Posted by & filed under Accelerator, Banking, innovating, Product development.

Collaboration. That’s a buzzword that you can not avoid hearing nowadays. But it’s a buzzword that talks about a real need: collaboration between startups and banks. That’s what is needed in banking, both for the banks’ and startups’ sake, but especially for the sake of the customers. But to be successful, collaboration has to be done right.

We at Nestholma engage banks and startups to collaborate. We have done 20 startup accelerator programs so far with companies such as Nokia, BT, Microsoft, Telecom Italia… During the last couple of years, we’ve been working closely with Nordea bank and have run three accelerator programs with them so far. It has been a great learning experience for them….

…but also for us. Here is what else we and our partners have learned about how to get the results you want from collaborating with startups

 

Have the best startups to work with

You achieve the best results when you have the best startups to work with. Now that is quite obvious. But finding the high-quality startups is a problem. A big problem. And an even bigger problem is attracting them to work with you.  

 

Innovations are global

Most likely the best innovations don’t come from the startups closest to you. And this is for the most local and regional banks a huge issue. How to attract the best startups and their innovations from other places to Helsinki or even to Milan.

 

How to work with startups in practice

Once you have managed to lure a startup or startups to start working with them how to do that in practice. Are your processes, your people, and your company culture ready to work with them?

As one bank executive said, ”it takes only one bank to kill a startup”! Banks and startups are like two different creatures. And almost nothing is easier than for an unprepared bank to smother the startup with its processes and ways of working.

 

Work close enough with the startups

Our customer experience tells that the proximity is one of the key things. You really need to work with the startups, not just take quick peeks at what they are doing. Like taking a look at a lion won’t make you one, just looking at startups won’t help you much. And to get your organization to learn, you need to get as many people as possible involved. That is how you will re-energize your people and get them to learn, to learn how to become agile fast accepting failure and capable of pivoting when needed.

When you have enough people who know how to do that, your whole organization has learned and become agiler, startup like. That is why it is so important to really work together with the startups, get involved and have enough of your people involved.

Those are the things we have learned to be key in working with startups successfully. I don’t claim it is easy, but that’s why we created the Global Fintech Accelerator. To tackle these 3 challenges: to get the best startups, access innovations globally, to work with them but not killing them we have designed Global Fintech Accelerator. It is the perfect solution for preparing for the future.

Startup accelerator program for non-competing banks

 

What is it?

It is a program for non-competing banks. To join forces with other banks, to enjoy benefits of global presence and brand but still to have your own local program for new products. Maximal learning and branding benefits.

 

Access to the most disruptive innovators in the industry, globally. Better and stronger startups.

By combining the brands of the 5 banks we’ll be able to attract far more startups than any one single bank could do. From all over the world. They’ll apply to the locations they want and you decide which startups you want.

 

Learning, sharing the common needs and solving them together 

Banks share many similar or completely same challenges. Thus it makes sense for non-competing banks to collaborate. Trying to reinvent the wheel while others are wrestling the same challenges is a complete waste of time. That is why banks learning from other banks is also a key part of the Global Fintech Accelerator.

 

Share, learn, be more competitive. And help the startups to get better and stronger.

 

There will be 50+ bank approved startups graduating from the program. Capable of solving problems that you might have and what the PSD2 might bring. 10-15 is already a huge number,  but it is only the beginning. You’ll also benefit when the other participating banks make their startups better.

It’s about sharing the learnings in a structured way without any unnecessary hassle. We know what fits for your needs, and how to make it all bump-free.

Global Fintech Accelerator in short:

  • Join forces with the other banks
  • Share the pool of the startups & innovations
  • Learning and sharing from the other banks
  • Test your processes, assumptions, business models in a safe environment to be ready for the PDS2 ERA.

Collaboration with startups has become a must now. But a lot of collaboration, if not even most don’t bring the results banks and corporations want. That’s because collaboration isn’t done right.

