers experience from their interaction with a company should be considered part of that company’s product.

In the Lean Startup model, an experiment is more than just a theoretical inquiry; it is also a first product.

the single most powerful pattern I have noticed is that successful people find value in unexpected places,

The point is not to find the average customer but to find early adopters: the customers who feel the need for the product most acutely. Those customers tend to be more forgiving of mistakes and are especially eager to give feedback.

My advice was to start a policy of making reversible decisions before anyone left the meeting or the office. In a startup, it doesn’t matter if you’re 100 percent right 100 percent of the time. What matters is having forward momentum and a tight fact-based data/metrics feedback loop to help you quickly recognize and reverse any incorrect decisions. That’s why startups are agile. By the time a big company gets the committee to organize the subcommittee to pick a meeting date, your startup could have made 20 decisions, reversed five of them and implemented the fifteen that worked.

You cannot be sure you really understand any part of any business problem unless you go and see for yourself firsthand. It is unacceptable to take anything for granted or to rely on the reports of others.

Hard work works harder than luck!

In a startup no facts exist inside the building, only opinions.

there is no bigger destroyer of creative potential than the misguided decision to persevere.

In the early stages of a startup, focusing on “execution” will put you out of business. Instead, you need a “learning and discovery” process so you can get the company to the point where you know what to execute.

It's really rare for people to have a successful start-up in this industry without a breakthrough product. I'll take it a step further. It has to be a radical product. It has to be something where, when people look at it, at first they say, 'I don't get it, I don't understand it. I think it's too weird, I think it's too unusual.

Be Shameless. Experiment. This is the only way to identify your true passion.

All innovation begins with vision. It’s what happens next that is critical.

Failure is a prerequisite to learning.

It is insufficient to exhort workers to try harder. Our current problems are caused by trying too hard—at the wrong things.

A 2006 Harvard University study shows that entrepreneurs who have failed in their previous enterprise have an almost one-in-five chance of success in their next start-up

This is an important rule: a good design is one that changes customer behavior for the better.

Anyone who tries to build a car company in the United States is quickly reminded that the last successful start-up in the industry was Chrysler, founded in 1925.

The difference between successful and unsuccessful people is that successful ones know that the most unprofitable thing ever manufactured is an excuse.

Build it and they will come,” is not a strategy; it’s a prayer.

Startup success is not a consequence of good genes or being in the right place at the right time. Startup success can be engineered by following the right process, which means it can be learned, which means it can be taught.

When you examine the genesis of great works of art, successful start-ups, and revolutionary shifts in politics, you can always trace back a history of monetary and nonmonetary exchange, the hidden patrons and underlying favors.

Even in engineering-driven Silicon Valley, the buzzwords of the moment call for building a “lean startup” that can “adapt” and “evolve” to an ever-changing environment. Would-be entrepreneurs are told that nothing can be known in advance: we’re supposed to listen to what customers say they want, make nothing more than a “minimum viable product,” and iterate our way to success. But leanness is a methodology, not a goal. Making small changes to things that already exist might lead you to a local maximum, but it won’t help you find the global maximum. You could build the best version of an app that lets people order toilet paper from their iPhone. But iteration without a bold plan won’t take you from 0 to 1. A company is the strangest place of all for an indefinite optimist: why should you expect your own business to succeed without a plan to make it happen? Darwinism may be a fine theory in other contexts, but in startups, intelligent design works best.

When it's about your life, it's time to be selfish.

Zero invites imagination, but small numbers invite questions about whether large numbers will ever materialize.

If there is already a market research report out there with all the information you need, it is probably too late for your new venture.

Regret nothing. Everything broken can be remade. And everything remade can once again be broken

Being a great entrepreneur means finding the path through the fog, confusion and myriad of choices.

The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible.

Perfection is born of imperfection.

evangelizing was what successful startup founders did in Silicon Valley. You didn’t change the world by being cynical.

waiting too long to release can lead to the ultimate waste: making something that nobody wants.

Good ideas are hard to find. And even the best ideas face an uncertain path to real-world success. That’s true whether you’re running a startup, teaching a class, or working inside a large organization. Execution

entrepreneurship should be considered a viable career path for innovators inside large organizations.

Be brave enough to try something new; you might just succeed.

when you have only one test, you don’t have entrepreneurs, you have politicians, because you have to sell.

Intellect without will is worthless, will without intellect is dangerous. — Sun Tzu,

If we stopped wasting people’s time, what would they do with it?

The greatest risk—and hence the greatest cause of failure—in startups is not in the development of the new product but in the development of customers and markets. Startups

What’s the difference between positioning the product and positioning the company?

In short, in big companies, the product spec is market-driven; in startups, the marketing is product-driven.

if you are asking, you’re not there yet.

There is a reason all past management revolutions have been led by engineers: management is human systems engineering.

Discipline is a prerequisite of greatness. Nobody becomes great by accident.

You can’t take learning to the bank; you can’t spend it or invest it.

Pursuing a rapid experiment and finding out you were wrong and changing directions isn’t failure. That is the road to success.

I call this building an adaptive organization, one that automatically adjusts its process and performance to current conditions.

achieving failure: successfully executing a plan that leads nowhere.

Most important, teams working in this system begin to measure their productivity according to validated learning, not in terms of the production of new features.

If you want to go fast, go alone; if you want to go far, go together" African Proverb

Startup, I have always been a bit of a troublemaker at the companies at which I have worked, pushing for rapid iteration, data-driven decision making, and early customer involvement.

