Book Short: There is No Blueprint to $1B
Book Short: There is No Blueprint to $1B
Blueprint to a Billion: 7 Essentials to Achieve Exponential Growth, by David Thomson (book, Kindle) sounds more formulaic than it is. It’s not a bad book, but you have to dig a little bit for the non-obvious nuggets (yes, I get that growing your company to $1B in sales requires having a great value proposition in a high growth market!). The author looked for commonalities among the 387 American companies that have gone public since 1980 with less than $1B in revenues when they went public and had more than $1B in revenue (and were still in existence) at the time of the book’s writing in 2005.
Thompson classifies the blueprint into “7 Essentials,” which blueprint companies do well on across the board. The 7 Essentials are:
– Create and sustain a breakthrough value proposition
– Exploit a high growth market segment
– Marquee/lighthouse customers shape the revenue powerhouse
– Leverage big brother alliances for breaking into new markets
– Become the masters of exponential returns
– The management team: inside-outside leadership
– The Board: comprised of essentials experts
As I said above, there were some nuggets within this framework that made the entire read worthwhile. For example, crafting a Board that isn’t just management and investors but also includes industry experts like customers or alliance partners is critical. That matches our experience at Return Path over the years (not that we’re exactly closing in on $1B in revenues – yet) with having outside industry CEOs sit on our Board. Our Board has always been an extension of our management and strategy team, but we have specifically gotten some of our most valuable contributions and thought-provoking dialog from the non-management and non-investor directors.
Another critical item that I thought was interesting was this concept of not just marquee customers (yes, everyone wants big brand names as clients), but that they also need to be lighthouse customers. They need to help you attract other large customers to your solution – either actively by helping you evangelize your business, or at least passively by lending their name and case study to your cause.
The book is more of a retrospective analysis than a playbook, and some of its examples are a bit dated (marveling at Yahoo’s success seems a bit awkward today), and the author notes as well that many of the “blueprint” companies faltered after hitting the $1B mark. But it was a good read all-in. What I’d like to see next is a more microscopic view of the Milestones to $100 Million!
Book Short: Sequel Not Worth It
Book Short: Sequel Not Worth It
Mastering the 7 Essentials of High Growth Companies, by David Thomson, was a poor sequel to the solid Blueprint to a Billion [review] [buy]– and not worth reading if you’ve read the original. It was very short for its price and contained mildly interesting examples of “blueprint companies” that augmented the original book but didn’t uncover any new material or add any thinking to the mix. Basically, it was like another couple chapters that should have been part of Blueprint.
It is not a bad buy in lieu of the original if you haven’t read either one yet, as Blueprint is a bit longer than necessary, but otherwise, you can skip this one.
On a side note – the author’s interactive scorecard is a decent diagnostic tool (though also, I am sure, a lead gen tool for his consulting business).
About
My name is Matt Blumberg. I am a technology entrepreneur and business builder based in New York City who just (in 2020) started a new company called Bolster.
Bolster is an on-demand executive talent marketplace that helps accelerate companies’ growth by connecting them with experienced, highly vetted executives for interim, fractional, advisory, project-based or board roles. Bolster also provides on-demand executives with software and services to help them manage their careers as independent consultants and provides startup and scaleup CEOs with software and content to help them assess, benchmark and diversify their leadership teams and boards.  We are creating a new way to scale executive teams and boards.
Before that, I started a company called Return Path, which we sold in 2019. We created a business that was the global market leader in email intelligence, analyzing more data about email than anyone else in the world and producing applications that solve real business problems for end users, commercial senders, and mailbox providers. In the end, we served over 4,000 clients with about 450 employees and 12 offices in 7 countries. We also built a wonderful company with a signature People First Culture that won a number of awards over the years, including Fortune Magazine’s #2 best mid-sized place to work in 2012.
Early in my career, I ran marketing and online services for MovieFone/777-FILM (www.moviefone.com), now a division of AOL. Before that — I was in venture capital at General Atlantic Partners (www.gapartners.com), and before that, a consultant at Mercer Management Consulting (www.mercermc.com). And I went to Princeton before that.
Based on this blog, I wrote a book called Startup CEO: A Field Guide to Scaling Up Your Business, which was published by Wiley in 2013 and updated in 2020.
I have been married for over 20 years to Mariquita, who is, as I tell her all the time, one of the all-time great wives. We have three great kids, Casey, Wilson, and Elyse.
I have lots of other hobbies and interests, like coaching my kids’ baseball and softball teams; traveling and seeing different corners of the world; reading all sorts of books, particularly about business, American Presidential history, art & architecture, natural sciences (for laymen!), and anything funny; cooking and wishing I lived in a place where I could grill and eat outdoors year-round; playing golf; lumbering my way through the very occasional marathon, eating cheap Mexican food; introducing my kids to classic movies; and playing around with new technology.
