Startups: Necessary for Innovation

Startups are the hotbeds of innovation. It is in these environments that entrepreneurs and visionaries are building the revolutionary solutions of tomorrow, free from multiple layers of infrastructure and oversight. They have the drive and passion to take on ground-zero challenges and to prove wrong those who said it couldn't be done, whatever "it" may be.

Conversely, it can be hard for mature enterprises to innovate. They often simply modify, update, and expand existing products in their established area of expertise. In the world of computing and telephony hardware, for example, what was once an industry ripe with innovation has been reduced to releasing periodic updates to operating systems, size and color offerings, and camera resolution on mobile devices.

?In the aerospace and defense industry, traditional contractors are no longer viewed as innovators, but rather as trusted partners that provide the latest fleets of proven aircraft. How much innovation has really occurred in wing, fuselage, or engine design over the last few decades? Some might argue that flying at faster speeds for longer distances, putting satellites into space, and building laser-guided missiles are innovative actions – and I wholeheartedly agree – my point is the breakthroughs that led to these companies' initial aerospace successes have long since matured. Today they are improvers, not innovators.

Don't get me wrong, I am not disparaging these advancements by any means, but there is a difference between evolutionary and revolutionary products. That's why large enterprises and branches of government increasingly view startups as the primary ecosystem for next-generation ideas and technologies in areas such as space defense and exploration, flying cars, artificial intelligence, data processing/networking, and additive manufacturing (AM).

?Startups are more receptive to taking on challenges and are less risk-averse than larger, established enterprises which do not have the agility to execute. Startups are hungry; they think outside the box. Most importantly, startups work harder because their very survival is at stake—there aren't other divisions of a conglomerate generating revenue to keep new initiatives funded. The most revolutionary innovations overwhelmingly occur in startups because failure is not an option.

?Now, I have loved being the CEO of a manufacturing startup for all the reasons you'd expect; and I still feel as invigorated about our vision today as I did on Day One. I spent years working for several large manufacturing organizations and jumped at the chance to bring a new technology to market in which I truly believed. I wanted to build a company culture that reflected my values, to have the freedom to realize a goal exactly as I and my team envisioned it, and of course, to prove wrong the naysayers who said it couldn't be done.?

Retaining Our Startup Mentality

The thing is, Essentium is no longer a startup. Founded in 2013, we have evolved beyond the size and risk profile of an early-stage business. We have a proven line of High Speed Extrusion (HSE?) printers and materials, solid contracts and global partnerships in the AM space, and a healthy balance sheet. Essentium now has more than 130 employees (and growing), plus dozens of patents and trademarks to our name. As we become recognized as a larger, more capable player in the 3D printing market, it is critical to me that we retain our startup spirit as we scale; that "can-do" attitude that put us on the map in the first place.?

In thinking about how to promote and maintain this business-hungry mentality from top to bottom, I use a few basic principles to shape our company culture. Consider these ideas to help your organization retain its startup spirit:

• Never say No. Take on every challenge. You don't know if it can't be done until you've tried.
• Approach every project as if it were your only priority and its success or failure will make or break the company. You're only as good as your last project. The sense of urgency you give it will impact team members, and be apparent to the customer as well.
• Leverage your underdog status. Position your startup as the antithesis of established competitors. Emphasize your flexibility to adapt or modify project parameters as needed, free of political or bureaucratic objectives.
• Innovate rapidly. Apply maximum effort and attention to every detail. If that means shifting team member priorities to an all-hands-on-deck posture in order to meet a deadline, do it.
• Employ a flat management style. Eliminate layers of management and silos as much as possible to allow ideas to more easily surface. Encourage knowledge workers to freely communicate in an open, trusting environment regardless of title.

?At the end of the day, I say embrace the chaos. One minute you're here, the next you're over there. You're stretched so thin you're almost transparent, but if you're like me you wouldn't have it any other way. Whatever your product or service is, you took on the startup challenge because you love to work hard, create new innovations, and make the world a better place. Perhaps someday your company will evolve into a more established enterprise, but that doesn't mean you have to abandon your startup spirit.