The Star Principle: How it can make you rich

by Richard Koch

Only puny secrets need protection. Big discoveries are protected by public incredulity. Marshall McLuhan

What will make you successful is being in the right place. Finding the right place to work or invest. Finding an unusual type of business, but one you can always find if you know exactly what to look for.

★ it must be the leader in its market niche; and ★ the market niche must be growing fast.

venture, look around and find one to work for. Ideally one that’s just started, has just a handful of employees, but is expanding fast.

grow fast; ✩ be targeted at a unique set of customers or customer preferences;

provide a different set of benefits from the main market, by doing something the main market doesn’t, and by not doing some of the things the main market does;

Nor do you need money. You can benefit hugely by going to work in a baby star. If you have normal ambition and interest in work, you’ll be much happier

1. the customer-attractive formula: a proven way to get more and more loyal customers; 2. the commercial formula: the way to lock in fat margins;

the delivery formula: making a machine to deliver consistent, high-quality product on a large scale; and 4. the innovation formula: making innovation a way of life so your product is always miles ahead of those of rivals.

Two things follow. One, never sell a star while it’s still a star. Two, ensure that it grows much faster than currently planned.

1. raise the target growth rate - a good rule of thumb is to double it;

expand geographically before rivals emerge;

to grow as fast as humanly possible. Hire people who understand the firm’s DNA and will fit in. Hire people who are demonstrably better than your existing people. Put huge time and effort into recruitment.

make mega-millions? Why make a small dent in your industry when you can revolutionise it, making it a better place?