By Fernando Berrocal

The concept of “Proof of Concepts” (POCs) occurs between different types of organizations or startups as they open the door to a brand set of possibilities. These collaborative experiments try to show the general viability of a concept or a business proposal. This is done to address a potential startup problem that might happen and/or advance their innovation ambitions. Even though partnerships, investments, and mergers and acquisitions are frequently being pursued, there are several possible project pitfalls for entrepreneurs that are not prepared for this type of situation.

Before beginning on a POC, it has been stated that many founders are unsure if they are ready for this. There are occasions when there is no defined purpose or mission in general, and entrepreneurs are just looking for any type of POC interaction with a major business to brag about. With a lack of adequate expectations, especially around issue and solution fit, between startups and businesses, this may easily become a route to failure, resulting in everyone losing their precious time and hard-earned money. This may be catastrophic for a startup that is operating with a limited runway. Before diving into any POC, entrepreneurs must understand what you can provide, your corporate partner's demands, the partnership's ambitions, and exactly what you're getting into.

What Does Your Startup Have to Offer? Before collaborating with any major business, the first and most crucial step for founders is to genuinely analyze where their startup is in terms of capabilities and mission to compare with the relevant possibilities. These need to determine the type of POC you wish to run. You should first establish your goals, as well as the margin, timeline, industry, and type of partner. Consider the following questions as you go through this procedure: Is my product up to standard? How much time and money can I dedicate? What is the cheapest option for me? Is it in line with the mission of my business?

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When it comes to budgeting, knowing your startup and business is crucial. Before you begin any POC, you must first determine how many resources can and should be allocated to the project. This will vary depending on the size of the corporate partner and the startup, but the budget must be agreed upon and the goal known.

Your Ideal Business Partner: You may start thinking about your potential corporate partner once you've analyzed your personal needs for a POC. The first piece of advice I can give you is to know exactly what you're looking for. This might include concentrating on a single industry, selecting businesses with established starting procedures, or identifying certain needs that are important to you. A POC is similar to matrimony in several ways. You want to choose the proper partner, someone who will be there for you through thick and thin because if you aren't realistic about the relationship, you'll have long-term difficulties.

The importance of urgency is one of the most important factors. Is everyone at the business, not just inside the business unit, but up to the Chief Executive Officer (CEO) level, on board with the urgency of this specific problem? Will your POC get the help it needs if that doesn't happen? Are you on the same page when it comes to the level of urgency?

Collaboration creates or breaks projects, and there have been far too many failures when there's a gap between the start and conclusion of a project. As a result, you must choose an internal business supporter to assist you in completing the project. Consider the following question: Who can help us navigate the corporate infrastructure and advocate for our project?

Getting from Idea to Reality:  How can you locate a POC partner now that you know what you're searching for? To begin, create a list of corporate clients that you believe might be excellent partners for your business. It’s recommended to create a customer-facing one-pager that outlines who you are and what you do to make introductions simpler. A demo video might also be beneficial if it is pertinent.

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What is the worth of something? It's critical to be clear about the value you're getting before you enter the POC and during the engagement. Prepare for the engagement by understanding what you'll get out of it, and maintain an open mind about what that means: it won't always be money. Revenue, mentorship, a business case study, validation of an early solution, and market access are all possible consequences of POCs.

Throughout the POC: Hopefully, you have set out a very clear scope for the engagement before you started. Return to this scope while you work, and if the project veers off course, check in with your corporate partner - if you've genuinely uncovered a more pressing problem that your business can handle, should you move to it or stick to the original plan? Even if the goalposts change, make sure everyone understands what you're shooting for. Determining what success looks like and updating it as required can help everyone stay on track. To reach an objective result after the engagement, all parties should agree on performance indicators and milestones.

The Doorway to Success: When collaborating with a business, there is a lot to consider. POCs are time-consuming and difficult undertakings, but they consistently offer the spark of creativity that is much needed today — and they may be the greatest road to success for your startup. As you look for the ideal partner, be sure you have the essential ingredients for success. Making a target list of corporate clients, a customer-facing one-pager, and a demo video are all things recommended.

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