Introduction
Creating a unicorn startup that changes the world is the dream of many entrepreneurs. However, with so much competition and a constantly changing market, it can be challenging to stand out. In this post, we'll explore eight uncommon techniques that can help you create the next big thing.
From combining industries to creating a social impact, these techniques will help you think outside the box and increase your chances of success. So, if you're ready to take your startup to the next level, keep reading to learn more about these novel approaches.
Niche Down
Instead of trying to cater to a broad audience, identify a specific niche that is not currently being served. By doing so, you can create a product or service that meets the specific needs of a particular group of people. For example, instead of creating a meal delivery service for everyone, create a meal delivery service for people with specific dietary needs.
One example of a startup that implemented the niche down strategy is Peloton. Peloton is a fitness company that offers a unique spin on indoor cycling. They offer a stationary bike equipped with a screen that allows users to participate in live or on-demand cycling classes from the comfort of their own homes. By focusing on the niche market of at-home fitness enthusiasts, Peloton was able to create a unique product that met the specific needs of that group. They also differentiated themselves from traditional fitness studios and gyms by offering a convenient and personalized fitness experience.
Peloton's niche down strategy has paid off. Since its launch in 2012, the company has become a unicorn startup, with a valuation of over $4 billion. Peloton's success demonstrates the power of niche down strategy in creating a competitive edge in the market and achieving unicorn status.
Think Global
"Think Global" is a strategy that involves developing a business idea that can cater to the needs of a global audience from the outset. It requires a deep understanding of global trends, cultures, and market preferences. This strategy allows startups to scale their operations quickly and tap into the huge potential of global markets.
One example of a startup that successfully implemented the "Think Global" strategy is Airbnb. Airbnb is a platform that allows individuals to rent out their unused living spaces to travelers from around the world. The founders of Airbnb recognized early on that the platform had global potential, as people all over the world need a place to stay while traveling.
To achieve global success, Airbnb focused on building a platform that could cater to a wide range of cultures and preferences. They invested heavily in developing a user-friendly platform that could be easily translated into different languages and adapted to different countries' regulations and laws.
Airbnb's global thinking has paid off, and the company is now valued at over $100 billion, with over 4 million listings in more than 220 countries and regions. Their success demonstrates the power of thinking globally and developing a business idea that can cater to a global audience from the outset.
In conclusion, startups that think globally can increase their chances of success by tapping into the huge potential of global markets. By developing a business idea that can cater to a wide range of cultures and preferences, startups can scale their operations quickly and achieve unicorn status.
Combine Industries
Combining industries can be a great way for startups to achieve success. One example of a successful combination of industries is the partnership between BioNTech and Pfizer to develop a COVID-19 vaccine. This partnership was successful because it allowed the two companies to leverage their respective strengths and resources to create a vaccine that was more effective than either company could have achieved on its own. The partnership also allowed the companies to benefit from each other’s expertise in different areas, such as Pfizer’s experience in clinical trials and BioNTech’s expertise in mRNA technology. [1]
Another example of a successful combination of industries is BMW’s Startup Garage. This program offers startups the opportunity to work with BMW as a “venture client” on an innovation project. This partnership is successful because it allows startups to benefit from BMW’s resources and expertise, while also allowing BMW to benefit from the innovative ideas and solutions that startups can bring to the table. [2]
Finally, a third example of a successful combination of industries is the collaboration between McKinsey & Company and startups. This collaboration is successful because it allows startups to provide analytics and other value-added services to McKinsey’s corporate clients, while also allowing McKinsey to benefit from the innovative solutions that startups can provide. [3]
Overall, combining industries can be a great way for startups to achieve success. By leveraging the resources and expertise of both parties, startups can create innovative solutions that are more effective than either party could have achieved on its own.
Sources:
https://www.linkedin.com/pulse/5-powerful-corporate-startup-partnerships-2021-michael-goldstein
https://hbr.org/2019/01/the-two-ways-for-startups-and-corporations-to-partner
Disrupt a Traditional Industry
Disrupting a traditional industry can be a challenging but rewarding endeavor for startups. To disrupt an industry means to introduce a new product, service, or business model that fundamentally changes the way things are done in that industry. This disruption can lead to significant market share gains, increased customer satisfaction, and ultimately, great success.
One example of a startup that successfully disrupted a traditional industry is Uber. Uber was founded in 2009 with the idea of using technology to fundamentally change the way people get around in cities. At the time, the traditional taxi industry had a monopoly on transportation in many cities, and the experience for customers was often poor, with high prices, long wait times, and poor service.
