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The Star Principle: How It Can Make You Rich
Star business are start-up companies that operate in high-growth areas and quickly become market leaders. In this essential business guide, acclaimed entrepreneur Richard Koch demonstrates the secrets behind riding star businesses to success. Information is provided both on how to establish a star business and on how to invest in and profit from existing companies that are bound for growth. Warnings on avoiding false stars is also included, along with a number of examples of how existing companies established themselves as industry leaders.
272 pages, Paperback
First published February 28, 2008
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Displaying 1 - 22 of 22 reviews
July 3, 2017
This is a good book although a lot of the subject matter is common sense. He talks about the characteristics of a Star business but leaves it at a rather high level. This is good in a way as the reader won't be constrained by previous star businesses.
The examples provided are plentiful and varied. However, it's one of those things that need to be put into practice and it's easier to read about than to do. The author does say that go out and give it a try. Your business might be a Star business...if not, perhaps the next one...or the one after that.
The examples provided are plentiful and varied. However, it's one of those things that need to be put into practice and it's easier to read about than to do. The author does say that go out and give it a try. Your business might be a Star business...if not, perhaps the next one...or the one after that.
January 18, 2021
Koch’s best book.
Very repetitive and somewhat redundant, the idea itself is brilliant.
Very repetitive and somewhat redundant, the idea itself is brilliant.
July 27, 2023
If you want to get rich, you could work hard, use natural abilities and such, but you can do quite well by being at the right place at the right time. You can be strategic about finding the right place. Richard Koch's strategy is evaluating opportunities in terms of Boston Consultancy Group's growth/share matrix. This is a 2x2 matrix with the 4 quadrants occupied by four kinds of businesses. The leaders in high growth market are called stars. The other quadrants are question marks, dogs and cash cows. A star business is one that (a) is a market leader in it's niche (b) and the market is growing by at least ten percent a year, on average, over many years.
Find a business like that and allow compounding to work its magic. It's important that the growth is uninterrupted. Growing at 20% every year for 20 years will give you more returns than growing at 30% for 10 years. High growth sustained for a long time is the key.
Find a business like that to invest, start such a business, or become an early employee at such companies.
Amazon and Google were stars. So was Apple. Betfair, which the author invested in, grew at over 30 percent _each month_ in the early aughts. Coca Cola and McDonald were stars as well, with 99 percent of their value entirely due to growth - again, emphasizing the value of compound returns.
Koch says he has bet his entire career on stars. It is a religious belief that seemingly informs all his decisions.
One thing is for sure, if you want out-sized returns, you must have the ability to fool yourself just enough to be dangerous. One sees this with LBJ, Steve Jobs, and Koch.
Find a business like that and allow compounding to work its magic. It's important that the growth is uninterrupted. Growing at 20% every year for 20 years will give you more returns than growing at 30% for 10 years. High growth sustained for a long time is the key.
A business with sales of $10 million that grows at 3 per cent a year - roughly the rate the economy grows - will increase by 34 per cent over a decade, to just over $13 million. What will a business that grows at 30 per cent a year - ten times 3 per cent - grow by in the same time? You might assume is it ten times 34 per cent, which is 340 per cent, and add a bit for the effect of compounding, to take the growth to perhaps 500 per cent. If this were true the sales after ten years would have grown to $50 million. But the correct answer is nearly $138 million.
Find a business like that to invest, start such a business, or become an early employee at such companies.
Amazon and Google were stars. So was Apple. Betfair, which the author invested in, grew at over 30 percent _each month_ in the early aughts. Coca Cola and McDonald were stars as well, with 99 percent of their value entirely due to growth - again, emphasizing the value of compound returns.
Koch says he has bet his entire career on stars. It is a religious belief that seemingly informs all his decisions.
Stars are where the universe creates good fortune. Stars are the source of wealth. Stars are the place to invest. Stars are the place to work. Know only one thing, so that you can’t ever forget it. Know the power of stars. Believe it. Act on it. Once you know this one thing, all the rest of your professional life is tactics - how to find your star before anybody else, how to ensure it stays a star, how to work in a star as one of the early star-mongers, how to get the most out of your star. But the tactics depend upon believing in the star idea. Believe in it, because it is true, because it is the single most vital truth in the business world, and because it can set you free.
