Startups – risky or challenging?
Startups sounds interesting but also challenging. How to succeed for a big company working with startups?
It seems like working in a big company or being a leader of a big company is very great. Yes, it is, but also it‘s a very difficult responsibility. It‘s hard for a company to make its name famous and even when it‘s already famous. It is still difficult to keep that name in a high position. Big companies has an opportunity to recruit the most talented people and pay high salaries. But also it has some weaknesses.
The Big Name
A „big name“ not always means that no one can overcome it or be better at least in some cases. It‘s about who is speedier and more nimble. The question is if companies can maintain those features when they are growing larger and larger? The answer is yes, but it‘s not that easy.
Big companies wants to be innovative and always grow larger by moving and growing that fast as a small companies. But the wish to limit the risk while managing the big company leads to the desire to make every step risk-free. They are still growing larger but on the low level. Floating on the safe shore not knowing how is it further. Because of companies large size they have many employees which needs everything to be under control to not lose any resource. That is removing innovation from the growing path – everything is stable but not more.
Innovation doesn‘t start from the stable position. It always requires everything to be done. Not by the already proven ways. It‘s about doing things which aren‘t done by everyone. You shouldn’t be afraid to take a risk. Test hypothesis and not only look at what is already works. If you are brave and prepared to work hard. You will see – the innovations you made will break through the evidences.
The more proven things are which needs to be destroyed – the more time it will demand but in a spare of making innovations. The best proof are startups as they are new to the market. People working in startups usually doesn‘t have that much experience or no experience at all. So they are doing things guided not by the rules but by the inner feeling what is right and how to stick to the current market. Big companies used to think that this is too risky so it‘s very useful for them to cooperate with a smaller companies. That‘s what they should do but usually they aren‘t doing it right.
There are clearly visible advantages for small companies pairing with the big ones. It‘s useful for them because of the bigger opportunities, more visibility, resources and so on. But the price they are paying is that they are also involved in complicated policies. Which can affect their desired work achievements. The smaller companies are led by the superior force and are asked to play by the same rules. If big companies wants to succeed in this kind of partnership, they should do a few things i will talk about:
They shouldn‘t expect the same amount of technical abilities from their smaller partners. It‘s normal and obvious that they don‘t have as much as the big companies has. It is known that small companies are often more flexible, nimble and faster mastering new things than a big ones where are dominating old habits and rules. Big companies insists the smaller ones to follow their rules but what they should do is to create a flexible environment and help to find solutions for their struggles.
It‘s better for big companies to start with low-risk tasks – they have more years of experience in the market so they have more to lose. When working with startupers they need to control the situation every time they take a new work – if it‘s not very risky it‘s normal to adapt to the situation and make changes.
It is known that big companies can benefit from working with startups more flexibly. While doing that they make the process of working with innovations less complicated. It leads to easier cooperation with small companies to build sustainable result while the team will be supplemented by the others. The leaders are starting valuing faster processes while working with startups. They can, for example, create a different program or make some changes in the already existing to sooth the conditions for the smaller partners.
All these recommendations doesn‘t mean that big ones should give up for the smaller companies. It means that they should collaborate in a versatile way and do not put the main onus on the startups. The shadow shouldn‘t fall on the smaller partners agility – you both can enjoy this feature without obscuring each other.
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