Entrepreneurial

The No. 1 predictor of startup failure: Premature scaling

— Joanna Glasner is a contributor to PE Hub, a Thomson Reuters publication. This article originally appeared here. –

In the wake of Solyndra’s revelation of an impending bankruptcy filing, the latest report from The Startup Genome Project makes for a timely read.

The report, published this week, crunches data from a set of more than 3,200 companies, seeking to identify the qualities that make startups most likely to either succeed or fail.

Researchers found that certain factors – such age and gender of founders, location, and previous entrepreneurial experience – have little bearing on a startup’s likelihood of failure. The most consistent predictor of failure, rather, was a startup’s propensity to engage in premature scaling.

What is premature scaling? The authors define it as “focusing on one dimension of the business and advancing it out of sync with the rest of the operation.”

5 things entrepreneurs need to know about valuation

– Tim Berry is the president and founder of Palo Alto Software. This post originally appeared on his blog, “Planning, Startups, Stories”. The views expressed are his own. –

Valuation is one of those four-syllable business buzzwords you’re going to have to deal with, eventually, if you either want to start a business or own a business. If it doesn’t come up when you start, it will come up later. Here is what I think you need to know, in five short points.

1. The word has vastly different meanings: don’t you hate it when the same words mean different things? Valuation means at least three different things:

Ex-Googlers seek traffic for how-to video startup

The Web is full of user-generated video, but for Sanjay Raman’s tastes most of it is too bland and poorly produced to actually watch.

That’s why Raman launched Howcast (http://www.howcast.com) – a high-quality, how-to video-sharing website – last year with former Google colleagues Jason Liebman and Dan Blackman.

While at Google the three Howcast co-founders noticed how popular do-it-yourself content was, but how little of it was in video format.

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