Posted On July 24th, 2017 by Crowded Ocean
Category Archives: Marketing
Posted On July 17th, 2017 by Crowded Ocean
The following article by Crowded Ocean partner Tom Hogan originally appeared in AlleyWatch:
When we work with our startup clients to help them position and launch and develop programs for early sales success, one item that we encourage them all to have is a ‘manifesto.’ It’s a core document that explains to the market the original thinking—some of it provocative, some of it just compelling—that went into the company’s founding and original whiteboard sessions. That document can either stand alone on the website or be parsed into a series of articles and blogs.
Taking our own advice, we developed The Crowded Ocean Manifesto, which contains a number of provocative ideas for our startup clients to consider. Here are some excerpts:
Team trumps technology
VCs will tell you they invest in teams first, technology second. Smart, well-functioning teams build smart, well-functioning products. But if something goes wrong, smart teams recognize errors earlier, respond quicker and make better decisions. Smart teams can solve product-market fit misfires. And be guided by the industry data that shows diverse teams (gender, ethnicity, psychological) make better decisions and build more profitable businesses. Make diversity part of your culture from the beginning.
Hire for your core: outsource the rest
Determine what is core (or ‘essential’ to your success). Be harsh in this determination. Staff to those functions and outsource everything else. On-demand resources are cheaper and usually more experienced than a general in-house hire. For example, the CMO owns building, orchestrating and executing the Marketing or Go to Market plan, but should outsource the specific components, from PR to SEO to content development to event marketing.
Positioning is something you develop with the Market, not something you thrust on it
Your customers—not your Product group—are the ultimate arbiters of what product you should build (and what market you’re in). So as you interact with your early customers, identifying your target buyers and use cases, use that information to develop your positioning and messaging. Then make sure that as Marketing develops and deploys these in core programs, that you continue to check in with your core market and adjust accordingly.
You can create a market segment, but not a new market category
As a startup, you don’t have enough time or money to create a brand new market category for your product. Focus on defining a new market segment and growing from there. Identify the market influencers who can help define or endorse your segment and build market understanding. Don’t try to go it alone.
How you make decisions is critical not only to your emerging culture but your long-term success
Company culture may initially focus on Bagel Wednesdays, free neck massages and a foosball game on site, but it ultimately has to do with how decisions are made—and who makes them. Great CEOs let their employees know what’s going on in company meetings, solicit their input, then ultimately make and implement the decision, communicating to the company clearly and decisively. The company knows that it’s been heard and also has the positive feeling that it’s being led by a confident leader.
You can never have enough content. So plan accordingly
The normal enterprise sale requires a minimum of 7 customer touches. So unless you want your sales reps to be chihuahuas tugging at their customers’ ankles with nothing new in their arsenal, you’ll need to provide Sales with at least 7 pieces of supporting content. Market awareness, inbound traffic, sales preference: they all start with Content. Develop a steady stream of unique, compelling content that captures the imagination of your target buyer by breaking through the market noise. Whether it’s written or rich media (audio, image, video), your content has to be accessible, shareable and increasingly—it also has to be personalized and brief enough to be consumed in a single sitting.
No one is replaceable, including you
A smart CEO should know going in that the company and market may outgrow his/her capacity to lead it. History shows that by the time a startup has raised its third round of financing, 52% of founding CEO’s have been replaced, most of them fired (or re-deployed) by their own board. Leaders with longevity are self-aware enough to ask for help to close their own gaps. True leaders know they are building a kingdom, not a king. And if they want to remain the king, they listen and learn from their Board and mentors, rather than letting their ‘inner Steve Jobs’ set their leadership style.
Is a Manifesto always right? No. But any company or organization needs to stand for something, to take a position on core issues and live by those beliefs. If the market (and that can include your own employees and Board as well as those you’re selling to) shows you the errors of your way, seek a new way. And when you’re confident that you’ve reached a new level of certainty and execution, modify and re-publish your Manifesto.
Posted On July 11th, 2017 by Crowded Ocean
New-collar jobs: an emerging job category in the U.S. is skilled workers who do not have a four-year college degree but who can qualify for so-called “middle-skill” jobs Economists applaud the trend as a new route to the middle class and evidence of opportunities through skills-based jobs.
