June 08th, 2018

Startups: A Growing Niche for Destination Service Providers

Startups: A Growing Niche for Destination Service Providers

With the already intense competition around destination services continually increasing, many DSPs are looking for new business niches to exploit. Startups are a perfect example, as they satisfy many of the key requirements for good a global mobility client. Although well-established organisations are usually the primary target for relocation businesses looking to expand their horizons, newer companies, such as startups are hungry for exceptional talent, and this can result in some significant early-career relocations for their staff.

Startups are, in many cases, exactly what they sound like; new businesses which are just beginning to show their potential and getting ready to break into an industry. The standard business model for these young companies usually means that they burn through their initial investments by acquiring lots of talent to release their product quickly. This business model means that sourcing plenty of quality talent is essential to ensure success, and many of these new hires may need relocation services.

Another thing that makes startups an excellent potential source of business for DSPs is the significant amounts of funding that these endeavours receive. Large amounts of financial backing mean that although these businesses are often not as established as older and larger organisations, they are still more than willing to pay the costs associated with employee relocation. It is essential then, to target the more well-funded startups, as they are where the potential money is.

Where then, do you find these businesses? Venture capital firms will often fund many smaller startups at one time, splitting their funding across many opportunities to minimise risk. Therefore, these organisations are an excellent place to start your search. Build good and long-term relationships with such firms, especially those with their own human resources advisory services, as this will open up many opportunities, and perhaps a continuous stream of business. Also, there are websites which aim to track venture capital funding. Other areas to investigate include LinkedIn groups for such companies and creating Google alerts for companies receiving financing.

It is important to remember that startups are primarily technology focused, no matter the sector. As such, your company can appear more attractive by providing a mostly online presence and service for your clients as opposed to a more traditional, paper-based bricks and mortar company. Being able to fit into this tech culture comfortably will give you a significant amount of sales pull over your competitors. Remember that in the high-pressure startup environment values efficiency flexibility over all else, so ensure your offering integrates well into this mindset.

Also, think about what else you can offer these clients outside of your standard services. With the European Union’s new General Data Protection Regulation now in force, personal data security is of the utmost importance. Being able to prove your compliance to these new startups will not only demonstrate your professionalism and quality as a service provider but also show them that you can point them in the right direction with their own data protection efforts.

Finally, one of the critical requirements for startup success is that they fully embrace the concept of agility in all aspects of their business. As such, these companies are constantly iterating and improving on everything they do, from their marketing strategies to their hiring processes. If you find that a potential client isn’t in need of your services right now, that might have all changed in a month’s time.

 

For more information contact CEO and Co-Founder of ReloTalent, Sebastien Deschamps - ReloTalent seb@relotalent.com