Once you believe that you are infallible, that success will automatically lead to more success, and that you have "got it made," reality will be sure to give you a rude wake-up call. Believing your own bullshit is always a perilous activity, but never more fatal than for the owner of a start-up venture.

Using the Product Development Waterfall diagram for Customer Development activities is like using a clock to tell the temperature. They both measure something, but not the thing you wanted.

The biggest difference is that cults tend to be fanatically wrong about something important. People at a successful startup are fanatically right about something those outside it have missed.

Do consumers recognize that they have the problem you are trying to solve? 2. If there was a solution, would they buy it? 3. Would they buy it from us? 4. Can we build a solution for that problem?

The CEO and VP of product, instead of building their business, are engaged in the drudgery of solving just one customer’s problem. Instead of marketing themselves to millions, they sold themselves to one.

A successful startup takes a very long time—certainly much longer than most founders think at the outset. You cannot treat it as an all-nighter. You have to eat well, sleep well, and exercise. You have to spend time with your family and friends. You also need to work in an area you’re actually passionate about—nothing else will sustain you for ten years.

This is one of the most important discoveries of the lean manufacturing movement: you cannot trade quality for time. If you are causing (or missing) quality problems now, the resulting defects will slow you down later.

The genius of niches is they are too small for large competitors, allowing a nimble entrepreneur the breathing room to focus on an underserved audience. Once you’ve succeeded in that niche, you can leverage your success to establish credibility for your business to move into larger markets.

After more than ten years as an entrepreneur, I came to reject that line of thinking. I have learned from both my own successes and failures and those of many others that it’s the boring stuff that matters the most. Startup success is not a consequence of good genes or being in the right place at the right time. Startup success can be engineered by following the right process, which means it can be learned, which means it can be taught.

Nobody wants a sales pitch. So instead of trying a hard sell, focus on telling a story that captivates your audience by painting a vivid picture of your vision. When you get good at storytelling, people want to be part of that story, and they’ll want to help others become part of that story too.

The faster you run high quality experiments, the more likely you’ll find scalable, effective growth tactics. Determining the success of a customer acquisition idea is dependent on an effective tracking and reporting system, so don’t start testing until your tracking/reporting system has been implemented.

Investors are people with more money than time. Employees are people with more time than money. Entrepreneurs are simply the seductive go-betweens. Startups are business experiments performed with other people’s money. Marketing is like sex: only losers pay for it.” “Company culture is what goes without saying. There are no real rules, only laws. Success forgives all sins. People who leak to you, leak about you. Meritocracy is the propaganda we use to bless the charade. Greed and vanity are the twin engines of bourgeois society. Most managers are incompetent and maintain their jobs via inertia and politics. Lawsuits are merely expensive feints in a well-scripted conflict narrative between corporate entities. Capitalism is an amoral farce in which every player—investor, employee, entrepreneur, consumer—is complicit.

trying to micromanage employees slows decisions and kills individual initiative. Attempting to impose precise order on how a project in a department is accomplished stifles creativity and leads to a formulistic approach to business problems. Insisting

Have we identified a problem a customer wants solved? Does our product solve these customer needs? If so, do we have a viable and profitable business model? Have we learned enough to go out and sell? Answering these questions is the purpose of the first step in the Customer Development model, Customer Discovery. This chapter explains how to go about it.

I simply don’t have it in me to define my life’s success playing someone else’s game and following someone else’s rulebook.” --Dipa to her Grandfather

Be patient. Creating something good takes time. So take your time.

Great companies have secrets: specific reasons for success that other people don’t see.

A product in the marketplace is the result of thought in an inner space and action more than the common place.

When one company owns over 80 percent share (think Microsoft), that player is the owner of the market and a monopolist. The only possible move you have is resegmenting this market.

Lean thinking defines value as providing benefit to the customer; anything else is waste.

Every successful start-up is built on four pillars. Team, Idea, Passion & Presentations

Vanity metrics wreak havoc because they prey on a weakness of the human mind.

The common tendency of product development is to skip straight to the fourth question and build a solution before confirming that customers have the problem.

Part of the special challenge of being a startup is the near impossibility of having your idea, company, or product be noticed by anyone, let alone a competitor.

New customers come from the actions of past customers.

One who doesn't recognise an opportunity is bigger loser than one who tries his hand at an opportunity.

The path you make is the one that follows you, and you walk on that path day or later.

They will ask to go back to the old way of working, in which they had the opportunity to “stay efficient” by working in larger batches and passing work between departments.

Success doesn't teach as many lessons as failure

half-life of a startup VP of Sales is about nine months

They had “achieved failure”—successfully, faithfully, and rigorously executing a plan that turned out to have been utterly flawed.

we must focus our energies exclusively on producing outcomes that the customer perceives as valuable.

A good plan violently executed now is better than a perfect plan next week.” The

Time matters; if you cannot do everything on your own, stick to your strengths, outsource the rest, and focus on customers’ ease of doing business.

To be successful, innovation is not just about value creation, but value capture.

the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.

Controlling for a large number of additional variables, they found that firms with at least one woman among the first hires were more successful and stayed longer in the market than all-male start-ups.

It's not too late to start! Start right now anyway. Set goals and take action. Have courage to fail, fall, suffer. Don't quit. Persist with courage. Success will thrive anyway and be yours 100% Guaranteed.

It’s one thing if a mistake occurs because of circumstance or a miscalculation or the unexpected or inexperience; it’s another if it’s part of a pattern of carelessness or ineptitude or laziness. Then it becomes a choice.

