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The Star Principle Paperback – March 4, 2010

4.6 4.6 out of 5 stars 196 ratings

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Richard Koch has made over £100 million from spotting 'Star' businesses. In his new book, he shares the secrets of his success - and shows how you too can identify and enrich yourself from 'Stars'. Star businesses are ventures operating in a high-growth sector - and are the leaders in their niche of the market. Stars are rare. But with the help of this book and a little patience, you can find one, or create one yourself.

THE STAR PRINCIPLE is a vital book for any budding entrepreneur or investor (of grand or modest means). It is also invaluable for any ambitious employee who realises the benefits of working for a Star venture - real responsibility, fast personal development, better pay, great bonuses and valuable share options.

Whoever your are, identifying and investing in Stars will make your life much sweeter and richer in every way.

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Editorial Reviews

Review

Since Koch has been about equally successful as an entrepreneur and investor and as a business author, he is someone worth listening to―Roger Trapp, INDEPENDENT

Since Koch has been about equally successful as an entrepreneur and investor and as a business author, he is someone worth listening to―
Roger Trapp, INDEPENDENT

About the Author

Richard Koch is a millionaire entrepreneur (no. 532 in the Sunday Times Rich List) who has started or turned round a number of successful companies, including Belgo Restaurants, Filofax, Zoffany Hotels and Betfair. He is also the author of 13 highly acclaimed non-fiction books.

Product details

  • Publisher ‏ : ‎ Little, Brown UK; Reprint edition (March 4, 2010)
  • Language ‏ : ‎ English
  • Paperback ‏ : ‎ 272 pages
  • ISBN-10 ‏ : ‎ 0749929626
  • ISBN-13 ‏ : ‎ 978-0749929626
  • Item Weight ‏ : ‎ 6.8 ounces
  • Dimensions ‏ : ‎ 5 x 0.71 x 7.75 inches
  • Customer Reviews:
    4.6 4.6 out of 5 stars 196 ratings

About the author

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Richard Koch
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Richard Koch is the author of The 80/20 Principle, which has sold more than a million copies, and been published in approximately forty languages. He is also a successful entrepreneur and investor whose ventures have included Filofax, Plymouth Gin, Belgo restaurants and Betfair, the world’s largest betting exchange. He was formerly a partner of Bain & Company, and co-founder of LEK Consulting. He has written more than twenty acclaimed books on business and ideas.

Customer reviews

4.6 out of 5 stars
4.6 out of 5
196 global ratings

Top reviews from the United States

Reviewed in the United States on August 25, 2014
What if you could be a fly on the wall of a successful business consultant who had consistently out-batted other consultants. What is it about how they think that meant that they could *know* with a strong sense of confidence whether a project would work or not? That is what this book gives you.

This book is simple enough for anyone to understand, but has all the elements required to make it useful for the serious student looking to make their venture successful.

It is put together like a template to help you first learn how to spot star ventures and then know which of your alternatives are most likely to work. If you realise your plan is shaky, it helps you detect if you can tweak your plan to make it more likely to succeed.

The chapters are thoughtfully ordered in the steps you go through to compile your strategy, and peppered with real life examples to help round out your understanding.

Another thing I like about this approach, is the fact that it does not just apply to big scale investing in companies (where the author made his money), but also can be applied in many other areas of your life beyond investing (i.e. it is Fractal): Are you looking to start your own company? - Are you developing new products or services for an existing operation? Are you looking for a department or company to work for? In all cases this book can help you. For example, Richard underlines many benefits of just finding and working in a Star company that had not occurred to me.

My only criticism is the choice of title; With so many get rich quick fads/products, the use of the phrase "How it Can Make You Rich" in the title may put some people off. It may lead you mistakenly to believe that you need some kind of special skills to make the information inside work. It does not, but it does require you to look at situations differently.

This book is almost certainly going to become required reading on business school reading lists, as it gives you the 20% of strategy you need to know without filling your head with a bunch of other needless analysis tools.

I do not understand why more people are not raving about it already.

P.S. when reading the kindle version on a laptop computer (using http://read.amazon.com), some of the bulleted lists the text is a bit small, however this is a small formatting issue which may have been corrected by the time you read this. The same issue is *not* present when using a kindle on a tablet or phone.
8 people found this helpful
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Reviewed in the United States on March 29, 2023
I bought this book with a baseline knowledge about business. The book is engaging, interesting and filled with easy to access knowledge. There’s a reason it is such a popular book. Highly recommend!
Reviewed in the United States on June 26, 2018
Easy to digest, well written, reinforced my belief of many business principles I have used in my work life. Mr. Koch organized those principles into an enjoyable read.

