Category Archives: Sales-Based Marketing

Posted On August 22nd, 2017 by Crowded Ocean

New startup jargon in startup-land

‘Resters and Vesters’:  talented engineers who have lots of unvested shares of stock in privately held but “hot” startups are said to be “coasting” along and not really working that hard.

DNA data storage: researchers have now demonstrated how data can be converted from the 1s and 0s of binary code to the As, Cs, Gs and Ts of human genetic code. Because of that, researchers predict that the space-saving potential of data stored in DNA will be the solution to the enormous need for data storage. Theoretically, DNA storage could provide a cheaper and more environmentally sound alternative to huge server farms. There is a short shelf life to data stored on hard disks, flash drives, mag tape and DVDs, but data stored in DNA is believed to be able to last thousands of years.

Doxxing: according to an article in Recode, doxxing is “searching for and publishing private or identifying information about an individual on the internet, typically with malicious intent.”

Smart dust: according to the Wall Street Journal, this is “tiny, wireless micro-electromechanical systems that can detect measurements such as light and temperature.”

Foiling: the latest sports craze in Silicon Valley – and favored by many tech entrepreneurs – is called hydrofoiling, or foiling for short. The sport combines a small surfboard with rudder, motor and kite.

Posted On August 9th, 2017 by Crowded Ocean

Why startups need a “COO in a box”

For most of our existence, our clients have used the short-hand phrase ‘corporate marketing in a box’ to describe who we are and what we do. While the more accurate description might be ‘Marketing-as-a-Service (MaaS), we’ll answer to either one.

Recently, as more and more services, functions and departments go on an ‘as-needed’ basis, we’re seeing a new function evolve: The COO in a Box. It’s a function that, at least from our perspective, is badly needed at many of our startups.

Think about the standard enterprise startup: it’s usually founded by a core team of technologists, the most business-oriented of whom wants to be a first-time CEO. That’s a lot to handle, especially in terms of learning the ins and outs of sales, marketing, legal, support services, etc. When—and how—they need help will change with each company, but it’s the rare company that doesn’t need some sort of operational support in its early stages.

Here are the two times that we see the COO In a Box as being particularly valuable. The first is right after the launch. Up until that point, our experience is that the team has the capability and focus to do it on their own. Launching a company is an exhausting, all-hands-on-deck initiative, but it also pulls the company together, especially since it has a finite timeline and a nice payoff at the end. The question, post-launch, though, as everyone goes back to their regular jobs is: how are we going to sustain this momentum? That’s when a COO in a Box can help.

The second area usually comes around the Series B timing. The company has launched and had early success. Now it’s time to leverage that success and do the most important thing a new company can do: Scale. Again, the team is probably inexperienced and ill-equipped to scale, but a COO in a Box, if s/he has done this before (and they better have, if they’re marketing themselves as an experienced officer), is the right person to focus and align the company, leaving the CEO to focus on product, long-term planning and vision and the rest of the company to keep the engine going.

 

Posted On July 24th, 2017 by Crowded Ocean

On the radio: startup strategies with Crowded Ocean

Check out Tom and Carol interviewed about The Ultimate Startup Guide:

Listen to KGO Radio 810 Techonomics with host Jason Middleton

  • Part one (11:44 minutes)
  • Part two (19:06 minutes)

Check out more about Techonomics Radio on Facebook.

Posted On July 17th, 2017 by Crowded Ocean

A Manifesto for Startups

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.

Conclusion

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 June 28th, 2017 by Crowded Ocean

Startup Hiring: Get Out of the Cocoon!

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 June 20th, 2017 by Crowded Ocean

The Overlooked Startup ‘Office Manager’

One of the staples of news coverage of the early days of Silicon Valley was the story of the original ‘office manager’ at ________ (Name your hot startup) who got stock options along with every other early employee and, years later, was able to retire early and wealthy when the company went public.

In the early days of Silicon Valley, this Office Manager was typically a woman who served a vital role as a “jackie of all trades” keeping the place running, operationally, culturally and psychologically. She was an intrinsic part of the company culture and the resulting success and deserved every share (and resulting dollar) that came her way.

Over the past two decades the importance and visibility of the Office Manager has waned, in some cases considerably. While the position is now gender-neutral, it’s also junior in nature, often given to a first-time employee with promise. That person then graduates to a position such as Sales Operations or Marketing Coordinator (usually focusing on events) and is off and running with his/her career.

Yes, a Chief Culture Officer

But we counsel our startup CEOs to take the position seriously and to hire someone who is not only comfortable staying in that position but who can leverage their experience across the company to “own” and nurture the company culture. We believe that in this new era, the Office Manager is so important that they should become the company’s ‘Chief Culture Officer’, someone who not only helps the founding team develop the company—its brand, values, talent and culture—but can speak truth to power when the company goes off-track in any of these areas.

So, as you build your company, determine the importance of the role of the Office Manager and hire accordingly.

 

Posted On June 13th, 2017 by Crowded Ocean

Four new terms in startup-land; one inspired by Trump

Prebuttal: a pre-emptive rebuttal, a prebuttal is familiar to anyone following politics and the circus that is President Trump’s administration and Washington D.C. these days.

Neurotech: an emerging field that combines neurology, neuroscience, neurosurgery and the hardware of smartphones is changing the lives of people with innovations like deep-brain stimulators.

Neural lace technology: a hardware innovation of billions of tiny brain electrodes that “may one day allow us to upload and download thoughts,” according to Elon Musk.

FAANG stocks: the giants of technology stocks are closely watched and often trade up and down as a block. That’s FAANG, which stands for Facebook, Amazon, Apple, Netflix and Google (Alphabet).

 

 

Posted On May 31st, 2017 by Crowded Ocean

New terms are bubbling up in startup-land

Fat startup: According to the New York Times, the changes in capital markets now favor startups with grander visions and needs for funding levels on the order of hundreds of millions of dollars. As a result, “ideas that once seemed too expensive, too risky or just too crazy are now getting off the ground.” These start-ups are “fat” with capital funding and ambition.

Stack logic: The concept of a “software stack” is well understood in tech-land as separate layers of software working together to accomplish a task. The metaphor of a stack has now bled over to futurists and trend-watchers to describe a common set of resources according to this recent New York Times article.

Genericide: So far, the courts have held up the trademark protection of “Google” but it is quickly following the path of aspirin by transitioning into the mainstream as a verb and thereby causing Alphabet (the Google mother ship) to lose its trademark protection.

Hiring pipeline: This phrase is being used over and over to explain why real progress in gender and ethnic diversity is not evident in management and leadership roles at technology companies. As the theory goes, there simply aren’t enough qualified women or people of color coming into the candidate pool. But there’s more to it, of course.

 

 

Posted On May 25th, 2017 by Crowded Ocean

How startup chiefs work with a demanding BOD

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 10th, 2017 by Crowded Ocean

Consider 3 Levels of Startup Blogs

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.

Business-centric blogs

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.