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Serial Entrepreneur and Go BIG
Founder Wil Schroter's Blog!
Why Big Company Strategies Don't Matter to Startup Companies
Author: Wil Schroter
Wednesday, February 28, 2007

Not all business strategies apply to all companies, especially when it comes to startups.

The worst advice often comes from "Seasoned Executives" that have spent their entire life in big company cultures.  They know what it means to grow big companies, but really don't know how their experience applies to small companies.

Here's a few ways big company strategies will land you in a heap of trouble:

Stop the Planning

Big companies can afford to spend months creating marketing plans, business plans and financial plans to span the next 3 - 5 years.  Startups can go out of business in that same time. 

You don't need more planning, you need more doing

Drop the plan, pick up the phone, and get your butt in front of some paying customers.  Save the plans until after you've sold something.

No Time for Testing

Big companies can afford spend the time and money to test new ideas and see what works.  If something goes wrong, they'll still be in business next week because they have other revenue coming in.

Startups can't afford to do a lot of testing.  They need to pick a direction, commit today, and hope like Hades it works.  The product launch is the testing process for a startup company.

Over Budget Means Out of Business

In a big company if you spend more than you allotted for your marketing plan or a sales conference, your boss may have a strong word with you.  In a startup company if you over spend, you'll miss payroll.

Seasoned Executive often dole out advice to startups as if money was something that just keeps coming.  They don't realize that a dollar spent on marketing means a dollar that isn't spent on payroll.

Save Big Company Strategies for when You're a Big Company

Don't assume that just because big companies use a certain approach that it automatically applies to your startup company.  And never forget to ask yourself whether or not that slick, Seasoned Executive has ever actually grown the type of startup company that you have. 




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Comments About this story
This is great advice! I often find to my utter dismay that all the carefull planning we try to put into a sales or marketing campaign results in little or no real return for our business. Its only when we manufacture the link between initial concept and practical implimantation that something gets done. Our nightmares are the same. You wake up sweating and mumbling in the early hours of the morning confronted with the very real prospect of missing payroll again and again.

This has become the major concern in our business. The question i most often what to ask people in similar situations is: Does this ever get any better?
Posted by: Theodor Johann Tonsing 3/7/2007 at 11:32 PM



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