- June 15, 2022
- 10 minute read
A startup studio is an organisation made up of experts, founders & investors, who use their experience to build businesses from the ground up, out of market-tested disruptive ideas – a.k.a. non-conventional business models. They do this by applying their resources, such as knowhow and specialised teams, simplifying business ideas, following set stages that help validate an idea and if it’s viable, turning it into reality.
A startup studio uses its combined funds, expertise, and other resources (team, capital, strategic plans, technical knowhow) to help establish the business. They do this following a tried and tested five step process:
Ideation:
This initial stage is all about establishing the potential of an idea and making a business case. For this, brainstorming sessions take place so that disruptive business ideas can be put on the table.
Validation:
Any ideas resulting from the ideation process will then be put to the test, to check feasibility and scalability. This is done by conducting market research and running several pre-designed tests to screen and filter out any unsuitable ideas, resulting in the mapping of the first product specifications (POC). For an idea to be validated, it needs to be tested and validated with supporting evidence to indicate its feasibility. Once an idea successfully passes these tests, it is validated and can move on to the ‘creation’ stage.
Creation:
This is when the ideas are converted into working businesses. A Minimum Viable Product (MVP) is created, so that partners and customers can understand the usage of the ideas and strengthen the market fit. Business plans are formulated, prototypes are developed, and the idea turns into reality.
Spinout:
At this stage, a business case is founded, and the company is added to the portfolio. Once the business has been successfully created, the startup studio takes a step back, allowing them to work independently. At this point, the business will have an executive and support team which may be a part of the studio or, hired externally.
Scaleup:
Fundraising, exploring new market opportunities and developing new products are next on the agenda. The focus is on scale-up efforts and creating layered management systems. This is the final stage before an exit, which is usually an acquisition or sometimes an IPO (Initial Public Offering).
In a nutshell, incubators and accelerators are cohort-based training and mentorship programmes which last for a specified time, whilst start-up studios don’t work on a cohort basis – they work as a partner, applying a hands-on approach and will expect equity in return. But let’s crack open this nut and look at each of these in more detail:
Accelerator:
An accelerator, run by for-profit organisations, will expect to find a dedicated team, an ideal MVP, and good traction. They will usually join after the team and when the plan and MVP are ready. Their main aim is to accelerate the growth of startups and to help with this, they will provide training, networking, a coworking space and capital. You can expect them to be around for three or four months.
Incubator:
An incubator is run by not-for-profit organisations and will accept early-stage startups that are only at the idea stage. They will help convert these ideas into businesses as well as providing infrastructure facilities, mentorship, and networking. They will normally stay with the startup until they start sustaining themselves in the market.
Startup studio:
Startup studios are run by entrepreneurs and corporations (for profit), developing several ideas and businesses simultaneously. They will partner with individual businesses right at the beginning, when a ‘catchy idea’ is ready, working as a cofounder and getting involved in the day-to-day running. They build and scale startups, provide funding, strategic processes, technical tools, and all the required internal resources. Their focus is to build companies from the ground up and stay with them until they exit (when it is acquired or when they go public).
We’ve all been there at some point or other… Having an idea which we think is great but not knowing how to move it to the next level. Some of us manage to figure it out but for many, this is not always the case. It sometimes helps to have an expert on hand, who knows what they are doing, has the infrastructure and can get the ball rolling efficiently – achieving results quickly and effortlessly.
In a startup studio, you will find all of this and more. They have tools, processes and infrastructures that have been repeatedly tried and tested – saving you time and resources from the get-go and helping you to develop your idea faster.
You will have on-hand a dedicated and experienced team, working every day to help your business grow. Their designers, marketing experts, coders, among others, will assist with product building, PR, marketing, and fundraising – building your company quickly and efficiently. If you need additional team members in strategic positions, such as tech engineers or UX designers, they will help you with the recruitment process.
The startup studio will validate your concept by conducting market research, analysing the numbers using their own analytic resources and developing a go-to-market strategy (business plan). They will also fund technological development!
Startup studios are not only there to build the technology, they are also there to help entrepreneurs build their businesses and take them through their journey, right to the point of success.
