Striking a deal with a Fortune 100 company can catapult your startup from obscurity to a recognized brand. However, getting that first top commercial partner or client is far from straightforward.
So, how does an unknown startup capture the attention of industry kings and queens? I recently had the opportunity to announce Hourly’s partnership with Nationwide, a top U.S. insurance carrier and Fortune 100 company. Based on my experience, here’s a blueprint of what you should do to get your first big win.
A Warm Intro Gets The Ball Rolling
First start by mapping your network.
Actively seek out networking opportunities by attending industry events, conferences, and seminars where you can meet new people and expand your network. Afterwards, send personalized messages or emails to continue the connection.
Don’t be shy about asking your connections, investors and colleagues to make introductions to executives at Fortune 100 companies. Personal introductions can open doors faster than cold calls or emails.
And remember, networking is a two-way street too. So support others in the field and share your expertise to build mutually beneficial relationships.
In short: Your connections can get you a warm intro to a Fortune 100.
Take A Top-Down And Bottom-Up Approach
Successfully courting a large organization often involves a top-down and bottom-up approach. Engage C-suite executives and directors who have the authority to validate a partnership while also cultivating relationships with the operational teams who will directly use your product or service.
The latter can become internal advocates, influencing decision-makers from within. Don’t sidestep this part—continuous courting across the board is pivotal for pushing your product and deal forward.
In short: Get to know executives and ops teams at a Fortune 100 to help push your deal through.
Get that Elevator Pitch Down
If you really want to make an impression on people, develop a concise introduction about yourself and your work. This helps people remember who you are and lets you clearly communicate your value proposition.
In short: Make a great first impression with a compelling pitch about your business.
Be Their Sandbox
Positioning your startup as an experimental playground for a large brand can make for a very compelling pitch. Unlike startups, large companies are often ill-equipped to “move fast and break things” or experiment with new technologies. They need agile, tech-savvy partners to test new ideas and strategies.
For example, I knew insurance executives would never suddenly stop what they are doing and start building a platform that connects workers’ comp, payroll and time tracking, no matter how much they needed it. But what if someone already did that for them?
With that in mind, I offered Nationwide the use of our platform, a solution designed to dramatically improve underwriting results without increasing their workload. I emphasized how this would be both low-risk and high-reward (since we were spending all the investment and development time). P.S. It worked!
In short: You take on the risk of creating a new technology. The Fortune 100 benefits.
Good Timing Isn’t Only For Comedians
The adage, “timing is everything,” holds significant truth in the realm of business, much like it does in the world of comedy. The timing of introducing your solution to potential partners can greatly impact its reception and success.
If you present your idea too early, it might be dismissed as unrealistic or premature. Conversely, if you wait too long, you run the risk of missing out on a golden opportunity.
Closely monitor potential partners and their business landscape. Keep an eye on their activities, industry trends, and market dynamics. This opportune timing could align with a strategic shift in the company, the launch of a new initiative, the occurrence of a market crisis, or even a global catastrophe.
By ensuring that your offering aligns with the current needs and priorities of potential partners, you increase the likelihood of a successful collaboration.
In short: You should solve a pressing issue the Fortune 100 is facing.
Cold Leads Can Warm Up
It goes without saying that in business, especially in startups, a cold lead could unexpectedly turn warm again. Sometimes a previous “no” might be resuscitated into a “yes” when teams within a company change.
We experienced this first hand while we were working on creating a deal with a company for nearly a year. Given the long sales cycle and bureaucracy, this time frame was expected. But at some stage, we were told that the deal was put on hold due to a leadership change. It was frustrating, but we kept a good relationship and an open line of communication with their team anyway.
To our surprise, less than six months later, we received a call from the company. They had undergone a series of changes, including a shift in management. This new team opted back into the deal, and I’m convinced it’s because we stayed friendly and not resentful.
So, remember not to burn bridges or dismiss people. Everyone wants to feel important and we’ve all experienced the “pay your dues” phase. So, stay humble, keep your cool and treat everyone like an important part of your network.
In short: The company that said no before might change its mind later on. Stay friendly.
Expect It To Fall Apart
Deals fall apart all the time in business. Just like timing is everything, it’s important to keep your expectations realistic to save yourself unnecessary stress. Unfortunately, it happens.
Before Nationwide was even in the picture, we were working on a deal with another company that loved our product. Their executives were gung-ho about Hourly, but it turned out their technology was too antiquated and would require a tremendous amount of manual work. We had to walk away.
That was a very important learning experience for me—there is a limit to how much you can try to convince a legacy company to change their tried-and-true processes. Sometimes, you walk away and move on to a business that wants to flex with the changing times.
So while it saves you the stress to not expect anything, it also means you can quickly jump back into pursuing other options. Which is exactly what we did, and how we ultimately partnered up with Nationwide, who has been actively investing in their digital infrastructure for the past ten years so they can stay ahead.
In short: Deals fall apart. Stay open to new opportunities.
Becoming The Next Big Thing
The art of courting big brands is just that—an art. Master it, and your startup could write an unprecedented success story.
It requires a well-thought-out strategy, smart networking, great timing, a friendly approach, and a value proposition that resonates.
Practice these things and you may be the next big thing that everyone’s talking about.
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