Meet More Mavericks

I’ve spent most of my career working for other people. Before I started WallFly, I had the everyday ritual of most Joe Workers: smack the alarm clock, drive to an office with other dutiful Joe Workers and then go home for a few hours before starting the process all over again.

I still smack the alarm clock but, depending on the previous night, it could be a 7 a.m. start time or maybe 10. How awesome is that? The freedom is the best perk. The solitariness, however, can make you feel really small. I wanted to find out who else was swimming about in the solo entrepreneur underbelly so I wrote Mavericks, an article for CT Slant. In my research, I talked with some really cool folks that ended up on the cutting room floor (1,000 words gets eaten up fast) so here are the Mavericks that didn’t make it into the piece:

Brightegg: www.brightegg.com

The Bright Idea: Smart websites for budget-smart professionals

How It Works: Brightegg has built an online platform for businesses who want to self-create, manage and market a website that is not cookie cutter and doesn’t break their bank. Their approach is unique. Designers from all over the world create themes for Brightegg and post them for purchase. Users can buy exclusive rights to a design (you’ll pay more) or choose a design that’s open to anyone (on the cheap). You can also hire Brightegg for a custom website. I know their work – you will not be disappointed. If you’ve ever tried to use free blogging software or set up a website yourself, you know the limitations with templates. Blech.

Start-up Life: Brightegg received funding for their gig and two of its partners are still juggling day jobs. Newly launched and in Beta, Brightegg has survived the funding and initial build phase and, according to co-partner Jim Kieffer, the next hurdle is traffic.

“The biggest challenge is getting the word out,” said Jim. “We offer companies something they can’t easily get anywhere else: a high-end, feature rich website, plus hosting and email, at an inexpensive price. We’ve got a great position in the marketplace but if the marketplace doesn’t know we exist, what’s the point?”

As a first venture, along with co-partners Leo Pellerin and Ryan Rose, Kieffer said one thing they’ve learned is that the money “goes much quicker than you think.” More than figuring out how to get funding, Brightegg has had to learn the nuances of working with investors.

“You need to think big. We thought big and still could have asked for more in our first round of funding. Ask yourself if you truly believe in your idea, product and business plan. Investors want a confident management team more than a good idea or product,” said Kieffer.

Kieffer advises other start-ups that a good idea is only the beginning.

“Think simple and targeted. People need to instantly connect with your brand without having to think about it. Also, take advantage of the new world of social networking and outsourcing. If done right, it can be tremendously helpful and rewarding.”

Go Cross Campus: http://gocrosscampus.blogspot.com

Designs on Dorm Dwellars: Gaming meets happy hour

How It Works: GoCrossCampus, or “GXC,” creates online games that mimic real locations. Gamers play on custom maps of their campus or surrounding area while interacting socially with other gamers. The first game was done by the Yale College council and had over 50% of the undergrads participating. Each game is custom-created to last 4-6 weeks.

Start-up Life: Unlike Brightegg, GXC is taking on the give-it-away-now-sell-later model. The games are free and, according to co-founder and Yale student Brad Hargreaves, the social networking-casual gaming platform is hoping to build a community that will attract a big player buy.

“You have Facebook versus games that were surrounded by a stigma – think of the fat kid in his basement. We want to break down that stigma. We think GXC is a great way for people to interact.”

Hargreaves, with his Yale crew, found resistance with their YouTube-like philosophy of building a following and then monetizing later on. The group had to go out of the state for funding. Connecticut investors wanted to see a strong revenue model that wasn’t part of GXC’s philosophy.

According to Hargreaves, Yale has “really taken care of us” with space, connections to advisors and people who shared theGXC philosophy and asked for nothing in return. Next on the horizon for GXC is getting more developers on board, partnering up with schools to play the game in Beta form and building a Facebook app so gamers can put stats on their profile.

For the initial games, GXC spent nothing on marketing and spent their Angel and VC funding on the product build. Hargreaves said that his biggest challenge was not getting funding but finding talent.

“The West coast is competitive. It’s tough to get the people you need because you are pulling them away from Google and Yahoo. Here it’s finding the people you need from a limited pool because they’re headed to the West coast.”

Hargreaves’ advice? “Get your idea out there. You’re not working on the Manhattan Project. If you have the opportunity to speak to Yahoo, go do it. If you’re huddling around your idea, you won’t get very far.”

