Monthly Archives: November 2012

Pick partners and employees based on enthusiasm rather than skill

This weekend was very special for me.  A good friend asked me to officiate her wedding.

The whole experience was incredible.  Part of my official duties meant that I was sworn in as a judge for the day.  As an attorney, any shortcut you can find to becoming a judge is pretty exciting.

Saturday was the big day. We stood in an intimate room of friends and family and I carefully performed a very personal ceremony blending two existing families.  I had practiced for days.  I met with the bride to go over the general outline and ask for her input.  I met with the groom and their 3 kids to practice everyone’s speaking roles.

The ceremony I created included stories of how the bride and groom found each other, participation from family members sharing their best wishes, and a blending of families presentation where the bride and groom promised to be there for their existing and new kids alike. The kids (all under 7) promised to support a new brother or sister as well as mom and dad.  It was awesome.

After the ceremony, several people came up to me and told me how much they enjoyed the ceremony, and then told me stories of bad officiants at either their wedding or ones they had attended.  They described officiants who riffed their personal message in a very awkward fashion, individuals who got a lot of personal information about the bride and groom wrong, and ceremonies that were too rigid and impersonal.

When my friend first asked me to do this, I was very confused.  Didn’t she want someone with experience?  Wasn’t she worried that I would mess up this very important day?  She was always so confident in me.  And after all those conversations at the reception, I finally understood.  This wedding and the selection of an officiant was no different than putting together your company.  It’s always better to select employees and partners based on enthusiasm rather than skill.

I’m not saying that skill is of no importance.  There needs to be a minimum threshold.  My friend had seen me emcee business events and she knows that I write and speak.  And she was willing to accept the fact that I would figure out how to do the rest because I cared so much about her and her special day.  In retrospect, I probably spent a lot more time preparing, thinking about what I was going to say, and practicing than someone who performs hundreds of weddings per year.

If you are thinking about hiring someone or brining on a partner, make sure they have the same passion for your product/service that you do.   It’s much easier to pick up skills than attitude; and if you can find someone passionate enough about your venture, they will do whatever it takes to learn the skills they need to do their job.

This event also made me realize that experience is a very relative term.  Because I had never performed a wedding ceremony before, I wasn’t tied into an existing routine and could figure out something new.  I read a lot of wedding ceremony scripts, I watched a lot of wedding videos, and I spent some time reading forums about meaningful moments in wedding ceremonies.  My lack of experience actually proved to be a strength because, as many of the attendees pointed out afterwards, the ceremony was more intimate and personal than a traditional wedding.

If a new hire lacks traditional “experience” in performing a certain job but they have the minimum skills and outstanding enthusiasm to perform the tasks, they will likely bring a fresh perspective to an existing system or process.   They might help you evolve how it’s always been done before to a new, more efficient and impactful process.

Categories: Hiring | 2 Comments

3 Things You Should Never Do to Get a Customer

(Part 2 of 2)

In my last post I wrote about the importance of First Customers and the 5 things you can do to find these early adopters. But not all early adopters are created equal and you should limit what you are willing to do to earn a customer. If you don’t establish these parameters, some first customers will take advantage of you. Giving in to your excitement too early can poison your organization.

So here are three important rules for you to follow when pursuing First Customers:

1. Never give your product away for free.

It seems obvious, but this can actually be very tempting. You desperately need First Customers. You think your product can eventually sell for $100 per use or unit if you could just land those first users. You just know the great testimonials or referrals will follow. Or maybe you want feedback on your product that only customers can provide. Believe me, you’ll find a million ways to rationalize giving your product away for free, including the naïve assumption that you will one day convert the account to a paying customer.

Here’s the problem: You need First Customers to figure out if you have a product/market fit, i.e., if the marketplace has a need for your company, and unfortunately free customers aren’t going to help you figure that out. Just because someone takes your product or service for free doesn’t mean they would be willing to pay for it later. In fact, the opposite is probably true. Think about how many Facebook or Twitter users would stop cold turkey if they had to pay even a nominal fee on a monthly basis.

Giving away your product or service for free will only delay the time it will take you to figure out if you have achieved a product/market fit and extend the time and money it will take to find a successful business model.

2. Never perform tasks outside your expertise.

Some of your early prospects will say, “I really like what you are trying to do with your company, but I would love it if your company did x or y”.  One of these prospects might even be a really big fish.  But getting distracted will only cause damage to your company.

If you start performing tasks outside your initial business scope or try to make your product fit a very particular set of requirements for a single customer, you will likely a.) Do a bad job because now you are operating outside your area of expertise and b.) Waste valuable time and resources for a side project while taking your eye off the ball of finding your First Customers and building a successful business model.

First customers should help you find a product/market fit and build your company. Anything else is a distraction to be avoided.

3. Never put up with overly demanding clients.

No paying customer is so invaluable as to justify a never-ending string of requests that hinder your ability to serve other clients. A very small percentage of your First Customers are going to be emotional vampires. They will have complaints and suggestions and demands that far outstrip the amount they are willing to pay.