IF YOU WANT TO UNDERSTAND WHAT THIS BLOG IS ALL ABOUT, read my first two postings: You’re Only a First Time CEO Once, and Oh, and About That Picture, as well as my updated post when I relaunched the blog with its new name, StartupCEO.com.
Book Short: On The Same Page
Book Short:Â On The Same Page
Being on the same page with your team, or your whole company for that matter, is a key to success in business. The Four Obsessions of an Extraordinary Executive, by Patrick Lencioni, espouses this notion and boils down the role of the CEO to four points:
- Build and maintain a cohesive leadership team
- Create organizational clarity
- Overcommunicate organizational clarity
- Reinforce organizational clarity through human systems
Those four points sound as boring as bread, but the book is anything but. The book’s style is easy and breezy — business fiction. One of the most poignant moments for me was when the book’s “other CEO” (the one that doesn’t “get it”) reflects that he “didn’t go into business to referee executive team meetings and delivery employee orientation…he loved strategy and competition.” Being a CEO is a dynamic job that changes tremendously as the organization grows. This book is a great handbook for anyone transitioning out of the startup phase, or for anyone managing a larger organization.
I haven’t read the author’s other books (this is one in a series), but I will soon!
Book Short: Like a Prequel to My Book
Book Short:Â Like a Prequel to My Book
How to Start a Business, by Jason Nazar, CEO of our client Docstoc, is a great and quick (and free) eBook that feels a lot like a prequel to my book Startup CEO: A Field Guide to Scaling Up Your Business (original outline here). My book is about scaling a business once you’ve started it. Jason’s book is a really practical guide to starting it in the first place.
The thing that’s particularly good about this book is that it’s as much a resource guide as it is a book. At the end of each of its 24 chapters (and within them as well), Jason adds a series of external links to other resources, from videos to checklists to templates. The book answers a lot of really practical questions that are easy for product-focused entrepreneurs to gloss over or ignore, from corporate structures to insurance, from trademark registration to pitching VCs, from payroll to tax planning.
It’s great to see so much more being written for entrepreneurs these days. Ash Maurya’s Running Lean: Iterate from Plan A to a Plan That Works (which I blogged about last week) is another related book that focuses on how to bring a new product to market. But Jason’s eBook is a must read for anyone in TechStars or any accelerator program, or anyone contemplating starting a business.
Book Short: Boards That Lead
Boards That Lead, by Ram Charan, Dennis Carey, and Michael Useem, was recommended to me by a CEO Coach in the Bolster network, Tim Porthouse, who said he’s been referring it to his clients alongside Startup Boards. I don’t exactly belong in the company of Ram Charan (Brad and Mahendra probably do!), so I was excited to read it. While it’s definitely the “big company” version to Startup Boards, there are some good lessons for startup CEOs and founder to take away from it.
The best part about the book as it relates to ALL boards is the framework of Partner, Take Charge, Stay out of the Way, and Monitor. You can probably lump all potential board activities into these four buckets. If you look at it that way…these are pretty logical:
- Monitor – what you’d expect any board to do
- Stay out of the Way – basic execution/operations
- Partner – strategy, goals, risk, budget, leadership talent development
- Take Charge – CEO hiring/firing, Exec compensation, Ethics, and Board Governance itself.
There was an interesting nugget in the book as well called the Central Idea that I hadn’t seen articulated quite this way before. It’s basically a statement of what the business is and how it’s going to win. It’s about a page long, 8-10 bullet points, and it includes things like mission, strategy, key goals, and key operating pillars that underlie the goals. It basically wraps up all of Lencioni’s key questions in one page with a little more meat on the bones. I like it and may adopt it. The authors put the creation of the Central Idea into the Take Charge bucket, but I’d put it squarely in the Partner bucket.
Other than that, the book is what you’d expect and does have a lot of overlap with the world of startups. Its criteria for director selection are very similar to what we use at Bolster, as is its director evaluation framework. The book has a ton of handy checklists as well, some of which are more applicable than others to startups, for example Dealing with Nonperforming Directors and Spotting a Failing CEO.
All in, a good read if you’re a student of Boards.
links for 2005-11-16
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Jeff Jarvis on Why We’re Glad We’re New Media…good stats on all the troubles facing “old media” nowadays (box office, newspapers, music, radio, books)
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Fred Wilson on how VCs relate to entrepreneurs vs. their limited partners. They should think of entrepreneurs as their customers, and think of LPs as shareholders.
links for 2005-12-06
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Brad talks about comp for outside Board members
links for 2005-12-02
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Good quick point of view on what makes a great employee in a startup.
links for 2005-11-26
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Charlie O’Donnell from Union Square Ventures has a great post about LinkedIn, its limitations, and some things it could do to be MUCH cooler and more useful.
links for 2005-10-23
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Return Path’s newly unveiled web site is now a blog, with an online resource center for email marketers and postings by its executive team