4 ways to make sure that your company stays ahead of the startup game
It seems that every day there are new advances in technology, so much so that it is just about impossible to keep up with its constant growth and change. And since so many people have the accessibility and know-how to harness its powers, it’s not only large corporations with tons of capital and the best and brightest employees who are able to win in the startup space.
One need only look at some of the most notable innovators in modern history to see that even humble beginnings can reap enormous rewards. Before becoming the richest man on the planet, Jeff Bezos quit his Wall Street job to explore book retail opportunities and set up shop — what would eventually become global shopping giant Amazon — in his garage while he got to work developing the necessary software. Much of the initial programming for search engine Google by its creators in the mid-1990s was also done in a garage, as was the assembly of some of the first Apple computers before they hit the big time and moved to bigger facilities. This is proof that big ideas — along with the knowledge on how to execute them — can result in market domination. Because it’s about being at the forefront of technological advancement and having the desire to shake up the status quo, rather than being in the power seat but remaining stagnant, that will lead to startup success.
This is also the reason that many corporates aren’t able to turn their innovative ideas into a tangible, profit-yielding product. The hierarchical structure means that decisions are often made, and the go-ahead granted, more slowly, so by the time they are ready to go to market, there are already rivals with which to compete when vying for the consumers’ attention. In this case, many large companies would try to acquire said competition — just as Facebook bought photo-sharing app, Instagram, in 2012, and messaging platform, Whatsapp, in 2014 — but, in reality, most corporates are not in the position to fork out billions and would rather develop software and products from scratch using their own resources and talent. And this is possible if you make sure that your company is at the forefront of technological advances and industry trends, and allow for time and space for it to get off the ground. Here are four ways to make sure that your business gets, and stays, ahead of the corporate-startup game.
1. Allow for full-time focus
Rather than allocating the responsibility of startup development and execution to staff members who already have a full plate, have a dedicated team (or teams) with the sole purpose of driving innovation. In the world of startups, you will be competing with entrepreneurs who dedicate every hour of their working lives to getting their new venture up and running and into the customers’ hands, so to have your staff responsibilities split between innovation and juggling their existing workload is not going to be viable if you want to hit the market with a quality product before the competition does. In the world of corporate-startups, the early bird really does catch the worm!
2. Leverage your existing database
One thing that corporates have that many smaller startups don’t is a database of existing clients, and you should definitely be using that to your advantage. Marketing a new product is crucial if you want to get it into the hands of the consumer, and this can also make a significant dent in your allocated budget. Already having a database of loyal customers at your disposal will make it a lot easier to bring attention to, and get as many eyes as possible on, your new venture. And, if the relationship that you have built with your customers over the years is one of trust, it will be simpler to convert that attention and interest into sales than if you were a new kid on the corporate-startup block.
3. Be flexible with your budget
While this doesn’t mean allowing your team so much freedom that you end up losing more money than you could ever hope to generate, it does mean that you should allow for some flexibility with the budget so that you don’t force your team to hold back on creating something great. Another option is to allocate a budget and allow your innovation team to use it at their discretion in order to get the results they — and, ultimately, you — want. By forcing them to deal with endless corporate bureaucracy and red tape, you are only delaying the process and restricting their ability to bring the next big top-grossing product to life.
4. Be aware of market trends
Arguably the most important factor as to whether or not a company succeeds in the corporate-venturing game is not how much capital you have at your disposal or having the strongest players on your team, but how quickly you identify an opportunity, adopt new, innovative technologies and get them to market. Speed trumps strength in the startup space, and to make your venture a successful one, it’s important to have your finger on the pulse of industry trends and what people are looking for so that you are in a prime position to meet their needs with your unique and innovative offering.