XLerant: www.xlerant.com

Good Sheet: Accounting software for non-accountants

How It Works: BudgetPak is a “budgeting agent,” similar to Turbo Tax for accounting. Xlerant found that the industry is limited by targeting only the people willing to invest time to learn financial software. According to XLerant, the people driving business don’t want to be involved in the budgeting and planning process, the core of a business, because every accounting software looks like Excel, a product bought by accountants.

Start-up Life: When President Larry Serven and XLerant’s Stamford-based co-founders first developed an idea for easy-to-use accounting software, they looked to Excel. Not as a model but as everything they didn’t want to be.

“Our vision is to redefine the industry. The standard for ease of use is not Excel. The standard is Apple, Amazon, and Expedia. When someone thinks of easy, they think of ordering a book on Amazon, but they reject a spreadsheet as being ‘easy,’” said Serven.

In 2005, XLerant began developing their application with their first customer and psuedo-investor. In exchange for funding the costs of development, XLerant’s first client received unlimited user license and perpetuity. The alternative would be to grab VC cash, build and then launch.

“As an entrepreneur, you’re not always looking for the money, you’re looking to build a solid working relationship with an investor. You’re looking for them to add value,” said Serven.

XLerant headed down this partner-investor path on the advice of CTInnovations. According to Serven, CTI has helped in revealing the product, map out marketing and positioning and determine the most effective way to spend their cash.

Next step for XLerant is building the sales and marketing force. The company plans to continue building BudgetPak and looking for new ways to fill a market need.

“Every entrepreneur has to evaluate each potential exit strategy or offer when the given time comes. For us, we’re focused on keeping our head down and doing the best in the industry and good things will follow.”

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For Tech Start-ups: Pocket-Friendly Marketing

Last week I was fortunate to have presented to XCellR8, part of the Connecticut Growth Network, an eclectic mix of technology start-ups, academia, reps from the state, VCers and consultants. After a shaky start, literally . . . (I stupidly skipped breakfast and wore shoes that crunched a broken left toe, sparking nausea and a blood sugar drop that almost landed me on the floor - I wish I were kidding) . . . my very patient, considerate crowd and I tackled a few topics on brand synergy and top online and offline marketing channels for pocket-friendly budgets.

If I could redo the hour, I would’ve focused it more on the area of high-return marketing channels. Brand synergy is important stuff, particularly for companies looking to build loyalty and find a competitive voice, but this group needs more “what can I do right now that won’t kill my budget” options. So, here are three areas that I believe hatchling start-ups should contemplate, keeping in mind that each business requires unique strategies:

Strategize, Don’t Agonize

During the discussion, the group expressed a few pain points that need further discussion. In particular:

“My business is not ready for marketing.”

RESPONSE A: If you’ve got a website and/or clients, you’re already marketing. The trick is focusing those energies to ensure the right message gets to the right markets and leads to more clients.

RESPONSE B: Remember that commercial that showed a start-up company’s excitement turn to panic as they launched their website and then watched purchase orders pile up into the millions? Never happens. I’m not saying that you shouldn’t have your infrastructure in place before you reach out to the world, but avoiding marketing because you think you’ll be bombarded with clients that you have to turn away is causing you to miss opportunities. Building a product (or service or organization) and marketing it are joined at the hip. While you are building, you should be marketing. This doesn’t mean printing flyers or hiring a PR guy. It does mean engaging your market on the groundfloor to grow your audience, learn from them and then reach out to places where there are more of them. More tips on what marketing to tackle first are coming up.

“My clients don’t live online.”

RESPONSE: Are you sure? Call them and find out. Spend a few hours to reach out personally to clients and ask them questions about their challenges, the benefits you’ve been able to provide, how you can make it better, where they spend their time, publications they read, what types of programs they’d participate in and how they prefer to interact with you (email, print, etc.). When you have this information, compile it into a spreadsheet and compare notes among the clients based on their industry, purchase history and other defining features. This knowledge will help you finetune the channels you use to reach out, what you say and how often. By calling, you have also just made yourself top-of-mind with a client who was thinking about solving a production line problem or how they could improve efficiency. You never know where conversations can lead.

“My background is tech-based and I can’t afford to hire out for marketing or I only want to spend XXX, where do I invest?”

