Starting a successful business in Canada Book

My first business book read in 2021. Hidden champions by Professor Hermann Simon. I am always keen on the topics on business and strategy like why are unicorns successful? How do SMEs differ from large firms? What can young entrepreneurs learn from them? In this book, Hermann was attempting to explain Germany's success as one of the world's leading export nations and stumbled across these hidden champions.


While I was reading the book, I was thinking about I will recommend the book to my Chinese and Asian family-owned business friends. In the past, there is an old Chinese saying 富不过三代，which means wealth never survives three generations. Many family-owned business owners are trying to find out the solution from consultants, researchers and Fengshui experts. But that is not enough, they need to ask Professor Simon about the secrets of these hidden champions' success.

On the basis of his research, he has defined seven key characteristics that distinguish successfully hidden champions:


#1 Set extremely ambitious goals

Success always begins with ambitious goals. The Hidden Champions go for growth and market leadership. This is the fuel that drives them forward.

To young entrepreneurs: be very ambitious!

#2 Disciplined focus and depth

Only focus and depth lead to world-class. The Hidden Champions focus on narrow markets and are deep rather than broad. They tend to do things themselves and refrain from outsourcing core competencies.

#3 Think global

The Hidden Champions combine specialization in product and know-how with global selling and marketing. Globalization is the growth booster for them. They serve the target markets through their own subsidiaries. They heavily invest in the markets of the future.

#4 Prioritise innovation

The Hidden Champions are in a phase of massive innovation. Innovation process. The effectiveness of their R&D activities beats that of large companies by a factor of 5. Their innovation processes are fundamentally different. Their innovations are both markets and technology-driven.

#5 Serve the world's top customers

Closeness to the customer is the greatest strength of the Hidden Champions - even ahead of technology. Their strategies are value-oriented, not price-oriented. The Hidden Champions hold strong competitive positions. Advice and systems integration are new advantages which create higher barriers to entry.

#6 Compete with the best

The Hidden Champions have "more work than heads" and high-performance cultures. Employee qualification is top. Turnover and sickness rates are extremely low.

#7 Retain your top talent

He secret of the success of the Hidden Champions lies in their leaders. They are characterized by total identification with their mission. Their leadership is authoritarian in the principles, but flexible in the details. Continuity is very high. Young CEOs and women play a more important role than in large.