In today’s competitive market, it’s not enough to do one thing better than your competitors. Thus, your marketing strategy must constantly be evolving so that it can readily recognize and adapt to new opportunities and threats that emerge in the market.
Ironically, startups and big corporations would improve their success rates if they collaborated instead of competed. Both entities bring two different, equally essential, skills to the table. For instance, startups have the advantage of giving birth to solid new concepts, while larger companies and corporations are much better at successfully scaling new solutions.
Collaboration between Startups and Corporations can be beneficial for both:
- Startups – According to Forbes, 58% of startups successfully figure out a clear market need for what they offer; and, in turn, are better at detecting and unlocking emerging and latent demands. However, startups often stumble at scaling their proof of concept, not only because they’re usually doing it for the first time but because the skills necessary for creating are not the same as scaling. Per definition, startups must be agile and adaptable, able to optimize several times until they get it right.
- Corporations – In contrast, big companies often launch things they can make rather than solutions to the needs presented by the market. Successful companies focus on increasing scale and are often better at scaling fixes to existing products than creating new customer-centric solutions from scratch. Big companies have considerable advantages in manufacturing and distribution, as well as sales and marketing resources. However, corporations face the challenge of not only creating a new proof of concept but leaving it alone until it’s ready to scale.
Further, collaboration is part of a greater mission toward business growth that focuses on something more significant than short-term financial gains. To establish a successful partnership between a startup and an established corporation, correctly match-making like mindsets is critical. Vertical integration, complementary offerings, same target markets, and/or similar purposes can enable beneficial collaborations with the right approach.
With the correct elements, a win-win situation can be established for both entities. Through collaboration with corporations, startups can gain increased revenue, notoriety, and greater independence. They may also gain access to more significant expertise in the market from seasoned mentors in the field and, in turn, increase their ability to expand through the corporation’s established network.
Likewise, partnering with startups brings corporations increased innovation through fresh ideas, allowing them to better stay on top of new market developments and trends. Startups give corporations access to a young, innovative team who can advise them on new business models and emerging technologies faster.
Be open – sometimes, you must venture outside your comfort zone to make big things happen. Through startup and corporate collaborations, both entities can gain new skills and perspectives, expand their reach, cut costs, and acquire new resources for optimized business growth.
DuartePino is a management advisory firm that combines in-depth customer knowledge with practical expertise in marketing to help clients create sustainable business growth. We can provide your organization with a fresh perspective, a proven process that invests in the outcome, and the tools for successful execution. From Fractional CMOs to business advisory services, contact us to learn how our team can help with growth strategies for your organization.