Five ideas to pick from entrepreneurs who sold their billion-dollar businesses

Highlights

  • Entrepreneurship is suitable for high-risk takers who are ready to face the uncertainty of starting a business.
  • Having a niche and delivering a high-quality product are some of the factors that need to be taken care of while starting a business.
  • Passion is also important to get going.

Entrepreneurship is a self-motivated endeavour that only a handful of people are able to take up. Despite the fact that entrepreneurship is probably the most effective way to create huge wealth, some people refrain from it and choose to settle for a job.

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The primary reason for this is the degree of risk that comes with starting one’s own business. However, the risk factor is the one which also results in potential profits in the future (if the business gets success). Also, once a business picks up, the entrepreneur also gets options to sell it to other entrepreneurs and take an exit with a handsome profit.

If you are looking to start your own business but not sure which business to start, which could have the potential to eventually turn into a billion-dollar valuation, then you are at the right place. Given below are five ideas that will help you to think in the right direction, giving you a clear understanding of what it takes to start a potential successful business.

Related article: 9 Female Entrepreneurs Making Waves In New Zealand

  1. Create a niche

Creating a niche is probably the most important aspect of a start-up if you want to turn it into a unicorn. Your business can’t be a jack of all trades and master of none. People recognise a business with its core competence which could only be achieved with a narrowed focus.

This could be learned from Afterpay, which recently got into an agreement to be acquired by Square for US$29 billion. Afterpay’s only vision was to provide people with a credit system which is better and less expensive than a traditional credit card. This was the primary reason; it was able to achieve its vision and became a household name in the BNPL industry.

  1. High-quality product

Product quality is the foundation on which a product/service makes repeated sales. Without up-to-the-mark quality, a product could be sold once but it will be difficult to sell it twice to the same customer, especially if there are many sellers in the market.

Ring, started by founder Jamie Siminoff, deals in home security products like doorbell video devices, motion sensing cameras, etc. To improve the product’s quality, he had to strike a deal with Foxconn, which led to another phase of growth in the business.

  1. Be an early mover

The world-famous platform LinkedIn was sold to Microsoft for a whopping US$26.2 billion in 2016. What made LinkedIn successful was its early-mover advantage. Before it, there was virtually no social media platform which was specifically dedicated to the jobs market.

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This is where LinkedIn stepped in and captured a massive untapped market with virtually no big competition. Later on, numerous platforms emerged like Monsterjobs.com but none of them were able to reach the heights of LinkedIn because they were too late.

  1. Value proposition

The value that your product provides should be enough to impact people’s lives. GitHub, an internet hosting company did the same with its open-source library and features, making it a breeze for a group of developers to share their projects with others.

Eventually, the company was acquired by Microsoft for US$7.5 billion in an all-stock agreement. Providing value to customers is an old-school practice but a very effective strategy to build a strong foundation for the business.

  1. Passionate Leaders

A leader of the business is what a captain is to a ship. If the captain doesn’t do his job well, he can lead the ship in the wrong direction. Founders of the most popular video streaming site YouTube had the passion to make it easy for customers to share and watch videos online.

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Their passion led to a starry YouTube and continued to improve even before the internet became popular. They eventually received an offer from Google to sell YouTube for US$1.65 billion. Only passion could make an entrepreneur sail through tough times.

Bottom line

Starting a business is not easy, sustaining through all the ups and downs is even more difficult. Only a few businesses take off well and become unicorns.

However, if one keeps a close watch on the aspects of a successful business, as mentioned above, then they might have a higher chance to make it through.   

Read more: Tech entrepreneurs dominate Australia’s Young Rich List

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