Unicorn startups even a couple of decades ago were considered to be rare entities. However, between 2011 and 2014, about 100 new unicorns got launched annually. These are privately owned companies with over $1 billion as venture capital.
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What is a ‘Unicorn Startup’?
Unicorn ‘company’ and ‘startup’ are terms that first emerged during the early 2010s. Aileen Lee, Cowboy Ventures founder coined this term. He rather defined them as firms registered in the U.S. and launched in 2003. They are valued at $1+ billion by private or public market investors.
Strategies to Develop Unicorn Company
When trying to establish a Unicorn company and ensure long-term success, as well as rapid growth, you need to follow four essential strategies. Each strategy can be noticed to be used n such startups across diverse niches. You can include them in your business strategy and reach hallowed unicorn status.
Develop Unicorn status worthy product
Company founders generally try to come up with ideas to improve their business. Hence, you are to identify solid business ideas almost every day. You need to identify problems ranging from buggy features developing in software tools. Also, you are to tackle inefficiencies emerging in the logistics chain. Accordingly, come up with a viable business solution. Unfortunately, no precise recipe exists for success. You are to seek certain key ingredients and take an appropriate approach.
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1. Traits to understand:
There are five traits that you may consider when making an early-stage startup Investment Strategy. It includes:
1. True domain expertise: Niche expertise, experience, and stellar business plan.
2. Narrow, deep focus: Provide assistance to filter out unwanted distractions.
3. Cultural leadership: To ensure a successful startup, you are to define shared culture.
4. Clear vision: Get to know the company’s role and how the world can be provided with something valuable.
5. Resilient resourcefulness: It will be necessary to seek help early on rather than try to discover some blind spot after diagnosing a problem. What you need is much more than a fresh solution to a few old issues. This method of viewing services/products can help lay a good foundation for your business to achieve $1bn. Offer the market something highly sought-after, exciting, and innovative. Your startup will reach unicorn status if you have a stellar business plan, ideal target customer, clear value proposition, etc.
The ability to produce selected products in bulk volumes is another indicator to consider. It should also be positioned in a manner to serve large global markets. It is for this reason, the majority of unicorn start-ups can be found to be in the software/tech sector.
2. Commitment towards rapid growth:
Establishing a private unicorn startup does require full commitment. What sets it apart from others is having a proper business and Investment Strategy. It should focus on aggressive, rapid growth, and seek boundaries to refine normal startups within similar industries. Certain characteristics are desired for integrating such commitment to ensuring rapid development. It includes:
1. A business model based on revenue generation, a well-devised plan to make profits right from the launch of the product.
2. The unshakeable belief of the service/product offered can improve your target audience’s lives.
3. A clear vision of company culture business mission and values.
4. Formalized plan for developing service/product offerings. It should be aligned to cater to market needs not being met currently and markedly disruptive.
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3. Develop relationships with investors:
Strong support will be desired from great investors. Hence, identify investors with a proven record of making successful investments in the niche/industry. On building momentum with the first customer bath, venture capital providers can be shown the business capacity to scale quickly.
Setting up unicorn venture
The truth is that developing Unicorn Startup can be quite challenging. Adopting such practices in marketing, product development, and planning can help your business to derive the best possible start. It also optimizes chances to reach great heights.
Source: Cosmo Politian