credit: enterpriseirregulars.com
The common thread amongst startups regardless of where they’re located and in what vertical they play is the solo entrepreneur or partner team launching the business.
The characteristics of these professionals are obvious — extreme passion for their business, a need to earn credibility to attract investors, a desire to control every aspect of the company, and the need for expertise to fill the gaps they don’t have.
Soulati Media has been working with many startups of late in varying stages from early bootstrap and go-to-market to companies with healthy sales but no team in place to push the product.
As a practitioner offering a powerful blend of business-to-business social media marketing and public relations, the biggest gaping hole I see is when the business owner crosses the bridge from internal focus to external strategy.
So often the infrastructure consumes every waking moment, and what comes soon after is the realization the team hasn’t put wheels in motion to go to market with a solid plan, financing or time.
What can be a hazard for the team seeking expertise to launch is the extreme knowledge and need to keep control of most every aspect of deliverables. There are financial concerns, ramp up and speed to market.
Tips To Make Start Up Launch Smoother
From my perspective, often as the consultant joining the founding team or teaming with a solo business owner, here are suggestions to make the ride smoother:
- Determine the knowledge gaps on the original team
- Identify the breadth of expertise in the consultant you’re looking to hire
- Know that a seasoned public relations practitioner often brings business, marketing and strategy to the team
- Ensure the marketer you hire has the specialty knowledge needed to round out the team and lend new, valuable insight
- Discuss budget early on; if a practitioner is willing to bootstrap with the team until investors are on board, then that professional should be a strong candidate
As a case in point, I recently discussed an opportunity with a startup to work in a vertical market I’ve wanted to tap for awhile. The fledgling company, yet to be seeded, is funding its infrastructure with Bobby and Mary’s college fund. I agreed to bootstrap the budget because I knew it would be an entry point to my future learning and experience in that sector.
Not too many PR practitioners will go that route to make such an investment; would you in your space?
Hi Jayme!
I’ve always desired performance based compensation tied to some kind of upside potential; for me, that is stock or ownership in projects I participate in.
I’m just not willing to sell my expertise and ability for a salary. I know what I can do for any company; I’m more valuable than a fee or salary; I’ve always made my ‘big hits’ in business on ownership stakes in things I help to build.
Keep grinding Jayme… Maybe they will give you some stock in that startup if you get them what they need and desire? But it’s harder to get once you agreed and started a project that doesn’t include this type of bonus or compensation.
Cheers miss!
@Mark_Harai I am really liking this concept! I may have a month yet of selling with this company before anything is set up for real. I might suggest something that provides more of a guarantee…fascinating and smart business, Mark. Thanks for making that suggestion.
@Soulati | B2B Social Media Marketing The thing about ‘performance based’ is there are no guarantees… I’ve used many a stock certificate to wall paper my bathroom with :0
Performance based doesn’t typically include a salary or fees, or they’re defferred until sometime in the future.
Most businesses I’ve been invloved with have not become successful. I’ve litterally been involved in hundreds of businesses. It’s that 1 ro 2 out of 10 that go public, get acquired or just kick-ass in the marketplace that keeps you going.
I’m addicted to starting businesses and I will never stop. It’s an amazing feeling to take a concept from just an idea, to a rousing success. It impacts lives, creates jobs, and provides a platform for you to get things done in your community.
I’m glad it sparked some ideas Jayme. There often times can be a mix of the two; smaller fees/salary for upfront stock or ownership in the venture. People need to beleive in you and your abilities to get this and it seems as though you’ve got some great experience and expertise any company could greatly benefit from.
At the end of the day, you’re the only person on the planet who knows your true worth; don’t take anything less than that!
Cheers miss : )
@Mark_Harai I kinda like this you and me thing in comments, Mark! Anyone else present and accounted for?
With that said, I’d like to invite you to infuse new breath into The SMB Collective, a dormant blog I launched back in 2010, I think, with a gang of peeps you’d recognize.
We got too busy, but this topic above on performance based teams is highly interesting and I’d never heard or thought of it; obviously big risk associated.
Since you’ve launched so many gigs as a serial entrepreneur, it would be lovely to have a post or two a month from you about being a business man and sharing those experiences.
What say you? https://smbcollective.com as said, very dormant!
@Mark_Harai @Soulati | B2B Social Media Marketing I agree that a mix may work better.
Architecture has traditionally not never been performance based and a lot of bis dev positions are partially performance based. What our firm has done is partially tied compensation to performance. It’s different but alike. That way if your account does well your base is rewarded at the end of the year. Simple bonus plan but not equity.
In the same vein, if you can provide core services and get paid for those at a negotiable rate AND benefit from a percentage on the future performance of the company the future could look great. The other thing is that since you are part of the future profitability of the company as a shareholder or whatever they would be less likely to go to another agency for future growth initiatives.