Just as scientific experimentation is informed by theory, startup experimentation is guided by the startup’s vision. The goal of every startup experiment is to discover how to build a sustainable business around that vision.

When Baby Boomers grow up and write books to explain why one or another individual is successful, they point to the power of a particular individual’s context as determined by chance. But they miss the even bigger social context for their own preferred explanations: a whole generation learned from childhood to overrate the power of chance and underrate the importance of planning. Gladwell at first appears to be making a contrarian critique of the myth of the self-made businessman, but actually his own account encapsulates the conventional view of a generation.

PLACE MANY BETS If it is difficult to predict just what exactly is going to be successful, it follows that you have to keep trying. The more times you try, the more likely that you will create successful designs, start-ups, or pieces of art.

The founders of start-ups as varied as YouTube, Palantir Technologies, and Yelp all worked at PayPal. Another set of people—including Reid Hoffman, Thiel, and Botha—emerged as some of the technology industry’s top investors. PayPal staff pioneered techniques in fighting online fraud that have formed the basis of software used by the CIA and FBI to track terrorists and of software used by the world’s largest banks to combat crime. This collection of super-bright employees has become known as the PayPal Mafia—more or less the current ruling class of Silicon Valley—and Musk is its most famous and successful member.

Sequencing markets correctly is underrated, and it takes discipline to expand gradually. The most successful companies make the core progression—to first dominate a specific niche and then scale to adjacent markets—a part of their founding narrative.

If a competitor can outexecute a startup once the idea is known, the startup is doomed anyway. The reason to build a new team to pursue an idea is that you believe you can accelerate through the Build-Measure-Learn feedback loop faster than anyone else can.

What differentiates the success stories from the failures is that the successful entrepreneurs had the foresight, the ability, and the tools to discover which parts of their plans were working brilliantly and which were misguided, and adapt their strategies accordingly.

Once the baseline has been established, the startup can work toward the second learning milestone: tuning the engine. Every product development, marketing, or other initiative that a startup undertakes should be targeted at improving one of the drivers of its growth model.

We lacked something that is the key to a successful startup, and it was bigger than sound quality. It was emotional investment. If you don’t love what you’re building, if you’re not an avid user yourself, then you will most likely fail even if you’re doing everything else right.

I ask them, “If the product were free, how many would you actually deploy or use?” The goal is to take pricing away as an issue and see whether the product itself gets customers excited. If it does, I follow up with: “OK, it’s not free. In fact, imagine I charged you $1 million. Would you buy it?” While this may sound like a facetious dialog, I use it all the time. Why? Because more than half the time customers will say something like, “Steve, you’re out of your mind. This product isn’t worth more than $250,000.” I’ve just gotten customers to tell me how much they are willing to pay. Wow.

In my Toyota interviews, when I asked what distinguishes the Toyota Way from other management approaches, the most common first response was genchi gembutsu—whether I was in manufacturing, product development, sales, distribution, or public affairs. You cannot be sure you really understand any part of any business problem unless you go and see for yourself firsthand. It is unacceptable to take anything for granted or to rely on the reports of others.

Third, many entrepreneurs are afraid. Acknowledging failure can lead to dangerously low morale. Most entrepreneurs’ biggest fear is not that their vision will prove to be wrong. More terrifying is the thought that the vision might be deemed wrong without having been given a real chance to prove itself.

Wozniak: Well, we added up to the total everything that was needed. If there was anything that neither one of us knew how to do, Steve would do it. He'd just find a way to do it. He was just gung ho and pressing for this company to be successful. And me, I was pretty much only in my technical head with the circuits.

The mantra of Phase 4 of Company Building is provided by the war-fighting doctrine of the U.S. Marine Corps: Whoever can make and implement his decisions consistently faster gains a tremendous, often decisive, advantage. Decision-making thus becomes a time-competitive process, and timeliness of decisions becomes essential to generating tempo.

Visionaries are especially afraid of a false negative: that customers will reject a flawed MVP that is too small or too limited. […] The solution to this dilemma is a commitment to iteration. You have to commit to a locked-in agreement—ahead of time—that no matter what comes of testing the MVP, you will not give up hope. Successful entrepreneurs do not give up at the first sign of trouble, nor do they persevere the plan right into the ground. Instead, they process a unique combination of perseverance and flexibility.

You should focus relentlessly on something you’re good at doing, but before that you must think hard about whether it will be valuable in the future. For the startup world, this means you should not necessarily start your own company, even if you are extraordinarily talented. If anything, too many people are starting their own companies today. People who understand the power law will hesitate more than others when it comes to founding a new venture: they know how tremendously successful they could become by joining the very best company while it’s growing fast. The power law means that differences between companies will dwarf the differences in roles inside companies. You could have 100% of the equity if you fully fund your own venture, but if it fails you’ll have 100% of nothing. Owning just 0.01% of Google, by contrast, is incredibly valuable (more than $35 million as of this writing).

The result of big risk is bigger reward.

If you keep taking calculated risks, you will keep getting considerable rewards.

Make sure you would be a customer of your own business.

Whatever you begin will see the light of day provided you can dream big and be a ruler over your dreams with persistent actions.

Passion or skill + usefulness = success

This start-up looks as if it could not fail, but the base rate of success in the industry is extremely low. How do we know this case is different?

A diligent hawker today, can be a great tycoon tomorrow

When telling a story you can utilize numerous ways to create an attractive narrative that will enchant your audience aka ideal customers and clients.

Building something that matters is a marathon, not a sprint.