Manterruptions: California Senator Kamala Harris was repeatedly interrupted during her questioning of Attorney General Jeff Sessions during a Senate Committee hearing in June. As a result, she’s become the poster child for this bad habit and the double standard that women leaders experience in the workplace. Her predecessor in this controversy surfaced two years ago in the lawsuit against venture capital firm Kleiner Perkins filed by female partner Ellen Pao. Pao described the company culture at KP as “interrupt-driven” and was even offered “interrupt coaching” to help her acquire the skills to hold her own with aggressive male colleagues.
Steganography: a new source of cyber security alarm is the concept of hackers hiding malicious code or content inside benign software. It’s possible, for example, to hide malicious information inside an image.
Posted On June 28th, 2017 by Crowded Ocean
In today’s increasingly competitive hiring market, the advantage is clearly with the job candidate, not the company. As a result, companies often hire rapidly, only to regret the lack of a strong vetting process later, when the new hire turns out to either be overmatched or a poor cultural fit.
The former is rarely the case when it comes to technical hires, since their peers are generally able to sniff out the overmatched candidate in early interviews. But in roles with broader, less defined boundaries, such as Marketing and Sales, it seems to be easier to make a hiring mistake. Sometimes, it’s that technical founders lack the experience and instincts to successfully hire a non-technical role and this is a problem that VC board members often identify as a common early stumble.
Cultural diversity pays off in building for the next growth stage
One way startup founders can limit their hiring mistakes is to get an outside perspective. A startup runs at a certain pace and has a certain set of values, which often makes it difficult to recognize the potential of a candidate who doesn’t immediately fit into that cocoon-like environment. But consider two things: 1) the candidate who doesn’t immediately fit may broaden the company’s perspective, leading to more success; and 2) that same candidate may be a better fit for the next stage of the company—just when the earlier-stage employees are running out of ceiling.
As we’ve noted in these earlier blog posts, “Diversity in your startup: psychological diversity”, and “When should your startup focus on diversity”, hiring for diversity pays off in smarter decisions and better business. So, whether it’s a Board member or a trusted Friend of the Company (an advisor who has some incentive, such as equity, to dedicate time and effort to the process), broaden your hiring process to get the fullest possible perspective—and the best possible candidate.
Posted On May 25th, 2017 by Crowded Ocean
One of the most delicate—and important—parts of a startup CEO’s job is how to manage your Board. If this is your first startup, it may feel like they’re managing you, and you might feel like that’s the way it should be. But repeat startup CEOs will tell you that, if you manage your Board properly, you’ll have a valuable ally, a strategic resource—and you’ll view BOD meetings with something other than the fear that grips first-timers.
Find out (and then set) expectations early
In researching our book, The Ultimate Startup Guide, we talked to over 25 VCs and a like number of founders. One of the key components that emerged from these interviews was that most VCs will tell you that their CEOs over-prepare for BOD meetings. And if VCs could see what we see—companies virtually shutting down (at least the management team) for a week or two prior to a BOD meeting—they’d be even firmer in their convictions. But first-time CEOs want to have all bases covered, so they try to anticipate, then prepare for, each question or objection. Either offline or in the first real BOD meeting, CEOs should raise the topic—find out what the VCs want and how they want it presented. Many of them will tell you they want topics raised and discussions—rather than complete presentations—on each. If so, hold them to it and run more relaxed, collegial sessions.
Respond, don’t react
The best advice we can give is this: when it comes to dealing with your Board, be responsive, not reactive. Your Board members are experts in the business of running a startup and cracking a market, but they don’t know your market as well as you do (in most cases) and they’re not as good in marketing as they think they are (in almost all cases).
But like all of us, VCs and Board members want to know that they’re being listened to and respected. To that end, we recommend that in each BOD meeting there is someone tasked with taking notes and recording every point raised by a Board meeting. Then, once the meeting has concluded, get the internal team back together and consider each of the major points and what your response is. Then craft a concise email to the Board summarizing your decision (or pending action) on each point. It shouldn’t be the day after the BOD meeting—it will look like you’re intimidated and that you haven’t given these topics enough thought—but it should be within the week.
Will this turn your Board from a bunch of intrusive know-it-alls into purring, pliable kittens? Hardly, but you’ll earn some respect, you’ll get them off your back (to an extent) and you’ll get more time to run your company, rather than over-preparing for the next BOD meeting.
