4 Big Corporate practices your startup needs to adopt for success
You might want to do things differently as a startup founder, but that doesn't mean you can't learn from the entrepreneurs who run Fortune 500 companies. Major brands like Google and Apple are also constantly doing things differently to stay ahead of the curve. They were startups once too, and today they have become some of the most successful brands in the world. Just like big companies have a lot to learn from startups, startups too can adopt several practices from big and established companies.
Here are four things even the most cutting-edge founders can learn from the acumen of Fortune 500 companies and their CEOs:
Startups need to manage their bottom line well
Your company's Profit & Loss sheet will decide whether your startup venture is a success or a failure. There's a huge difference between the way a corporate organisation handles its finances and the way startups do. Several startups borrow huge amounts of money, which influences their major decisions. Big companies, on the other hand, often refrain from borrowing money, because of which they are not answerable to lenders who want their money back. Startups should opt for a bootstrapping approach over borrowing huge amounts of private investment for a more successful future.
Be the best at one particular thing
It's tempting to devise a product or service that will be the end-solution to your customers' every need, but the most prosperous companies are laser-focused on being the best at any one particular thing. For example, Wal-Mart is best known to always offer rock-bottom prices, and Apple is everyone's go-to company for beautifully designed devices. Identify your strength and structure your organization to support it.
Ensure your startup has its own wing that looks into innovation
Several big companies find it difficult to innovate on a regular basis as they have to answer to investors, shareholders, as well as the board of directors. It is for this reason that many corporations are actually umbrellas. They have different brands under a single banner which helps them operate with the freedom of a startup. Startups are often so concerned with staying afloat that they forget to innovate in the process. This is why your startup too should create a small group that has the authorization to shoot for the stars.
Be larger than your people
Startups often become synonymous with their charming managers or head developers, which leads to upheaval when they leave. But the most powerful companies are larger than their people. They do not collapse when a certain individual quits. Never pin the success of your company on one person. Apple, for example, famously struggled after Steve Jobs left in 1985. Startups should work on creating company culture and training programmes that instill the best qualities of their leaders into all their employees.
Try to focus on satisfying your customers in their everyday lives instead of focusing on solving the problems of the world. If startups adopt the above-mentioned four practices from big companies, they can rapidly become a force to reckon with in the business world.