No business can be created without determination and perseverance.

startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.

what the secret to start-up success is. He reply was, "Not having any other choice, not having an alternative.

The Lean Startup asks people to start measuring their productivity differently. Because startups often accidentally build something nobody wants, it doesn’t matter much if they do it on time and on budget. The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible. In other words, the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.

The second reason that deep work is valuable is because the impacts of the digital network revolution cut both ways. If you can create something useful, its reachable audience (e.g., employers or customers) is essentially limitless—which greatly magnifies your reward. On the other hand, if what you’re producing is mediocre, then you’re in trouble, as it’s too easy for your audience to find a better alternative online. Whether you’re a computer programmer, writer, marketer, consultant, or entrepreneur, your situation has become similar to Jung trying to outwit Freud, or Jason Benn trying to hold his own in a hot start-up: To succeed you have to produce the absolute best stuff you’re capable of producing—a task that requires depth.

Only 5 percent of entrepreneurship is the big idea, the business model, the whiteboard strategizing, and the splitting up of the spoils. The other 95 percent is the gritty work that is measured by innovation accounting: product prioritization decisions, deciding which customers to target or listen to, and having the courage to subject a grand vision to constant testing and feedback.

1. Do consumers recognize that they have the problem you are trying to solve? 2. If there was a solution, would they buy it? 3. Would they buy it from us? 4. Can we build a solution for that problem?

Those I call Horace are absolutely convinced they’re some sort of social wit. Without a doubt they’re intelligent, and most likely very wealthy, although their wealth will come from a business they were set up in by others from their ‘school.’ They’ll have had no need to go to university. Rich people will have set them up in business, possibly Public Relations or something like that, they’ll have helped them write a business plan, loaned them money, and provided advice and guidance at every step of the way. Money would have been forthcoming from investors until the business was able to run itself. And then Horace will swan about as if he did it all himself.

In a startup, the first product is not designed to satisfy a mainstream customer. No startup can afford the engineering effort or the time to build a product with every feature a mainstream customer needs in its first release.

Of the most successful startups, nearly everyone has a clearly identifiable marketing flywheel that brought awareness and traffic from the right audiences and helped those people convert to a sale or a signup at the right time.

If you make a mistake, don’t spend precious time and energy trying to deny it or point the finger at someone else. Be a leader and own it, then spend your time and energy fixing the problem. As I’ve already noted, start-ups often fail because founders want to be seen as the smartest person in the room, which means not being wrong. Making a mistake is going to happen. None of us is perfect. But the difference between success and failure is how you handle that mistake

In the real world outside economic theory, every business is successful exactly to the extent that it does something others cannot. Monopoly is therefore not a pathology or an exception. Monopoly is the condition of every successful business.

Natalie, who was the author of a series of wildly successful Hunger Games meets Gossip Girl YA books about a clique of girls at a postapocalyptic prep school who have to simultaneously fight for popularity and for the survival of the planet—hadn

If you needed one million dollars and you had an idea worth one million dollars, but you did not have the opportunity to sell your idea to one person, you had better sell it for one dollar to one million people as simple as this. That is creativity.

It's alright to keep and open mind, but at a certain point—once you have thoroughly completed your homework—you have to learn how to stop and focus on intensely and passionately executing these goals step by step. You have to repel the distractions.

third of the variants for success are simple competencies. These include, but are not limited to: Possessing a drive for results and being able to get results from others The ability to make decisions, including unpopular decisions Strategic agility when dealing with ambiguity A certain level of risk tolerance Financial acumen Critical thinking, which is an innate trait Tactical ability Perseverance Self-awareness, which includes the ability to work through your weaknesses and not have blind spots Interpersonal skills The

Entrepreneurs are everywhere. You don’t have to work in a garage to be in a startup. The concept of entrepreneurship includes anyone who works within my definition of a startup: a human institution designed to create new products and services under conditions of extreme uncertainty. That means entrepreneurs are everywhere and the Lean Startup approach can work in any size company, even a very large enterprise, in any sector or industry. 2. Entrepreneurship is management. A startup is an institution, not just a product, and so it requires a new kind of management specifically geared to its context of extreme uncertainty. In fact, as I will argue later, I believe “entrepreneur” should be considered a job title in all modern companies that depend on innovation for their future growth. 3. Validated learning. Startups exist not just to make stuff, make money, or even serve customers. They exist to learn how to build a sustainable business. This learning can be validated scientifically by running frequent experiments that allow entrepreneurs to test each element of their vision. 4. Build-Measure-Learn. The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or persevere. All successful startup processes should be geared to accelerate that feedback loop. 5. Innovation accounting. To improve entrepreneurial outcomes and hold innovators accountable, we need to focus on the boring stuff: how to measure progress, how to set up milestones, and how to prioritize work. This requires a new kind of accounting designed for startups—and the people who hold them accountable.

This is the same problem that established companies experience. Their past successes were built on a finely tuned engine of growth. If that engine runs its course and growth slows or stops, there can be a crisis if the company does not have new startups incubating within its ranks that can provide new sources of growth. Companies of any size can suffer from this perpetual affliction. They need to manage a portfolio of activities, simultaneously tuning their engine of growth and developing new sources of growth for when that engine inevitably runs its course.

A saying which has always stuck with me, ‘Turnover is vanity, profit is sanity.’ A business turning over £100k a year but creating a net profit of £20k is much more successful than a business turning over £1m but only producing a net profit of £50k. The former has a net profit of 20% while the latter only has a net profit of 5%.