That’s why we have worked hard with our partners to find out what exactly causes the hiccups. And we used all the knowledge and experience we have gotten from working with startups and big corporations and facilitating the collaboration of the two. Global Fintech Accelerator is the result of all that. It is what is needed to bring banks to the 21st century.

If you would like to get into the Global Fintech Accelerator or hear more about it, feel free to contact me at [email protected] or +358 40 3433352.

 

Related post: Nordea fintech accelerator successful

 

Posted by & filed under Entrepreneurship, Startups, Team.

Having the right kind of team is one of the key features of a successful startup. Even more important than your idea (read this if that comes as a surprise). There were search engines before Google, social networks before Facebook and so on and so forth. We all know that. What made Facebook and Google be the successful ones was that they executed the idea better. That’s why sentences like ”Execution is king”, ” Ideas are good, but only execution matters” are heard all over the startup world.

Now think about it: what is the difference between good and bad execution? I.e. who are 100% responsible for making your brilliant idea into reality? Your team. It blows my mind when startup founders just hire their childhood best friends, cousins, someone they know who happens to need a job. Noble – yes. Useful – if you’re lucky…

Hiring someone you don’t know means spending hours and hours trying to get people to apply. And then spending much more time on looking through the applications, interviewing and still you can never know what kind of people they really end up being. You just have to take a leap of faith. Or you can just hire someone you know, or at least someone you trust knows. Easy, simple, done. So, hiring someone you know is understandable and even makes sense. But that’s where many startups go wrong. Here are what to look out for.

 

Danger point 1 – just hiring someone you know without thinking what they can really bring to your team – skills, experience, their network…

The problem is hiring someone just because you know them. That’s what many do and then notice the person doesn’t have the skills they need. Then you face the dilemma: should you fire your childhood friend to be able to hire someone your startup really needs or just stay quiet and not destroy your relationship with him or her. Startups just don’t have the money the keep hangarounds in their team. And sooner or later you will have to sack him/her or risk failing. Thus it is better to hire sensible right away.

Each and every member of your team needs to have the skills and/or experience you need in your team. And of course, fit into your group dynamics.

 

Danger point 2 – hiring someone who doesn’t match your team and/or way of working.

Some startups have the opposite problem. They get so charmed about someone’s skills or experience and don’t care about how that person will fit into their team. Those are the teams that will spend their days ripping each others hair out.

Now, you don’t have to be best friends with everyone, but too many startups fail because they spend their time fighting each other instead of working. A cohesive team is not only more pleasant to work in, but cohesive teams also get better results. That is why it is equally important to make sure the new hire also fits into your team.

Also, make sure your company’s working style fits with the person you will hire. For example, if that person would prefer to have steady working hours but your startup needs lots of flexibility. Or you would want employees to work at your office, but that person would prefer to work remotely, you might have to reconsider.

Again, think before you hire and you will save yourself from many headaches.

Team fighting instead of getting things done

 

Danger point 3 – team full of similar people

If your startup has 3 members who all are introverted coders who only want to code, no matter how amazing they are at coding, your startup won’t get far. Yes, your code will be brilliant, but that’s it. Let me repeat: THAT’S IT. Even if your business idea was to be a coding subcontractor, you would still need other kinds of people in your team. You need diversity and diversity in all areas.

 

Have the right skills in your team

You need a diverse group of skills, complementary skills that make executing your brilliant business idea possible. You all might be coders, but someone also needs to know how to sell, pitch, do marketing, accounting…. When you only have coders who are interested in coding, you end up with brilliant code. But like I said, that’s going to be it. That’s what they call hobbies. If you want to make money you need more than that.

I overheard a mentoring session in a hackathon of such team. The whole session was spent by the mentor asking who would use their product/idea and the team answering ”but the code is sooooo pretty, anyone. It’s just so so soooo pretty.” They were completely unaware that someone would actually need to also buy it, i.e. someone has to want the product. And that they were not even selling code, but something to make people’s lives better. The whole idea of ”thinking from your customers’ perspective” was completely alien to them. The team also spend the first minute (!) of their pitch explaining how they are uncomfortable pitching/selling, how bad they are at this, this and that…. Let’s just say it didn’t go too well.

