The Non-Technical Founder Part 1

I have spent alot of time this year thinking about entrepreneurship, particularly as it relates to the start up technology world from a non-technical founder's perspective, and I have come to a few conclusions:

1) If you are a non-technical CEO/founder your life will suck for a long time.

The tech world is ruled by, yes you guessed it -- technical people, engineers, developers etc. Guys/gals who can write their own code or challenge the integrity of their team's code. These are the folks who build the first iterations of their company's products and use it to recruit others and validate their ideas. Non-technical founders end up hiring consultants to build stuff (I've done it); which most of the time is a mistake. Why is it a mistake? Well, for one, what you build today is obsolete the moment you commit the code. Two, it usually means you have paid out of pocket; and unless you are a rich guy/gal, this is generally very painful. Three, software is never done. You hire a consultant to build like 1.0 (if you're lucky), and you end up dumping more money into bug fixing. Then you have to actually release something to some sort of user/s whether its alpha, beta or whatever the hell you choose to call it. And then, things break = more bugs = more money, etc etc. Not to mention the moment you release something, you'll want to change it; oh, yeah and 98% of your initial users will find something wrong with it and suggest changes = more money spent on the consultant, etc etc. And then reality sets in: you have spent ALOT of money out of pocket, or the money runs out and its game over.

Another route the Non-technical founder takes instead of dumping his life savings into hiring consultants, is selling the "the dream/vision". Not only does he/she have to find and convince technical people to embrace the idea enough to commit a substantial amount of their heart, soul, and attention to the venture, yet have to make sure that they maintain the enthusiasm long enough to develop something meaningful. And developing something meaningful just gets you to first base.

You do have exceptions to the rule, such as Steve Jobs. Yet, do remember that Steve was only as good as his TEAM. His ideas didn't mean anything unless his team was able to execute. Plus Steve is a complete anomaly.

2) Ideas are blaw; Team is EVERYTHING

I have been guilty of thinking that just cause I had an idea, I had a business. Then the years passed and a million ideas later, I realized that ideas are as useless as being the only player on a hockey team that knows how to skate; you wont even have a chance to play the game and will have to forfeit every time.

Repeat after me; TEAM IS EVERYTHING. Great teams can build things. Great teams can overcome obstacles and challenges. Great teams support each other when times are tough, cause they will get tough. Needing a great team is especially important for the non-technical, tech start up co-founder. He/she is literally useless without this team. And moreover this team has to be ever more awesome to be able to persevere on alongside their non-technical leader.

If you dont have a great team, you will not win. I dont give a shit what anyone else says, you are only as strong as your team. Here are some tips:

1. Keep Teams Local (as much as possible): Its tough enough building a company when your team is in your back yard. Working with remote teams makes it much harder. I'm convinced that having a great team is like having a great relationship -- it takes work. And when you are not able to interact regularly with your teammates, because they are in another time zone is makes it much harder. Many times there are cultural and language barriers. As we all know, often times tones and meanings can be unclear in the virtual world. Now, I'm not saying that its impossible; and in fact there are a ton of examples of teams that have been able to pull it off. My point is, if you are going to have an offshore or remote team, get ready for the challenges that you will face.
2. Be Clear, Definitive, and Make the Though Calls: You need to set the tone and expectation for the team from day one. Sometimes a non-technical founder will be so afraid of loosing their technical team that they will turn a blind eye to red flags or try to rationalize why things are not getting done. If they cant hack it, let them go. Its not healthy for anyone involved.
3. Build SOMETHING you know something about: Too many times do you see entrepreneurs building businesses that they are clueless about. I am definitely guilty of this. I have tried to start businesses that I didnt know much about and perhaps was just cool. Then reality hit.

Long Live the Cold Call!

Listen Up people: cold calling is NOT dead nor is it going anywhere. I'm so sick of these wanna-be sales people writing all this garbage about how cold calling is dead. Frankly its because they have no idea what sales is all about. Yes, I'm going to say it: especially in silicon valley. You have all these brilliant people who are clueless about how to put in the work to generate their own new business. Things like how to prospect, make the calls, do the meetings, do the demos, SELL PEOPLE; aka following "the process". I believe this is a major reason why so many silicon valley start ups fail. This said, let me not pick on silicon valley, this is an issue across the world in general.