You must be willing to fire these customers. Your emotional well-being is a valuable commodity to your company and it is simply too important to spend on the demands of problem customers. Instead, use the same valuable time and resources to find bigger and better customers.

Finding a product/market fit is the single most important step in proving your business model. The best way to confirm a product/market fit is to have First Paying Customers with reasonable expectations and a need for your expertise.

Categories: Customers, Startup | 2 Comments

5 Ways to get your First Customers

(Part 1 of 2)

Do you know the difference between a startup idea and a startup company?

Paying customers.

I’m not talking about the .1% of startups out there like Facebook or Instagram that raise millions of dollars in venture funds and build up a user base of millions of people before they need to make any money.  I’m talking about the 99% of companies that bootstrap, raise 500K or less in investment dollars and have to figure out how to generate revenue in order to stay in business.

These early adopters are a very special breed and they are EVERYTHING to your business.  They don’t need testimonials. They understand that errors will happen.  They are patient, interested in your success, and most importantly, willing to pay you for your product or service.  The number of early adopters you need may vary.  If you sell a 100K product or service, you may only need one or two.  If you sell something for $1, you may need hundreds or thousands to prove that the marketplace is interested in your product.

Early adopters are more commonly known as your first customers.

These are the five things you need to do to find your first customers:

1.    Use every relationship you have

It’s hard enough to make cold calls, but it’s extremely difficult to sell new and innovative products and services through cold calls.   You need to meet with people that have some connection to you, no matter how small.

When I started my first company, my clients were supposed to be businesses. I sat down and made a list of everyone I knew who owned a business and there were only five names on the list.  This was very discouraging. But I decided to grow my list through existing relationships, so I met with almost everyone I knew who might have ties to the business community and I asked each of them to introduce me to five business owners.  I was surprised at how willing people were to help.  I quickly grew my list of prospects and even snagged a few early customers.

2.   Stalk and Awe

There are always going to be potential customers that are totally out of your reach but would make an incredible early adopter.  This is where I like to employ my signature “Stalk and Awe” campaign.   First, I stalk them.  Not the kind of stalking that’s an unwanted, obsessive intrusion on someone’s personal space that can get you arrested.  I’m talking about a kind of stalking where you find multiple points of contact and references for your meeting.  Find anyone and everyone who might have a connection to the person you want to meet and ask them for an introductory email or a warm up call.  The harder this person is to reach, the more recommendations you will need.  Next, send a letter of introduction and follow up with a call. Finally, find opportunities to attend events where they will be so that you can “run” into them. Networking and business events only. I’m not suggesting you crash a wedding or join their gym.

If the first part of the campaign works, and you actually get a meeting, you now have to Awe them.  Do a lot of research on the potential problems in their business.  Spend the first half of the meeting just asking them questions about potential pain points, and try to offer something of value completely independent of your business.  If you bring enough value to the table, and awe them, they will be a lot more interested in you and your company.

3.   Accentuate the Positive

When you are talking to potential customers, they might have all sorts of questions that don’t have great answers.  How many other customers do you have?  How long have you been in business?

Try to answer their questions by accentuating the positive about your company.  How many other customers do I have?  That number isn’t as important as the fact that of everyone that’s tried our product or service, 95% would recommend it to their friends.

How long have I been in business?  I have years of experience in this market segment, but I recently chose the opportunity to bring the same quality service that I offered through such and such big company at a much lower rate.

4.   Create Partnerships for Credibility

No one has ever heard of your startup. You have zero brand credibility.  So why not use the credibility of an existing trusted brand to get your first customers?  Find a group or a person that your target customers trust.  This could be someone that is already providing them with services or just a well-known name.  Offer this potential partner a percentage of certain kinds of revenue.  Offer them a sponsorship agreement.  Offer to let them be a customer for a significantly discounted rate in exchange for a public endorsement.

5.   Become an expert

When you don’t have a track record of happy customers the next best thing is expertise in your chosen domain.  If you can get your early customers to trust you as a knowledgeable resource in your subject area, they will buy from you. The key here is not to fake it – before you start proving your expertise, you have to actually develop it.

Once you’ve developed your expertise, you can express it through any media resource.  You can tweet, facebook, blog, guest blog, etc, to get your message out.  You can write a white paper and email it to your target clients.  You can put together a “lunch and learn” seminar and invite your prospects to learn about your subject area.

There are many ways to prove expertise in a particular area, but it is very important to fight the urge to spend all of your communications trying to sell your company.  Use your platforms to try to help people and your first customers will follow.

First customers breathe life into your startup.  Now that you know the five things you must do to find them, I’ll caution you against doing anything and everything to please them.  In fact, in my next post I’ll cover the three things you should never do to sign up your first customers.

Categories: Customers, Entrepreneurship, Sales, Startup | 3 Comments

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