What Secrets & Tricks Can STARTUPS Learn From GIANTS?
Prepare to have your mind blown in 3… 2… 1…
A. DID YOU KNOW…
Enterprise owns both National and Alamo… ??
Avis owns Budget, Payless, and Zipcar… ??
Hertz owns Dollar and Thrifty… ??
“I just booked a flight… Oh, cool, here are 3 different ads for 3 different rental car companies…”
This is ONE ad spot — disguising itself as three ads!
What do all of these products have in common?
Although they might seem unrelated… THEY ARE (surprisingly?) ALL SOLD ON THE SAME WEBSITE(S)!
… and, therefore, in each case, the companies each benefit from shared resources, economies of scale, and a cross-promotional network effect …
C. THINK ABOUT THIS…
FACT: *Most Startups will fail if they try to launch MULTIPLE products, MULTIPLE services, MULTIPLE business units with MULTIPLE revenue streams.
[We actually agree! This is definitely true!
MISGUIDED CONCLUSION (in most startup communities)
“Therefore, Entrepreneurs must have LASER-FOCUS and it is a MISTAKE for Entrepreneurs / Startups to attempt the whole “Multiple Eggs / Multiple Baskets” thing…”
MORE RELEVANT than the Fact Above is THIS:
*MOST Startups will fail… PERIOD!
[Whether they attempt ONE product/service or FIVE products/services or ELEVENTY-SLEVEN products/services!]
Correlation vs. Causation gets mixed up (or is not even considered) so unbelievably-often — particularly when people try to ascertain “best practices” by establishing reasons WHY startups/entrepreneurs have EITHER failed OR succeeded!
Shared Resources, Economies of Scale, and “Multiple Eggs in Multiple Baskets” yield so many benefits for the biggest/best companies in the world, but such strategies are so rarely incorporated into early-stage / idea-stage startups…
There are countless other examples out there where the GIANTS incorporate this thinking — and obviously there are some HUGE differences between YOUR STARTUP and some of the biggest companies in the world! — BUT, it is still a mistake to think that some of these practices/strategies can’t be implemented (on an obviously smaller scale) within STARTUPS to derive similar efficiencies (albeit, again, on an obviously smaller scale)