The behemoth size and ingrained processes of many big companies make it difficult to quickly respond to today’s fast paced business environment. A high-level perspective governs decision-making which is based on legacy products and past experiences.
By comparison, startups are agile and employ fewer employees operating close to the ground; often through individual communications with clients. This niche-level perspective allows teams to gain client insight and quickly adapt to emerging trends.
Partnering with startups, especially those still young enough to question processes and challenge the status-quo, is an excellent way of infusing a startup vibe into big-business offices.
1. Constant Flow of New Ideas
Startup teams are encouraged to chase disruptive innovation while large companies value process improvements. This focus, coupled with a mindset based in risk aversion, encourages large companies to sacrifice innovation. Challenging traditional thinking is born from the youthful naiveté and minimal histories of startup companies which have a way of bleeding this thinking into their partners.
2. Cost Efficiencies
Startup teams are resourceful and focused on developing products that provide quick cash infusions; on creating something that is worth paying for instead of a product that simply meets the specification.
Additionally, they are often staffed by resources fresh on the professional scene; as a result, salaries are lower and soft-benefits comprise a portion of their compensation package.
3. Niche Experience
The narrow focus of startup companies often comes from the talent of team; resources deep-dive into a very specific niche and become experts or even leaders within the space. This dynamic is most evident when partnered with a startup with inventor-level resources on staff. The business gains access to the developers of the product and leverages this talent to achieve employee buy-in and decrease learning curves.
Big companies have a way of falling into a rut; a behavior that is rewarded with incremental gains and slow growth. Startups are marked by rapid acceleration; the business may grow by 50 or even 80 percent in a single year. A partnership with a startup that values rapid growth potential and innovative thinking jump starts creative juices.
Startups and large companies – SwitchPitch is rolling out 10 events over the next 12 months. Be on the lookout for our full event calendar coming soon!
Also, check out our new startup video here.