What it takes to build a Startup into a Brand
Some of the top brands that have developed over the last few decades have done so due to the foresight of the people concerned, and not because they simply wanted to build wealth. Starbucks and Victoria’s Secret are two such examples, where the owners and subsequent managers have improvised at every level to provide awesome experiences to customers. The iconic designer Bruno Cucinelli never planned to be such a big brand as he is today. At the start, none of these entrepreneurs had any clear strategy as to steps they must take to become big. Instead, they adapted to situations and generated opportunities for themselves along with their investors, associates and customers. At the beginning, they were up to everything, finance, brand management, talent recruitment and feedback generation. For startups today to dream of becoming top brands over the next few years or decades, they need to factor in the requirements that people have so that appropriate experiences can be provided to them. The basic human tenet of curiosity must always accompany any inquisitive entrepreneur who wants to scale up.
Big Companies should Collaborate with Startups
Big companies have certain advantages which startups do not have and vice-versa. The former have funding and research capabilities, the latter are typically noted for their risk-taking abilities so thrive in business innovation. Such complementary skill-sets of these two different kinds of organizations must be leveraged. The Campbell food company for example is investing in a venture fund to help aspiring startups in the food and beverage sector. Startups often struggle at scaling due to their relative business naiveté, but can detect emerging business trends to unlock latent demand much better. Big companies on the other hand are often guilty of not creating products crafted for customer requirements, but rather what they feel is right. In large companies, the time, CEOs spend with customers is minuscule. As McKinsey that stands at less than a fifth of their overall time which must increase. Ideally, any startups must have a mix of executives with experience of large firms and smaller ones. The collaboration needs to be on more holistic terms than simply transactional or financial.
Startups could Fundamentally change the Way Big investors Work
Big investors have typically shied away from taking punts on untried, new ventures. Instead, they put their money in large firms, hoping for innovative practices to emerge from there. Even large firms themselves prefer getting their services being offered by established vendors. Yet with the democratization of data and the advent of startups, things are changing now. The giant organizations are unsatisfied with the present usage of technologies. They also wish to avoid the path of intermediaries between themselves and the providers themselves as heavy commissions get charged. Fintech or financial applications is one field where maximum business innovations can still take place. One of the reasons for this trend of startups altering investment patterns, is the usage of enormous granular chunks of data to provide meaningful business intelligence as several startups like Orbital Insight ate providing. Some startups like Sky-mind are using Deep Learning capabilities for such analysis. Some investment-tech firms are using tools such as Pre-data for mining high volume social data to extract business trends. Machine intelligence algorithm tools such as Tensor Flow are now available to a larger audience, allowing its integration to business needs. Startups will in the near future have better prospects at getting larger investment chunks from endowment and foundation managers.
Are Startups influencing Corporate Work Culture?
Startups are not only disrupting the top line of existing businesses, they are also tweaking the rules of talent recruitment. A large pool of talented youngsters are now preferring the more relaxed working atmosphere typical of startups to the formal, intimidating workplaces as typical of the corporates. In order to stay relevant and not lose the war for talent, corporates must imbibe a few steps. First of all startups have a more relaxed dress code as IT giant Infosys has now implemented. Startups are constantly encouraging innovation in order to differentiate from the market. Wipro has set up an innovation hub titled “commando force”. CEOs at such smaller places are more reachable so easier for all to connect. Tech Mahindra has started contests to ensure CEO engagement with other staff members. Startups are attractive to millennials as they have embraced the idea of social media to leverage for the purpose of digital marketing. In order to keep employees motivated, games and recreation are being used as initiatives at workplaces.