The Hedgehog concept: How Startups Go from Small businesses to Unicorns

You must have heard “the fox knows many things, but the hedgehog knows one big thing.”

So how do they add value to the business? I’ll explain it with a short story:

Once upon a time there was a fox and a hedgehog in the jungle, fox used many strategies to try to catch the hedgehog. It sneaked, pounced, raced, and played dead. And yet, every time, it walks away defeated, its tender nose pricked by spines. The fox never learns that the hedgehog knows how to do one big thing perfectly: defend itself.

In the world of startups, there is often a lot of emphasis placed on innovation and disruption. However, while these are certainly important factors in building a successful business, they are not the only ones. In fact, many of the most successful startups have achieved their success not through innovation alone, but through a combination of innovation, focus, and persistence. This approach is known as the Hedgehog Concept, and it has been used by many of the most successful startups in recent years.

The Hedgehog Concept was originally introduced by business guru Jim Collins in his book “Good to Great”. In the book, Collins identifies three key elements that are essential for a business to achieve sustained success: passion, talent, and economic opportunity.

According to Collins, businesses that are able to find the intersection of these three elements are the ones that are most likely to succeed in the long run.

So how can startups use the Hedgehog Concept to go from small businesses to unicorns? Here are some key steps:

1. Identify Your Passion

The first step in the Hedgehog Concept is to identify your passion. This is the thing that you are truly passionate about, the thing that drives you to get up in the morning and work tirelessly to achieve your goals. For many entrepreneurs, this passion comes from a desire to solve a particular problem or challenge that they see in the world. Currently the biggest challenge faced by the tech firms is lack of extensive network. WorkWall identified this problem and formed a platform where tech firms can become squad partner across the globe.

2. Focus on Your Talents

The second step is to focus on your talents. This means identifying the things that you are truly good at, and that you can leverage to create value for your customers. This might include skills like marketing, sales, product development, or engineering.

3. Find Your Economic Opportunity

The third step is to find your economic opportunity. This means identifying the market or industry where you can create the most value, and where there is the greatest potential for growth and profitability. This might involve doing market research to identify gaps in the market, or exploring emerging trends and technologies that are creating new opportunities.

4. Develop a Clear Strategy

Once you have identified your passion, your talents, and your economic opportunity, the next step is to develop a clear strategy for how you will bring your product or service to market. This might involve developing a unique value proposition, creating a targeted marketing plan, or identifying key partnerships or collaborations that can help you achieve your goals.

5. Stay Focused and Persistent

Finally, it is important to stay focused and persistent in the pursuit of your goals. This means being willing to make tough decisions, pivot when necessary, and stay true to your core values and principles. It also means being willing to put in the hard work and long hours required to achieve success.

In conclusion, the Hedgehog Concept provides a powerful framework for startups looking to go from small businesses to unicorns. By focusing on your passion, your talents, and your economic opportunity, and by developing a clear strategy and staying focused and persistent, you can create a successful and sustainable business that achieves long-term success.

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