Entrepreneurs that consider forming a startup studio must also choose between a wide array of studio types to create. Each type provides its own set of pros and cons that ultimately inform the final decision. At the same time, the founder needs to take into account their sources of venture capital as well as determining whether or not to target a single industry sector.
NineTwoThree operates as an agency builder startup studio. This approach remains compatible with how we run our business. We craft digital ventures for clients in addition to forging new startup businesses. Our client work provides us with startup capital while helping gain critical technical expertise and business domain experience.
We leverage this knowledge to transform compelling business ideas into new businesses. In short, it’s the right strategy that helped us build a digital venture studio making an impact in the technology world.
So let’s take a closer look at the key attributes of an agency builder to see if our approach makes sense for your organization. Leverage these insights for an informed decision on your own emerging startup studio. It’s a vibrant and growing community out here!
Relevant Experience in Technology and Business
Remember, agency builder studios also perform work for clients outside of forming new startups. This allows them to gain relevant and transferable experience in the latest technology innovations. Of course, this approach also serves as a vital source of revenue without having to depend on traditional venture capital resources and their desire for future ownership percentages.
A keen understanding of modern software development methodologies also remains critical. Taking an iterative approach to building a mobile application ensures cost savings as well as a higher chance of a successful project outcome. Of course, practical experience in recent tech innovations like machine learning, mobile app design, and cloud-based architecture is also important.
A Well-Considered Process For Startup Development
As noted earlier, working on client projects provides a valuable understanding of what works and what doesn’t. Over time, this meaningful experience helps in developing mature processes for both crafting apps and building startups. We leverage industry standards, but tailor them for our own needs based on what we’ve learned over time. This approach helps nascent studios quickly achieve higher efficiencies.
Creativity Helps Brainstorm Innovative Solutions
Agency builders’ work for other clients provides exposure to different business sectors, as noted above. At the same time, it also helps them develop the creativity necessary to regularly brainstorm ideas for innovative solutions or even new startup concepts. It’s an essential attribute for any successful studio operating as a digital agency.
Agency Builders Don’t Rely on Venture Capital Funding
Performing digital venture project work for clients provides a critical source of revenue for startup studios following the agency builder model. It’s a scenario that provides these organizations with flexibility as well as a sense of independence. They also retain a larger percentage of ownership of both the parent agency in addition to any incubated startups.
Building Large Coffers of Capital to Fund New Startups
In a related fashion, over time mature agency builders accumulate large coffers of capital which allows them to fund new startup concepts. As these new businesses generate additional revenue, it creates a feedback loop helping the agency builder to expand and scale at even higher rates. It’s a major reason that the agency builder makes an attractive business model for emerging startup studios.
In essence this approach creates a side fund separate from the agency builder’s central revenue source. The feedback loop mentioned earlier also helps foster an entrepreneurial community, serving as an extra marketing resource to help draw attention to the agency builder and the new businesses it incubates. Ultimately, it’s a great way to share knowledge and best practices, while attracting technology and business talent to the community.
Agency Builders Easily Build Valuable Networks
Project work for both clients and new startups helps grow a valuable network around an agency builder. It serves as a source for new startup ideas as well as the necessary talent to foster success. Again, agency builders enjoy the flexibility of focusing on both growth and funding simultaneously.
Remote Working Reduces the Dependence on Location
The growth of remote working makes it easier for agency builders to source talent. In most cases, their physical location doesn’t matter as much compared to the earlier days of the concept. It’s now possible to connect with entrepreneurs and the required technology professionals all over the world.
If you are interested in learning more about startup studios, especially our agency builder approach, connect with our team at NineTwoThree. Our Digital Venture Studio Playbook offers useful information to help your analysis. Reach out to us for any questions or if you want to discuss a potential partnership.