The Success Strategy You Should Learn From Today’s Hottest Software Companies… But Nobody’s Talking About It

History’s most rapidly growing companies all seem to have this in common.

In spring 2017 Snap Inc. (owner of Snapchat) became the latest, trendy software company to make its founders and investors obscenely wealthy when it launched a nearly $20 billion IPO. Within a week of the IPO, the net worth of cofounders Evan Spiegel and Bobby Murphy exceeded $5 billion each.

We can’t all be billionaire tech entrepreneurs. But, there’s plenty we can learn from the meteoric success of brands like Snapchat, Facebook and Google.

According to the Small Business Administration, about a third of all businesses with employees cease operations within the first two years. Only about half are still around at the five-year mark. With such a high fatality rate, why is it that some brands seem to become household names overnight?

This Matrix Matters Even More Than A Weird Sci-Fi Movie

In the 1960s, the Boston Consulting Group invented what’s known as the Growth/Share Matrix which categorizes businesses into four groups:

Stars: Market leaders in high-growth markets

Cash Cows: Market leaders in low-growth markets

Question Marks: Followers in high-growth markets

Dogs: Followers in low-growth markets

Think of companies like Facebook, Google and Microsoft. These are companies that managed to establish themselves as the number one brands in markets that were ready to experience massive growth in a short amount of time. They were all stars.

Stars don’t just inhabit the software industry. Take Ford for example. Or McDonald’s. These are also companies that managed to establish themselves as the number one brands in industries that were ripe for unbelievable growth.

When an industry grows rapidly, the company that manages to publicly establish itself as the leading brand tends to grow at a similar rate as the industry. The same is true for companies that may not be the leading brand in the industry, but still manage to carve out their own unique rapidly growing niche.

Think of Subway. McDonald’s was well-established as the number one fast food brand. Subway successfully established itself as the number one fast food sandwich brand. Facebook was the clear cut leader in the social media industry. But, Snapchat managed to establish itself as the leading brand of ephemeral social content.

(Note: Ready to start building an 8 or 9 figure business? Then feel free to tune in to my special free training, where I discuss 7 growth strategies that you can swipe from the Fortune 500 world. Use these to start growing your business like never before! Click here to sign up now!)

What To Do About It

In his book, The Star Principal, Richard Koch states, “You can put just as much skill and effort into a non-star as into a star business. But the results will be totally different. The star business will be much easier to build and much more rewarding.”

If you’re going to invest the time, resources and effort to start a business, you might as well give yourself the best chance for maximum success. That means figuring out how you can realistically claim leadership in an industry or niche that’s experiencing or expecting rapid growth.

The same is true for investors. If you’re planning to risk your hard earned money, then investing in a star business can be a great way to hedge your bets. This is true if you’re a venture capitalist, if you invest in the stock market, or if you’re thinking about investing in your buddy’s startup.

If you already own or lead a company that’s not a star, things are more complicated, but certainly not hopeless. If it seems reasonably possible, try to shift your positioning in a way that transforms your company into a star.

Another possibility would be to use your company’s resources to acquire a star business or to launch a new brand that has the potential to be a star. You could also try forming a partnership or a merger with a star. If none of these seem realistic or desirable, you could focus on investing your own money in stars. You could even consider selling your company in order to do so on a larger scale.

For many of us, the best strategy may be to seek employment in a star business. Despite the inherent risk, you might consider working for a star startup that has only a few employees. This increases your likelihood of receiving stock options and offers a better chance of progressing to more senior management positions as the business grows.

You can also create your own personal star brand. Networking legend Keith Ferrazzi explains, “As I look back on my career, the recipe seems straightforward: I’d latch onto the latest, most cutting-edge idea in the business world. I’d immerse myself in it, getting to know all the thought leaders pushing the idea and all the literature available. I’d then distill that into a message about the idea’s broader impact to others and how it could be applied in the industry I worked in.”

Pay attention to industry news and be on the lookout for cutting-edge developments in your field. Try to find a popular new strategy or concept that interests you. Work hard to establish yourself as the leading expert in your division, company or even industry. As the popularity of the concept grows, your personal brand and career can grow with it.

In all likelihood, there will always be industries and strategies that grow rapidly. No matter where you are in your career or business, you can use that natural growth to your advantage. No reason to let it go to waste.

(Note: Ready to start building an 8 or 9 figure business? Then feel free to tune in to my special free training, where I discuss 7 growth strategies that you can swipe from the Fortune 500 world. Use these to start growing your business like never before! Click here to sign up now!)

Just for fun: 26 Coffee Mugs That Will Crack You Up

About The Author

Seth Coyne

Seth Coyne prefers to be addressed as Jedi Master Seth. He is the founder of Rapid Company Growth. He’s also a surprisingly handsome business advisor. Feel free to connect with him via LinkedIn or Twitter.

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