Should Your Startup Partner With a Venture Studio?
Partnering with a startup studio offers the crucial expertise to ensure your new business stands a chance of profitability, while minimizing the risk.
Taking a startup business from ideation to success remains a risky proposition, no matter the talent level of the principals forming the new company. A lack of sufficient capital, poor market research, and even an inability to hire the necessary technology and managerial professionals all conspire to doom many new organizations. In this scenario, finding a partner with the right mix of tech skills and entrepreneurial experience ultimately boosts the chances of a successful startup.
Partnering with a startup studio (also known as venture studios) boasting experience in your startup’s target market offers the crucial expertise to ensure your new business stands a real chance of profitability. Startup studios effectively serve as a cross between an efficient factory and a business incubator. They leverage time-honed processes providing the market insights and technical know-how resulting in a transformational new business.
So let’s take a closer look at the myriad advantages of partnering with a startup studio for your next business launch. Ultimately, it provides access to the critical experience and best practices to give your fledgling business a real shot of success. It just might be the wisest approach for ensuring a compelling idea eventually becomes a profitable new company.
Startups Stand a Better Chance of Success Partnering With a Venture Studio
Simply stated, any startup enjoys a higher chance of success when incubated within the domain of a startup studio. In fact, a recent Global Startup Studio Network (GSSN) study reveals new businesses formed at a startup studio enjoy 30% better results compared to those bootstrapped on their own. The reasons for these higher metrics become obvious when diving into the details.
As noted earlier, a mature startup studio enjoys a collection of repeatable processes and best practices honed by the lessons learned by making mistakes with previous new businesses. Essentially, they operate as a factory for creating new businesses in an effective and efficient fashion. In short, any new startups benefit from a more experienced approach.
Of course, access to the capital to fund operations remains a critical factor in the success of any new business. Startup studios may provide crucial resources to the businesses they incubate. Studios following the agency builder model - where they also perform project work for third-party companies - can provide development resources to their startup partners. The added experience of working with a variety of businesses as an agency also adds to the knowledge base of the studio, most notably around technology innovations and market insights.
Access to Studio Talent Becomes Beneficial
Sourcing and hiring talented technology and management professionals remains difficult in the current job market. Additionally, this Great Resignation also raised the demand and salaries for those critical human resources any startup business needs for a real chance of success. As noted earlier, high employee salaries ultimately requires new businesses to access the crucial capital it needs to thrive as a business.
This scenario provides another practical reason why a partnership with a startup studio makes perfect sense for an emerging business. The startup benefits from the studio pool of talented software engineers, designers, and project managers, all at a significant savings compared to hiring them on the open market. These experienced professionals also potentially boast experience in the target market for the startup’s digital product or service.
Potentially Relevant Insights in a Startup’s Target Market
That last point also plays a crucial role in the eventual success of any startup. One of the major risks of failure for a new business involves little to no understanding of the market in which it hopes to operate. A mature startup studio – especially agency builders – offer significant relevant experience in a variety of markets. This background provides useful insights and a true understanding of the pain points the startup’s product or service aims to solve.
As noted earlier, agency builder startup studios generally boast broad experience, gained from both bootstrapping new businesses and also performing work for other companies in multiple business sectors. As the studio’s processes mature and continuously improve, this knowledge base benefits any new startups hoping to partner with the studio. It remains a leading reason why working with a venture studio improves the chances of startup success.
This simple fact rings true: most startups end up in failure. However, a partnership with a startup studio doesn’t mean your entire team, idea, and work gets thrown aside. A smart startup studio leverages the lessons learned and professional talent on new business ideas or even external projects. In short, they know how to invest in great ideas and great people over the long haul.
If you are searching for a startup studio as a partner, look no further than NineTwoThree Venture Studios. As an experienced agency builder, we boast extensive experience bringing successful startups to the market, as well as third-party project work. We combine technical know-how and business smarts to give your great idea a real chance at success.