The Star Principle: How it can make you rich
Step 5: Ensure profitable variation.
Richard Koch • The Star Principle: How it can make you rich
The answer is not to work or invest in the great majority of ventures. The key is to select the ventures that are likely to succeed anyway. Without superhuman people. Without perfect balance between the skills of the people. Without blood, toil, tears and sweat.Without the need to keep chopping and changing before the correct formula emerges. The u
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A leading firm should have higher prices, or lower costs, than a similar business that is a follower. Why higher prices? Because the customers prefer the product. Why lower costs? Because the firm can spread its fixed costs over a much greater volume of business than competitors can.
Richard Koch • The Star Principle: How it can make you rich
The delivery formula has been cracked when all the following events always happen. ★ Products are delivered to the same high standard, on time, every time. ★ This year’s product is measurably better than last year’s. ★ This year’s product costs at least 5 per cent less to make than last year’s. ★ Volumes can be doubled within a year without panic o
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TRIGGER 21. CENTRALISED VERSUS DECENTRALISED USE
Richard Koch • The Star Principle: How it can make you rich
Step 3: Target your customers.
Richard Koch • The Star Principle: How it can make you rich
A star that is fast losing market share, or an ex-star that has lost it, may be an attractive prospect.
Richard Koch • The Star Principle: How it can make you rich
Step 6: Name the niche you plan to lead.
Richard Koch • The Star Principle: How it can make you rich
About 1 in 20 start-ups is a star. So stars are rare. But they are not so rare that, with a bit of patience and careful thought, you can’t discover one - or create one yourself. If you look intelligently for a star, you will find it.