The Internet of Things (IoT) and several other modern trends have fuelled this concept for co-economy, co-innovation and co-development. Yet very few firms are actively creating new things together. This is true for both startups as well as established large firms. This could be due to differences in working style or due to being unable to fully understand each other though seemingly there is no dearth in valuing each other. Firms working on IoT especially require collaborative assistance as the skills required for the different tasks are wildly different. Skills are required in disparate fields such as Big Data, sensor technology, networking and business analytics. In order to foster successful collaboration, certain steps must be followed such as the alignment with each other’s business goals and values. Startups must ensure that too much of their resources are not used up over disparate set of functions. Studies have suggested that startups must avoid working on thought leadership or sales innovation projects with large vendors. Similarly, they must avoid advanced research with large sized customers. Some leeway must be given for cultural clashes. Startups must use collaboration with large corporations as a way to scale up. The start may be small, but a long-term collaboration must be agreed upon.


Uploaded Date:16 August 2017

There could be several reasons behind the eventual failures of even successful start-ups. A commonly cited such reason is having a static business model, without the managerial capacity to move on with the times. Another is having limited reserves to buttress economic shocks and downward cycles. Conversely, an inability to scale up during successful periods can prove to be equally harmful. Proactive investment must be done to foresee such trends such as by upgrading infrastructure or IT networks. Having the wrong people in the board of directors can be a recipe to failure. Sometimes in order to succeed at talent recruitment, not possessing the brand name of bigger companies, start-ups are coerced to overcompensate. This must be avoided at all costs. At times, the leader gets outgrown by the company itself leading to an abyss at the very top. Start-ups must also avoid getting too dependent on any one customer or segment believing this would last forever.


Uploaded Date:05/07/2017

In a recent case, a startup founder went all the way and returned the money to one of the major investors due to differences in political stance. This is a rare incidence but not unheard of. At Instagram for example, one of the investors had backed the startup at a time when the company was into a much more basic check-in service. Later when Instagram emerged in its present day avatar, the same investor did not ask for money back, but simply refused to invest further. Whenever such cases of firing investors take place, it is due to one of two commonly cited reasons. One is when the startup loses money but still has some left in the bank, so it is returned to minimize investors’ losses as a measure of goodwill. The other is when companies change track and diversify into something else, so original investors are given such a chance to reassess. One such case of a pivot was with Next-door which had started out as Fan-base before a business innovation saw the model change. But such cases are rare due to the fact that all the key stakeholders need to agree on such terms.


Uploaded Date:02/06/2017

As per data provided by the US Small Business Administration, half the startups that began in 2011 have already died down while about twenty percent of those founded in 2014 did not even complete a year. A lot of MBA students wrongly assume that disruptive technology is the only way forward for a startup to thrive. There are several reasons why a startup may not survive. The most common factor as provided post business analytics done by CB Insights is that they do not serve any existing market need. Another major reason is the fact that they quickly run out of funds. Their cash flow models are not efficiently run, and not every startup gets a handsome seed fund to begin with. The inability to assemble together a proper team is the third common reason for failure cited. Another is excessive competition. When one startup does well in any field, or any idea catches up, several others try to pounce in, often with limited results. Finally, it has been observed that startups wind up due to pricing issues. This is different from funding as a lot of new business entrants keep entry prices lower than market rate to attract projects. These get unsustainable in the long run.


Uploaded Date: 20th May 2017

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