How to be a service provider to Startups?

Startups often operate with limited resources and need to be strategic about their spending. As a result, they may face difficulties when seeking services from established providers who typically cater to larger clients.

Some service providers may hesitate to work with startups due to perceived risks, such as uncertain revenue streams or potential instability.

Risk - Startups are inherently riskier than established companies. They may have a higher likelihood of failure, which can impact service providers' revenue.

Payment - Startups may struggle with cash flow, delayed payments, or even non-payment. Service providers may be wary of these financial risks.

Processes - Startups often lack well-defined processes, making it challenging for service providers to work efficiently with them.

By understanding how Startups may select service providers and the factors that they consider:

Expertise - They tend to look for providers with experience working with startups.

History of work and case studies tend to be looked up upon so that all parties can easily understand what each of them can provide and bring to the table

Flexibility - Seek providers who understand the startup ecosystem and are willing to adapt.

Most of the time, the founders are themselves not sure what works or not. Thus it is important to be flexible when dealing with their insecurities, and doubts and even walking back on their words and actions.

Cost-Effectiveness - Balance quality with affordability.

Most founders have big dreams but it costs money to make it happen. Thus it is important to be realistic that many can dream but may not be able to finance it.

Cheap and good tend to be in the minds of most founders but realistically speaking, it is not possible to finance a business long-term.

References - Ask for references from other startups who have been serviced.

Warning
Not all Startups are worth serving. Ask around about its payment reputations, founders behaviors, attrition rates, and past failures for references.

It will help you as a service provider to know what you are walking into and be prepared for any changes in the business dealing too!