WHY COLLABORATION IS THE NEW START-UP CURRENCY

Collaboration is an important aspect of business for entrepreneurs and startup’s regardless of industry or type of business sector. It involves pooling ideas, resources and talents to enable individuals and organisations work together to achieve common objectives.The complex nature of startup business requires more teamwork than a sole effort a good reason why collaboration and innovative strategy remains the new currency for start-ups. Collaboration could be within organisations or between two or more startups.

Start-ups are ventures involving a group of people looking for a repeatable and scalable business model. Starting a new business can be one of the most daring adventures an entrepreneur can make.According to Ashish J. Thakkar founder and  CEO of the Mara Group, nurturing  start-ups in Africa is a better  solution to the challenges that Africa faces. One of the disruptive strategies for start-up ventures to be successful is by collaborating with other start-ups and multinationals to leverage their influence to grow and scale up. Collaboration, as practical as it is, goes in tandem with the jugaad principle which talks about a ‘creative idea, or a quick way to get things done.

The jugaad principle involves seeking opportunity in diversity, doing more with less,and keeping things simple and creative.Fortunately,this principle is causing positive changes in Nigeria’s start-up to start-up economy  (S2S) where start-ups collaborate to access funds, deliver innovative services and develop creative products  while reaching out for collaboration.

Collaborating with a large organisation has is beneficial as it opens access to funding, increases productivity and creates opportunities for market expansion and creates a wider customer base for  start-ups.

Here are the reasons to collaborate

Scaling up

Scaling up

Scaling up

 When a start-up is looking to scale up and gain entry into target markets, they might want to collaborate with bigger organisations who are seeking new innovative technologies to drive their business processes. However, collaboration has a lot to do with the level of success of the start-up. It matters to bigger firms if the start-up is either an early stage, growth stage or a fully established brand.

Explore technology partnership

Exploring partnerships

Exploring partnerships

Collaboration works best if the relationship existing between the start-up and the other party is based on mutual terms. It could be in the area of exploring disruptive capabilities in big data and analytics, security, Internet of Things (IoT), Gamification,User Experience, Design and Robotics.

Flexibility

Flexibility

Flexibility

Collaboration also enhances flexibility.It is good for start-up’s to be in the market for a product or  service that is still in development. This makes them open to feedback and helps the start-up develop their product offering  in accordance with their customers’ suggestions.For increased productivity, start-ups’ are encouraged to develop a transparent communication channel with their collaborator.

Increased productivity

Productivity

Productivity

Collaboration improves the success rates for start-ups and established companies.While startups excel at generating ideas or concepts, larger organisations are more experienced at successfully scaling proof of concepts. According to Forbes, 58% of startups successfully figure out a clear market need for what they have. The startup to startup (S2S) economy is full of opportunities if handled properly.Collaboration between startups and their collaborators must go beyond financial concerns, it must be innovative and mission-driven.

 

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