Today, unicorn startups are not very uncommon as they were a few years ago. To find out what it takes to become a unicorn, it is important to ask the leaders of successful startups. There is not a definite way to achieve this state but some key factors will lead you to build a unicorn startup.
Most unicorn startups have the following things in common :
- Key factors that make the odds in your favor
There are various ways to build a company with billion-dollar potential. However, in all aspects the key elements are common.
- Your ideal must be original
- A feasible solution to an existing problem
- A high marketable value position
- A clear prediction of the company’s future
- A viable business model
- An easy-to-operate user interface that supports customers to quickly get the product.
- Commit to Rapid Growth
You must be extraordinarily driven to create something innovative. Prioritize the core mission of your company, values, and culture. Your business model must draw a profit by day one along with satisfying the customer’s needs. Uber, Airbnb, Xiaomi, and other startups achieved success by observing their target audiences, identifying their problems, and reached a “one-size-fits-all” stage.
- First Mover’s Advantage
If your company first introduces a product in the market then you have a natural competitive advantage in terms of product offerings and infrastructure. The target audience recognizes the brand as powerful and loyal to them.
- Focus on Different Technologies
A unicorn startup focuses on the five must-have technologies for growth :
- Customer Intelligence
A customer relationship management (CRM) is the most critical technology in business. The right CRM is your corporate view with respect to each customer and their interactions with you. It not only improves the customer experience but the customer’s feedback shows the position of your business.
- Financial Intelligence
Financial Intelligence deals with the understanding of finance and accounting principles and shows how money is used in the business world.
- Business Intelligence
Business Intelligence deals with business strategies and technologies used for analyzing business data. This data provides historical, current, and future insights in terms of productivity, revenues, and accuracy.
- Systems Intelligence
Systems Intelligence is the ability of a system to monitor, aggregate, and co-relate the data which it generates. You must observe how the employees, customers, clients, and vendors use the system, the elements they interact with, and checking the functionalities of each element.
- Employee Intelligence
Employees are the base of any organization and how your employees treat each other can affect your business. Employee Intelligence is a combined function that helps businesses to experience and develop the power of employee advantage. Associating performance data with employee ability helps you find the key elements that drive employee engagement.
- Build the right product
From out-of-date software to online hotel booking and cooking issues, the best startup founders are the ones that solve practical problems. A good way to spot a unicorn company is the rate at which they obtain new customers. Look for an idea that can solve the day-to-day problems if you want to build a unicorn company.
How do you know that your idea has a unicorn level in the market?
- You have tested your product/service with ease.
- You can manufacture and serve the product in volumes.
- Consumers are willing to pay many dollars on your product.
- Your product/service has occupied a large portion of the market.You have an integrated team of experts.
- Your product/service is “disruptive”, no one can make the product as your organization.
- Seek top investors
Top investors invest only in the progressing startups. The startup valuation usually ranges from $10000 to $100000. Your startup at this stage must have a profitable business model with a stable customer base. Ideally, approach the investors explaining the strategies you planned to conquer the market. Find 30 investors who are interested in your idea, 10 of them would plan to invest, but actually 2 of them would invest.
A large part of becoming a unicorn depends on the right people and creating a valuable product. It is not only different from the existing solutions but also no other product can serve the way it does.