Principle #1

You don't need a good idea

Principle #2
Starting with a business plan is an exercise in deception

Principle #3
No idea is yours alone; You can never escape competition, Principle #51
you have to outcompete it Don’t spend lots of money to fuel fast growth until you’re
pouring it into a high-performance engine.
Principle #4
Following a Roadmap is a road to the predictable; innovating Principle #52
is the uncharted learning of discovery Scale up only in step with the success you are already
generating; don’t try to force the machine
Principle #5
A foolish consistency is the road to failure Principle #53
Once you’ve achieved takeoff, focus on accelerating with
Principle #6 what’s working; now is the time to scale up, not to keep
It's not what you know matters; It's what you learn making changes.

Principle #7 Principle #54

Ideas are made to be shared, not stockpiled Losing money on sales is not a growth strategy

Principle #8 Principle #55

Feedback is meant to be challenged, not bowed down to If you invest all or most of your profits in growth, the growth
must be worth more than the profits.
Principle #9
Successful Entrepreneurs take as little risk as possible Principle #56
Your employees should not be asked to forgo banking profits;
Principle #10 reward them commensurate to your rate of growth.
A great product is not a business model
Principle #57
Principle #11 Achieving fast growth is not a license to spend
Going it alone may mean going nowhere
Tinkering Principle #58
Principle #12 Scale up operations only as fast as your team can skate and
Earning a living from your start-up will take atleast twice as still stay in well-coordinated formation.
long as you think
Principle #59
Principle #13 Do not let numbers make decisions for you; the qualitative
Accurate predictions of costs and revenue are not possible; must be paired with the quantitative to make good choices
Plan to spend more than you think you’ll need and to earn about growth.
little to nothing
Principle #60
Principle #14 Nothing can bring in more new fans better than your early
“Bootstrapping” should be the start-up founder’s word for fans.
“standard operating procedure”.
Principle #61
Principle #15 Customers don’t just want a product; they want a
Raise the minimum amount you need to get to launch; relationship.
financing is scarce and expensive.
Inflection point Principle #62
Principle #16 Catchy tagline and clever ads are no match for an authentic
Making money by other means allow you to leverage your brand identity.
time to support the building process.
Principle #63
Principle #17 Big forms don’t have all the power; they want your innovation
Equity is worth incalculably more than its current value. and hustle as much as you want their market muscle and
customers.
Principle #18
Don’t invest in any money that you aren’t willing to lose. Principle #64
Raise capital to boost or sustain strong growth, not search for
Principle #19 it.
Business plans don’t raise seed money; tangible results do.
Principle #65
Principle #20 Venture capital always comes with strings attached; make
All funding comes with hidden costs. sure they don’t bind you.

Principle #21 Principle #66

Taking love money is nothing to be ashamed of when you’re Managing your relationships with the board is as vital as
open and optimistic. managing your relationship with customers.

Principle #22 Principle #67

You can’t build it and expect a market to come; you have to Once you accept the venture capital, you’re on a ticking clock
build your market as you build your product. to either acquisition or IPO.

Principle #23 Principle #68

Be both rigorous in your daily planning and highly flexible Venture capitalists do not lead start-ups to success; they bet
about going off-plan at any moment. on them being successful.

Principle #24 Principle #69

Building a start-up is a physical challenge as well as a mental Think of accepting outside capital as investing your equity;
one. take a portfolio management approach.

Principle #25 Principle #70

Start-up process tools do not have a brain. Choose your investors as carefully as they are choosing you.
Hockey Stick Principles
Principle #26
Avoid fifty-fifty partnerships. Principle #71
You must learn to sell your company, not just your product.
Principle #27
Impatience is a virtue. Principle #72
Transparency is the foundation of investor trust; never
Principle #28 engage in obfuscation.
Allow others to solve your big challenges.
Principle #73
Principle #29 Don’t show up for the investor negotiation gunfight with a
Screwups happen; let go of them and move on quickly. knife; hire experts to join you.

Principle #30 Principle #74

Your time and cost estimates will always be wrong—always. Successful founders must either become equally successful
managers to step aside.
Principle #31
A big launch may not be best. Principle #75
Good managers are made, not born.
Principle #32
No matter how big your splash, sales may not come. Principle #76
A fast growing organisation without top-quality managers is
Principle #33 like a team of star players without a coach.
You have no idea what your market is until you find it.
Principle #77
Principle #34 Winning teams recruit star players.
You cannot find your market through research; only through
selling. Principle #78
Hiring only people who see things as you do means you’ll
Principle #35 have a blind spot
Don’t dis the market that shows up for you, no matter how
unexpected. Principle #79
The stars you recruit must be able to play with your team.
Principle #36
Early customers are the best product managers. Principle #80
Keep your hands dirty with some details.
Principle #37
Don’t expect free trails to sell your product for you. Blade Years Principle #81
Leading is as much about listening as directing.
Principle #38
Your harshest critics save you. Principle #82
Every team needs a deep bench; make all employees feel
Principle #39 like key players.
Selling is not a game for amateurs.
Principle #83
Principle #40 If employees don’t know you, they know you don’t know
No one else can care as much about your customers and them.
learn as much from them as you can. Surging Growth
Principle #84
Principle #41 Understand the necessity of every hire you make.
Don’t hitch your wagon to one huge customer.
Principle #85
Principle #42 If you’re not weeding out inferior performers, you’re letting the
Don’t tell a market what it wants; give it what it wants. rest of the team down.

Principle #43 Principle #86

The way to scale up sales can only be discovered, not If you don’t learn to love to manage, find a CEO who does.
forced.
Principle #87
Principle #44 Carefully consider whether or not you would like to sell your
Chasing investment capital is not a strategy for growth; it’s a company well in advance of needing to know whether you
distraction from learning how to grow. have to.

Principle #45 Principle #88

Do to tell yourself to be okay with failure; tell yourself keep When selling your business, you’re selling your passion.
trying every single thing you can so that you don’t have to be
okay with it. Principle #89
The strategic fit of two companies cannot truly be known until
Principle #46 they’e put together.
Scaling up operations isn’t real growth until you’ve proven
you can scale profitably. Principle #90
The value of satisfaction of guiding the long-term success of
Principle #47 your company cannot be quantified.
Learn from what’s working and lean into it.
Principle #91
A founder should be the star player of an IPO, not sit on the
Principle #48 sidelines.
Continually add features and services customers tell you they
want, and ruthlessly jettison those that most don’t respond to.
Principle #92
Founder grow companies better than outsiders.
Principle #49
When pivoting; it’s best to start small.

Principle #50
Don’t work on fixing only the part of the model you think is
broken; think of improvements even for the parts you think
you’ve got right.