Strong Leadership Key to Unicorn- level Growth

Startups with huge potential typically build on strong foundations of leadership. In other words companies are more likely to become unicorns when they have strong leaders.

When looking for upcoming companies to invest in, it is a good idea to carefully research the leadership and look for four characteristics that make it more likely the startup will become a unicorn.

Vision

Good leaders have a vision for the future and think ahead. Not only that, they can also convince others to follow them towards their vision.

Elon Musk, the CEO of Tesla and SpaceX, two of the most successful unicorns, is well-known for his foresight. For example, he was working on self-driving cars long before the market started seriously talking about them.

Leaders with a different perspective on issues and out-of-the-box thinking can set a company apart and make it worth investing in.

Decisiveness

The best leaders are always decisive.

Steve Jobs, the founder of Apple, made many critical decisions in his lifetime. In his first year as CEO, he decisively axed more than 70 percent of Apple’s products and dismissed over 3,000 employees. These moves allowed Apple to focus on a handful of good products and eventually grow to become the most valuable company in the world.

Good leaders and leadership teams trust in themselves and do not fear making decisions.

Trust

A good leader is important, but no man is an island. A trustworthy leadership team is also vital for the growth of a company.

The members of a strong team trust each other, can share thoughts and opinions and are willing to admit when a mistake is made. They believe in each other’s ability.

The best leadership teams work together to help a company develop and grow. They are always thinking of solutions to any problems that emerge. A strong bond among the leaders is the glue that can help a company grow smoothly.

Courage

The best business leaders also have the courage to trust their vision, their decisions and their teammates as well as follow their leader even when it looks like mission impossible.

Gwynne Shotwell, the president and chief operating officer of SpaceX, has worked with Elon Musk for 19 years. She said in a TED talk in 2018 that Musk has aggressive goals but she would never say ‘well, that’s impossible’. Instead, she looks for ways to achieve his vision.

At the end of the day, when looking around for investments to make in 2021 it is a good idea to consider the vision, decisiveness, trust among the executives and courage of the leadership team.

Take these into consideration when searching for startups with the potential to become unicorns. Just as importantly, however, do as much research as possible before making investment decisions, do your due diligence and understand that any investment carries risk.