In Webvan’s case premature scaling was an integral part of the company culture and the prevailing venture capital “get big fast” mantra. Webvan spent $18 million to develop proprietary software and $40 million to set up its first automated warehouse before it had shipped a single item. Premature scaling had dire consequences since Webvan’s spending was on a scale that ensures it will be taught in business school case studies for years to come. As customer behavior continued to differ from the predictions in Webvan’s business plan, the company slowly realized it had overbuilt and over-designed. The business model made sense only at the high volumes predicted on the spreadsheet.

When a new company is formed, its founders must have a startup mentality—a beginner’s mind, open to everything because, well, what do they have to lose? (This is often something they later look back upon wistfully.) But when that company becomes successful, its leaders often cast off that startup mentality because, they tell themselves, they have figured out what to do. They don’t want to be beginners anymore. That may be human nature, but I believe it is a part of our nature that should be resisted. By resisting the beginner’s mind, you make yourself more prone to repeat yourself than to create something new. The attempt to avoid failure, in other words, makes failure more likely.

Entrepreneurs who kept their day jobs had 33 percent lower odds of failure than those who quit. If you’re risk averse and have some doubts about the feasibility of your ideas, it’s likely that your business will be built to last. If you’re a freewheeling gambler, your startup is far more fragile. Like the Warby Parker crew, the entrepreneurs whose companies topped Fast Company’s recent most innovative lists typically stayed in their day jobs even after they launched. Former track star Phil Knight started selling running shoes out of the trunk of his car in 1964, yet kept working as an accountant until 1969. After inventing the original Apple I computer, Steve Wozniak started the company with Steve Jobs in 1976 but continued working full time in his engineering job at Hewlett-Packard until 1977. And although Google founders Larry Page and Sergey Brin figured out how to dramatically improve internet searches in 1996, they didn’t go on leave from their graduate studies at Stanford until 1998. “We almost didn’t start Google,” Page says, because we “were too worried about dropping out of our Ph.D. program.” In 1997, concerned that their fledgling search engine was distracting them from their research, they tried to sell Google for less than $2 million in cash and stock. Luckily for them, the potential buyer rejected the offer. This habit of keeping one’s day job isn’t limited to successful entrepreneurs. Many influential creative minds have stayed in full-time employment or education even after earning income from major projects. Selma director Ava DuVernay made her first three films while working in her day job as a publicist, only pursuing filmmaking full time after working at it for four years and winning multiple awards. Brian May was in the middle of doctoral studies in astrophysics when he started playing guitar in a new band, but he didn’t drop out until several years later to go all in with Queen. Soon thereafter he wrote “We Will Rock You.” Grammy winner John Legend released his first album in 2000 but kept working as a management consultant until 2002, preparing PowerPoint presentations by day while performing at night. Thriller master Stephen King worked as a teacher, janitor, and gas station attendant for seven years after writing his first story, only quitting a year after his first novel, Carrie, was published. Dilbert author Scott Adams worked at Pacific Bell for seven years after his first comic strip hit newspapers. Why did all these originals play it safe instead of risking it all?

1. Make incremental advances Grand visions inflated the bubble, so they should not be indulged. Anyone who claims to be able to do something great is suspect, and anyone who wants to change the world should be more humble. Small, incremental steps are the only safe path forward. 2. Stay lean and flexible All companies must be “lean,” which is code for “unplanned.” You should not know what your business will do; planning is arrogant and inflexible. Instead you should try things out, “iterate,” and treat entrepreneurship as agnostic experimentation. 3. Improve on the competition Don’t try to create a new market prematurely. The only way to know you have a real business is to start with an already existing customer, so you should build your company by improving on recognizable products already offered by successful competitors. 4. Focus on product, not sales If your product requires advertising or salespeople to sell it, it’s not good enough: technology is primarily about product development, not distribution. Bubble-era advertising was obviously wasteful, so the only sustainable growth is viral growth.

It is well-known that a big percentage of all marriages in the United States end in divorce or separation (about 39 percent, according to the latest data).[30] But staying together is not what really counts. Analysis of the Harvard Study data shows that marriage per se accounts for only 2 percent of subjective well-being later in life.[31] The important thing for health and well-being is relationship satisfaction. Popular culture would have you believe the secret to this satisfaction is romantic passion, but that is wrong. On the contrary, a lot of unhappiness can attend the early stages of romance. For example, researchers find that it is often accompanied by rumination, jealousy, and “surveillance behaviors”—not what we typically associate with happiness. Furthermore, “destiny beliefs” about soul mates or love being meant to be can predict low forgiveness when paired with attachment anxiety.[32] Romance often hijacks our brains in a way that can cause the highs of elation or the depths of despair.[33] You might accurately say that falling in love is the start-up cost for happiness—an exhilarating but stressful stage we have to endure to get to the relationships that actually fulfill us. The secret to happiness isn’t falling in love; it’s staying in love, which depends on what psychologists call “companionate love”—love based less on passionate highs and lows and more on stable affection, mutual understanding, and commitment.[34] You might think “companionate love” sounds a little, well, disappointing. I certainly did the first time I heard it, on the heels of great efforts to win my future wife’s love. But over the past thirty years, it turns out that we don’t just love each other; we like each other, too. Once and always my romantic love, she is also my best friend.

