The Start-Up Vs. The Enterprise

I recently met with a start-up founder and we touched upon the number of start-ups operating in the downtown Toronto area. He made a statement that was far more profound than I think he realized: “We’re taking Toronto back,” he said. “It’s been under the control of the large banks and other companies for far too long.”

Tech companies are changing the corporate landscape, disrupting companies and industries that for long had been deemed untouchable by their peers. This has resulted in a “Us vs Them” mindset that is intriguing to say the least, given that both the enterprise and the start-up need each other to survive.

Why?

Let’s start with the start-ups. Technology is changing how business is being done and how the world operates. However, large scale disruption requires a significant amount of capital. Finding sources of sustainable capital, either in terms of funding or revenue, can dilute the team’s focus on completing what they set out to achieve. Founders, responsible for the company’s vision, can spend a considerable amount of team bringing on board investors and/or a marque client. This diverted attention can result in slower development phases and potentially a shift from the company’s objectives.

Now, the enterprise. Being challenged in their own domain after years of industry dominance, they need to revamp their approach to ensure that they remain relevant. Remaining relevant means providing customers with what they want, when they want and how they want it. Enterprise teams know that they need to change, but despite global presence and deep customer insights, they’re not sure what exactly sure how. No matter what they do, the start-ups seems to be a step ahead in using technology to cater better to their core target market.

What's the connection? The start-up needs capital and the enterprise has large amounts of cash reserves built up over the years lying in the bank. The enterprise doesn’t really have the time (or arguably the mindset) to attempt to develop disruptive technologies since it’s being done much faster in the market.

The start-up community needs enterprise funding to be able to sustain the level of development everyone has begun to expect while the enterprise has the money to collaborate and reduce the risk of becoming irrelevant in their own world. This is easier said than done, as there are challenges on either side, but both sides need to work together to survive. Read more on how to perfect your enterprise sales tactics here.

There are many ways to achieve a relationship where both the enterprise and the start-up benefit, but there are changes that need to be incorporate internally for objectives to be accomplished smoothly and successfully. Read on to learn more about how to coach your team to be more innovative.