Five Steps to a Half-Billion-Dollar Company
“If people aren’t calling you crazy, you aren’t thinking big enough” (Richard Branson)
Every businessman wants to create, impact, and earn. And of course to build a company with a billion dollar revenue, right?!
In the Young Business Club New York City, we have attracted people who, for sure, want to achieve such results. So we decided to invite a speaker who can share with us how one should think and act to become an owner of such a business.
A couple of weeks ago members of the club were invited to an online session with Emma Arakelyan. Emma is a technology and business consultant.
Emma is a world-class management consulting executive, author, entrepreneur, philanthropist, professor at New York University. She brings more than 20 years of experience in leadership across business strategy, IT Architecture & Transformation, M&A as a Partner at EY (Ernst & Young) and Managing Director at Accenture.
She has already brought different technologies and startups to the world and has the experience of creating companies with exponential growth and the potential to earn those billions of dollars.
Emma told us about some steps that every CEO or owner who wants to go to another level of development should make for becoming an exponential growth company. And I decided to share a small part of her incredible presentation.
Step 1. Stop thinking that something is impossible
We live in a world where everything is possible. And you also do not necessarily have to have a big company in order to impact billions of people. Changing something doesn’t always mean involving a lot of resources. This is one of the main precepts of creating an exponential growth company.
Step 2. Get more information about exponential growth companies
Nowadays, global business companies don’t grow in a linear fashion any more — this means none of them do things in a step by step manner. Companies with high potential grow exponentially — jumping from one level to another quite quickly. (With only 20 steps you can travel thousands of meters).
So, what does it mean to be an exponential growth company:
When you create an exponential company, the first question you should ask yourself is: what is the industry you are working in, what is the life cycle of your product, and is your product cool and inexpensive enough to be interesting for a large number of people.
One more feature of the exponential growth company are the technologies that are used at every stage — for data collection, for the deep understanding of the client and so on. Technology is the key to success.
Step 3. Understand the life cycle of the exponential company’s
Taking into account that an exponential growth company grows very fast, they also have a different life cycle:
To understand this diagram better, take a close look at digital photo development. In 1976, the digital photo industry was just at the very beginning of its era and demonstrated a low quality of photos. Nobody actually believed that this would eventually become a “new black”. But then digital photos and cameras actually almost entirely replaced physical photos on the market. This was the period of disruption.
In 2012, with the bankruptcy of the Kodak, the digital camera market came to the point of dematerialization and democratization because nowadays every smartphone has a digital camera. Of course, most professionals still use these high end cameras, but they have already become a specialized tool, not for everyone.
Step 4. Search for an outstanding product or offer
To create a successful exponential growth company with a valuable product, you should search for ideas among exponential growth technologies and exponential growth organizational tools:
For example, famous chocolate producers announced recently their collaboration with a 3D printing company — they are going to produce chocolate on 3D printers. Someone may call this idea crazy and impossible but it has big potential to bring in impressive revenue. Owners of the chocolate business just searched for a new direction among exponential growth technologies.
3D-printing is the next disruptive field that can bring in potentially $11 trillion dollars in business. Try to get your billions out of this kind of revenue.
Step 5. Change your mindset
Creating an innovative company is quite a difficult task and you, as a manager, should be ready for that type of effort.
Your task is to implement these 5 things mentioned above in your daily working routine and process. One more important point — don’t be afraid to implement everything on your own. You do not necessarily need to have large financial resources to reach your goals, always try to collaborate with someone who has strong resources and is synergistic with you.
The term “Moonshot Thinking” was created at Google. It means thinking in a way that can help to create a billion dollar company. A good example of moonshot thinking is Uber. They saw that customers were underserved — they could not catch a taxi when they needed to. So Uber created the possibility to order a ride anytime and easily to boot. When the market became saturated with such companies, Uber found another solution — to deliver food. Really cheap, cool, and an exponential growth service.
Would you like to learn more together with other entrepreneurs, start-up founders, business owners, and investors from New York Area, add me (Denny Copy) on LinkedIn and ask about the Young Business Club.
All the best,
Co-founder of YBC NYC,
Young Business Club of New York City
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