In simple terms, a corporate job is a professional position in a large company. We can assume that anyone working in a large company will most likely have had training and experience before being considered for such a position. Given the level of success associated with such functional positions, what are the chances of success if such an employee decided to bolt out and venture into business? What risks do they carry with them by virtue of the corporate position they hold?
* What works for corporates may not work for a startup, even if you’re offering the same products or services
There are many reasons that would make an employee feel the need to ‘compete’ with the large company they work for. From understanding the processes and markets to being able to analyze the weaknesses of the company, it is easy to imagine leaving the company and selling the same products with better results! However, the design and functionality of a product is not the only factor that helps the large company make money. Of course, any startup could develop a better product than a large company, but will definitely not match most of the other components of a business model.
* Your employer is not experimenting with new ideas, they are executing clear and predictable observations
As soon as you leave your job and set up a new business, the mode of operation changes from execution to experimentation. Your employer has already tested these areas and has data to know what works and what doesn’t. You have been working in an environment where decisions are made based on evidence already available, such as the profile of customers and their purchasing behaviour, to a situation where decision making is based on assumptions. How to work with assumptions successfully is the key strategy in managing a new business.
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* The structure of a large company is not transferable to a startup
Why can’t I have a CEO, a board, a large executive company premises in the right address, a marketing team and expensive branding? Well, because the startup doesn’t need them. Your customers may not even care at this point. Your corporate job was awash with these things, but your new business is different. So many parts are now moving, and your core strategy is understanding your customers and adjusting as many things as possible as you move along until you find what works for your customers.
* You most probably will not budget for experimentation
Large companies don’t need to spend time and money on experiments; they already have enough evidence from past sales. New offerings will most likely be adjustments to existing offerings based on customer feedback. They will get returns from the financial resources spent. Your start up, however, is experimenting with many aspects of the business model. At the early stages, financial resources will yield lessons and findings as opposed to earnings. It would definitely a good strategy to budget for this eventuality.