You need the dreamers, the organizers, the doers, the specialists, the whole package that gets the work done. Think about it: if you all are dreams, all you get is dreams. If all of you are natural organizers all you end up doing is organizing each other and not doing the work.

The best results require different minds

You need people who have the diverse skills and working styles needed to make your idea into reality (and success!). But you also need diversity in experiences, in the minds you have in your teams. You need diversity of all kinds. Of skills, personalities, life experiences, cultures, genders, what have you. Studies say that by having more diverse minds working on a problem they are going to look at it more thoroughly. That is how you will take all the necessary things better into consideration and how you will create more innovative ideas.

So, while it is important to make sure your team is cohesive, you should avoid the trap of only hiring people who are similar to you. When you work with people who are different from you (from a different culture, education, sex, etc.), you will have to put more effort into working together, solving misunderstandings and so on. But also your results will be so much better. So so much better.

TL;DR: Make sure:

  1. you have all the needed skills and personalities in your team.
  2. your team dynamics work
  3. you have enough of different kinds of minds working together. That’s how you will reach the best results.

 

A post you might also find interesting: You need more than mentoring hookups

 

Posted by & filed under Accelerator, Entrepreneurship, Startups.

Sooner or later on your entrepreneurial journey, you will face the question whether you should go for an accelerator. And if, for which one.

Accelerators can really help you accelerate your growth (hence the name). But only if you find the right accelerator for you. And if you are ready for it. Just going with the most famous one or the one closest to you can do you more harm than good. The accelerator needs to fit your startup’s needs.

Here are a couple of things to take into consideration when looking for The One for you, or if you really should even go for one.

1. How committed are you?

If I had to choose just one word to describe accelerators it would be intense, both in good and bad.

During the accelerator, you are going to work hard, probably harder than ever before. Everything is accelerated. And what’s everything? Well, that depends on the accelerator (and you!). But things like learning, making right and wrong decisions, changing routes accordingly, reaching customers, pivoting, maybe even more than just once. In essence: a lot of things will happen and all of it will happen at the same time. Though only if you are there and putting in the effort. Accelerators accelerate, they don’t do the work for you. And intense results require intense work.

So, you need to figure out what is your commitment level, if you are ready for all that. Will you be able to put in your 100% and more during the months of the program? Or would something less intense work better for you instead?

Accelerator = hard work

 

Think about your life realistically.

Are you just testing the waters if your idea has any potential and want to still continue in your day job just in case? Then an accelerator that requires fewer hours might be the best option for you. Or do you have a baby coming, sickly parents to take care of, pet, hobby, anything that prevents you from giving your all during the accelerator?  Most likely you also need to relocate for the accelerator (unless you are super super majorly lucky and the best accelerator for your startup is right next door). Is that possible? Yes, some things may be worked out, but those kind of compromises always show.

For some accelerators, it is even a requirement to work full-time on your startup. That’s because they know how big of an effect it is going to have on your results. And not only does it show that you are committed it also proves you truly believe in your idea. If you don’t believe in your own idea enough to work on it full time, why should they?

So, think about your day to day life and be realistic about how committed you can and will be. If you put your mind into you will find the accelerator that is going to help you the most. AND can actually work with your life, even if it means joining an accelerator a bit later in your startup journey.

 

2. What kind of network do you want to build?

Accelerators are great at helping you grow your networks and be known where you need to be. But only if you choose an accelerator that makes it possible. Not all networks are made equal. If you go to an accelerator where you can grow a good-sized network, but of the wrong kind of contacts or in the wrong market, does it matter? No. You won’t really get anything out of it. At least when compared to if that network was filled with contacts that were actually relevant to your business.

Let’s say you are a fintech startup and big banks are your potential customers. Then a fintech accelerator that is done in collaboration with bank(s) is probably your best bet. But if you are a biotech startup, going to a bank accelerator will not the best choice for you. No matter how close it is to your home or how great the people behind accelerator are. Accelerator is great for you only if it helps achieve your goals.

