3 Ways Startups Force Big Companies to be More Innovative

Use Startups to Innovate

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.

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