Make sense?
@rdopping @Soulati | B2B Social Media Marketing Yes, what you’re saying does make complete sense Ralph.
However, I’m usually on the other side of the equation… Any business is just a business to me. I can make things happen for architects, medical doctors, lawyers, builders, insurance agencies, cable TV providers, cell phone operators or any business for that matter, and have.
They all need money. They all need customers. They all need to promote their business in some fashion.
If you walked into an investment bank for example, you would see many different companies and industries they serve and represent. These companies happily give stock/ownership in their company to get what they want; money and connections.
Through these connections and relationships they can literally make these companies. They have a very astute knowledge of business and have all of the pieces in place… Need legal? They have the best. Need accountants? They have the best. Need some PR and marketing? They have the best in the industry. Need to do a joint venture with a multi-billion dollar company that could take your product or service to the promise land? They can pick up the phone and make that happen too…
BTW, most don’t know shit about these industries, they just move them.
Business is about relationships and leveraging them to get things done. When you get to level of the business environment, it becomes a much smaller world. These small communities of people who get shit done exists in a local market, state, region, nation and internationally. It’s a small world when you get to any level here.
For example, Silicon Valley is tight community and it’s not easy to break into these circles. If you’re connected, you can play with the guys who are making deals and business happen every single day, and get your startup off the ground, easily. If you’re not, you’re going to find it very difficult to get your startup off the ground.
And if you somehow luck out and claw your way into the community, you’ll eventually be doing business with these guys anyhow and someway, somehow, they will own a piece of your butt 😮
That’s just the reality of business in my world and it pretty much works that way around the world : )
It’s just a different way to look at things, Ralph : )
@Soulati | B2B Social Media Marketing Hey Jayme, I just saw this and will give it some thought… I will give you some feedback soon : )
@Mark_Harai @Soulati | B2B Social Media Marketing You got me there buddy. Nice response. No! Epic response. Thanks.
@rdopping @Soulati | B2B Social Media Marketing I had to pop back here again Ralph…
I’m sure you noticed how I described relationships, connections and community… Sound familiar?
And I didn’t mention social media once.
The social media bubble we’re part of sounds pretty similar, yes?
Business has worked this way the last two and a half decades I’ve been doing business and I’m sure it’s been working that way long before I was born.
The social media industry works exactly the same way… If you connect and build relationships with the movers and shakers in the industry, it’s easy to rock community; if not, its like a vast desert waste land that only you exist in – LOL!
Thanks a bunch for the getting the juices flowing, I appreciate the feedback, sir!
@Mark_Harai I’d like to use your comments, actually as a post and share that with you first over at SMB Collective…Now, mind you, I’m just yakking here; actually posting and jumpstarting that blog again will take me a week or so!
But, I haven’t seen this side of you; it’s very appealing and innovative for business owners to hear.
@Soulati | B2B Social Media Marketing Anything for you Jayme… My time is a bit zapped, but I can strategize, plan, lend some thoughts and contribute what I can miss : )
Nothing is guaranteed anymore, is it? I struggle with compensation issues all the time, because I’m working with people (1) who have potential (2) really need my help but (3) have no budget and (4) I can’t guarantee a darn thing — there’s just too much beyond my control. So of course I feel helpless.
It’s a tough business, for sure.
@barrettrossie Good Morning, Barrett. Indeed. I’m just new on the playing field after 5 solid years of a regular retainer and not having to do biz dev work. I have to say, you’re correct; the market is a slippery slope and finding the startups and 3-year-old companies with capital to spend on marketing is challenging.
It seems much smaller projects are the new normal.
I’ve had a few I guess ‘informal’ arrangements – but they haven’t really worked. Certainly my responsibility for not structuring better deals but end of the day, the Vendor-Client relationship rules apply and others will always, ALWAYS want something for nothing. Then they’ll want to blame you for the failures – when they ignored your sage communications and business advice; AND cut you out of the success, take all the credit when things do go well.
IDK Plus I’m already ‘bootstrapped’ enough – I’m as affordable as it gets for services of my calibre. Instead of this kind of arrangement, I’m more likely to do a flat, reasonable consulting fee – check in each month, a little DIY training and let them make the most of it. FWIW.
@3HatsComm For sure, if you’re already bootstrapping and cant’ go lower and client are taking advantage, then that’s not the best model. Each business owner has to determine what works and where the clients sit with ability to pay and be financially secure.
@Soulati | B2B Social Media Marketing You know how it is.. as independents our costs are quite competitive, but it takes budget. Lots of SMBs out there need to realize there are limits, can’t get all the champagne they want w/ PBR beer income. 🙂
Know that a seasoned public relations practitioner often brings business, marketing and strategy to the team.