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If you want your startup to succeed, you need to understand why startups fail.
“Whether you’re a first-time founder or looking to bring innovation into a corporate environment, Why Startups Fail is essential reading.”—Eric Ries, founder and CEO, LTSE, and New York Times bestselling author of The Lean Startup and
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Book ID Asin: B08CD3V6Y2
Book Title: Why Startups Fail: A New Roadmap for Entrepreneurial Success
Book Author: Tom Eisenmann
Book Format and Price:
Book Format Name: Kindle
Book Format Price: $1.99
Book Format Name: Audiobook
Book Format Price: $0.00
Book Format Name: Hardcover
Book Format Price: $17.79
Book Format Name: Paperback
Book Format Price: $33.35
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Book Category: Kindle Store, Kindle eBooks, Business & Money and unknown
Book Rating: 91 ratings
Why Startups Fail: A New Roadmap for Entrepreneurial Success by Tom Eisenmann Book Review
Name: Jijnasu Forever
Rating: 5.0 out of 5 stars
Title: Increase chances of success...by reducing chances of failure. A must-read
Date: Reviewed in the United States on March 30, 2021
Review: In addition to "Start-up Owner’s Manual" (Blank and Dorf), this is a must-have for anyone in the start-ip world at any stage of its life. A founder/executive team is going to benefit the most from this book primarily from its well-laid out checklist of what not to do. While a plethora of books explain how to build a great company, it is often overly optimistic or confuses good outcomes with good processes. Eisenmann provides a roadmap to develop a good strategy framework and risk management processes for a start-up.
Through examples of some failed companies, the author teases out six key themes that the author asserts will explain most failures. These themes are grouped into two stages of a start-ups life – Launching (teaming, market fit, misleading early success) and Scaling. The latter deals with issues related to scaling for scope or speed. For each factor, the book discusses various aspects - founder psychology, investor mindsets, teaming, management processes, etc.
The bulk of the discussion is centered on a 'Diamond-and-Square" framework that tries to formulate the key stakeholders and contextualizing various business functions (tech, operations, marketing along with the value proposition and profit formula). A "Double-Diamond Design Model" provides a convergence-divergence strategy for problem definition and solution development phases. Each chapter discusses various parameters that will help a startup leader develop a clear strategic and operational plan. In the section on "scaling", the author discusses a "Six S" framework to define issues of staff, structure and values during various types of scaling. Eisenmann also warns on situations where concepts from popular techniques such as lean start-ups are either misinterpreted or applied incorrectly. While the bulk of examples tend to focus on a direct-to-consumer business, the lessons and the tools are not tied to it. In fact, one of the most useful chapters in the book is the detailed discussion on the role (if any) of strategic customers (that chapter alone was well worth for me; also note that It is difficult to provide a concise summary for this book - you are better off buying both a hard copy and an electronic copy to make your highlighting not distract for a second reading).
Failure, of course, is always going to be part of entrepreneurship, this book doesn't claim it can avoid them - but a careful (and humble) reading of the various thought exercises, examples, frameworks provided by the author will decrease chances of a failure. A must-read.
Name: Dave Millman
Rating: 4.0 out of 5 stars
Title: Should be titled, "Why Venture-Backed B2C Ecommerce Startups Fail"
Date: Reviewed in the United States on June 6, 2021
Review: Just finished reading this. While the content is solid, the title and subtitle "a roadmap for entrepreneurial success" are both misleading. One star deducted for obviously deliberate deception on the part of the publisher.
What this book is: A detailed examination of many failure modes of B2C startups, with a concentration on different flavors of ecommerce. You get detailed case studies of each failure mode, including such common errors as "Speed Traps" (scaling too fast) and "False Starts" (launching in the wrong market/requiring a pivot.) If you are raising money for or managing a B2C ecommerce startup, there is no better analysis of the many traps and pitfalls ahead of you. This book is well worth your time, as it examines the challenges in some detail.
The further your startup is from B2C ecommerce, the less relevant the many case studies will be. Marketplaces? Yes, read the book, but you won't find any discussion of matching the growth of buy and sell side (or buy and sell and deliver!) B2B? Nothing here specifically for you, and the author's lack of any mention of the differences between B2C and B2B should make you leary of this book's relevance to your own situation.
Worthwhile and current? Mostly yes. But here's the one mention of Covid in the book (p28):
"When Covid 19 started paralyzing the U.S. economy, thousands of otherwise healthy new ventures couldn't raise funds and saw sales dry up; the same thing happened during the Great Recession of 2008." As a guess, the author wishes he could remove that sentence; 2008 and 2020 couldn't have been more different. Although the overall economy suffered enormous difficulties, startup funding and exits set records in 2020 despite many early predictions to the contrary. But that's hindsight talking.
Summary: Deceptive title saved by solid and thorough content about B2C ecommerce.
Name: Maria Mag
Rating: 5.0 out of 5 stars
Title: For all entrepreneurs out there
Date: Reviewed in the United States on April 17, 2021
Review: A detailed account that highlights the importance of failure and how to fail well. Eisenmann’s experience as a Harvard Business School Professor really comes through with his detailed explanations and the use of case studies that make this an immersive and educational read.
I’d you’re an entrepreneur, aspiring to become one, or know one you should get this book.
Name: Amir
Rating: 5.0 out of 5 stars
Title: Great book to hope for the best, prepare for the worst in a startup!!
Date: Reviewed in the United States on March 15, 2022
Review: Enjoyed the book!! Really great stories the author shares that they are very useful lesson that can be learned from the startups!! Highly recommended!!
Name: Madelyn Powers
Rating: 5.0 out of 5 stars
Title: Great Book/Came fast
Date: Reviewed in the United States on September 22, 2021
Review: Great quality book, needed it for a college class. Came very fast
Name: Paul
Rating: 5.0 out of 5 stars
Title: Excellent Guidbook for Startup Success!
Date: Reviewed in the United States on May 3, 2021
Review: Most of us are familiar with the excellent study by CB Insights, "Why Startups Fail: Top 20 Reasons," but Eisenmann's book provides illustrative backstories behind the key drivers of most entrepreneurial train wrecks. As a lawyer, adjunct law professor, speaker and author focused on promoting startup success and guiding entrepreneurs and their advisors away from common legal, regulatory, and fundraising pitfalls, Eisenmann's book will be another important resource in my professional and academic entrepreneurship toolkit. As my book "Startup Law and Fundraising" does to provide color and context for startups' common legal, regulatory, and fundraising mistakes, "Why Startups Fail" uses case studies and anecdotes to reinforce Eisenmann's key findings and recommendations. Combined with his six "Startup Failure Patterns" (Good Idea-Bad Bedfellows, False Starts, False Positives, Speed Trap, Help Wanted, Cascading Miracles) and the "Diamon-and-Square Framework," Eisenmann's stories bring the material to life and support an effective framework for analyzing, retaining, and applying his findings and recommendations to other startups. As I frequently remind entrepreneurs, it's not cheating to study the mistakes of others so you can avoid them yourself. I found the book insightful, easy to read, and entertaining and highly recommend it.
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