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The Titanic Effect : Successfully Navigating the Uncertainties that Sink Most Startups - Todd Saxton

The Titanic Effect

Successfully Navigating the Uncertainties that Sink Most Startups

By: Todd Saxton, M. Kim Saxton, Michael Cloran

Paperback | 11 June 2019

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"I have read dozens of books on starting companies, but this is the first that accurately captures why startups fail and provides a tool for entrepreneurs and investors to measure and manage these sources of failure." Michael Hatfield, Co-Founder, Cerent, Calix, Cienna, and Carium.

What makes a startup successful?
This book, from award-winning business school professors and a tech serial entrepreneur, tells what makes startups successful. Instead of telling startups what to do, like most startup books, they share what startups should avoid. Along the way, they share small business startup success stories gleaned from the How Built This Podcast and their firsthand experiences. These stories of startup success are contrasted with stories of startup failure from startup graveyards and most notably, the Titanic. Like many of today's startups, the Titanic hoped to disrupt the transportation industry of its time. It fell short, to a disastrous outcome, from the same sources that prevent startup success today.

Get a startup game plan!
This startup book uses the Titanic and a sailing metaphor to provide a startup roadmap template. It shows what makes startups successfully navigate through challenges in startup investing, founding, and hiring with a game plan to get through the Human Ocean. It offers a startup guide to customer success in working through the Marketing Ocean. It even highlights what startups need to invest in to get through the Technical and Strategy Oceans. Its Iceberg Index gives entrepreneurs, startups, and small businesses a way to track their progress on the startup roadmap template. It also helps investors assess what startups to invest in.

Many entrepreneurs assume that the Titanic was sunk by a single iceberg. The Titanic Effect shows, that like many startups, it's not a single misstep but a series of mistakes that keep a startup from being successful. This combination of missteps is called the Titanic Effect.

Who can benefit from this startup roadmap?

  • Entrepreneurs in the early stages of building a startup. They will learn what makes a startup successful. They will develop a to-do list of decisions to make and actions to take.
  • Small business owners will also identify key next steps to building their startup game plan.
  • Investors can identify what to avoid in startup investments and what startups to invest in.
  • Students will learn how to evaluate the success potential of a startup and will read small business and startup success stories.

    These three co-authors have witnessed firsthand what leads to startup success. They have made it their mission to help entrepreneurs, startup founders and startup investors succeed. Drs. Todd and M. Kim Saxton bring more than two decades of academic and professional experience in business strategy, entrepreneurship, marketing, and angel investing. Serial tech entrepreneur, Michael Cloran, adds his two decades' of experiences in launching his own startups as well as building software products for other startups. In addition, the co-authors serve on various boards of entrepreneurial ventures and startup advisory associations. They have shared their expertise from the stage to dozens of audiences, including students, entrepreneurship and professional development associations, academic societies, and global companies like Roche Diagnostics and Pfizer Pharmaceuticals.

  • Industry Reviews
    "The gripping story told in this book masks the expert research and deep insights upon which it is based. Don't let the fun of reading this book fool you-it is must-reading, not just for entrepreneurs launching and growing their ventures but for anyone remotely interested in how our entrepreneurial economy functions."
    David B. Audretsch
    Distinguished Professor
    Ameritech Chair of Economic Development
    Director, Institute for Development Strategies
    Global Award for Entrepreneurship Honoree
    School of Public and Environmental Affairs, Indiana University

    "I love it! The whole concept of hidden debt is perfect and something very real that I've experienced but never defined before. I highly recommend this to both first-timers and seasoned entrepreneurs."
    Chris Baggott
    Founder, ExactTarget, Compendium, Tyner Pond Farm, and ClusterTruck

    "The advice in this book is not just for tech entrepreneurs. As a restaurateur, I have had my share of successes and failures. Both came down to the right or wrong decisions I made regarding the people, the product, and/or the market I was targeting. Being aware in advance of the "debtbergs" described in The Titanic Effect would have helped me save a lot of time and money."
    Gary Brackett
    Owner and CEO, Stacked Pickle

    "This aptly named book is an outstanding treatise on navigating uncertainty. It is essential reading for any physician who has a penchant for the entrepreneurial world. The authors' many years of experience as both innovators and educators uniquely qualify them as seasoned "captains" who would be welcomed on any physician's entrepreneur journey to success."
    Anthony C. Chang, MD, MBA, MPH, MS
    Chief Intelligence and Innovation Officer
    Medical Director, The Sharon Disney Lund Medical Intelligence and Innovation Institute (MI3)
    Children's Hospital of Orange County

    "The Startup Ladies were fortunate to have hosted a Titanic Effect workshop. The book is a life jacket for a first-time founder. It helps you understand, anticipate, and solve problems that are just below the surface of a startup."
    Kristen Cooper
    CEO and Founder, The Startup Ladies

    "The Titanic Effect is a no-nonsense and easy-to-understand "field guide" to startups. For entrepreneurs, it offers critical, hard-earned insights that are typically only learned through failure. For early-stage investors, it gives wisdom and tools to effectively evaluate startups and determine your own investment strategy."
    Barb Cutillo
    Financial Consultant and Investor in Early-Stage Companies
    Co-Founder/CFO/CAO, Stonegate Mortgage Corporation

    "The nature of entrepreneurship is to venture into unfamiliar territory. As an investor, we often see entrepreneurs who teach themselves lessons the hard way, though trial and error. I would encourage all would-be entrepreneurs to absorb the several great lessons in this volume to anticipate common pitfalls and strategize corrective action to speed the iterative process of business building."
    Dan Gebremedhin MD, MBA
    Principal, Flare Capital Partners

    "The investment world often debates distinguishing factors between luck and skill. Both are necessary, but neither alone is sufficient for success. The Titanic Effect unpacks the skills and helps decipher luck, and is a must-read for entrepreneurs to navigate their journeys to target destinations."
    Ting Gootee
    Chief Investment Officer, Elevate Ventures

    "I have read dozens of books on starting companies, but this is the first that accurately captures why startups fail and provides a tool for entrepreneurs and investors to measure and manage these sources of failure."
    Michael Hatfield,
    Co-Founder, Cerent, Calix, Cienna (Cyan), and Carium

    "As a retired surgeon, serial entrepreneur, life-science and healthcare investor and champion, as well as Co-Founder and Chairman of the Board of the Society of Physician Entreprene

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