Startups in Asia are growing at a rapid pace but despite the recent successes and heightened global recognition, a lot of startups still struggle to come up with successful innovation and appropriate execution of ideas. It’s a known fact that a majority of startups fail to make a mark for themselves. While failure is an expected outcome of a high-risk endeavor, a lot of it can be avoided by providing the right support ecosystem to the founders. Some of the brightest teams with the most viable ideas have gone down for very frivolous and avoidable reasons. These reasons could be a failure to define the right goals, inability to build the right product, failure to secure funding or wrong investors, inability to build a team, wasting disproportionately on growth and inability to pivot at the right time.
What is the way out of facing failures in the startup ecosystem? Startup Studios could be one big answer to this quest. Since you don’t get a second chance to make the first impression it is crucial for ideas to be in expert hands for a non-stop explosive growth. Startups can benefit from the fast emerging startup studio systems that allows entrepreneurs the freedom to do what they know best and let the obvious handled by a team that has the experience. Startup studios are akin to the two side wheels on the bicycle when someone is learning to pedal for the first time or the first or second stage rockets of a spaceship, which are crucial to put it in the orbit. But before you associate with one of them, you need to have an idea about the knowhow of a startup studio. It sounds vaguely like an incubator or an accelerator, but it is neither of those things. It can be defined as a company that builds companies by bringing new ideas to life. Unlike an incubator or an accelerator, Startup Studios are involved at a very early stage in the life of a startup aiming at kickstart, stability and sustainability of a startup. Globally, Startup Studios are regarded as third co-founders of ventures due to their increased involvement in the execution of the product and ideas.
Listed below are a few benefits of collaborating with a startup studio to minimize the risk of failure and increase the chances of launching and sustaining a successful business:
Functions as a Co-Founder with the Founders
Unlike an accelerator, startup studios are deeply familiar with the problem and idea, because they helped you launched the idea and have implemented it and have less time constraints. They are motivated to provide support over a long period of time. A typical engagement starts with the refinement of the model with KPI definition and goal setting. Studios then help the startups build their products. Specialized teams help startups right from conceptualization to product building to the market launch and sustenance. These studios also help them in structuring their funding story and business plans and takes it to empanelled funds. They devise growth strategies for the startups with the most efficient use of the available cash resources. The key interest of a startup studio is in the growth in a startup’s valuation, which is where the upside is locked.
Offers Pooled Resources
A startup studio employs a team of designers, developers, marketers, and administrative staff for the early stage startups associated with them. This provides startups access to the help they need in launching and working on their ideas without hiring and thus saving the cost of expensive consultants during its prototype phase.
The studio staff can use their specialized knowledge and experience that they have gained to refine processes that speed up the iteration process on the next go around.
Provides Shared Learnings
A lot of startups make the same mistakes and thus, increase their chances of failure. One big reason is that founders have very little learning across startups if he or she is not a serial entrepreneur. In a startup studio, the administrators are serving to establish each of the spinouts and giving mentorship and support en route, keeping away from the normal traps and “getting to reality” all the more rapidly.
If A Startup Fails, the Team Is Reassigned and Doesn’t Scatter
Startup studios give a similar drawback security to the two, originators and organizations. From an originator’s viewpoint, you don’t need to battle to pay yourself compensation from the earliest starting point despite everything you have value upside in your work. Moreover, on the off chance that your startup thought fails the studio isn’t keen on scrambling your ability, since they have invested a great deal of money in your aptitudes. This means you can help other portfolio companies or start another project within the factory.