It has been suggested that the chances of building a billion dollar business is millions to one ..This probably explains why so few try . Could this mean there is a gap in the market ?One thing is certain If you dont start you can’t finish ! So lets set some fundamentals in attempting the ” impossible ”
To build a billion dollar startup you need at some point miilions …Most startups will never get funding because they do not understand how to approach investors and what they need to offer : preparation is needed to give your idea sufficient value investors need to stand any chance of their funding the project.
Three important elements are : —–
1.Unique idea ; some innovation ; a new market or a real need . 2. Scope ..global reach .. 3 . Value in helping solve a problem.
The mistake many entrepreneurs make is trying to get funding from a wide variety of investment houses; it rarely works .. Investors are inundated with business proposals ; it is a shear impossibliity for all these business ideas to be viewed .This is their biggest problem – how to select an idea which will be commercially successful , this from words on paper -with many executive summaries never read .
A large number of ideas are selected by introduction – from business contacts or partners .However you can greatly increase your chances by creative preparation …. All entrepreneurs who want to reduce their time chasing funds must learn how to court an investor and in some way make the idea so attractive he will invite you to pitch your idea to him .
To get investors attention requires an understanding of human nature : for example finding the funding criteria & or personal interests of your targeted investor first will enable you to make a short list matching your project catergory Ie The type of industry the investor is experienced in & is seeking ideas in that area . It is amazing how many entrepreneurs do not do this fundamental research & waste immense amounts of time .
Lets consider why ” Google”was such a success …
Timing ; Coming in as internet traffic exploded in the 1990’s with majority of surfers seeking information . It gave a better search result than its competitors Investors thought they could monetize the immense traffic it was geting- they were right ! Other factors contributed to its success ..the founders Brin & Page had the right skills & background ; plus they met and started the project at Stanford University ..The inhouse students gave free testing & viral marketing ..
Although it had not made a cent ..it received $ 25 million from Kleiner Perkins and Sequoia Capital, but note this was after a number of years building the search engine . It is interesting that both “Google ” ; ” Ebay ” ; ” Facebook ” ; “Youtube “; and other s having a billion dollar value tend to have a similar business model ie ..They meet a basic need in some area : ” Google ” Information : ” Youtube ” people expressing themselves by video : ” Facebook ” Social connection etc ; It is not a coincidence that the content is supplied free by the customer . this enables rapid growth if the platform supplies their needs .
The lesson from this is to build a billion dollar business you must have a clear vision that will give the result you want , the business model needs to allow for growth on a massive scale Above all it must serve a basic human need , the other big problem vital to success finding brilliant founders early in the projects conception .. The above criteria helps us see that to build a billion dollar business needs certain factors to come together at a special time is not impossible – only nearly so !
What is your billion dollar idea ? Do you see a gap in the market ?
Yobrain : Feeder to entrepreneurs ; investors ; students ; companies open to intellectual collaboration .
Some of the ideas on www.yobrain.com may give you a starting point .. do read the ” User Guide ” . Then test your idea .. its free .
. Enhance your creativity . www.yobrain.com