 

So think: What is your industry? Are you a B2B or B2C startup. Where is your target market located? Who are the people, the influencers you need to reach? Can the accelerator give you direct contacts to your customers? Accelerators will not only help you create networks with your alumni but also with the key people in the industry, customers, investors, advisors and much more. That is why it is important to find the accelerator that matches your goals.

Ask yourself: which accelerator can connect you to the people and create the networks you need?

 

3. Your preferences & musts?

Every startup has different needs. After you have figured out your realistic level of commitment and what kind of networks you want to build, there are still many many things to consider. Things that are specific to your startup. Some of the key ones include:

Accelerator’s style:

What type of accelerator are you looking for? Do you want more hands on approach where you get help specifically for your startup? Or would you rather just hear tips from the ones who have already done it?

There are as many kinds of accelerators as there are accelerators. There really isn’t an official definition of an accelerator. That’s why the spectrum of different accelerators is also quite wide. When we talk about accelerators we mean intensive, time-limited coaching and business development programs that offer investments. Some accelerators offer investments, some don’t. Some accelerators emphasize building networks, some coaching, and more hands-on workshops. Figure out what would be most helpful for you.

Mentors & mentoring:

Different accelerators have different kind of people as their mentors. They even mean different things with the word mentor. Are the mentors they have relevant to you? Knowledgeable of your industry, issues you struggle with, do they have knowledge from your customers’ side?

And what does the accelerator mean by mentoring? Is the big name mentor going to give a lecture and a short Q&A or will he or she sit down with you to work on your startup? How important it is for you to have that one-on-one time with the mentors? What do you really want mentoring to be like?

After accelerator:

Do you want to get help from them also after the accelerator program itself ends? If you do it might be better to go to one that invests in the startups in its programs. That is because they probably want to make sure their investment is doing well and are much keener on helping you, their investment, also after the program. Or would you rather just get the learnings during the accelerator and not be bothered with keeping in touch with it? Also, what does it really mean get help after the accelerator ends? How much effort is the accelerator willing to put into helping you after the program?

Funding:

Do you need funding and how much? How much of your equity are you willing to give away? Do your numbers match with the accelerator’s? When thinking about the investment from the accelerator, you need to consider the overall package: for example, the coaching and other support in addition to the invested money.

Though remember that you should never do it just for the funding! It is not going to take you far, far from it. Though I am sure you are one of the smart ones and the thought didn’t even cross your mind ;)

 

4. Are you coachable?

I.e. are you ready to learn, accept others’ advice and in general, know you cannot know everything needed in this world. In short: your attitude.

If you already know everything, attending an accelerator might not be for you. I mean, accelerators are for learning, why would you go to one if you already know it all? You’re just going to waste your own and the accelerator people’s time. Though of course, if you do it to build a network then accelerator might still be worth your time (but are you worth the accelerator’s time, that’s a different story…).

 

Being coachable is also the very same thing investors are looking for. Nobody likes the know-it-alls that only want money, especially not investors.

TL;DR Do your research. Think what are your needs and what you can give, and apply to the the accelerator(s) that matches those. And remember: there is no one ‘best accelerator in the world’. It is different for everyone!

What are the ‘musts’ you are looking for in an accelerator? Share in the comments, we’d love to hear!

 

Related post: How to build the next startup unicorn?

 

Posted by & filed under Customers, Entrepreneurship, Marketing, Social Media, Startups.

They say social media is amazing for companies, especially startups. A must even. But in your experience, it’s just a waste of time. Usually, the reason is that you post the wrong kinds of posts, but also that you are on the completely wrong channels.

Here is a lesson that could not be simpler and even more obvious. But a lesson I want to share because, in practice, it seems to be nothing but obvious. Startups know they should be on social media, but they waste a lot of their time on wrong things. And surprise surprise they don’t get the results they want. It is about what they post, but many if not most startups get an even more basic step completely wrong. They don’t use the right social media channels, the channels that would really bring in the results. Meaning no matter how amazing posts you are putting out none of it matters if your customers don’t see them.

