In the world of entrepreneurship, the focus has often been on the idea and the pitch when it comes to building a successful business. However, the reality is that few billion-dollar entrepreneurs have used “ideas” as the foundation for their unicorns. Instead, most have relied on entrepreneurial strategies and skills to achieve success. Tesla CEO Elon Musk is a prime example of this, as he was able to take an idea that large car makers had failed with and build a unicorn.
Unicorn-entrepreneurs have used five key paths to build a unicorn. The first path is that of the First Mover, where entrepreneurs seek to find a product or strategy that no one has used before. While this concept has seen successes such as Xerox and eBay, only about 11% of First Movers ultimately dominate. Fast Followers, on the other hand, imitate a hot product on an emerging trend with a more capital-intensive strategy. This strategy has been seen with the likes of Lyft challenging Uber in the ride-sharing industry.
Smart Followers are another key path used by most billion-dollar entrepreneurs. These individuals enter the industry early before it takes off and have a better understanding of the emerging trend, allowing them to identify the best product-segment-competitor mix for a competitive edge. Price Cutters, who focus on offering lower prices, and Consolidators, who acquire companies to build a big business, are also paths that entrepreneurs have taken to achieve success.
When it comes to finding success in entrepreneurship, having an edge is crucial. Emerging industries and trends can be great opportunities if an entrepreneur has the skills and ability to find the right strategy and implement it effectively. Without the necessary skills and strategies, entrepreneurs may find themselves struggling to make profits. Most unicorn-entrepreneurs have used smart follower strategies, combined with their unicorn skills to gain an edge and finance-smart strategies to dominate their respective industries. It is essential for aspiring entrepreneurs to identify their strengths and capitalize on them to succeed in the competitive business world.
