There’s no shortage of guides out there telling you how to become a successful entrepreneur. Whatever industry you’re interested in, you can find millions of written words, and thousands of hours of video, on the best way to make it in that field. Feel like creating your own start-up but unsure how? Don’t worry – there’s a limitless number of resources out there to explain the specifics for you. One thing which is often overlooked, is that to become a successful entrepreneur, you don’t just need to know what it takes to make it in business, or in your particular field. You actually need to be a certain type of person, with a certain temperament, and a certain work capacity, in order to pull it off.
The winner-takes-all phenomenon in business is appealing. All entrepreneurs dream of their products being used by everyone in the market. Large tech companies such as Microsoft, Facebook, Uber, Amazon, and Netflix derive their massive valuations by dominating their respective markets. How did they achieve this dominance, and do new startups have a chance against them?
<p>The 'Network Effect' is a phenomenon whereby a good or service becomes more valuable when more people use it. When a network effect is present, the value of a product or service is dependent on the number of others using it. Over time, positive network effects can create a bandwagon effect as the network becomes more valuable and more people join, in a positive feedback loop. This section will highlight techniques to achieve the critical mass required to achieve this effect and stories about companies that have successfully done it.</p>
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