Work it: what makes Startups ticks? Check out some surprising research on smart starts

Entrepreneur,  Oct, 2005  by Mark Henricks

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IT'S BETTER to be fast to market than to wait until your offering is perfect. And even technology firms shouldn't make advanced technology their highest priority. Those are among the findings of a four-year study of 350 young companies reported in Startups That Work (Portfolio, $25.95) by Joel Kurtzman, former Harvard Business Review editor, and Glenn Rifkin. They also identify nine key factors in startup success, including market size, competitive position, business model and cash flow.

Some unexpected results: Startups with two or more co-founders did significantly better than lone entrepreneurs, and generally, the bigger the co-founding team, the better. Another interesting finding was that 300 of the group were still going after four-years, an 80 percent survival rate. This research-based report is a significant improvement over many reports on small-company success, which tend to rely on more subjective factors.

NOTHING BUT THE TRUTH

Does it cost five times as much to get new customers as to keep old ones? If you believe so, read Loyalty Myths (Wiley, $24.95) by Timothy L. Keiningham, Terry G. Vavra, Lerzan Aksoy and Henri Wallard. These market researchers thoroughly dismantle that and many other customer-loyalty shibboleths, and offer better ideas.

Take Our Word For It ...

Check out these titles on the "Entrepreneur Recommends" shelf at Borders.

All Marketers Are Liars: The Power of Telling Authentic Stories in a Low-Trust World b9 Seth Godin, $23.95

Jack Welch and the 4E's of Leadership: How to Put GE's Leadership Formula to Work in Your Organization by Jeffrey A. Krames, $21.95

iCon: Steve Jobs, The Greatest Second Act in the History J: Business by Jeffrey S. Young and William L Simon 24.95

Success: Advice on Achieving Your Goals from Remarkably Accomplished People, edited by J. Pincott, $14.95

MARK HENRICKS is Entrepreneur's "Staff Smarts" columnist.

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