5 ways to avoid bd pitfalls between big businesses and startups

Communication in Business Partnerships5 Ways to Avoid BD Pitfalls between Enterprises and Startups

Our Discoveries

SwitchPitch helps big companies and startups get deals done. Here, we hear from both sides about their successes and stumbling blocks.

Today, we’re here to share our insights on typical examples of miscommunication.

Startup hears:

“We’re getting plugged into their resources and ecosystem!”

Example 1

Big Business says:

“We are launching a global innovation center.”

Reality• Big companies do create innovation centers to

o Foster, incubate and/or invest in new ideas

o Attract small businesses with fresh ideas

o …

• BUT startups need to distinguish betweeno An active and funded innovation center with a real mission

o An innovation center served as an image of innovation for the brand

Startup hears:

“Our product is spot-on with their needs!”

Example 2

Big Business says:

“We’re open to anything in terms of product and features.”

RealitySometimes big companies don’t know or disclose what they need.

By setting realistic expectations, big businesses can keep startups from leaping to the conclusion that it’s a wide-open situation for which they can deliver the perfect solution.

Startup hears:

“They see the value in what we’ve built and love the team!”

Example 3

Big Business says:

“We’re really interested in your company.”

RealityIn actuality, there’s a good chance that it’s the startup’s founder and co-founder the big companies want for an infusion of their innovative DNA.

Acquihires: when startups are acquired more for their innovative talent than their product.

Startup hears:

“Innovation just isn’t in their DNA.”

Example 4

Big Business says:

“Our engineers can’t seem to build what you’ve got.”

RealityStartups can fill the fast need for a big company that

• may be running out of time waiting for the internal R&D or a product team to deliver

• OR may be close to launching and wants to see potential improvements on the features and value.

Startup hears:

“Maybe we should go ahead and build those features they mentioned.”

Example 5

Big Business says:

[*nothing in 2 months*]

Reality

Startups should always keep in touch with the big company.

Priorities may have shifted internally.

The Bottom LineTo Big Companies:

Try to keep the lines of communication with startups open. You play a critical role in sponsoring and spurring the innovations about which they are so passionate - and on which much of our economy depends.

Thank YouPlease visit switchpitch.com for more information