Posted On May 16th, 2017 by Crowded Ocean
High growth startups are very different from other businesses. And they die remarkably young. In fact, nine out of ten startups fail within their first 24 months of operation.
Since our founding in 2008, we’ve worked with more than 50 companies and 45 startups. What makes startups so unusual? Let’s take a closer look:
- 25% of startups were started by immigrants Source: Reuters, 2016
- By 2013, the median time to IPO was 7.4 years Source: NVCA, 2014
- By the time startups raise the third round of financing, 52 percent of founder CEO’s have been replaced Source: New York Times, 2012
- More than half of U.S. unicorns – startups valued at $1 billion or more – have at least one immigrant founder Source: Wired, 2016
- VC firm Andreessen Horowitz funds about 20 startups a year out of 2000 warm referrals Source: The Macro, 2016
- The Y Combinator accelerator is more exclusive in its acceptance rate than Stanford University Source: The New Yorker, 2016
- Only 20% of the Inc 500, the fastest growing private companies, raised outside funding Source: The New Yorker, 2016
- Americans in their 50s and 60s make up a 24.3% share of entrepreneurs who launched businesses in 2015, up from 14.8% a decade ago. And, 70% of startups founded by people age 50 or older last longer than 3 years, versus 28% for those younger than 50 Source: Wall St. Journal, 2016
- The majority of startups die after an average of 20 months and $1.3 million in financing Source: New York Times, 2016
- In a 2016 survey of 700 founders, 31% said they didn’t intend to IPO and 69% expected to be acquired Source: First Round, 2016
Posted On May 10th, 2017 by Crowded Ocean
Prior to launching, a startup may have a few blog postings, most of them either commenting on the industry at large or trying to recruit new talent by either profiling the company culture or giving potential employees a glimpse of the underlying technology. But it’s at and after launch that it’s time to get serious about blogging. And to our clients we recommend a 3-tier approach.
A tiered approach might sound like overkill for a young company, but keep in mind our two goals: 1) create the broadest image of the company, and 2) distribute the responsibilities of blogging across the entire company.
The first tier business-centric. This is the purvey of the CEO (and perhaps one or two others on the management team). It’s a look at how you see the industry, market and technology trends, global issues, and where the pain points and opportunities are within it, and what you plan to do about it.
Combine business and technology
The second tier is a high-level approach to your technology, methodology and architecture. The authors are the CTO, head of Engineering, even the head of Products. It is technical in nature but is targeted at a C-level decision maker, and so has a blend of technology and business.
Deep dive into tech
The third level if for the troops. It can be a deep dive into the specific feature or technology that they’re working on—which shows both the excitement of working there as well as another glimpse into the technology—or it can be a note about the culture (Forget daily donuts: we have gaming lunches every Tuesday and Thursday.)
It’s up to Marketing to build and administer this schedule, but if you do it right you’ll have a rolling 3-month calendar without taxing your writers more than once during that period.
Posted On May 3rd, 2017 by Crowded Ocean
In his annual letter to shareholders, tech titan Jeff Bezos, Amazon CEO and founder, described his practice of “high velocity decision-making” that help sustain the growth and competitiveness of his company. The article published last week by Quartz summarized Jeff’s guidelines (including the unusual observation that “many decisions are reversible”).
Decision-making style shapes long-term success
One of the major predictors of long-term success is this: how decisions are made and communicated to the company. Not only are these initial decisions critical from a business and technology perspective, they establish a cultural tone at the same time.
Ask any employee and he or she will say that they not only want to be involved in these early decisions, but due to their investments in the company—time, reduced salary and quality of life issues—they deserve to be involved in these decisions.
Startups are always on, always moving: it’s a pace and environment not given to deliberation or self-analysis. It’s an over-used analogy with startups but making decisions is like changing a tire on a moving car—it would be better to pull off the road and do it right, but who has the time?
Disagree and commit
In his letter, Jeff Bezos emphasized the value he places on the phrase “disagree and commit” to propel swift action by his team (and to overcome any bias for consensus.) In the spirit of Jeff’s focus, we would emphasize the following tenets to make your style of decision-making a strong component of your startup culture:
- Get as much diverse input as possible. It’s been proven that the more diverse your group—in background, ethnicity, and gender—the better the output. If you’re smart, you’ve already got a diverse team; now is the time to reap the benefits.
