Five reasons to work with the IBMs of tomorrow
Boyan Ivanov argues adding a start-up to their portfolio could be the best thing a reseller ever does
Every company has to start somewhere. Twenty years ago, online retail giant Amazon was a start-up operating out of Jeff Bezos' garage. Just 11 years ago, Facebook was created in Mark Zuckerberg's dorm room. And today hundreds, maybe even thousands, of start-ups are taking the first steps on their journey towards making it big.
Having run four start-ups, I know some things about this and I have first-hand experience of how getting the basics right makes a difference. And by the basics I mean knowing how to go to market, sell and distribute a product. That is vital, whether you're a start-up or an established business.
And while there is obviously a lot of value for the start-up to look to the channel for help in selling its products, what is perhaps less well recognised are the benefits for the channel. What's in it for you to work with unknown, small companies that – let's face it – simply don't have the same pull as some of the big names?
Coming from the start-up side of the fence I would obviously propound the idea that helping out start-ups is in your best interest. But there are real reasons why adding a start-up to your portfolio could be the best thing you ever do. Here are just five:
1. Add something new to your offering
Start-ups tend to be born out of a need to do something differently. The people behind the tech don't want to be churning out something that's already on the market, just under a different name. So by carefully picking your start-ups you could be adding something disruptive and innovative to your portfolio that is not available anywhere else.
2. Your relationship with a start-up will be better than any other
This is a relationship like no other. It's possible to be exclusive, and you're likely to have direct access to your start-up's decision makers. Not only that, the tech they develop isn't constrained by corporate decision-making in the same way that the big names are. You'll be speaking directly to the tech team; you can feed back what your customers have been saying and possibly have a chance to shape the product so it's even better.
3. They will recommend you
Start-ups that are happy with your service are much more likely to tell their customers about you than bigger, more established businesses. They'll tell their start-up friends about you too, so you'll have a chance work with even more cutting-edge firms and their innovative products.
4. Start-ups change the way you think
You know I said start-ups aren't held back by big corporate decision-making machines? Start-up entrepreneurs are normally passionate about what they do, so they see challenges and opportunities where big business sees the bottom line. And that mindset rubs off on the businesses that work with start-ups.
5. You can be part of something big from the very beginning
I'm appealing to your sense of adventure here. Being involved in something from the start means you are connected to that product or company in a way that someone who jumps on the bandwagon in a few years' time will not be. You won't be a hanger-on, you'll be part of the team that helped the next Apple, the next IBM or the next Microsoft get to the top. It will be a great feeling and remember: behind many great companies you'll normally still find the partnerships they started in the early days.
Of course there could be some challenges when working with start-ups – remember many of the people you'll be partnering with may never have worked with the channel before. That doesn't need to be a problem as long as you are very clear on what you are trying to achieve for your own business.
Do your research and make sure you understand from your own customers what their needs are. Does this start-up's tech fit the bill?
Set well-defined objectives and expect to be in it for the long term. This might not be the best way to make a quick buck, but working with the right start-up and helping it to grow over time could one of the best things you ever do for their and your business.
Boyan Ivanov is CEO of StorPool