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I'd recommend Peter Drucker's book from 1985, "Innovation And Entrepreneurship". Drucker points out that the output of a small startup is radically different f
by lkrubner 9y ago
I'd recommend Peter Drucker's book from 1985, "Innovation And Entrepreneurship".
Drucker points out that the output of a small startup is radically different from a large, mature organization. From a large organization, investors might want growth of 15% and final profits of 20%. But he also points out, this is both too little and too much for a small startup. From an early stage organization, it is important to see triple digit growth, and no profits at all. The sign of a successful startup is that it finds a business model that allows it to grow rapidly. Drucker also describes the failure mode where the small startup gets enough growth to survive, but not enough to become a mature, independent organization. It then limps along in a crippled state.
For my money, Drucker has a better density of insight-per-page than any other business writer. I strongly recommend him.
- eldavido 9y agoHere in Startupland we sometimes disparage 15%/year. But at the scale where big companies operate, that can be truly massive. facebook is realizing something like 15% return on 70 billion of equity book value. Getting 15% on a 100k real estate flip is one thing. Realizing 15% on 70 billion dollars is quite another.