Only the channels where your customers are matter

What startups usually do is that after deciding they need to be in social media, they think which channels are hot and start creating accounts. The end result is they will have too many accounts and they don’t have time to do them well enough. And most likely they are wasting their precious time on channels that will bring them no results no matter how well they do on them.

The only channels that matter are the channels that bring you results. And usually, that means the channels your customers use. Like everything your startup does, also marketing and social media should all start from your customers. Let’s say you have a fashion brand and your customers are females in their 20s. Then Instagram is probably your best bet, probably also Facebook. Linkedin? Not so much. But if your customers are professional males in their 50s or 60s Linkedin (or nowadays also Facebook) is just the thing. And then Instagram, probably a complete waste of time.

So, creating great content is the number 1 thing that will make or break it whether you will get something out of your social media efforts. But if you are doing it all on wrong channels your effort is 100% waste of time.

How to find the right channels for your startups

Like I said earlier: be where your customers (and other important stakeholders) are. The best-case scenario would be that you know what those are for a fact. If you don’t, you need to start making educated guesses and change accordingly when you get more information. Also, just ask. You are talking to your customers and potential customers anyway, so why not ask about where they are active.

If you have no idea, you can start from thinking about your customers’ demographics. The Internet is full of information about who uses what social media channels. Then you can start using facts like your customers’ gender, age, income level, interests etc. help you make an educated guess. Here is one website to help you out.

 

Social media demographics age

 

These are just some of the most popular channels. …which is why it makes no sense for startups to try to be on all possible channels.

Demographic factors usually help you a lot, but don’t be blinded by them. Let’s say your target group is photographers, male and 35+ years old. Then just by looking at demographic factors alone, you wouldn’t go for Instagram. But that would be a grave mistake! What is Instagram? A photo sharing app. It’s filled with people interested in photography and pro photographers.

Also, remember not to focus only on the buyer, the one who actually makes the decision of buying. Think about the people who have an influence on that buying decision. A clear example is toys. An adult is the one who pays for the toys, but it’s kids who say ”I want that!!! Buy it!”. Then you should be active where the kids are, and of course, not completely neglect the parents either. Or if you are selling something to the government or bigger organizations. The decision makers are important, but so are the assistants who actually scour through the options and present them to the decision maker.

Be realistic about your resources and what even is possible

Think of your resources and what makes sense. Even if your customers use ’all’ social media channels, you probably shouldn’t be in all of them. Unless your startup is strongly tied to social media, you just won’t have time. That’s coming both from personal experience and seeing what happens with startups. It’s better to focus on the most useful channel(s) and do them well than to do poorly on many channels. Doing social media well does require time and effort, so don’t spread yourself too thin.

Another thing to consider is what even is possible for you. For example, let’s say your customers use a lot of Instagram and quite a lot of Twitter. Instagram would then be an obvious choice. But for some companies, it might be harder to create good content on that platform. If you have a fashion brand, it is easy to take good photos that create value, something that makes people want to follow you. If you do IT consulting, not so. Then it is a safer bet to focus on the number 2, Twitter. Though of course, if you can actually figure out how to do Instagram super well, you will reach your customers where they are AND where your competition isn’t.

In short:

  1. Only be on the channels where your customers are
  2. Don’t spread yourself too thin. Start only with the most important channel(s). You can always take over more later.
  3. Create value. Just pushing your products and services will not work.

And that’s it for today! Do you have any learning about choosing the right channels? What worked, what didnät?

 

You might also be interested in: How to talk to your customers and build better products?

 

Posted by & filed under Customer development, Entrepreneurship, innovating, Product development, Startups.

How to be a successful entrepreneur? How to create the next Airbnb/Uber/Dropbox/startup unicorn? Hands up, who hasn’t googled something like that even once? Or at least clicked once on those millions and millions of articles about creating the ‘next big thing’.

