As a tech startup, you’re far from being a big corporation. That means you might rely on independent research, friends and other entrepreneurs to develop a growth strategy for your startup.
But you don’t have to be in the dark about your company’s future. With a smart corporate development strategy, you can locate revenue streams, partnerships, and more that will scale your company intelligently.
When startup founders hear the phrase “corporate development,” they often think that it’s not for them. They often believe it is reserved for large multinational companies.
However, that is not the case. In fact, corporate development can play a significant role in companies of every size—including startups. Now is the perfect time to use corporate development to your advantage.
If you want to put your business assets to better use, your emerging technology company needs corporate development. This will help you make strategic decisions, develop partnerships, and find other ways to optimize your business’s cash flow. This allows you to grow a better business that scales effectively.
What is corporate development?
There’s a reason most enterprises have a corporate development department. It’s an essential function to establish a healthy business, regardless of your size.
Corporate development is the CEO’s wheelhouse. It’s concerned with planning and executing strategies to improve your company.
Many areas fall under the umbrella of corporate development including:
- Mergers and acquisitions
- Tracking the competitive landscape
- Following industry compliance regulations
- Identifying strategic leadership gaps
While large companies have more funds at their disposal to necessitate corporate development, it doesn’t mean it’s out of your reach. Corporate development has the power to scaffold your growth and create a path to sustainable revenue growth. Instead of implementing corporate development down the line, use it now to build a solid foundation.
Why startups need corporate development
Although most people think that corporate development is only about mergers and acquisitions, it encompasses many facets of growing a company at scale of which mergers and acquisitions is one lever.
Here’s how corporate development can change the course of your business.
1. Find growth opportunities
Every startup wants to grow. When you use corporate development for your business, you’ll discover new avenues for revenue growth.
For example, if your technology company built an innovative software, corporate development could help you create a subscription-based SaaS solution that sells more easily. This frees up time, guarantees cash flow, and keeps your customers happy.
Without corporate development, it’s hard to see the road ahead. Instead of figuring things out as you go, make a plan to forge ahead. Corporate development gives founders the ideas and guidance you need to scale better with new growth opportunities.
2. Lay the groundwork for the future
Your business may be small now, but it won’t be that way forever. You need to lay the groundwork today for your emerging company to grow in a positive direction.
It’s never too early to build relationships with future strategic investors and acquirers. You should also consider being the acquirer and not just the acquired.
Evaluating opportunities for a startup or early stage company to acquire another company is often overlooked. This is unfortunate when an acquisition may be the missing piece to jump start your business whether it’s acquiring a capability, skillset or work flow.
While mergers and acquisitions is a core pillar of corporate development, it’s not about only seeking mergers to leverage corporate development. Use it today to develop essential internal structures, whether through partnerships, streamlining processes, or improving the customer experience.
3. Eliminate inefficiencies
Even the most successful businesses suffer from inefficiencies. The problem is that, in the early startup stage, these inefficiencies are easily overlooked. But once you scale, it quickly becomes apparent that there are errors in the system. A small accounting inefficiency becomes an emergency once you’re managing hundreds of thousands of dollars.
Your company is likely inefficient somewhere, whether in sales, customer service, accounting or development. Corporate development detects areas of friction and finds solutions to them. This results in a streamlined process that’s easier to scale with fewer costly mistakes.
The bottom line
Corporate development gives your startup a framework for growth. Instead of stumbling and learning from expensive mistakes, you can start on the right foot. Partner with a trusted corporate development company like The Hollines Group to grow your emerging technology company the right way.