Don't be a "Wimp"

Ok…I know it goes with out saying but if you are going to be an executive in a start up you better not be a wimp.  Don’t let the competitors size scare you into not taking action…it is ok to be paranoid…just don’t get stuck in a cycle of fear or analysis paralysis. 

You are climbing a cliff – if you don’t see any handholds directly above you…you can go back down or you can get creative and go to the side and then go up…

There was a situation about 3 years into the company where we had an opportunity to do a re-sell relationship with a huge company --  not an OEM.  I met with my counterpart at the Company and he told me…It will take me 30 days to finalize a contract with you but I can’t do business with you if you keep hiring my people. 

Damn…I knew I was having an impact.  Here is this guy running a multi-billion dollar business telling me I was taking his good guys.  I said “I have 2 offers that are going out today to your guys – you can counter them and I will not counter back – after that I will hold for 30 days. We got 1 of the 2…After 15 days we did not have a redline version of the contract – I told him he had 15 more days…I did the same thing with a week left…2 days…1 day. 

Mind you I was recruiting the entire time – at the end of the 30 days still no redline –not to mention a signed contract.  I called…he said we are a big company – things take time.  I said if it was strategic to him it would have been done…I could have been scared – but the reality was the only way to get where “you need to go” is for you to get there – not rely on others to take you to the place you want to go.

Eight (8) offers went out that day to his team members…we got all 8.  Many of whom are still with us.  He was pissed…he said I am going to come after your people and offer them in the money options – I actually sent him my entire phone list –even circled the names of guys he may want to get…none of our people left.  I won’t name the company – but they were one of the few that had the balls to get into a bidding war for Data Domain. 

Create Leverage

Sure we don’t want to sell our soul to the devil with some kind of technology license deal. But how do you get you products to market having a “small” voice.  You need to find leverage.  Leverage can come in a number of ways but lets identify a few:

1.   Early adopter customers – word of mouth and referencing is huge in this business.  If a client becomes a supporter / promoter of your company.  There endorsement is very valuable to you.

2.   Channel – The VAR channel works on margin and on the notion that they can provide a service or a set of ideas that make them a neutral party to the client.  Remember they don’t work for free and that they have an angle.  It is either margin or the ability to leverage your unique product to differentiate themselves from other non cutting edge VARS and or to wrap services around your product.

3.   Your entire company is a sales force.  I asked at my first company meeting (we had 22 people in the company) for the sales team to identify themselves by a show of hands.  Only 1 other hand went up. …I corrected them and asked them all to be part of my sales team.  Everyone was invited to sales meetings – the entire team became aware of the issues keeping prospects from buying.  Engineers delivered me leads (names) of people they met a cocktail parties. (Nothing like getting a stack of Napkins with phone numbers scribbled on them from an engineering QA guy and having them hold you accountable for the sales progress

4.   Investors can be customers + they give you a place to practice.

5.   References for other early stage companies – if they have a habit of buying early stage stuff and like to talk about it they make a good target

6.   When it is time to expand leverage your sales team to help find the people – people will follow friends and former co-workers.

7.   Speed is everything – the transfer of information from 1 to many can be immediate today.  Why not create a culture that encourages feedback and rapid help networks.  An email asking a question from a single rep would get 10 answers within 15 minutes from a sales team of 10.   That is a “neural network” – that is culture.