A cold call is simply reaching out to a prospect/lead that you approached rather than them coming to you. I call this Outbound Lead Generation or Outbound Prospecting. When a lead/prospect comes to you via a sign up, form submission, phone call, etc, I consider this an Inbound Lead. Generally its marketing's job to generate Inbound Leads; some people call this activity demand generation. Some companies have businesses that generate a high volume of inbound leads based on various reasons. Companies like Google and Facebook have more inbound leads than they can handle. Other companies are not as fortunate and need to spend more time conducting outbound lead generation. Alot of the time start ups face this challenge. They need the "hunter-type" sales guy; as opposed to the order taking, business development manager that just waits for leads to come in or is more focused on "doing partnership/channel deals".

Now, cold calling today does entail utilizing the tools and technology that are available now; which makes it easier than ever! Today we have Linkedin, Jigsaw, Hoovers, email, Twitter, phone, etc, etc. In the past you had a phonebook and a telephone. Today you can prepare yourself better, use multiple entry points, like for example sending the prospect an email and then maybe a Linkedin message, even perhaps tweet at him/her; and then follow up all this with a good'ole phone call. This phone call might sound something like "Hey John, its Jorge from Mopub. I sent you an email this week trying to figure out who to speak with about mobile adverting topics etc. I know you're pretty busy. Any idea who I can chat with about this stuff?" -- My tone is low and slow at this point. I am trying to make sure that this person can understand me and not feel unnecessary pressure.

Today's tools allows a sales person to call on the right people with the right titles, easier, quicker, with more accuracy, and cross-multiple channel/platforms. Today we use email more than telephone, especially during the less important periods of a conversation. My first step is to always try to find that prospects email somehow and send them a short and concise note. Either way, whether I get in touch with the prospect or not via email, my key objective is to get on the phone with them or schedule an in person meeting. You will hardly ever close any meaningful b2b business without a phone call or in person meeting.

As you can see whether you are picking up the phone or sending an email, these are all methods of cold calling. So keep up your cold calling its key to generating new business and being real salesperson.

Sales for Start Up Events

So I just did a sales for start ups event with a few Angelpad companies including: Pipedrive, which is a simple way for a company to manage its sales pipeline. Wishery, wants to improve customer service, sales and marketing with its Gmail add-on. And also our 500 Start Ups friends at LaunchRock, who allows you to setup a viral “Launching Soon” page in minutes. The event was sponsored by Angelpad and Brugan run and hosted at the Crittercism office in Soma, San Francisco.

The event was pretty fun. We had about 200 RSVPs for a Wednesday night, and about 80 people showed up which was pretty cool. Cooper Marcus, who is the founder and CEO of Wishery, did a kickass job of opening the night by demoing his product and explaining a bit of the stories behind the Feedgen and Privedrive teams. Timo Rein, myself, and The Southwestern Company sales trainer Wade Floyd, spoke to the crowd about leads, sales pipeline, and what is takes to be a top sales producer.

What is crazy about this whole night was that people seemed to really appreciate and take the information to heart. I am absolutely excited about doing the next few in the bay area and LA.

RIP Steve Jobs

Wow. It’s about 4:56pm on this San Francisco day…at some point over the last hour I heard folks in my SOMA office mentioning that Steve Jobs just passed away…so I did what we do now days and checked my Twitter..and well, sure enough it was true.
I then saw a tweet from someone referring to Apple.com’s landing page and this is what I saw:


Needless to say, it hit me immediately. A deep sadness overcame me -- which was followed by tears. A few weeks ago I saw a news story about Steve, which explained his life story. How he was adopted and how he was a dreamer. How he had this me against the world attitude and was always willing to risk everything for these dreams. And although, I knew of Mac, Apple and Steve Jobs, I never knew how his outlook reminded me of mine. And at 30 years, I became a Steve Jobs fan. I immediately felt like this hope inside that I was NOT crazy for spending most of my life dreaming and even though I didn’t know him personally, I felt a connection, and almost an obligation to continue to fight for dreamers like us.

RIP Steve Job. On behalf of all us dreamers and rebels out there – we will keep the tradition alive.

Day 219 - Resilience

So today marks the 212th day since I moved to San Francisco to build Feedgen. Its definitely been a long financial and emotional rollercoaster.

Its been a crazy few days. Aslam and I are both having issues with our apartments and Cass is sick with a fever yet still writing code somehow. Its funny how I have conditioned myself to look at every obstacle as simply a possible distraction and seem to plow through them with ease as if I expected it to happen. The thing is that I know crap will happen. I know that people will get sick, landlords will act up, and even girlfriends/boyfriends will break up with you. Yet I believe that our ability to be resilient under pressure is a huge key to our successes – both personal and in business. In actuality, my father was the person who taught me to persevere through the difficult times. He’d been doing it all his life. From his days as a Cuban Exile in the 1950’s to now being a great psychologist and businessman; there are not many things that seem to rattle him - Anyways.