One thing is for sure, if you want out-sized returns, you must have the ability to fool yourself just enough to be dangerous. One sees this with LBJ, Steve Jobs, and Koch.
August 7, 2014
This is a very insightful book from a very smart guy! Richard Koch is the man who brought us the 80/20 principle, and this book is just as insightful. He talks about his business successes, but instead of claiming that his business acumen was responsible, he explains that each business was poised for success, and he participated in reaching that success.
Richard goes to great lengths to explain what a "Star Business" is, why the concept of a Star Business is so important, and how to identify a Star Business. He also explains how to attach yourself to a Star Business without money.
I highly recommend this book for anyone interested in the reasons one business succeeds while another fails.
Richard goes to great lengths to explain what a "Star Business" is, why the concept of a Star Business is so important, and how to identify a Star Business. He also explains how to attach yourself to a Star Business without money.
I highly recommend this book for anyone interested in the reasons one business succeeds while another fails.
February 11, 2021
Key lessons:
- Rather than having a special ability, it is more important to be at the right place, at the right time.
- Work for companies which grow at least 10% a year.
- Work or invest in companies, which are leaders in their niche.
- Rather than having a special ability, it is more important to be at the right place, at the right time.
- Work for companies which grow at least 10% a year.
- Work or invest in companies, which are leaders in their niche.
April 21, 2022
GREAT book!
Richard Koch brings across important lessons with real experiences(stories!) to make a memorable and enjoyable read.
Along with the "E-myth" and "From Zero to One" -- this book is mandatory reading for not just entrepreneurs, but people who want to make massive amounts of money!
Richard Koch brings across important lessons with real experiences(stories!) to make a memorable and enjoyable read.
Along with the "E-myth" and "From Zero to One" -- this book is mandatory reading for not just entrepreneurs, but people who want to make massive amounts of money!
August 23, 2022
A book written out of personal experience of the author. The exact experience that made him earn his fortune. What one could wish more? Well, as expected from Richard Koch, he explains in simple words why what works does work, together with concise and sharp practical advice.
March 21, 2021
Very good.
February 26, 2022
Read this book after attending Perry Marshall's (way overpriced!) seminar. Could have gotten all the same ideas by reading this book!
September 11, 2021
One of the better books on business I have read this year. This book will provide you with a framework to identify great businesses which are successful money makers and only limited by the size of the niche market in which they lead.
It isn't a book just for those with an entrepreneurial mindset, as it is also great for investors and those wanting to be part of a great business even as an employee.
It isn't a book just for those with an entrepreneurial mindset, as it is also great for investors and those wanting to be part of a great business even as an employee.
October 5, 2020
Somewhat inspiring, written with some humility which I appreciated but I found some of the ideas and concepts a bit unrealistic. Recognizing the stars and non stars are not as easy in real life as the author makes it seem.
August 15, 2017
Another book that says "Invest in this formula and you will get rich"
Some good points about growing markets being engines for good companies.
Some good points about growing markets being engines for good companies.
January 27, 2019
Very useful if repetitive. Vital criteria for starting a business, investing in one, or even a in deciding which one to work for.
October 27, 2023
Today I'm going to look for my STAR ⭐
February 22, 2024
While I appreciate the authors experience, expertise and achievements - this book seemed common sense - good info which is important today to set yourself apart and thrive in a unique way - author discusses what it takes to do that and was a good reminder really and nudge in correct common sense thinking for me…
…decent worthwhile read but I’d had better hopes personally having read his other books which were more inspired and insightful…
To Our Continued Success!
Seemy
Waseem.tv/Blog
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…decent worthwhile read but I’d had better hopes personally having read his other books which were more inspired and insightful…
To Our Continued Success!
Seemy
Waseem.tv/Blog
👆🏼 P.S -
If you found this review helpful - I’d like to invite you to discover more on our blog. Where the community share some of our most important insights to level up each others knowledge 💡- from experience in studying books like this, training programs, podcasts and much more - visit the blog link above to find out more.
P.P.S 😅 - You probably noticed from my profile that I’ve reviewed a LOT of books over the years now - if you love seeking knowledge like me I’d love to connect with you further as a like minded person (send me a friend invite! 😀) - Also if you are curious - here is my preferred and recommended resource for seeking timeless wisdom - Check it out via the website invite link below 👇🏼 (You’ll be able to claim some awesome books for free 📚)
https://Waseem.tv/GoodReadsBookInvite
February 28, 2012
ok, you just go out there and get yourself a job in a start up star business, as if most of us had a fighting chance to do so.
