Imagine you are creating a small business with a product that you believe will revolutionize the current market, improve ease of life, and be a profitable tool for you to grow a company. Regardless of what your product is, chances are that the market you are trying to break into is already saturated and creating a foothold for yourself will be an incredibly complicated and competitive process that you are unfamiliar with, especially if this is your first startup. With that in mind, it is important to explore the resources that are available to you if your goal is to create a successful company. One of the best available resources to small businesses and startups is the venture studio. If you are in the Southern California area, look for an LA venture studio that will meet your needs and provide the expertise and opportunities that your company needs to grow and thrive.
What are Venture Studios?
The first step to understanding something new is to have it defined for you. Venture studios are organizations that create startups in collaboration with you, typically providing the initial team, giving strategic direction, and also providing small amounts of capital that will allow your company to initially get on its feet. They are designed for people with little experience within the business world to receive as much information and collaborative help as possible, and as such they can be an excellent decision for anyone who is trying to break into a saturated market.
The venture studio model is one that relies on constant involvement in the day-to-day business operations, which separates the model from the strictly venture capitalist one that relies on periodic updates with little to no collaborative input. Once the startup proves itself within the venture studio, it is given the freedom to seek investment from outside opportunities, such as venture capitalists. However, this traction and track record are essential to growing out of the venture studio model.
How to Take Full Advantage of Venture Studios
Whether you go with a more traditional corporate venture studio or an independent venture studio, the goal is the same: walk away with more information, expertise, and future-focus than you had before. Either way, the process is similar; the studio provides insight, capital, and a team to help grow your idea into a startup that will at the end of the day hopefully provide you with some source of income.
- Be teachable: go into it with no expectations and no preconceived notions about what you believe about your company. Rather, let the studio direct you in what works best, be also be willing to provide input. It is still your company, so your input matters. Just don’t prepare to die on any specific sword out of stubbornness.
- Work hard: this is a collaborative venture, which means you are not required to do all of the work, but you certainly cannot sit back and just reap the benefits. You are entering into a give and take relationship that requires just as much of your hard work as it does theirs. Keep this in mind and humbly prepare to change your mind about things you think you know, even if you have an MBA and are convinced of certain things. The market is volatile.
Venture studios are an excellent way to get expertise, get connected, and retain investors through proving yourself at a small scale. Do your research about which ones would work best for you, and then reach out to see what their requirements are before diving into a business relationship with any one particular studio. Best of luck!