Paul Graham, computer scientist and cofounder of Y Combinator—the start-up funder of Airbnb, Dropbox, Stripe, and Twitch—encapsulated Ibarra’s tenets in a high school graduation speech he wrote, but never delivered: It might seem that nothing would be easier than deciding what you like, but it turns out to be hard, partly because it’s hard to get an accurate picture of most jobs. . . . Most of the work I’ve done in the last ten years didn’t exist when I was in high school. . . . In such a world it’s not a good idea to have fixed plans. And yet every May, speakers all over the country fire up the Standard Graduation Speech, the theme of which is: don’t give up on your dreams. I know what they mean, but this is a bad way to put it, because it implies you’re supposed to be bound by some plan you made early on. The computer world has a name for this: premature optimization. . . . . . . Instead of working back from a goal, work forward from promising situations. This is what most successful people actually do anyway. In the graduation-speech approach, you decide where you want to be in twenty years, and then ask: what should I do now to get there? I propose instead that you don’t commit to anything in the future, but just look at the options available now, and choose those that will give you the most promising range of options afterward.

tear. Short and nebbishy, he had a charmingly awkward persona that concealed a big ambition: to establish Condé Nast as the most prestigious magazine company in the world. Within a year of his father’s death in 1979, Si, in rapid succession, bought the most important publishing house in America, Random House, whose imprints included Alfred A. Knopf, the prestige literary house; oversaw the successful start-up of a pioneering health and fitness magazine, Self; and bought and revamped Gentleman’s Quarterly, better known as GQ. And he was always on the lookout for more. Si was the aesthete in the Newhouse family. He combined an eye for business opportunity with a passion for art, design, and high gloss. Intellectually insecure, he relied on the self-confident baron of taste and flair he had inherited from his father’s circle: Alexander Liberman, Condé Nast’s editorial director. Liberman—Russian-born, like Alexey Brodovitch, his

We do everything wrong: instead of spending years perfecting our technology, we build a minimum viable product, an early product that is terrible, full of bugs and crash-your-computer-yes-really stability problems. Then we ship it to customers way before it’s ready. And we charge money for it. After securing initial customers, we change the product constantly—much too fast by traditional standards—shipping new versions of our product dozens of times every single day.

I wish I had asked myself when I was younger. My path was so tracked that in my 8th-grade yearbook, one of my friends predicted— accurately— that four years later I would enter Stanford as a sophomore. And after a conventionally successful undergraduate career, I enrolled at Stanford Law School, where I competed even harder for the standard badges of success. The highest prize in a law student’s world is unambiguous: out of tens of thousands of graduates each year, only a few dozen get a Supreme Court clerkship. After clerking on a federal appeals court for a year, I was invited to interview for clerkships with Justices Kennedy and Scalia. My meetings with the Justices went well. I was so close to winning this last competition. If only I got the clerkship, I thought, I would be set for life. But I didn’t. At the time, I was devastated. In 2004, after I had built and sold PayPal, I ran into an old friend from law school who had helped me prepare my failed clerkship applications. We hadn’t spoken in nearly a decade. His first question wasn’t “How are you doing?” or “Can you believe it’s been so long?” Instead, he grinned and asked: “So, Peter, aren’t you glad you didn’t get that clerkship?” With the benefit of hindsight, we both knew that winning that ultimate competition would have changed my life for the worse. Had I actually clerked on the Supreme Court, I probably would have spent my entire career taking depositions or drafting other people’s business deals instead of creating anything new. It’s hard to say how much would be different, but the opportunity costs were enormous. All Rhodes Scholars had a great future in their past. the best paths are new and untried. will this business still be around a decade from now? business is like chess. Grandmaster José Raúl Capablanca put it well: to succeed, “you must study the endgame before everything else. The few who knew what might be learned, Foolish enough to put their whole heart on show, And reveal their feelings to the crowd below, Mankind has always crucified and burned. Above all, don’t overestimate your own power as an individual. Founders are important not because they are the only ones whose work has value, but rather because a great founder can bring out the best work from everybody at his company. That we need individual founders in all their peculiarity does not mean that we are called to worship Ayn Randian “prime movers” who claim to be independent of everybody around them. In this respect, Rand was a merely half-great writer: her villains were real, but her heroes were fake. There is no Galt’s Gulch. There is no secession from society. To believe yourself invested with divine self-sufficiency is not the mark of a strong individual, but of a person who has mistaken the crowd’s worship—or jeering—for the truth. The single greatest danger for a founder is to become so certain of his own myth that he loses his mind. But an equally insidious danger for every business is to lose all sense of myth and mistake disenchantment for wisdom.

Scott Adams, the creator of the Dilbert comic series, explains his success this way: I succeeded as a cartoonist with negligible art talent, some basic writing skills, an ordinary sense of humor and a bit of experience in the business world. The “Dilbert” comic is a combination of all four skills. The world has plenty of better artists, smarter writers, funnier humorists and more experienced business people. The rare part is that each of those modest skills is collected in one person. That’s how value is created.