But if that’s what you are asking you won’t succeed. Might sound harsh but it’s true. Hey, I do understand; who wouldn’t want to be the founder of the next SpaceX. But the thing is that if you just want to have a successful startup for the sake of having a successful startup, you are focusing one the wrong things. You are focusing on the fame, money or whatever fancy thing you are imagining, not on what can get you there. And that is having a startup that is actually worth it.

All successful startups give people something they are dying to get. They are solving a problem, a crucial need people have. The more people your startup can help, the more desperate they are to get that problem solved, and the better you solve it the bigger your success will be.

So, how do you create a successful startup then?

Didn’t I just tell you to stop thinking about it!?!? …juuust kidding. In all seriousness:

 

Have an idea (well, duh)

Often what happens is that the founder(s) sees a need. That something could be done better and figure out a solution for it. They start thinking ”why is it like this. Why can’t it be like that.” Boom: an idea is born! (in a very very simplified form).

 

Validate that idea

Ideas are an essential part of founding a startup. But we all have ideas and only a few of us are successful entrepreneurs because of them. That’s because not all brilliant ideas really are brilliant. You need to validate your idea. Is it something that would make only your life better? Is it crucial enough and for enough people? Or just ’nice to have’?

Is the need big & crucial enough?

I.e. are people actually willing to pay for you solution and are they enough of them. If they want your solution but not to pay for it (=the need isn’t crucial enough for them), you won’t make any money and your business will die. Or if only a few want your solution (=the need isn’t big enough), you won’t make enough money and again: your business will die.

 

”But everyone needs my solution…”

 

Stop you fool!

 

If that’s what you think, stop! Stop, sit down and think again. You might still be able to save your startup.

Unless you have found a way to capitalize air, there is nothing everyone needs. ”Everyone” is the easy answer many go for, and the answer that will ruin their all chances of success. When you think that everyone will be your customers, you try to please everyone. And that doesn’t work. You will end up doing compromise after compromise and then your solution fits no-one. Or you just don’t even try and create a solution that only solves your problem and nobody else’s.

Bad validation is one of the most common reasons startups fail. They get so blinded by their ’brilliant solution that everyone in this world will buy’ that they forget to check the facts. Don’t be like them. Validate, and do it properly. Here’s an excellent post from Startupgrind to help you with that.

The best case is when your product is not just a ’nice to have’, but a must to have.

 

Execute it awesomely

”Ideas don’t matter, only execution does.” – pretty much every successful entrepreneur.

No matter how brilliant your idea is, the idea that is executed the best will win. After all brilliant idea is just an idea, still a long way from becoming reality. And rarely there are any truly unique ideas (there have been search engines before Google, social networks before Facebook and so on). We now ’google’ things because Google had the best execution of the idea, same with Facebook and many many other businesses.

No-one will see the brilliance of your idea if the reality of it just screams bad execution.

And a key thing to remember is that execution is 100% up to your team. It’s about their skills, experience, connections, everything. Many entrepreneurs just hire their relatives, friends, old acquaintances who need a job. That’s very noble of them but only works if they have the qualities needed to make that brilliant idea into reality. And if you ever dream of getting investments, you better have the kind of team that gets them. After all, investors usually look at the team even more than the idea itself. More about that here.

Learn from the unicorns – real-life examples

Let’s look at Airbnb. The economy was (and unfortunately is) tough, and many were looking for extra income. They also had empty space in their homes. Unused rooms, or whole apartments due to traveling. At the same time, people wanted to travel but not spend that much money on their accommodation. There was a demand and then there was a solution: Airbnb.

Or Uber. Again tough times. People need an extra income and they have an idle car. At the same time, others need convenient transportation, like taxis but without the price tag. Again: big need many really want to get solved.

In short: they had a great idea, an idea crucial for many and they knew how to execute it well. And now Airbnb is worth 31 billion dollars. Uber 62,5 billion dollars (as of March & April of 2017).

 

Related post: Startup mistakes to avoid