I read 『起業の失敗大全――スタートアップの成否を決める６つのパターン』トム・アイゼンマン（著） (The Complete Guide to Startup Failures: Six Patterns That Determine Success or Failure by Tom Eisenmann), so I’ll share the insights I gained from this book.

Background: Want to Understand Startup Failure Patterns

I read this book to avoid falling into startup failure patterns.

Below are quotes and notes from sections that left an impression on me.

Chapter 1: Business First or Experience First

Resource-Related Factors

Some entrepreneurs say "raise as much money as you can when you can." Indeed, obtaining large amounts of funding can be a weapon when startups must face aggressive rivals. However, large-scale fundraising can also lead to waste.

? Want to be careful not to let large fundraising lead to waste while using it as a weapon.

Marc Andreessen points out that startups that have raised large amounts of funding become "infected with a culture of complacency, laziness, and arrogance." As a result, they fall into dysfunction such as: 1) Delayed decision-making due to over-hiring and the resulting abundance of managers, 2) Poor schedule management as employees think "there's no urgency. We have unlimited cash."

? Want to be careful not to develop a culture of complacency, laziness, and arrogance.

Chapter 5: Late-Stage 6S Framework

6S Framework

6S Framework: To determine the success potential and failure causes of scaling startups, we use a framework called "6S." This depicts three elements in a triangle, all related to venture company organization. Namely: Staff, Structure (including organizational charts and management systems), and Shared Values (reflected in corporate culture). In the circle surrounding the triangle are three external elements. Speed and Scope indicate the startup's product and market strategy, determining relationships with customers, competitors, suppliers, etc. The final element, Series X, represents the venture company's funding strategy and relationships with current and future investors.

? 6S Framework

While startup employees are thought to dislike formal management structures, this isn't necessarily true. Bill Campbell, a veteran Silicon Valley executive who coached many technology industry CEOs, said: "Tech entrepreneurs tend to think engineers hate being managed, but that's wrong. I had one entrepreneur ask their engineers if they wanted managers. Surprisingly, they all answered, 'Yes, we want someone we can learn from who can handle conflicts.'"

? Want managers who can teach and handle conflicts.

Chapter 6: Speed Trap

Able?

What should you do when you can't hire competent employees to handle rapidly expanding demand? Of course, slowing growth is always an option, but it's rarely considered for the reasons mentioned above. Instead, managers choose methods like: 1) Filling each organizational level with "lukewarm people" ※, 2) Pressuring existing employees to work faster, 3) Neglecting training and sending new employees straight into battle.

※ Here meaning people who don’t perform strict management.

? Anti-patterns when you can’t hire competent employees to handle rapid growth.

That’s all from the Gemba about wanting to succeed in entrepreneurship.