RESPONSE: Consider setting a budget, even if it’s only $500 and pick one or two initiatives. Based on what you know about your current clientele, target efforts that make sense for your business and what your audience is willing to do. Some ideas include: starting a referral program with clients or building a “beta or advisory group” of select clients where they give you feedback on your product/service in exchange for giving them something they can use (access to you, discounts, etc.). If you’re going to spend your money in online advertising, first find out how your current clients found you. Get the keywords they used, who mentioned you or, if cold calling, what sold it on the phone. Google Adwords (and the like) are cheap but worthless if you don’t use them wisely and keep an eagle on eye on their return. I believe, for start-ups, you’ll get more leverage out of building unique content and generating PR buzz.

Every business is different and requires a unique, tactical approach that aligns with your business strategy. If you’re starting out, focus marketing efforts on areas that get you noticed, provide the biggest return and allow you to be agile. You are testing the waters of what works, how to best market yourself and where to find your audience. Where you spend your time and money now will become building blocks for your brand’s unique value and will set the stage for bigger marketing initiatives.

Become A Resource

These days, out of sight ensures out of mind. Depending on where your audience lives, online or offline, reach out with unique content or activities that sparks more interaction with you and adds value to their day. Here are some ideas:

1) One Paragraph Tips.
Spend an hour and write out 5-6 different paragraphs on using your product/service, business ideas, ways other clients have been successful and dos and don’ts. Use this content to post on your homepage (and in your blog if you have one) and email to clients in a quick “Tip of the Week” type email, always linking back to your site for them to read the archived tips. When you run low, sit down for another hour and write out 5-6 more.

COSTS: If you can easily post items on your website and can manage email campaigns, this will cost you 3-5% of your time per week. If you need to pay your web developer to do this for you (yuck - that will add up!), it will cost you a few hours of their time per week.

2) Get Out There. Conferences and seminars always need speakers. Find outlets where your audience is future clients, not just colleagues. The key here is to use the opportunity as networking and leveraging. Before your talk, announce your appearance to clients and encourage them to join you. Maybe a client you’re very close with will want to help you present and give their view from the in-industry side? Be sure to follow-up with clients after the event with a recounting of the experience that includes what you learned at the conference and trends to watch.

COSTS: Again, your time is required on all aspects: putting the presentation together, participating in the event and reaching out to clients and prospects. Make sure the investment is worth it by ensuring the audience is within your target market and that buzz you create around the event will engage your current clientele.

3) Pitch It. I realize that not everyone is comfortable with talking to the media or don’t even know how to go about it. Getting major PR does require connections and a savvy PR guy or gal who can make it happen. However, media is always scrambling for fresh stories. Especially in these days of constant content when they have paper and/or a website to fill and a narrower audience base to reach. When you reach out to a publication, have a game plan. Give them a story idea that fits their audience and makes their publication look like they’re on the cutting edge. Maybe you and a client are working on an unusual project or maybe you see a trend in your industry that no one else is catching on to. The goal is to a) get published for visibility and b) use that publicity as a conversation starter with clients and prospects.

COSTS: This requires more time with gathering a list of media outlets, writing press releases and/or pitches. Consider contacting me for a free needs assessment. If you’ve got a budget for this, I can work with it. If you have a zero budget, I can give you more ideas of things you can do yourself - just be prepared to invest time that may take you away from your core business. How do you like how I did that – I pitched myself in a post on pitching. See how easy it is?!

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Trends: Small, Social and Speechy

Small Stuff – The latest manifesto on ChangeThis talks about “microtrends.” Yes, we all know about the growth of niche and the longtail but this interestingly takes it one step further and suggests that there is a lot of power in 1% that is being overlooked: http://www.changethis.com/38.01.JustOne

Social Networking is Coming For You – Businesses who don’t understand why Facebook and online community building will affect the future, will be left in the dust. Remember the days when email was primarily for chain letters and jokes? Now it’s a marketing tool. Younger generations are building social networking beyond trend and into lifestyle and work function. All the young techies are trying to figure out a catchy Facebook app like this: www.lemonade.com. It may not directly affect your business right now but understanding its impact will keep you open to opportunities when presented.

Word of Mouth – I’ve been a BzzAgent for several years now. As an agent, I spread the word on products and services that I like to friends and family and earn points for spending time talking about other people’s stuff. Recently, they launched the Frog Pond where agents spread the word on websites and online promos. WOM is strategically tricky stuff. I think this avenue will do well with agents like me who live off the laptop: http://www.bzzagent.com/frog/FrogPond.do

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Tech Geektales

Right now I’m driving back to my little house in CT from the Geezeo ZoomInfo Compete + sponsored Tech Cocktail event in Bostonian MA. Cool event. Probably 500+ folks chatting, drinking, hanging.

