Building your startup is a marathon, not a sprint to the finish.
That's why the startup studio model makes more sense and is better for founder + team health.
Startup culture is largely dictated by the sprint.
Everything happens at a breakneck pace since there could be a limited runway for the startup to succeed.
Meaning the pace is oftentimes set by fear of failure.
The Problem With Startup Mindsets
But this mindset puts a lot of pressure on both founders and their teams.
Not only do they have to maximize their output at all times, but they also have to succeed at all costs or risk being out of a job.
It's a constant race against the clock, balancing the funds the startup has with its goal of making a SaaS product that takes off.
And as we all know, for startups that clock runs fast.
Many startups barely survive their first year, never mind launching a good product during that time.
Once the startup has died, the team behind it splinters off into new companies, not being able to utilize what they have just learned.
That's where the startup studio model is different.
The founders are more relaxed, and the teams more assured.
The answer is by redefining the typical startup structure.
The best way to explain it is this: startup studios are one part funding, one part founding.
This means that studios both work on external projects and launch their own digital ventures.
By combining the best of both worlds they are able to get the funds they need while working on the projects they want to pursue.
One failure doesn't tank the studio - and in fact, experienced studios have far fewer "failed" ventures than they do successful ones.
Because building a company is a long-term business, startup studios are focused on the long run (or the marathon).
They jump the hurdles in their way and learn from the ones they miss.
And then they're ready to do it even better the next time.
Whereas startups only have the power to make it to the first few hurdles and crumple as soon as they can't make it over one.
It's one race and when it's done it's done.
But What About Risk?
How does a startup studio offer higher chances of survival than a normal startup?
The answer is diversification of funds.
Just like with regular investing, it's important not to put all your eggs in one basket.
Startup studios are focused on repeatable delivery.
Having brought out multiple products and software offerings, they have already grown to understand what works in the market and what doesn't.
And they have the space to experiment and iterate.
Versus working with a team dealing with their first delivery in an industry they have less experience in.
Straying away from a single niche also means your studio gets endless opportunities in new technologies - AI, machine learning, and much more.
This helps you attract more talented hires too.
Having the opportunity to work with new tech means your team is more likely to be ahead of the curve when solving problems for clients.
And the experience they build from these solutions can be passed from project to project like a baton.
Everybody profits from the ability to iterate.
TL:DR If you're tired of running the startup race, switch to running the startup studio marathon. Your health and your team will thank you for it and you'll see that in ROI.