5 determining factors for a successful relationship between startups and corporations

It is common to say that opposites attract. This physical law is applicable in the corporate world and the entrepreneurship world. Companies find the commitment, risk orientation, adaptability, and flexibility of startups attractive. Entrepreneurs have innovation, technology, and flexibility. However, companies can offer marketing channels, strategic alliances, contacts with investors, and the necessary experience to grow and scale businesses.

Pilots serve as a gateway to the solution. It is the first date that can establish the dynamics of the alliance. Both startups and corporations seek to build sustainable, scalable partnerships that benefit both of them. Here are five factors to be aware of:

1.Understanding the problem is essential to identify the urgency of the problem startup is trying to solve and to be able to articulate the needs. We can see if the alliance has a promising future by answering the following questions: Does the solution relate to the core business? Are they transversal? Are there any savings or efficiency? It adds value to the company’s operations.

This Business Case is a good start point for creating efficiencies, savings, and solutions for digitizing the company. It can also be used to respond to emergencies such as the COVID-19 epidemic. Camonapp, a startup promoted by Wayra Herpam of Telefonica Movistar, managed to scale its immersive tech in a multiregional manner in 2020. This provided solutions in the retail, customer service, and marketing sectors. The new virtual scenario was able to replace the consumer’s interaction in real life during times of pandemic.

2.Clarity in objectives

Both startups and large corporations each have their own goals. When there is coherence and a shared vision, a team can create a strategy that works and win-win relationships.

It is essential to determine the objectives of the pilot testing, including the timeline and the steps that will be taken if the project goes ahead. This will give you a guideline and create an incentive for the startup to achieve the goals.

3.Digital Transformation

The pandemic has required companies to adapt quickly to multiple situations and have adopted new technologies, such as Edge Computing, Cloud Computing, IoT, and Cloud Computing. Corporations today base their decisions based on Big Data and Artificial Intelligence. They seek to be more agile, efficient, competitive, and with an overall response capacity.

Webcentrix, a startup, began to market its Omnichannel customer service platform in 2017 through Movistar Empresas Argentina. Today, they have more than 500 clients. They also expanded their offering to Colombia, Chile, Peru, and Chile, which saw them achieve record-setting year-on-year growth. The pandemic created an opportunity. Companies had to establish an efficient customer service channel and reallocate resources to handle home digital media and calls.

4.Adaptation to changing processes

Large corporations often require large companies to go through many internal processes, approvals, and interlocutors for decision-making. Entrepreneurs can become frustrated by being stuck in platforms and dynamics beyond their control.

It is vital to have pre-assigned, assigned interlocutors that lead and support the adaptation process. They are also easily visible through a document.

5.Patience, persistence

Because they operate in opposing ways, there may be differences in times and dynamics. This is why patience and persistence are essential. Keep in mind that adaptation and effort will be required. Follow the established roadmap and take the appropriate measurements. You can avoid losing the rhythm and ensure the achievement of your objectives.

Both startups and corporations are bound to meet when they have a shared need amplified by an overwhelming context. Each party must create scalable business models and stories of success.

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Samatha Vale
Samatha a senior writer for HC's entertainment team. She is an entreprenuer, mother and an excellent writer. She's also an avid reader, music enthusiast and all around inquisitive person - which is just a nice way of saying she's nosy.

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