Over the past few weeks we’ve spoken to startups worldwide to find out why they work with large companies. Together they have come up with an interesting array of benefits showing why startups should seriously think about working with corporates.
Here are 5 reasons startups should consider partnering with corporations:
1. COVERAGE AND EXPOSURE
Pavegen told us the best thing about working with large organizations is that they “have a significantly larger PR department, [so] it is likely that their work and coverage on such a partnership would reach a wider audience.”
This kind of large scale exposure can be game-changing for a startup. PR to a corporate scale is often unaffordable at an early stage making this sort of visibility priceless. Being seen by that many eyes can open a huge window of opportunity to other potential clients.
2. BIGGEST CUSTOMERS AND LARGEST REVENUE SOURCE
Qminder pointed out that “large companies can sometimes be your biggest customers and largest revenue source” something that is clearly very important. Signing a deal with a huge corporation will provide greater revenue than with a small company as they can afford to pay a higher price.
It may be worthwhile focusing on getting that one large client than lots of small ones in the long-run. Not only that, but having a big client will make you all the more appealing making it easier to close smaller deals.
3. CREDIBILITY AND TRUST
AfterShip told us that “having large companies as our customers can increase confidence of users using AfterShip”. This is a very crucial point when it comes to startup-corporate partnerships. To convince potential clients, big and small, to buy your product they need to trust you and see your company as credible. Signing a big-name customer instantly provides this as with big size comes big reputation – a reputation that is put on the line when signing a contract with an unknown company.
Appear Here told us how signing large organizations helped them: “When we first started it was hard to get landlords signed up to our platform as no one had heard of us before and no one wanted to risk it. Once we’d signed up some of the UK’s biggest landlords we found it much easier to bring on other landlords.”
4. INSIGHT AND FEEDBACK
Corporates can provide startups with invaluable feedback and specialist insight. Being large, established organizations they wield a lot of experience, as well as having specialist departments with very specific focus. As clients and partners corporates can give startups feedback that will help them provide a better product to other potential clients.
Qminder believe this is a great benefit for startups: “… a large corporation can be a great partner in product development. They might provide the competence and insight through their structures and specific departments that one-man-shops and SMBs simply lack.”
Signing a partnership with a big company can give a startup almost overnight scale. Not only will the product scale due to the sheer size of the company using it, but it will now be exposed to all the competitors and peers in the corporation’s market. This allows a startup to quickly spread as the demand for their product will vastly increase.
Image Credit: Anthony Easton