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The HP Way - Build On Your Strengths

Published: 7/23/2008 2:45:58 PM

I've been fascinated reading "The HP Way", by the late company co-founder David Packard.

One of the points that he returns to repeatedly in the book is the concept of being disciplined in product or service expansion as a function of your company's core strengths.  He cautions against going too far afield in pursuing expansion opportunities.

I especially liked the quote that he provided when he and his partner Bill Hewlett were first approaching their local bank for a small loan.  The bank sent out a veteran banker who told him, "More companies die of indigestion, than of starvation."

While the quote may not be perfectly applicable to the startup world, since so many companies die of cash starvation, I think it points to a great concept: don't try to expand in ways that are not compatible with your core competency, otherwise you may get yourself into trouble.

Cheers

Don Jones

VentureDeal

 

Don Jones
CEO, VentureDeal

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