Benefits of a Startup Studio
Are you looking for diversity and growth in your business? Would you relish the chance to spin multiple plates and try out a whole host of new ideas and opportunities? A startup studio could be precisely the opportunity you need.
What is a startup studio?
Also known as a ‘startup factory,’ or ‘venture builder,’ a startup studio operates with the aim of building multiple businesses one after the other. This process allows innovation and creativity to rule and offers operators the chance to dabble in a whole host of challenges and industries, helping them to develop and grow until they are finally ready to fly from the nest.
This type of working allows founders to enjoy a deeper and more meaningful equity stake in the projects, and this is not only creatively rewarding, but it also offers a slight economic benefit for investors.
Building multiple ideas simultaneously
One of the key benefits of a studio is the opportunity to take ideas further each time. A regular startup will give you the chance to pursue a good idea, and there is every chance you will be able to make this a success.
A studio, however, allows you to take this good idea, and be working on the next stage at the same time. This means that any improvements or necessary changes will be noticed quickly, and the ‘good’ idea can be rapidly discarded in favour of something great. Not only will this increase the chances of financial and economic success, but it also allows you to develop and enjoy your full range of creativity, always striving and pushing to build a new idea and meet a new challenge.
Core and shared resources
Statistics show that many startups are doomed to fail, and sadly, that is the inevitability of the market. Looking more closely, however, it becomes clear that many of these failures result from owners and founders making the same mistakes, usually due to inexperience within the field.
In a simple startup, the entrepreneur will likely give up and move onto a new project, without sharing this experience with anyone. A studio, however, combines resources, knowledge, and experience, and allows these simple mistakes to be avoided. Similarly, successes and secrets can also be shared by those who have worked in different areas, and this offers a fast-track blueprint, which helps to eliminate losses of time and money.
Risk-free “quit, pivot, or continue” decisions
A startup foundry provides opportunities to work on various ideas and projects simultaneously. If you found a single startup, you are running the risk of putting all your eggs in one basket. A studio, however, offers the challenge and benefits of working on a startup –the studio itself— while also allowing you to generate income and equity in a range of companies. This versatility increases your chances of success –you have plenty of options if one company were to falter.
Spinoff and repeat
The beauty of shared resources is that they can easily be emulated and repeated once the winning formula is discovered. The studio can take a recipe which is known to be a success, and use this to spinoff into another company to build and nurture. This second company then leads to the creation of a third, and the process can be repeated with the founders reasonably confident of success.
This is also great for investors; they know there is a proven track record of profit, and that this is a tried-and-tested model which usually results in a successful business. Furthermore, the founders of the studio can have justifiable pride and confidence, knowing they have created a successful strategy.