A Survey of Startups

%22a survey of startups%22 ProfitChartCurve-Simpletutorials.net

Nearly all startups fail to scale up.

There — we got the bad news out of the way. The good news: it’s possible to greatly shorten the odds by following a few simple rules.

A report on recent MIT research lays out some pointers:

“Compared to average startups, which have a one in 3,500 chance of experiencing growth, the top one percent of firms with these characteristics have a much better chance (one in 100) of taking off. New startups are four times more likely than the average startup to grow if they are a corporation, two and a half times more likely if they have a short name, and five times more likely if they have trademarks. Furthermore, firms that apply for patents are 35 times more likely to grow. And, curiously, eponymously named firms are a whopping 70 percent less likely to grow.”

There’s more, but in a nutshell:

  • Incorporate
  • Use a short name (not the founder’s name!)
  • Nail down your trademarks
  • Apply for patents
  • Locate in a high-tech region:
    • Silicon Valley
    • Southern California
    • Washington state
    • New York / Boston
    • Texas

Oh, and let’s add the standard principles for business success:

  • Provide a product or service people need and love
  • Make what you sell vastly better in some important way
  • Hire excellent people you can get along with
  • Stay focused on results (instead of signs of your own importance)
  • Work your butt off for 4 years or more

What could be simpler? Now get to it.

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Published by

Jim Hull

Jim Hull graduated from UC Santa Cruz with a degree in philosophy, then spent ten years as a lecture-demonstrator in the performing arts, including tours and TV appearances. More recently, Jim has produced research, copywriting, and editing for numerous clients. He also has published two books: the set of essays ARE HUMANS OBSOLETE? and a novel, THE VAMPIRE IN FREE FALL. Jim teaches classes in current events and music at The Braille Institute in Los Angeles. He applies his unique perspective to create surprising, compelling solutions to difficult problems. Jim thinks the world would work better if people spent less time dominating each other and more time working alongside those with different viewpoints to resolve the challenges we all face. CONTACT JIM: jimhull@jimhull.com ...

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