Do small businesses and entrepreneurs want to get big? Or billion? Few people would refuse more wealth if it was legally and ethically accumulated.
A common method used by entrepreneurs is a VC-based ecosystem focused on product innovation and minimal viable products (MVPs), where strategy development assumes capital availability, followed by capital pitching, and complaints about lack of VC when most entrepreneurs cannot get VC. Because sophisticated investors don’t fund dreams.
On the other hand, the Unicorn-Entrepreneur (UE) ecosystem helps entrepreneurs create more wealth and manage it by using unicorn secrets to take off without VC.
#1. Pivot from Fast Movers to Smart Movers.
In contrast to the current focus on innovation and capital, many unicorn entrepreneurs (UE), including Gates, Jobs, Dell, Bezos, and Zuckerberg, I imitated ideas and used ideas that were easily imitated. 99% thrived with smart financial strategies and skills.IAn innovation class to develop an innovative MVP is not as important as smart financial skills to beat an MVP.
#2.Pivot from rapid growth to smart growth
To get high annual returns, VCs want rapid growth, accept high risk, and fail in 80% of ventures. UE seeks sensible growth ahead of Aha (Aha where the potential is obvious) when capital is expensive, scarce, dominant and dilutive. Rapid growth after Aha when capital is cheap. Bob Kierlin (Fastenal) used his unicorn skills to grow 30% annually from internal cash flow ( Bootstrap to Billions).
#3.Pivot from capital intensity to capital efficiency
There is not enough capital to fund every entrepreneur’s dream. VC is the top 100 (roughly) capital-intensive ventures out of 100,000, and then about 80% of funded ventures fail. His 94% of billion dollar entrepreneurs started without VC, using capital efficient skills before Aha and smart capital after Aha.
#Four. Pivot from VC-Control to Entrepreneur-Control
Before Leadership Aha, that is, before entrepreneurs prove their leadership skills, VCs replace entrepreneurs with professional CEOs.They are said to have done this before 75% of venturesA good example is Steve Jobs. Leadership After Aha, VCs want to fund ventures for entrepreneurial leadership. Examples include Jan Koum (WhatsApp) and Brian Chesky (Airbnb).
#Five. Pivot from Silicon Valley elite to global talent.
The current VC-based ecosystem supports about 20 out of 100,000 entrepreneurs. They mostly come from elite schools and Silicon Valley. To help entrepreneurs like Joe Martin build more unicorns everywhere, teach them smart financial strategies and skills to help billion dollar entrepreneurs take off without VC. .
#6.From pitch competition to skill competition
Pitches are the first step in the VC ecosystem, but no one consistently picks winners from startup pitches. So over 10 VCs rejected Jobs and Page and Brin. You can build more unicorns everywhere by switching to skills. These skills can be developed and rewarded.
#7. A pivot from Just Wealth-Creation to Wealth-Creation-and-Retention.
Early VC is expensive and dilutive. To create and keep wealth, unicorn entrepreneurs avoid or delay VC. Of the $22 billion entrepreneurs, those who got VC late were twice as wealthy as those who got VC early (Please know the truth VC). Those who avoided VC also maintained higher multiples. Sam Walton got rich avoiding VCs. Gates, Bezos, and Zuckerberg delayed VCs from controlling it. Smart entrepreneurs focus on wealth retention as well as wealth creation.
My take: Instead of wasting resources in the VC ecosystem, the Unicorn-Entrepreneur Ecosystem will move from first mover to smart mover, from rapid transformation to smart growth, from capital intensive to capital efficient. By turning around, you can develop more unicorns in less space. From VC control to entrepreneur control, from Silicon Valley elite to global talent, from pitch to skills, from wealth creation to wealth creation and retention.