Scott Galloway, an NYU Marketing University professor, entrepreneur and co-host of the Pivot Podcast, has logged a lot of hours studying the world’s most valuable companies including Google, Apple, Amazon, Tesla, TikTok and Facebook. Through that process, he has distilled and refined a list of eight attributes he believes give a company the best chance of a trillion-dollar valuation, which he calls the T-Algorithm. It's a good reference point when you are working through prioritizing your ideas and their potential to create massive value. It might also inspire a few new ideas when you’re stuck.

T - Algorithm Checklist:

Appealing to Human Instinct - as humans, we are hardwired to share a set of biological needs. The most powerful firms have found a way to tap into these needs to differentiate and connect to their customers. To me, this is all about the role of a powerfully defined and expressed purpose behind a brand.

Career Accelerant for Employees - a firm that serves as an incredible springboard for a person's career will always attract the most talented employees, which will further fuel its success.

Margins and Growth - today's most successful companies maintain explosive growth and strong margins, not one at the expense of another. Peloton would be a great recent example, all be it heavily aided by the pandemic.

Recurring Revenue Bundles - aka The Rundle - A lot of successful companies that are driving much higher multiples in their valuations are shifting into offering bundles of goods and services for a recurring fee. Firms that convince consumers to enter into longer-term relationships are better positioned to accumulate more value over time than firms that interact with consumers transactionally.

Network Effects - this is the flywheel again and the ability for a business to increase in value as the number of users also increases. For example, the more people on Spotify equals more data plus more playlists, which improves the experience for users over time.

Vertical Integration - a firm's ability to control the end-to-end customer experience by controlling as much of the value chain as possible. Companies that control distribution tend to reap huge benefits. Apple has played this strategy well with their investment in their store network.

Likability - the ability of a company's leaders to insulate the firm from government and media scrutiny, strike favourable partnerships and attract top talent. Consumers tend to personify brands, and those that can take on more positive characteristics tend to reap outsized benefit. Mark Zuckerberg is the negative example versus Tim Cook of Apple.

Visionary Storytelling - The ability to articulate or demonstrate progress against a bold vision for the company to shareholders and stakeholders. Telling a compelling story unites team members, attracts top talent and funding.

Check out Scott’s books, The Four, and Post-Corona from Crisis to Opportunity, if you are interested in more context and inspiration. I would also recommend The Pivot podcast for bi-weekly updates on the rapidly changing world of business and technology.

You never know where you might find your next trillion-dollar idea.