Article By Craig Kronenberger
The world of startups has gained momentum over the past few years, opening the path to emerging technologies and innovative ideas to launch with the help of proper guidance. However, despite recent successes and heightened global recognition, many startups still struggle to find sustainable success and the ability to execute their ideas in a scalable way.
While it is known that there is a high probability of failure with any high-risk endeavor, such as building a new business from the ground up, the risk is mitigated by providing the right support system and resources to founders. Nevertheless, there are a number of bright teams out there that focus on providing specialized tools and solutions to help launch healthy and successful startups, whether it is defining goals and objectives or building the right product to address a market need.
Rocketship Graphic on How To Launch Your Startup, By Startup Studio Insider
Startup Studio Insider notes that the startup studio business model has become one of the most effective routes for startups to overcome the challenges associated with creating a business and sustaining its growth over time. Unlike an incubator or an accelerator, startup studios are involved at the earliest stage in the life of a startup, making the idea development process smoother and stronger in order to launch the business in its best shape possible. Also, startup studios offer an ongoing level of extended support, such as strategic mentorship, access to top tech tools, and deep insightful market research that most businesses alone cannot achieve alone.
Because studios are deeply familiar with the consumer pain point or problem and concept of the startup from the very beginning, they are more likely to support the business over a long period of time.
Here is a rundown of the top four benefits of collaborating with a startup studio to minimize the risk of failure and increase the chances of success:
- Access to Funding
According to research, more than three-quarters of startups failed due to running out of cash or a lack of funding. In fact, lack of funding is one of the top reasons why emerging businesses fail. Studios are able to tackle this by providing seed and growth funding to their companies, which helps the companies they work with to focus more on building the business itself rather than spending time raising capital.
- High Selectivity Partnerships
One key difference between traditional investors such as VCs or angel investors and startup studios is that startup studios are highly selective in who they work with. This allows studios to fully commit and invest their time in the businesses they back, mitigating risk and ensuring their success. Because startup studios maintain a relationship and provide shared resources for the startup beyond launch to facilitate long-term success, studios must invest their time, money, and resources into fewer startups.
- Thorough Industry Research
Typically, startup studios will not launch a startup without substantial research and data to prove that there is a market for the offering and that the business model is viable As startup studios generally build companies that tackle certain market needs and customer gaps, well-conducted research will be necessary to establish the right goal and strategies for each business.
- Shared Space and Resources
Overall, studios offer a highly collaborative and creative environment from the initial stages of incubation, to even after the launch and growth of the business. As studios employ a hands-on approach, they provide both pre-and post-operational support in product development, marketing, HR, sales, and finance, operations, and other critical elements of the business. Another benefit that studios provide is access and connections to a skilled team of experts that will help enhance the overall vision.
When it comes to starting and launching a business, founders have several models from which to choose. However, if you are a rising entrepreneur seeking continued support and resources to expedite your startup growth and ensure its success long-term, a startup studio could be the best fit for your needs and entrepreneurial goals. To learn more about what some of the best startup studios have successfully helped launch in the past, check out “Top Startup Studios in Action” by Startup Studio Insider.
Over twenty years of experience as a consumer digital strategist with a concentration in global strategy, Craig Kronenberger is currently the CEO and founder of Stripe Theory, a data-fueled digital agency established in 2015 with operations based in Atlanta and The Philippines.