Impact is a critically important concept when it comes to social innovation, generally used in the context of measuring whether social interventions do or don’t work. But conceptually, it’s very similar to the problem of measuring success in a business before you have profits. That’s why lean methods are so perfectly suited to this kind of work. The only real difference is that instead of talking about maximizing shareholder value, Lean Impact talks about maximizing social impact. An advance party of pioneers, some of whom you’ll read about here, is already doing this, but we need more. This book is a way to help add to their numbers. Lean Impact is not only transformational for the social sector, though. My hope is that people in other kinds of businesses and organizations will also pick it up and, after reading about the dedicated people and clear strategies whose stories Ann Mei has gathered, think about how the products and institutions they build affect the world. All of us have more to learn about how we make impact so we can move together into this new era. —Eric Ries, author of The Lean Startup and The Startup Way

Thought Leadership “The new economics for industry, government, education” Book by W. Edwards Deming “In God we trust. All others must bring data.” William Edwards Deming, Statistician, Professor and Author #smitanairjain #leadership #womenintech #thoughtleaders #tedxspeaker #technology #tech #success #strategy #startuplife #startupbusiness #startup #mentor #leaders #itmanagement #itleaders #innovation #informationtechnology #influencers #Influencer #hightech #fintechinfluencer #fintech #entrepreneurship #entrepreneurs #economy #economics #development #businessintelligence #business

People like Jimmy become so fixated on feeling good about themselves that they manage to delude themselves into believing that they are accomplishing great things even when they’re not. They believe they’re the brilliant presenter on stage when actually they’re making a fool of themselves. They believe they’re the successful start-up founder when, in fact, they’ve never had a successful venture. They call themselves life coaches and charge money to help others, even though they’re only twenty-five years old and haven’t actually accomplished anything substantial in their lives. Entitled

What happened? Many things. But the overriding problem was this: The auto industry got too comfortable. As Intel cofounder Andy Grove once famously proclaimed, “Only the paranoid survive.” Success, he meant, is fragile—and perfection, fleeting. The moment you begin to take success for granted is the moment a competitor lunges for your jugular. Auto industry executives, to say the least, were not paranoid. Instead of listening to a customer base that wanted smaller, more fuel-efficient cars, the auto executives built bigger and bigger. Instead of taking seriously new competition from Japan, they staunchly insisted (both to themselves and to their customers) that MADE IN THE USA automatically meant “best in the world.” Instead of trying to learn from their competitors’ new methods of “lean manufacturing,” they clung stubbornly to their decades-old practices. Instead of rewarding the best people in the organization and firing the worst, they promoted on the basis of longevity and nepotism. Instead of moving quickly to keep up with the changing market, executives willingly embraced “death by committee.” Ross Perot once quipped that if a man saw a snake on the factory floor at GM, they’d form a committee to analyze whether they should kill it. Easy success had transformed the American auto

To be clear, splitting your time evenly between product and traction will certainly slow down product development. However, it counterintuitively won’t slow the time to get your product successfully to market. In fact, it will speed it up! That’s because pursuing product development and traction in parallel has a couple of key benefits. First, it helps you build the right product because you can incorporate knowledge from your traction efforts. If you’re following a good product development process, you’re already getting good feedback from early customers. However, these customers are generally too close to you. They often tell you what you want to hear.

Focus on People, Perseverance, and Passion These “Three P’s” are the keys to successful entrepreneurship. People are the most important, particularly in the first year of a venture. To maximize their value, spend as much time as you can assembling the best possible team that really complements your skill set and can lead a little bit into where you’re heading, not just where you are. Creating the right kind of dynamic in terms of culture and commitment is really critical. Perseverance: never underestimate the value of really caring about your idea and being unwilling to drop it. If you have a big idea, and you know in your heart it’s going to happen (Passion), but know there will be roadblocks and challenges along the way. In this regard, a high degree of passion and commitment is extremely important. In my experience, really big ideas often take a decade to reach fruition. Sign

Let’s say experiment A is testing a small change, such as the color of the sign-up button. As results start coming in, it becomes clear that the increase in the number of new visitors signing up is very small—garnering just 5 percent more sign-ups than the original button color. Besides the obvious assumption that changing the color of the sign-up button may not be the key factor holding back new users from signing up, it’s also an indication that you’ll have to let the experiment run quite a long time in order to have enough data to make a solid conclusion. As you can see from the chart above, to reach statistically significant results for this test, you’d need a whopping 72,300 visitors per variant—or, in other words, you’d have to wait 72 days to get conclusive results. As Johns put it in an interview with First Round Review, “That’s a lifetime when you’re a start-up!” In a case like this what a start-up really ought to do is abandon the experiment quickly and move on to a next, potentially higher-impact, one.