This is the type of event that I like. Nothing planned except for a few fun events - particularly, a raffle coordinated with a money machine (fitting for Geezeo) where folks had to enter a booth and grab as much fake money as possible as it blew around their heads. I totally rocked this game (which didn’t matter because you didn’t win anything except for the chance to drop your biz card into the raffle - blah) but my strategy was killer. I’d tell you but then if we ever were to encounter each other at another geek networking event with a money-blowing-around-your-head machine competition, you’d totally trump me. Not cool. A Wii, of course, was also present. First time playing a Wii for me and I totally stink so it will probably be the last. There were probably a few other things that I didn’t pay much attention to. I was too busy chatting folks up.

At the bar I ran into Mark from MarksGuide, a guy my buddy Matt has been trying to connect me with for sometime. He has an awesome concept for a hyperlocal, biz event happening site and I’ve already got some great ideas for how he can build up some excitement and get some Craig’s List type hype. I also had several fabulous conversations with Jill from Fashion Public. Her mission is to get boutique fashion directly into the hands of fashionistas. Another awesome concept. Jill is currently in the fund gathering stage. If there’s anyone out there that would like to invest in a sure-fire hit company, please contact Jill and give her your money. I’d love to work with her and the funds will make this happen. Thanks.

I also ran into BzzAgent reps. BzzAgent and I go way back. Pete from Geezeo will tell you that I told him about BzzAgent like four years ago. It was great to meet the folks face-to-face. Awesome WOM company and I’m excited to learn more about their new Frog Pond adventure. I haven’t participated in one of their campaigns in a while but I will be sure to hook up with one ASAP.

Honestly, if every conference and seminar out there was replaced with a straight out networking event, I think they’d be 30% more successful. Maybe even 38%. It’s the right environment to make things happen - people hanging out, talking, getting to know each other. It just makes sense. Thanks TechCocktail funders - looking forward to the next one.

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Jelly, Jam and Preserving Workspace

The latest thing in networking and working, if you haven’t heard, is Jelly. Started by Amit Gupta of ChangeThis and BarCamp fame, Jelly-type gatherings bring solo entreprenuers and freelancers together to work out of somone’s home once a week or whenever. The result is a mutt environment of social hanging out, idea storming and actual working - all sans office politics.

Jelly is the hippie, laidback sister-in-law to the evergrowing Coworking trend where independents pay to come and go at jointly-funded office space. A local example of this is Betahouse in Boston. From what I’ve heard, the slots are for established techies versus just-starting-outs. A colleague of mine is dying to get in to Betahouse because of the networking potential. I’m sure Betahouse serves its renters well but the whole concept of how this developed intrigues me. I am always fascinated by how trends take shape and sometimes morph into the very thing they were getting away from. In this case, one of the goals of creating non-traditional work spaces through Coworking was to stave off office politics and create an open environment. Betahouse only has so many desks (12, I believe). It makes sense that they would limit those slots to folks that would most benefit from working in close quarters, but by channeling the networking, has an environment of exclusivity been created, similar to those found in traditional office politics? This isn’t a rhetorical question, I’m really asking. If anyone in Betahouse or any other Coworking space stumbles on this post, I’d like your thoughts.

Note that I have no idea if someone would be turned away from Betahouse if they didn’t fit the typical characteristics of that crowd - and, if they did, so be it. They have every right to do whatever they want with their rental space. I just find the evolution of certain types of social networking intriguing. No matter how organic an idea begins, it’s bound to get formalized. Rules follow, opinions clash and pretty soon bloggers like me start jumping all over it.

Pals of mine recently started a Jelly in Connecticut, Jam At Work, and so far I’ve only attended one afternoon. I liked it - I actually did get some work done and had a few laughs in the process. I’m sure I’ll return in the future. I doubt, however, that I will rent a coworking space anytime soon but I won’t discount it down the road.

I could start a jam or jelly or preserves of my own. Of course, this would require me to keep my dining room table free of papers, coffee mugs and random items that seem to crawl up out of nowhere. On second thought, I’ll preserve my workspace and keep the jelly in the fridge.

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