Uber disrupted the traditional taxi industry by introducing a new business model that allowed anyone with a car to become a driver, and anyone with a smartphone to become a passenger. This model allowed Uber to provide a more convenient and affordable service than traditional taxis, while also offering drivers a flexible and lucrative way to earn money.
By disrupting the traditional taxi industry, Uber quickly gained market share and became a household name. Today, Uber is valued at over $90 billion and operates in over 700 cities worldwide.
Create a Social Impact
Creating a social impact can be done in a variety of ways. One of the most effective ways to create a social impact is to start a business that focuses on solving a social issue. This can be done by developing a product or service that addresses a specific problem, or by creating a platform that connects people with resources and opportunities to make a difference.
One example of a successful social impact startup is ShareTheMeal, a mobile app that makes it easy for anyone to join the fight against hunger in developing countries affected by conflicts and natural disasters. The app allows users to donate money directly to the World Food Programme, which then distributes the funds to those in need. Since its launch in 2015, ShareTheMeal has raised over $20 million and provided over 80 million meals to those in need [1].
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Embrace New Technology:
Embracing new technology, like AI, can be a game-changer for startups looking to become unicorns. AI has the potential to improve efficiency, increase productivity, and enhance the customer experience, all of which can lead to significant growth and success.
One way to embrace new AI tech is to integrate it into your product or service. For example, you could use AI to personalize recommendations for your customers, optimize your pricing strategy, or automate repetitive tasks. By doing so, you can improve the user experience and streamline your operations, which can ultimately lead to increased revenue and market share.
Another way to embrace new AI tech is to use it to analyze data and gain insights into your business. For example, you could use AI to analyze customer behavior, identify trends, and predict future demand. By doing so, you can make data-driven decisions that can help you stay ahead of the competition and grow your business.
One example of a startup that successfully used AI to become big is Grammarly. Grammarly is an AI-powered writing assistant that helps users improve their writing by identifying grammar and spelling errors, suggesting better word choices, and providing writing style suggestions. By leveraging AI to provide a personalized and intuitive user experience, Grammarly has become a popular tool for writers, students, and professionals alike. Today, Grammarly has over 20 million users and is valued at over $1 billion [1].
In conclusion, embracing new AI tech can be a powerful way to grow your startup and become a unicorn. By integrating AI into your product or service, or by using it to gain insights into your business, you can improve efficiency, increase productivity, and enhance the customer experience, all of which can lead to significant growth and success.
Sources:
https://www.businessinsider.com/ai-writing-tool-grammarly-hits-1-billion-valuation-2019-10
Subscription-Based Model
Subscription-based business models are becoming increasingly popular among startups, as they offer a way to generate recurring revenue and increase customer loyalty. A subscription-based model requires customers to pay a recurring fee in exchange for access to products or services. This type of model is often used by companies offering digital services, such as streaming services, software-as-a-service (SaaS) companies, and subscription boxes.
One example of a startup that has been successful with a subscription-based model is Dollar Shave Club. The company offers a subscription service for razors and other grooming products, and has grown to become a multi-million dollar business. Dollar Shave Club has been able to attract customers with its low-cost subscription plans and convenient delivery service. [1]
Another example of a successful subscription-based business model is Netflix. The streaming service has grown to become one of the most popular subscription-based services in the world, with over 200 million subscribers. Netflix has been able to attract customers by offering a wide selection of content, as well as convenient streaming options. [2]
Overall, subscription-based business models can be a great way for startups to generate recurring revenue and increase customer loyalty. By offering customers convenient access to products and services, as well as attractive pricing, startups can attract and retain customers.
Sources:
https://www.investopedia.com/articles/investing/051515/how-netflix-makes-money.asp
Collaborate with Other Startups
Collaborating with other startups can be a great way to gain new insights, access new markets, and expand your network. Successful collaborations between startups and established companies must go beyond financial deals and be personal and mission-oriented. Companies can pursue innovation through research and development (R&D), collaborations through corporate venture capital (CVC) or accelerators, or mergers and acquisitions (M&A). Additionally, startups can focus on leveraging their know-how, whether through industry knowledge, rapid product development, or user insights.
One example of a successful collaboration between a startup and an established company is the partnership between Microsoft and GitHub. In 2018, Microsoft acquired GitHub, an open-source code repository, for $7.5 billion. Since then, the two companies have worked together to create a platform that supports developers and businesses of all sizes. [1]
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Conclusion:
Creating a successful startup requires creativity, innovation, and a willingness to take risks. By niching down, thinking globally, combining industries, disrupting traditional industries, creating a social impact, embracing new technology, utilizing a subscription-based model, collaborating with other startups, and utilizing data, you can increase your chances of success. Remember to stay focused on your vision and be willing to adapt and pivot as needed. Who knows? You could be the next big thing.