a young Goldman Sachs banker named Joseph Park was sitting in his apartment, frustrated at the effort required to get access to entertainment. Why should he trek all the way to Blockbuster to rent a movie? He should just be able to open a website, pick out a movie, and have it delivered to his door. Despite raising around $250 million, Kozmo, the company Park founded, went bankrupt in 2001. His biggest mistake was making a brash promise for one-hour delivery of virtually anything, and investing in building national operations to support growth that never happened. One study of over three thousand startups indicates that roughly three out of every four fail because of premature scaling—making investments that the market isn’t yet ready to support. Had Park proceeded more slowly, he might have noticed that with the current technology available, one-hour delivery was an impractical and low-margin business. There was, however, a tremendous demand for online movie rentals. Netflix was just then getting off the ground, and Kozmo might have been able to compete in the area of mail-order rentals and then online movie streaming. Later, he might have been able to capitalize on technological changes that made it possible for Instacart to build a logistics operation that made one-hour grocery delivery scalable and profitable. Since the market is more defined when settlers enter, they can focus on providing superior quality instead of deliberating about what to offer in the first place. “Wouldn’t you rather be second or third and see how the guy in first did, and then . . . improve it?” Malcolm Gladwell asked in an interview. “When ideas get really complicated, and when the world gets complicated, it’s foolish to think the person who’s first can work it all out,” Gladwell remarked. “Most good things, it takes a long time to figure them out.”* Second, there’s reason to believe that the kinds of people who choose to be late movers may be better suited to succeed. Risk seekers are drawn to being first, and they’re prone to making impulsive decisions. Meanwhile, more risk-averse entrepreneurs watch from the sidelines, waiting for the right opportunity and balancing their risk portfolios before entering. In a study of software startups, strategy researchers Elizabeth Pontikes and William Barnett find that when entrepreneurs rush to follow the crowd into hyped markets, their startups are less likely to survive and grow. When entrepreneurs wait for the market to cool down, they have higher odds of success: “Nonconformists . . . that buck the trend are most likely to stay in the market, receive funding, and ultimately go public.” Third, along with being less recklessly ambitious, settlers can improve upon competitors’ technology to make products better. When you’re the first to market, you have to make all the mistakes yourself. Meanwhile, settlers can watch and learn from your errors. “Moving first is a tactic, not a goal,” Peter Thiel writes in Zero to One; “being the first mover doesn’t do you any good if someone else comes along and unseats you.” Fourth, whereas pioneers tend to get stuck in their early offerings, settlers can observe market changes and shifting consumer tastes and adjust accordingly. In a study of the U.S. automobile industry over nearly a century, pioneers had lower survival rates because they struggled to establish legitimacy, developed routines that didn’t fit the market, and became obsolete as consumer needs clarified. Settlers also have the luxury of waiting for the market to be ready. When Warby Parker launched, e-commerce companies had been thriving for more than a decade, though other companies had tried selling glasses online with little success. “There’s no way it would have worked before,” Neil Blumenthal tells me. “We had to wait for Amazon, Zappos, and Blue Nile to get people comfortable buying products they typically wouldn’t order online.

Launching “Buy It Now” was a large change that touched every transaction, but the eBay team also innovated across the experience for both sellers and buyers as well. With an initial success, we doubled down on innovation to drive growth. We introduced stores on eBay, which dramatically increased the amount of product offered for sale on the platform. We expanded the menu of optional features that sellers could purchase to better highlight their listings on the site. We improved the post-transaction experience on ebay.com by significantly improving the “checkout” flow, including the eventual seamless integration of PayPal on the eBay site. Each of these innovations supported the growth of the business and helped to keep that gravity at bay. Years later, Jeff became a general partner at Andreessen Horowitz, where he would kick off the firm’s success in startups with network effects, investing in Airbnb, Instacart, Pinterest, and others. I’m lucky to work with him! He recounted in an essay on the a16z blog that his strategy was to grow eBay by adding layers and layers of new revenue—like “adding layers to the cake.” You can see it visually here: Figure 12: eBay’s growth layer cake As the core US business began to look more like a line than a hockey stick, international and payments were layered on top. Together, the aggregate business started to look like a hockey stick, but underneath it was actually many new lines of business.

And so, when I tell stories today about digital transformation and organizational agility and customer centricity, I use a vocabulary that is very consistent and very refined. It is one of the tools I have available to tell my story effectively. I talk about assumptions. I talk about hypotheses. I talk about outcomes as a measure of customer success. I talk about outcomes as a measurable change in customer behavior. I talk about outcomes over outputs, experimentation, continuous learning, and ship, sense, and respond. The more you tell your story, the more you can refine your language into your trademark or brand—what you’re most known for. For example, baseball great Yogi Berra was famous for his Yogi-isms—sayings like “You can observe a lot by watching” and “When you come to a fork in the road, take it.” It’s not just a hook or catchphrase, it helps tell the story as well. For Lean Startup, a best-selling book on corporate innovation written by Eric Ries, the words were “build,” “measure,” “learn.” Jeff Patton, a colleague of mine, uses the phrase “the differences that make a difference.” And he talks about bets as a way of testing confidence levels. He’ll ask, “What will you bet me that your idea is good? Will you bet me lunch? A day’s pay? Your 401(k)?” These words are not only their vocabulary. They are their brand. That’s one of the benefits of storytelling and telling those stories continuously. As you refine your language, the people who are beginning to pay attention to you start adopting that language, and then that becomes your thing.

Here’s some startup pedagogy for you: When confronted with any startup idea, ask yourself one simple question: How many miracles have to happen for this to succeed? If the answer is zero, you’re not looking at a startup, you’re just dealing with a regular business like a laundry or a trucking business. All you need is capital and minimal execution, and assuming a two-way market, you’ll make some profit. To be a startup, miracles need to happen. But a precise number of miracles. Most successful startups depend on one miracle only. For Airbnb, it was getting people to let strangers into their spare bedrooms and weekend cottages. This was a user-behavior miracle. For Google, it was creating an exponentially better search service than anything that had existed to date. This was a technical miracle. For Uber or Instacart, it was getting people to book and pay for real-world services via websites or phones. This was a consumer-workflow miracle. For Slack, it was getting people to work like they formerly chatted with their girlfriends. This is a business-workflow miracle. For the makers of most consumer apps (e.g., Instagram), the miracle was quite simple: getting users to use your app, and then to realize the financial value of your particular twist on a human brain interacting with keyboard or touchscreen. That was Facebook’s miracle, getting every college student in America to use its platform during its early years. While there was much technical know-how required in scaling it—and had they fucked that up it would have killed them—that’s not why it succeeded. The uniqueness and complete fickleness of such a miracle are what make investing in consumer-facing apps such a lottery. It really is a user-growth roulette wheel with razor-thin odds. The classic sign of a shitty startup idea is that it requires at least two (or more!) miracles to succeed. This was what was wrong with ours. We had a Bible’s worth of miracles to perform: