It’s not the strongest species that survive but the most adaptable.
Corporations today love working with startups as a way of bringing new innovations to the table.
This is always an amazing idea especially to those who are open-minded and ready to explore.
With the vast number of startups, finding the right one can be a little daunting. All in all, companies are jumping into the wagon of working with startups day after day. And this is definitely for a good reason.
That’s is why any corporation that hasn’t been involved in corporation startup engagement should find its way in.
But the real question here remains;
Why are there so many corporations working with startups today anyway?
Reasons Why Corporations Love Working with Startups
Research done on different corporations show that it’s difficult for you to get an internal disruptive to flourish.
It’s an uphill task steering a billion dollar ocean liner.
In most cases, its the cognitive, structural as well as behavioral factors that are to blame.
That is why the corporate-startup engagement is becoming a crucial necessity.
Here are some of the reasons why cooperatives work with startups.
Jumping into the idea while it’s still young
The younger generations always have a different way of thinking.
Not only that, if you put a new brilliant mind on board, the person will be able to nature their creativity.
Think of it like having another person with the same mindset as you but younger and vigilant.
Imagine if blockbuster never turned down Netflix? The name would still be as great as it was before.
Technology and business professionals both agree that the technological revolution we are facing today is still in its infancy.
After getting a taste of the new computing power in skyrocketing, we are witnessing how convergent ideas can change the status quo.
As a company planning not only to stay afloat but also to thrive, finding the right startup should be one of your priorities.
More importantly, as the technological advancements get to grow roots, your corporation needs to be on the forefront.
The diversity startups bring in a company will help you get new ideas and enable your company to be adapted to the new changes.
That’s why a healthy corporation startup engagement is mandatory.
Diversifying your portfolio will help your company detach itself from the lapses of the market. Therefore, you get a better security of your finances.
That is all because startups will always ensure your company has the capability to pivot such lapses.
In that case, this makes your private company have very little correlation with the behavior of the overall market.
This, in turn, will increase your returns while at the same time reducing the risks your corporation is exposed to.
Affordability of the technology
Without a doubt, brilliant ideas always start at an affordable price.
Therefore, for any startup, the idea is still young and ‘affordable’.
Pretty soon, if the idea sells it will be worth a higher price.
Most startups only get root after landing a big deal with a well-established corporation.
And the success of the CSE depends highly on the compatibility of these two entities. Hence, for the idea to even be a success you both need to know if you’re compatible.
Afterward, the two entities can make rules and regulations of the interaction and how they will work together.
By this point, the price of the startup is already skyrocketing.
Wait until you get to see the price once it launches and ends up being a success story!
Tapping entrepreneurship the easy way
This is where it gets interesting.
As a corporation, you are always looking for some new ideas to invest in and incubate.
With corporation startup engagement, you don’t need to hustle anymore. All you need to do is enroll in our platform. The rest is up to our artificial intelligence to get you the right pair.
Our company majors on pairing startups with their rightful corporation hence easing the transition.
This helps both the corporation and the startup to have an easy day finding their ‘Perfect Match’. We also retain some of the best talents in the business so you can be sure of a great partnership.
An alternative Asset Class
We all have been hearing of some of the failures startups face.
In a bit, I’ll show you how that’s now a thing of the past.
If you invest in the right startup, you will obviously witness high levels of profit margins. That being said, finding the right startup should be a very crucial thing.
As a company, you need an alternative place to invest.
Call it a ‘safety precaution’ when you are experiencing low profits in the business. Or call it risk-mitigation whenever profits are good.
That way, you will get a handle on your cash flow and financial management.
More importantly, you will get new partnerships and increase your revenue.
Our platform also investigates the new startups and ensure they are worth investing. Hence, reducing the risk of indulging in a sinking ship.
Create more job opportunities
From recent research, the majority of jobs come from companies that are less than five years old!
In fact, in the United States alone, new firms create a net average of 3 million jobs while other existing firms might end up losing 1 million jobs.
Getting involved in startups puts you in the forefront of trying this method of job creation.
Therefore, you will be able to produce positive externalities that will benefit countries where your startups operate in. What’s more, you will be able to diversify your personal portfolio.
When you engage with startups it also can yield other intangible benefits from other investors who are socially conscious.
Startups are at the heart of innovation and problem solving. Engagements fuel discovery as well as the popularization of some of the life-changing solutions.
These are the solutions that the larger firms are unable to bring in to the market.
In that case, as a serious investor, you can have a positive impact on the success rate of such services and products.
And hence, benefiting lives of the consumers while at the same time producing positive externalities to the larger society.
