I read a great post by Greg Isenberg (@gregisenberg), "Why The Future of Start-Ups Are Studios" + wanted to share the 6 reasons why I absolutely agree with him.
Testing Ideas
Low Code No Code makes it significantly less expensive + faster to use the software equivalent of Lego building blocks to get functional products into the hands of users.
Reducing Investment Requirements
With the exception of the studios time / focus, upfront capital requirements to test an idea are minimal.
Community
Existing communities across digital platforms with the critical problems a product is looking to solve for make distribution significantly more effective.
Distribution
Beyond your existing community, developing + executing your go-to-market-strategy leveraging modern tools, platforms, owned content + techniques (i.e. Build in Public) will increase your probability of developing a growth flywheel aka dramatically lower client acquisition cost.
Focused Expertise
Along with functional expertise from seasoned operators (i.e. Distribution, Customer Success, Growth Ops, Talent), vertical specific studios bring nuanced industry understanding + relationships / access that generate substantial product design / development benefits.
De-Risk Investment Profile
Combining #1-5 above + testing more / better ideas over time, a studio will generate products with users, revenue and a clear growth path that will reduce the risk profile.
If you want to go deeper on the above, check out Venturism's thinking across the topic (venturism.io), KP's (@thisiskp_) thinking on Building In Public + Jack Butcher's (@jackbutcher) thinking on Selling Your Sawdust.
January 24, 2021 (Tweet Link)