While many start-up companies are struggling to be noticed in their markets, start-ups in Israel are thriving. Giant companies like Deloitte, one of the world’s largest accounting firms, are supporting start-ups in Israel. I was curious to understand Deloitte’s approach, since they seem to regard start-up companies differently than most, even in the very early stages when all the company has is an idea. I wanted to know why Deloitte would work this way.
I sat down with Moran Massad, TMT senior manager, at the Tel-Aviv office in Israel. Moran has gained extensive experience in serving and consulting TMT companies, including companies in their early stages, while giving services focused on the sector clients specific requirements.
I found that Deloitte understands two main things that make them different.
- The companies of the future, the next big companies in the high-tech industry, are today’s start-ups. From Deloitte’s point of view, they are not only supporting start-ups. They are supporting their biggest future customers and partners.
- It is all about building strong relationships. Unlike other companies that focus everything on price/cost, Deloitte sees things from a different perspective. Relationships are the most important things and they will invest all their efforts in companies to ensure that they continue using their services in the future.
So, how does it really work?
What is the actual support needed for these start-ups and how much does it actually cost?
Well, the very first thing I learned was that not every start-up will get in and have the ability to utilize this opportunity. The TMT group interviews the start-ups, and then selects the ones that they strongly believe in to be the next big thing in the industry. The start-up can be in any stage: whether that’s just a great idea, or developed to the point that they have a working solution ready to go to the market. Deloitte invests their time into the success of these start-ups.
So, there is a lot of faith, and it still seems like a huge risk for Deloitte, but they have a rigorous process to manage their investment.
How do start-ups stand to benefit?
Deloitte’s TMT group provides start-ups with a one-stop-shop solution that includes professional services with a single point of contact. Start-ups get the best professionals on their team; professionals that in any other case they may not be able to afford. These top experts, who usually focus their time working with the leading companies in the market, will now assist these entrepreneurs by providing professional consultations and networking opportunities. Deloitte is investing time by supporting these start-ups and is building long term relationships with these young companies. This is huge for start-ups.
The other side of this story is a huge advantage for the investors, when Deloitte recommend them on a specific start-up it is after they realized that the start-up management is capable of leading and execute, and after they realized there is a great fit for both sides. It’s all from a great understanding that start-up is not only about having a great idea, its also about having an outstanding management that can truly lead and execute big dream.
Deloitte seems to be fully committed to spending time and efforts with the start-ups to ensure that they perfectly understand the entrepreneurs and their businesses. By using this approach, small companies are given the kind of support they need to thrive. The auditors and the tax advisors ensure that they understand the needs of these start-ups and where they want to be in the future. This way, they are able to deliver more than just basic auditing. Deloitte is providing real added value.
Deloitte is making the world a little friendlier for small companies. For start-ups to succeed in today’s highly competitive world, they need support, and there can be no better support than that of true professionals. Deloitte’s specialists will offer the guidance these start-ups need to use Deloitte’s connection and network for success. It seems to me that having a group of professional’s support, on top of having access to Deloitte’s network, will open doors for start-up companies. That in invaluable to a start-up, no matter what stage they’re in.
This win-win situation not only benefits Deloitte and the start-ups they support, but also helps create a better technology world. We as consumers will know that these young companies have highly regarded professionals on their side, boosting consumer confidence. This is one small step towards making a better business world, and can make a real change in the high-tech industry. I hope we see this kind of approach from more companies. With them we can take the Start-up Nation to a whole new level.