So I guess the moral of today’s post is resilience. Merriam-Webster defines it as:

1 : the capability of a strained body to recover its size and shape after deformation caused especially by compressive stress
2 : an ability to recover from or adjust easily to misfortune or change

Number 1 makes me chuckle a bit. Just cause when building a company or trying to do something great it literally feels sometimes that you are being squeeze to the point of deformation! Things can get so tough on your mind, body, and soul that if you don’t stay focused and expect to power through obstacles they will knock you down.

Stay resilient folks. We’re almost there.

The Feedgen "Why"

I was listening to one of these motivation speaker guys the other day and the thesis behind his talk was trying to figure out the “Why” in what you do as a business person. And well, it led me to take a step back and analyze why the hell I was doing what I am doing. Why I spend 24/7 thinking and working on Feedgen and somehow find the time to work a full time sales gig at another start up while maintaining a high level of production on all tasks. And the reason is because there is a massive "Why" behind everything I do and somehow I have partnered with a bunch of guys who share similar eccentricities and passion for life and business!

Anyways, this is what I call: The Feedgen "Why".

We exist because we are a team of passionate entrepreneurs who love to build and inspire others. We are thinkers, dreamers, and people determined to change the world. We just happen to be passionate about building exciting sales software.

We want to change the way that people feel at work. We want our employees to be happy and inspired by us and the work that they do.

We are not perfect and will make mistakes, yet we will be committed to learning from our mistakes and continuing to grow as an organization and company culture.

We encourage entrepreneurship and thinking outside of the box. We promote the idea that every employee should be passionate about what they do. And if they’re not yet, we’ll help them figure it out.

My Angelpad Experience

I was a participant in the Spring 2011 Angelpad class, which happened to be the 2nd class conducted since the program was founded summer of 2010. My view on the program was perhaps a tad different from some of the other founders. I was about to be 30 years old and had spent my entire 20’s trying to build my own companies. In fact, since my junior year of undergrad, I have done everything from door-to-door sales to running a nightclub promotions company to launching a travel-based social network called myTripz.com; which by the way, was largely funded by my mother taking a second mortgage on her house, just to give me enough to cash to bootstrap the company (I love you mom!)... Angelpad was a complete no-brainer for me. I figure it was just what the doctor ordered -- luckily was I right.

There are a few things that I think Angelpad really did well:

• Mentors: Every start up typically finds a particular mentor that they essentially bond with. This mentor really starts to get close to the team and provides very granular advice.

• Social Proof: Thomas Korte is a great marketer. Between his connections and the brand he has built in a short period of time, it was very clear to us that doors would open if we built something that was compelling and performed well as a team.

• Product Market Fit: As several other founders have suggested, Angelpad focuses heavily on building the right product, at the right time.

• Connections: Based on participating in the program my network has grown tremendously.

Mopub: A REALLY great company.

The @mopub team is awesome. I believe this is the next big thing on the horizon. Great leadership and talent coupled with a fun environment (check out their facebook page -- do I see Mopub promo models?!) is a winning story.

Now I must admit that I am pretty close to the management team. I’ve known them for a while and have always known they would do something great. The thing is that I am NOT just supporting a bunch of friends; I honestly believe that Mopub will emerge as one of the leaders in its space. The market is for the taking and everyone is jumping on the bandwagon. The cool thing about Mopub is that they are a bunch of ex-Admob and ex-Google guys who really understand the space; in fact help helped define it and are now taking it to the next level.

I’m definitely excited to see what CEO Jim Payne and crew are working on over the next few months. Knowing these guys, it should awesome.

Great Sales People...

Great sales people are not only hard workers, yet are students of their craft. They are always prepared and understand the process of selling. They focus on understanding why people/teams/companies buy things; and as silly as it sounds, a lot of the time it's about simply ASKING and then listening. Over time you will be amazed what you learn.

One of the biggest challenges is overcoming the psychological hurdles associated with developing the mental toughness and discipline that leads to becoming laser focused in sales. Some of the greatest athletes in history were the most disciplined people in their sport. Most people struggle grasping the idea that "NOT EVERYONE IS GOING TO BUY". In fact, MOST WON’T. -- and that's perfectly ok. Some will buy now, others tomorrow, and some will never buy from you even if you give your product away for free! You CANNOT let the "NO"s bring you down. Every no, brings you closer to a yes. In its most basic form, its simply the law of averages. These are laws that all sales people must internalize before they can really be effective.

