In a very competitive business environment, a startup needs to innovate in order to stay ahead of the game. But is the “culture of innovation” enough, in a dog eat dog world of startups, incubators, and accelerators, to truly maintain a competitive advantage?
How often do we see a startup business bragging about its “culture of innovation” then closing shop just months after launch? How many times do we see crumpled banners and shuttered storefronts because businesses simply would not take off?
This, according to a Forbes opinion article, is because many companies fail to acknowledge the fact that many employees are having a hard time coping with the shock that comes with the shift in a company’s mission to suddenly becoming “innovative.”
The situation becomes redundant worldwide, in a bid to influence or jumpstart a culture with the latest wave of these so-called innovations coming in the form of incubators and accelerators. Companies tend to misdiagnose the nature of innovation required for the business to lift off.
Incubators and accelerators tend to fail because many of these businesses treat the structure they adopt as a typical product or business model; you invest, hire people and then set deadlines. However, innovations like accelerators and incubators are not just the typical “launch and done” business model.
Startups have to recognize the need for infrastructure in innovations, which is basically the system that would link the people, the technology and company operations into a smooth flowing framework.
Here is a checklist to ensure that you, as a startup business, are doing the culture of innovation right:
Know your mission and vision
Leaders in the company should declare to its people what the company’s mission and vision are and allow them to be part of the discussion. Most of the time, solutions do not come from one person alone. That’s why it is important for you to hear out the sentiment of employees to gain different perspectives in coming up with a solution.
Go with the flow
Startups do not need to be “out of the box” when they introduce themselves to the market – this often alienates consumers, which can result in the failure of the business. Startups need to understand the process of introduction and shifting courses as the business grows.
There’s a saying that “necessity is the mother of all inventions.” And inventions come from great minds. Leaders need to adopt an experimental mindset in order to come up with solutions to kickoff startups. This kind of thinking helped Digital Arts Media Network, Inc. (OTCMKTS:DATI) roll out its Public Accelerator-Incubator (PAI) model, which is seen to resolve issues that hamper accelerators and incubators from effectively bolstering the growth of startups.
The company’s model caters to startups by helping them meet the growing need to raise capital in a fast and easy way. Partnering with DATI will put a startup among the pool of viable ones, which will be selected by angel investors. These investors, in turn, will be given the opportunity to have the money to invest in these firms.
The benefits that are given to angel and early-stage investors include, early access to liquidity from their private investments in as quick as in 24 months, among several others.
The specialized tech accelerator recently activated its venture with crowdfunding platform, truCrowd, Inc. The venture is expected to enable truCrowd to engage more firms more speedily. As for DATI, the company is exploring more innovative startups to fund or facilitate funding for a qualifying startup’s onboarding cost in joining truCrowd for the purpose of raising $1M in funding.
Ideas like these are essential in a tight market like that revolving around startups, accelerators, and incubators. Experimenting with several models, such as the PAI structure, will definitely help in boosting that innovative spirit.
Written by Anna Reyes