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Creation of growth ventures by AI
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Now that ChatGPT has opened the door to the AI gold mine, the rush is on. Entrepreneurs interested in using AI to build large-scale businesses may find it helpful to learn how unicorn entrepreneurs of the last 60 years found gold.
From Sam Walton (Walmart) to Brian Chesky (Airbnb), most unicorn entrepreneurs jumped on the new trend. dominated the trend. New trends bring growth opportunities. Dominating them will help build real unicorns (over $1 billion in sales), unlike VC unicorns with manipulated valuations.
Based on my fundraising, interviews, and research of 122 unicorn entrepreneurs, here are 7 rules to help you dominate emerging trends.
#1. Smart Entry Beats Late Entry: Get in before the industry takes off.
Emerging trends are hard to rule after they take off because someone else is leading the booming industry and it can be hard to catch up. Karl Ulrich (Allen Shockley, Carlson School of Management) Lecture) research shows that most emerging trends take off within 3 to 11 years after initiation. Unicorn entrepreneurs mostly get into trends after they have started and before they take off. Now is the time to build a unicorn in AI.
#2. The smart ones beat the first movers: Strategy and skill matter.
The business press keeps touting “first movers,” but the reality is that the fast movers beat the first movers 9 out of 10 times. Antecedents identify possibilities. Smart movers seize the possibilities. They imitate and improve upon their predecessors, like Sam Walton, Bill Gates, Michael Dell, Steve Jobs, and Brian Chesky. Unlike the “wisdom” of Silicon Valley, it’s not about first movers or minimal viable products. A smart mover with strategy and skill. Sam Walton works smart in small towns, Bill Gates on operating systems, Michael Dell on direct-to-consumer sales, Steve Jobs on music platforms, and Brian Chesky on making it easier for landlords to find guests. acted wisely.
#3. Smart Capital Beats Venture Capital: Grow in Control.
To stay in control of your venture and the wealth it creates, leverage smart capital to delay or avoid venture capital (VC). 6% acquired VCs before they proved their potential as leaders, losing control of both their businesses and the wealth they generated. 18% of unicorn entrepreneurs acquired VC after leadership Aha and retained control of their venture. Examples include Bill Gates and Mark Zuckerberg. 76% avoided VC and retained much of the wealth generated. Examples include Michael Dell and Michael Bloomberg.
#4. A smart start is better than a bad start: Earnings are the smartest capital.
Profitable, capital-intensive VC models have worked primarily in Silicon Valley. If you’re in that situation, it might be a good option if you don’t mind being at the mercy of angels and VCs. However, know that he is only 100 out of 100,000 who can get a VC, and about 80% of those who get a VC end up failing. Additionally, you may lose control of your venture. If you’re not in Silicon Valley, the top 20 VCs are primarily in Silicon Valley, so you’re more likely to win with cash flow and smart capital than relying on second-tier VCs. From Sam Walton and Bill Gates to Joe Martin and Gaston Taratuta, billion-dollar entrepreneurs have profited and grown.
#5. Smart speed beats wrong speed: Launch to balance cash flow and leadership.
How fast you grow often dictates how much capital you need. Grow at a “smart” rate based on cash flow velocity, market velocity and industry velocity. Bob Kearin dominated the fastener industry with 30% annual growth in internal cash flow.
#6. Beat wealthy competitors with smart partnerships. Destroy and dominate slow companies.
Thanks to the Internet, retailers such as Amazon.com have been able to disrupt large store-based retailers like Borders because they don’t need a store to sell online, making Borders’ business model obsolete. It has become But if companies can add AI to their existing business models, they could become strong competitors or potential acquirers. So keep the company in mind when starting a venture, whether it’s a partnership or an acquisition. Google bought YouTube because YouTube was better. Google’s own service.
#7. Smart skills beat startup skills: Unicorn builder beats unicorn starter.
Learn technical skills to build AI products, sales skills to find customers, financial skills to launch, and financial smart skills to become a leader. Unicorn entrepreneurs used their clever skills in finance to grow more for less. Master these skills. Otherwise, your idea could be appropriated by someone else, like Mark Zuckerberg, who was commissioned by Harvard students to write the code that eventually became his Facebook. Zuckerberg seems to have appropriated this idea. Alternatively, you may be replaced by a professional CEO, which is what happens to many founder entrepreneurs.
My take: New trends create unicorn opportunities for fast-moving companies. AI is ubiquitous and will spawn many new industries and growing ventures. Now is the time. But entrepreneurs need the skills to act smart. Areas can build unicorns by training everyone.