Ok, then you invest your money in that business and make heaps of dosh. Ok. what money?
and then you make sure you stay in control and if the business owners don't get it, then you just buy them out. ok, with what money?
And then at the end of the story you multiply your money by thousands and end up a mulit milionaire.
And if it goes pear shaped, you loose your job because you did work for an upstart star that burned out. oops, then you are broke and unemployed for a while, spending all your spare cash, that money you invested and don't have any more because it burned with that little star.
Anyway, nice try, and for about 0.000000000000001% of listeners this might work.
If you believe it, I also have some "slightly tidal" water front properties for sale in Queensland you might like to invest in, as well as a peanut farm in siberia, and some emus that live in a lion enclosure. High risk, but great returns, when it does return.
Two stars for being so enthusiastic and for having made it yourself.
Good on you Richard. I'll make my money another way.
Ok, then you invest your money in that business and make heaps of dosh. Ok. what money?
and then you make sure you stay in control and if the business owners don't get it, then you just buy them out. ok, with what money?
And then at the end of the story you multiply your money by thousands and end up a mulit milionaire.
And if it goes pear shaped, you loose your job because you did work for an upstart star that burned out. oops, then you are broke and unemployed for a while, spending all your spare cash, that money you invested and don't have any more because it burned with that little star.
Anyway, nice try, and for about 0.000000000000001% of listeners this might work.
If you believe it, I also have some "slightly tidal" water front properties for sale in Queensland you might like to invest in, as well as a peanut farm in siberia, and some emus that live in a lion enclosure. High risk, but great returns, when it does return.
Two stars for being so enthusiastic and for having made it yourself.
Good on you Richard. I'll make my money another way.
September 5, 2015
Dit boek heeft heel wat elementen die ook terug te vinden zijn in Blue Ocean Strategy van Kim en Mauborgne. Het is een redelijk goed gedocumenteerd boek over het opzetten van een "Star" bedrijf, dat gedefinieerd wordt als het leidend bedrijf in een snelgroeiende niche markt. Het verhaal is gebaseerd op reversed engineering van succesverhalen van bedrijven waar de auteur zelf bij betrokken was. Dat betekent dat er nogal wat open eindjes in het concept van starmaking zitten.
Toch is het een boek dat zeker het lezen waard is omdat het decennia aan businesservaring en ondernemerschap samenbrengt rondom dit concept. Met name waar het gaat over realisatie, targetsetting, managementstijl en de relatie tussen managers en eigenaren biedt het boek zeer waardevolle inzichten.
Toch is het een boek dat zeker het lezen waard is omdat het decennia aan businesservaring en ondernemerschap samenbrengt rondom dit concept. Met name waar het gaat over realisatie, targetsetting, managementstijl en de relatie tussen managers en eigenaren biedt het boek zeer waardevolle inzichten.
October 23, 2016
Terrific book for everyone selecting an idea for new project.
"Star" ventures are ones operating on the market that grows at least 10% + can create and dominate its own category. The value of the book that it is not just a theory but 4 real business examples.
As author notices lot of start businesses were made from existing businesses where original founders didn't saw the opportunity to skyrocket the business (McDonalds, Coca-Cola and many others including some Author's ventures).
"Star" ventures are ones operating on the market that grows at least 10% + can create and dominate its own category. The value of the book that it is not just a theory but 4 real business examples.
As author notices lot of start businesses were made from existing businesses where original founders didn't saw the opportunity to skyrocket the business (McDonalds, Coca-Cola and many others including some Author's ventures).
This entire review has been hidden because of spoilers.
January 8, 2021
Niche businesses that have successful growth startup records is the best observation to predict the future growth. This book help you to understand what are this businesses, even how to create them from real experience point of view. Richard Koch's books is must to read!
November 24, 2012
Absolutely brilliant, worth reading again. A must read for any entrepreneurs, people looking at building or purchasing a business.
October 22, 2017
Excellent advice from business thinker. His book about 80/20 principle changed my life. This book is more in depth coverage for entrepreneurs.
February 10, 2015
Koch combines a wealth of experience in consulting and venture capital to formulate a convincing blueprint for entrepreneurship. Must read for entrepreneurs !!
Displaying 1 - 22 of 22 reviews