When you have a business to run it’s really hard to come up with new innovative ideas. There is simply not enough time to experiment with new technologies and products. Startups however can concentrate on just that: the next big thing. Cooperations seem to be in order.
The thing with the next big thing though is that it’s not big yet.
The time when cooperations are most beneficial is when the startup is still small and potential (and cheap) rather than already successful and most wanted. However you can not reliably tell wether it’s going to get ballistic or to get stuck.
What you can tell is wether the idea fits to your business and that your business could benefit the idea.
In our case our businesses consists of more or less well known brands, contents and audiences. It is highly beneficial for certain startups to hook up with partners like this as the brand can get them exposed more prominently to an audience that is already available.
Startups on the other way around can make your brand appear innovative and up to date and can help you to offer a better service.
Still the problem exists that you don’t know if the startup is going to do well.
So you want some safety measures.
- A test phase – make sure both companies can work together and all expectations can be met
- Little to no effort on your side – the startup is going to be innovative while you just lend the brand
- Loose integration first – don’t share your audience just yet as a failure could damage your brand
- Exclusiveness – you don’t want competitors to jump the idea after you got it started