Why Startups having trouble working with Large Corporations?
It was the subject of my YouTube program KHRMN on Dec 6, 2019. I talked with Tumay Solak, who is Entrepreneurship and Innovation Specialist at one of the biggest electricity producers of Turkey, Enerjisa Uretim, and he is also a cofounder of a startup.
[TÜRKÇE VERSİYONU DA VAR— https://medium.com/khrmn/why-startups-having-trouble-working-with-large-corporations-a48e56e2bb37]
So, why it is so hard for startups to work with big companies?
Let’s address some issues:
1) Information security. Cloud services used by startups can create a perception of security problems in companies.
2) Tailor-made product is needed. The expectation of corporate companies is often a customized product that is fully compatible with their systems, while what startups often offer is far from being a plug-and-play solution. In this case, it is necessary to work on a project basis. Working on a project basis is not something startups want. Startups want to sell the same product as many times and grow fast.
3) Quality standards are lacking. The products developed by startups need to be standardized and have quality standards. Otherwise — although they are cheaper — it is difficult for them to compete large international firms with similar products.
4) No warranty. The past references of the startups are insufficient, and it is doubtful how long they will survive in the future. In the case of a conflict between founders, which is one of the frequent reasons of failures, a possible project cancellation can pose major problems for huge companies. This gives corporates a defensive attitude.
In a nutshell, calling yourself as a startup can give you some advantages in the early days, and can help you gain prizes, grants and cheap media coverage. However, if you want to be a service provider of a large company, you need to understand the expectations well, give trust, be a company that is able to show past references and guarantee in the future to your big customers.
KHRMN is ¨kind of¨ a technology and entrepreneurship focused YouTube talk show.
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Naci KAHRAMAN
founder of KHRMN.co
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