The term “unicorn” refers to companies with billion-dollar valuations that are often young, disruptive, and potentially world-changing. Just a few years ago, unicorns were plentiful and represented an ideal scenario for a young tech startup.
More recently, however, the unicorn isn’t so common anymore as the market has been cooling off on big valuations; venture capitalists and others have taken a more cautious approach when evaluating startup investments. In many ways, this is a blessing for startups as it forces them to really pay attention to their bottom line and build viable businesses.
Where does that leave your hypothetical unicorn? It’s time to look towards revenue and profitability instead of chasing lofty valuations. Revenue is the lifeblood of any business, and it’s something every startup has to focus on if they plan to be successful.
There are several ways to do this. Most importantly, your company needs to deliver a product or service that people actually want. That’s the first step to any successful business and the basis of all revenue.
From there, you’ll need to pay attention to pricing, cost-of-goods-sold, and other expenses to make sure your revenue and costs are balanced and you can remain profitable. It also helps to pay attention to customer service and satisfaction. Any business that focuses on quality customer relationships will be more successful in the long run.
Finally, it never hurts to get creative with revenue streams. From subscription models to in-app purchases, there are a wealth of opportunities to find more ways to monetize your product or service.
As the startup landscape evolves, it’s becoming clear that chasing big valuations is no longer a viable strategy for most companies. Relying on revenue and profitability is the key to success. Unicorns may still exist, but for the average startup, revenue should be the focus.