- Instill “ownership” across the entire team to motivate employee engagement. Ownership is a trait that startup leaders need to foster and reward, but only if it’s genuine. Even if a CEO is seriously top-down in his/her decision-making, we encourage them to find areas of genuine ownership, however narrow, for each employee.
- Over-communicate to the entire team what you’ve learned in customer forums or open forums (even team lunches or celebrations) with all employees. Be sure to communicate back to the company in another open forum–creating the sense that employees been active participants in the process all along. It’s the founders who have to be active communicators to glue their team together.
Posted On April 25th, 2017 by Crowded Ocean
When we meet with a startup led by technical founders, it’s common for us to discover that the majority of the team have profiles or pages on channels like LinkedIn but they are far from active there. In fact, if they have a Twitter handle, it’s probably dormant. Consequently, we never assume that social media is considered by the team as a channel to engage with customers. And startup teams are typically so busy coding and wooing customers in the early days that social media—even if it’s viewed as important (and many tech startups don’t share that view)—is considered a priority for another time. So, what are the lessons for startup teams about when and how best to employ social media?
Taking a phased approach to building your social media program
There’s a phased approach to building smart social media habits that’s very doable and productive. As we outlined in Chapter 14 of our book, The Ultimate Startup Guide, we recommend that during the early days startup teams appoint a single owner of social media. Just as a startup needs a Chief Content Officer to really “own” (but not necessarily produce) all content, your startup needs someone to own your social presence. Choose someone on your team who already has a natural affinity for communicating and connecting via social channels. That’s the person to tap early on to be a rallying point, teacher and role model across your team in the early days of your startup. Remember that it’s temporary. With growth (and revenue!) can come additional staff, a PR agency resource or a dedicated contractor to staff your social media program as you grow.
Name an owner of your social channels
After appointing an owner, step two is to determine your goals and your audience. And then, step three, prioritize the social channels that will support your goals. The top three channels for many startups tend to be: Twitter (for connecting with prospects, partners and influencers), Youtube (for sharing rich media content_ and LinkedIn (for recruiting new talent and for connecting with customers.) And, down the road, maybe you’ll want a couple of flat screen TVs – one in the lunchroom and one in your lobby – to display tweets and posts in real time to keep your team connected to your customers.
Posted On April 18th, 2017 by Crowded Ocean
It’s rare to find a B2B startup founder who is fluent in social media. The nonstop demands of company building diminish the time that can be devoted to social channels, whether that’s Twitter or Facebook or Github or you-name-it. And besides, as the theory goes, that’s a task best delegated to the marketing or customer success team.
For consumer-facing startups, however, it’s a different story, because an unfiltered tweet or video from an unhappy customer can be punishing to a consumer brand’s reputation and market valuation. (Just ask UAL CEO Oscar Munoz.) That’s why those companies have entire teams of employees devoted to staffing and responding to dialogue on the social channels of consumer brands.
Tweets can be brutal
Even so, the move by the new CEO of the company that owns Carl’s Jr. and Hardee’s restaurants took social media engagement to another level. One of the new CEO’s first requests, according to this New York Times article, was to install screens at company headquarters to display real-time social media conversations about its brands for all company employees. That’s a bold move, but a pragmatic one in the wake of recent, so-called “social media grenades” hurled at Pepsi and United Airlines.
It used to be that if you wanted new execs to get close to the customer, they could join the call center team staffing customer or tech support and listen in to learn common customer complaints. Today, a single negative comment or tweet by an unhappy customer can quickly spread to thousands, or even millions, of other customers. Rapid detection and response is the name of the game, and that leaves no time for internal deliberation.
Duck and cover
That’s why an early stage startup needs to appoint an owner of your company’s social channels. Choose someone on your team who already has a natural affinity for communicating and connecting via social channels. That’s the person to tap early on to be a rallying point, teacher and role model across your team in the early days of your startup. Remember that it’s a temporary assignment. With growth (and revenue!) can come additional staff, maybe a PR agency resource or a dedicated contractor to staff your social media program as you grow. But appointing a temporary owner means at least you’ve got someone monitoring commentary about your brand and product and, at the very least, someone to yell “duck” if some industry wag lobs a grenade.