Most startups do not have physical store that deal with customer directly every day. Whenever startups planning to form strategic partnership with others, the 'old economies', especially those brick-and-mortar business that operate a physical stores seldom come into their mind.
Despite what your perception against them is, these businesses do have something that your startup don't and bring value to the table. Use them correctly, they can be your distribution channel, customer service representative, or even helping you to reach your first billionth customer.
Here's how they can help your startup:
Make your startup a business and also a feature of something bigger
Typical startups focus on solving one problem and be very good at it. Sometimes we were told the problem that we are solving is too small, that our product (and company itself) is just a feature, not a business. But what if your business can be a feature in something bigger?
If fact, whether it is a product or feature, it depends on whether you can build a profitable business and grow into something bigger by solving that problem. If your offer can solve that problem alone profitably, then it is a product, else, it's not. However, if you zoom out far enough, any product can be just a feature in solving a much bigger problem.
Change your perspective and see how your product can be used in other way or solving other problems. A Taskrabbit-like errand marketplace can partner with laundry shop to create a new on-demand laundry service. Or partner with restaurants for an on-demand food delivery? Mobile app startup that partner with petrol stations to sell top-up card (since not everybody has a PayPal account or credit card)?
With the right partner, they can enhance your value proposition and make you become part of something bigger.
Growth hacking your startup with conventional business
Growth hacking is more like a mindset than skill set. It does not have be highly technical or advanced. Physical store is a valuable asset for you to reach more customers and understand them better. Find the right brick-and-mortar business that complement with your startup well.
If you are running a Birchbox-like subscription based business, try talk to local supermarket or convenience store that your target customers visit frequently. Offer them attractive terms to carry your product as long as they can commit minimal volume and a space on their display rack.
After customer used your product, they might choose to subscribe directly from you or even share with their friends. Hence offline sales from physical stores can generate online sales or even word-of-mouth marketing for you. More importantly, you are reaching to those customers that you can't reach via online-only marketing campaign.
This is exactly what e-commerce focus apparel company, Bonobos, did when they partner with Nordstrom department store. The result according to the CEO of Bonobos, Andy Dunn:
“As we add the offline experiences like the Guideshops and like our partnership with Nordstrom, a lot older men who would have been more reluctant to dabble with a digital brand are now getting exposed to it.”
You may capitalise on the ‘showrooming’ trend whereby customers check out the product offline but make the purchase online but do NOT rip your partner off. Offer them some special deals so that customer is incentivized to purchase from them but interested enough to find out more about your brand and product later.
You can't (and shouldn't) do it all
You will never have enough resources for your startup. Before you finish testing the latest feature, you may have the next great feature in mind waiting to be developed. You should stay at doing what you and your team are best at, which is creating the great product that is going to change everything. Use all you have to improve your product, build a stronger team and grow your revenue. Anything else is secondary and disposable.
Running a brick-and-mortar business requires a totally different skill set than running a startup. Instead of taking the risk and resources to do this, find a distribution partner that help you to reach these businesses and customers, so that you can focus on your startup. For instance, PCH, a global supply chain management company, formed a new division named Highway1 that is essentially an incubator program for startup that not only provide funding for your hardware startup, but also access to their global distribution network. They can put your product on international stage without you having to worry about the fulfillment, manufacturing or logistic arrangement to ship your product to your customers.
Potential of working with brick-and-mortar business is only limited by your imagination. By forming strategic partnership that complement with your startup well, you may find yourself to new market that your product alone could not reach.