R.W. Parmer
One person found this helpful
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Reviewed in the United States on January 2, 2014
When I visited Richard Koch at this home in Portugal, I told him he should take this book off the market, buy up all the used copies and re-package it for $20,000. Why? Because it explains the essence of the strategy that grew his wealth from $2 million to $200 million in less than 20 years.

Essentially, this book says “Why do I bat 50% when most Venture Capitalists bat 5%? The secret is the Star Principle.” Only bet on #1 players, and only play in markets that are growing at 10% per year or more. Disqualify everything else. And if you’re not the #1 player, redefine the market so you ARE the #1 player.

Now of course Richard goes into much greater detail than that, but that’s the gist of it. I realized when I read it, that all the major home runs I've hit in my career did in fact follow that formula. I’d just never articulated it as well or as clearly as Richard had.

As a marketer, this has added a tremendous context and focus to my approach to Unique Selling Proposition, or USP. I think we do a very good job with USP but this added another level of specificity. What space should you choose to be unique in? Is that space growing? How is it defined? What language has the market chosen to describe it and how should you alter that language? How can you adjust your USP by 10% to fit Richard’s formula, so you have a First Mover Advantage wherever you go?

This is to say, you don’t have to necessarily be an equity investor or even “have money” to benefit from this. This book is about ANY business situation where you decide where to drive your stake in the ground. It’s just as applicable to a bootstrap entrepreneur as it is to an investor with a few million dollars in his pocket.

You might read this book and conclude you're in the wrong industry, niche or profession. Better to figure that out now, not later.

I was kicking myself for not having read this book five years ago - a friend of mine had sent it to me quite some time ago. But now that I have it under my belt, it has transformed my understanding of where to focus my finite energy. Some of us marketers are so good we can move ourselves or a client from #5 to #1. Yes, it can be done. But the odds are against you. There are easier ways.

What happens if you take the same amount of energy and you focus it on transforming a “#1 by small margin” to “#1 by HUGE margin”? That’s where fortunes are made.

I love the elegance and simplicity. I also appreciate the fact that Richard is willing to even write books like this in the first place. Most players at his level are not in the book writing business and it might arguably be in their interest to keep that wisdom to themselves. Thanks Richard for a truly and genuinely game-changing book.
51 people found this helpful
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Reviewed in the United States on October 7, 2014
This concept of "the star principle" is quite fascinating. It kept my interest so that I read through it very quickly. This book could change your life if you would like to start or be involved in a truly great business, one that has the potential to grow by leaps and bounds toward greatness. But if you're happy with what you're doing and you don't want a change, or if you would be content to simply make a living, then a star business may not be your calling. Or if you aren't prepared to put a lot of time and energy into starting and/or working in a star business and doing all that it takes to maintain the business's stardom, you may find that a star business isn't for you. But if you want to start or work for a business destined to be great, like Coca-Cola or Starbucks, if that idea excites you, then read this book. In any case, it's a fascinating read full of great ideas for the entrepreneur.
One person found this helpful
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Top reviews from other countries

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Jay
5.0 out of 5 stars Great book
Reviewed in Canada on March 10, 2021
Great framework for investing in and starting start-ups.
Amazon Customer
3.0 out of 5 stars The star principle has no stars
Reviewed in India on June 23, 2019
Not as per expectation
Salvatore McDonagh
5.0 out of 5 stars What makes a successful business - and what makes a failure? This book gives you the formula.
Reviewed in the United Kingdom on October 28, 2015
Richard Koch was worth over a quarter of a billion dollars a few years ago, and is undoubtedly worth more now - so obviously he didn't write this "How to get rich" book to get rich. This shares his simple formula for deciding where to invest his own time and money - and shows how it has worked to make him (and several other people too) very rich. At about 10 times the success rate of other venture capitalists, Koch is giving the formula for his success away for a few dollars and a few hours of your time. Koch believes that you or I can use his formula to get rich too. Or at the very least to make our own success much more likely, and require a lot less effort - even as an employee.

If your business is not in a market that is growing at more than 10% per year, and if you are not the market leader, then you are probably in the wrong business and are working much harder than your leading competitor(s) to get smaller returns. Read this book to find out how to swim with the tide instead of against it, and how to fix your business if you cannot leave it.

Whether you are an investor, entrepreneur, or employee, this book will open your eyes. Once you read it you cannot go back to fooling yourself that "great idea" will succeed, unless it fits Koch's criteria for a star business.
2 people found this helpful
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Eric Ianna
5.0 out of 5 stars génial
Reviewed in France on May 1, 2014
Génial. Un concept applicable super efficace pour changer de vie. Une excellente manière d'analyser le monde de l'entreprise. Bonne lecture.
Susan Jameson
5.0 out of 5 stars Five Stars
Reviewed in Australia on October 26, 2014
Great insights from a person who has made a fortune from investing in star businesses