Overcoming Startup Challenges Through Corporate Partnerships
Dec 27 , 2017 | By Inevert
Starting a new business is an exciting yet daunting experience. With the potential for great success come unique challenges that startups must overcome to become viable in an industry. Forming a solid corporate partnership will help your business overcome the roadblocks and common pitfalls you may encounter along your startup journey.
Challenges are present everywhere in the business world, and startups are no exception. So how can corporate partnership help your startup overcome these common challenges? The experts at Inevert have put together a list of the top ways establishing a corporate partnership will accelerate your startup on the road to success.
Partnerships Between Startups and Established Corporations
Let’s start with the basics. In its simplest form, a partnership between a startup and a corporation is a commitment between the two companies. It culminates with the signing of a formal agreement that includes a substantial financial commitment from the corporate partner to the startup.
You might be wondering why an established corporation would want to invest in a startup? The collaboration between corporations and startups creates a win-win solution for both parties involved and also for their respective industry. Partnerships with corporations are a driving force of growth for both local and global economies, propelling innovation and fueling technological and market growth.
Even with the greatest technologies and innovation, startups often struggle to find recognition within the highly competed market. Gaining credibility as a new business is somewhat of a catch-22. On the one hand, you need to gain experience and brand recognition to gain credibility within your field. On the other hand, it can prove challenging to gain experience when you are just starting to make a name for yourself. So what is a startup to do?
Establishing a corporate partnership with a reputable organisation provides a boost to your credibility, particularly in industries dense with startups. When an established corporation partners with your startup, they are endorsing your business and brand. This helps potential customers and other potential partners take your startup more seriously.
Startups typically have limited distribution capabilities. When you establish a corporate partnership, your startup will be able to leverage their corporate distribution channels. This will help to expand your market reach.
For a startup, proof of scalability is worth its weight in gold. Leveraging large corporate distribution channels will allow your startup to test products and services on a larger scale to prove its reliability. Not to mention, expanded distribution reach goes hand in hand with increased revenues.
PR and Branding
Marketing a startup is completely different from marketing an established business. Right out of the gate, a startup doesn't have the brand recognition to get you where you need to go. Additionally, startups usually have limited resources and are operating on a tight budget. Throw in a competitive atmosphere, and it's hard to stand out against the masses. A corporate partnership will help.
Established corporations have been through most PR and marketing triumphs and tribulations. Their experience helps new startups avoid common PR pitfalls and can help increase brand recognition. Corporate partnerships help startups with branding and public relations.
When a startup finds their niche market, demand for their products and services will increase. The startup will need to adapt and grow to fill the needs of its expanding customer base. This increase in demand can prove challenging.
A corporate partnership allows startups to leverage the extensive resources and distribution channels of their established partner. These resources help startups expand at the rate necessary to meet client demands.
Hiring Talented Employees
When a startup experience rapid expansion they typically need to obtain and hire new talent to tackle growing demands. Adding a large volume of new employees to meet demands in a short period places a severe strain on a startup’s finances. A corporate partnership can help alleviate this burden and avoid costly growing pains.
As a startup, you’re going to face challenges along the path to growth. A partnership with an established corporation will help you avoid common challenges, when applicable navigate through your growing pains.
If you’re a startup looking to showcase your innovation with an industry-leading corporate partner, the professionals at Inevert can help. Our global digital platform and network allow startups to connect with corporates for industry guidance and support. Contact us to learn how we can help you on your path to success.