Do you have a great idea with enormous business potential? The most obvious route to turning that idea into a business is to found a startup–but that process often comes with roadblocks and confusion. From funding to mentoring, we’re here to help walk you through the process of choosing the right startup studio for your entrepreneurship style.
A startup studio may be the best opportunity to grow your business, however, understanding how a startup studio operates will help you determine if it’s the best fit for your needs.
Understanding the Startup Studio Model
Startup studios help businesses set goals, create branding, assemble a team of industry experts, and help guide you through your market launch. The immediate advantages of starting with a studio include expediting growth, reducing risks, and the added operational expertise that provides significant value beyond capital raising.
In addition, startup studios help businesses avoid the most common reasons for startup failure as this model is designed to help meet every core business need such as:
● Appropriate funding
● Targeting the right market
● Sufficient market research
● Strong partnering
● Expertise in the area of business
Therefore, having a strong relationship with a startup studio does not only help refine your business idea from the ground, but also equips you with the necessary skills and tools to take it to launch in a successful manner.
How you Know a Startup is Right for You
- You have a great business idea but need backing to bring it to life
A great idea certainly qualifies you to become a startup founder, but it doesn’t come with the expertise, funding, or advice you need to make the idea a living, breathing reality. Plus, there are only so many ways of ensuring your startup doesn’t end up among the 90% who don’t make it without expert guidance.
- You’re willing to pay for future business success in the form of equity
If you’re willing to use some of your company’s equity to fund and support its development, then pursuing the startup studio route is right for you. Startup studios commonly ask for 30% to 60% equity, depending on how much investment and involvement the business entails.
How To Pick The Right Startup Studio?
Once you’ve determined the startup studio is the correct path for your business, you’ll want to treat the process of finding a startup studio as you would any other investment opportunity. The following criteria will help aid in this process:
1) Conduct research
It’s best to find a startup studio with expertise tailored to the specific business you want to set up, as they will have the industry knowledge to help successfully launch your business. It’s also important to investigate the previous success of the studio’s launches, to understand the likelihood of success.
2) Look for a studio local to you
If you’re wanting personalized services, a local studio is a great option. Local startup studios are more likely to offer you the desired personalized services and have fewer startups to nurture than a far-flung regional or national studio. According to Startup Studio Insider, some of 2022’s top startup studios include:
- Builders: Is designed to build and grow technology companies from scratch, by bringing together bold ideas, seasoned co-founders, operational support, and investment capital.
- eFounders: Builds enterprise software ventures and inspires new ways of working through the help of its 1,000+ team of experts in product development, finance, marketing, and HR.
- High Alpha: Consists of High Alpha Studios, High Alpha Capital, and High Alpha Innovation, which together design, build, and invest in B2B SaaS companies with world-class founders.
- Human Ventures: This startup studio goes beyond the business model to build and invest in model businesses with ambitious founders who are innovating around human heeds.
- Rocket Internet: Builds and invests in internet companies that take proven online business models to new, fast-growing markets.
- Science: Brings together the best ideas, talent, and financing through a centralized platform that helps uncover trends to be shared and tested across their entire portfolio.
- Wilbur Labs: Identifies large pain points and creates businesses to solve these problems, through shared resources, funding, and operational support.
3) Talk to the studio’s team to get a feel for the culture and outlook
Some studios are significant risk-takers; others are more cautious and have carved out a safe path. Once you determine what type of corporate culture you desire for your company, you’ll be able to locate a startup studio that holds the same values. These discoveries will help gauge whether the partnership will be successful.
Many startups fail in the early years of life, however, startup studios can help ensure your business thrives. To learn more about the startup studio model, go to Startup Studio Insider and check out their latest insights and spotlights from top studios like eFounders, Builders, and more!