There are other very few ways to actually make an impact in people’s lives while concentrating on your own company’s interest.
Reap the benefits of getting in early
Jumping into an investment early enough will give your company the chance to witness a high amount of profit.
Investing in startups may have its own amount of risks but when you add the low capital and the high upside benefits makes this a winning combination.
In short, you have low risks and very high rewards. All this can be achieved easily with our platform.
You will also get the chance to connect with the some of the rarest talents on the planet.
Talent is scarce in the world we live in. Luckily you will get the chance to connect in a simple and less complicated platform.
What’s more, you also get the chance to have an early access to the best innovations and technologies. You will be able to increase your market with ready-to-go solutions.
Increasing the corporate learning curve
In any corporation, the innovators are in charge of tackling some of the hardest challenges that face the company.
On the other hand, introducing a startup is a true enterprise move.
Innovation requires you to have the ability to work and engage with a different and larger ecosystem that’s completely outside the company.
Working with and at the same time learning from startups provides a great path through which you can expand your innovation toolkit.
Startups in their early stages and entrepreneurs continue to create value in the overall economy, executing and pivoting at an extremely rapid pace -- they're rapidly transforming our industries and hence are changing how consumers engage with their product each and every day.
Confronting the threat of becoming obsolete
More than one company have confronted the thought of becoming obsolete over the past few years.
Most of these companies were able to survive the threat by bringing in innovations from startups. Hence this increased their exchanges with the ecosystem.
For instance trying to understand cloud computing, artificial intelligence, internet of things and blockchain.
As a company, you always have to be on top of the latest innovations. This way you can reduce any chance of becoming obsolete.
Become an integral part of a team
Startups are typically always on the lookout for an investor and a team player.
They are usually small firms that need an advisor both financially and in critical decisions that might affect the entire company.
Therefore, getting in early simply gives you the chance of having a higher proportion of voting shares.
The new startup will help your company learn to work as a team with a different organization entirely. All at the same time working towards a common goal.
Startups have a faster tempo
Due to the immense risk of the company, their movements and innovations might be slower.
However, a startup has fewer risks and a light structured management system that can handle any amount of risk.
More to that, the flattened hierarchy makes it easy to decide on new innovations and manage to overturn existing models if the actions are necessary to serve the market’s needs.
This big difference is the main reason we ought to build bridges between the two parties.
With Gearbox, you will have the chance to get on board to the next life-changing innovation idea. The best part is that it’s still in its young stages and you have the best chance of joining the ship.
When people buy from startups, they are more likely to stay loyal to it.
This is common mostly in local environments where support for the startup is encouraged.
Therefore, incorporating a startup in your business will increase the customer base your company already has. Hence, increasing the market and profit margins in your business.
Pricing is always a big issue no matter the type of business you are involved in.
Each industry has to consider certain factors whenever they are deciding on the pricing.
For instance, in the food sections, larger companies have more advantage over small companies. That is because they have access to better equipment, they can handle larger runs and at the same time, they can save money per item they sell.
However, in most cases, startups have the upper hand when it comes to pricing. Since startups have fewer people using even fewer resources to develop products and services, they can be priced more aggressively compared to those items priced by a multi-level company.
More to that, you also have the chance to negotiate and change the pricing.
Adding a startup to your company will give you the liberty to venture into a new section with the right resources and the control of the prices.
You don’t have to go through several chains of commands to get a standard price for the goods and services.
Finally, and probably the most important factor, since startups have fewer people within the organization, they have a better and more accessible brand personality.
That is because even the CEO is just another member of the team.
He or she makes appearances at most of the meetings hence giving the company a face.
Another reason is that the employers take less salary but also have more freedom.
All members are actively involved in the company and are quite happy.
Incorporate that into your organization and you have entities that can work towards a common goal.
About the Author: Simon Hitchens is a startup enthusiast, columnist, researcher and educator living in Chicago, IL. He dreams of someday living somewhere warm and writing a novel -- in ink.
About Gearbox: Gearbox.AI provides the leading corporate-startup engagement solutions designed to help innovation leaders, corporate development professionals, and strategic partnership executives master the art and science identifying and aligning with what's next.
Through a unique combination of a membership community, AI-driven software, and cutting-edge expertise, Gearbox is focused on helping corporations keep pace in an ever-changing digital world and providing startups with new avenues for growth. The result for modern innovators is unprecedented agility, risk management, and superior results. Headquartered in St. Louis, MO with offices in Denver, Chicago, and Los Angeles, Gearbox serves as a pivotal partner to large corporations, government organizations and a champion to innovative startups.
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