Now in regards to the notion that: "Some will buy now, others tomorrow, and some will never buy from you even if you give your product away for free!" --

There are a few key concepts to think about:

BE PREPARED:
How do I prepare myself so that no matter what "objection" the prospect gives me, I am going to provide a valid response?

Now this is an interesting concept. Unprepared sales people often sound like liars and frankly are full of crap. And the reason is that they were not prepared, gave a senseless answer, resulting in the prospect to smell their lies a mile away. The result is often the sales person loses credibility and trust. Now, this doesn't necessarily mean that you will always lose the deal; yet you now will have to dig yourself out of the pile of skepticism.

Be Organized: Every great sales person has their own system of staying organized. (shameless plug coming) In fact, one of the premises behind Feedgen was to build a tool that was easy to use, so that sales people actually used it properly and were able to stay organized and disciplined. So although we hope everyone uses Feedgen, find a system that works for you and USE IT. It will mean the difference between figuring out who is going to buy NOW, TOMORROW, or NEVER. Moreover, finding the people that will buy tomorrow consists of making sure that you are organized in a way that will keep you top of mind and in contact with them until they are ready. Again it's simple in concept, yet requires mental toughness and discipline to execute.

Start preparing today. The sooner you begin to internalize these rules the sooner you will begin to yield great results.

Attributes of a Real Sales Person

Cold Calling skills are essential when your goal is to be a top sales person.

We live in a digital age where people consider themselves "salespeople" just because they studied business in college or responded to inbound leads provided by marketing. It is fair to say that technology has evolved the sales process and online marketing/social media gives a sales person a helping hand, yet at the end of the day a real sales person understands human behavior. They understand the way people want to be approached irrespective of the channel or method; whether it is via email, phone, social media etc.

For example, in the same way that we hate being called up by a telemarketer who is clearly reading a script, sounding phony and impersonal, we don’t like receiving mass email blasts, which are clearly marketing generated. These only work when your brand is recognized and trusted, NOT on a cold approach.

Real sales people can pick up the phone and generate their own leads. They understand how to create a prospecting or “approaching” strategy and the processes of executing against that strategy. They understand that some will take your call and some wont. Some will respond and others won’t. They are masters at crafting properly worded emails, with just enough messaging to intrigue the prospect to giving you a chance.

At the end of the day we are the same old human beings simply using new methods to communicate. If anything technology provides more transparency than ever before.

MoPub: Rethinking Mobile Monetization

I have recently been chatting alot with Jim Payne CEO of an awesome new start up called MoPub, which is focused on optimizing the way the world views mobile monetization. MoPub is a mobile ads serving platform, built by app developers for app developers. It's pretty sweet; the thesis behind MoPub is to help publishers in mobile to increase their revenue by working directly with advertisers, running cross-promotional and house ad campaigns and working with backfill ad networks like iAd and Google AdSense etc.

Jim founded MoPub along with a group of talented fellow ex-Google and ex-AdMob product managers and engineers: Bryan Atwood and Navis Jamal.

Bryan Atwood, who is currently head of product, gave me a sneak peak at the latest iteration, and lets just say that I am very impressed and excited to see them crush it in 2011.

MoPub is backed by Accel Partners and Harrison Metal Capital, two of the most respected investment firms in the Valley.

Emotional Rollercoaster

One of my best friends just raised a series a round of $1mm for his new mobile ad serving start up. During a recent conversation he began to explain how difficult and emotional is was, yet the pressure has really just begun.

Doing a start up is really as emotional or perhaps even more than a romantic relationship. You are always second guessing yourself – Did I choose the right partner/s? Will they flake on me like the hundreds of guys before them have over the years? What if the others in the space catch on to what you are doing and add features that will make your product not as compelling or less competitive? What features should we go to market with? or "Wait, I’m bootstrapping this venture and am on my last $100.00 and don’t have much but a few screenshots, what do I do? How do I get someone to listen?!"

The worst part is being that you spend 1000 hours a month examining the space, you end up finding solutions that are similar to what you are building or have features that you thought were unique to your new product! I’ve come to the conclusion that unless you are in real estate, where if you buy all the land in a region, there is no way someone can compete with you in that area. Yet on the web, there are zero barriers to entry and competition is fierce; it’s freaking global. There are no physical constraints or land to purchase other than domains maybe; but then you just change the URL and/or brand. Although the chances of some kid in Bangkok in his basement competing with a team of professionals in let’s say Silicon Valley, are very slim, it’s still possible.

The web space moves at such a RAPID pace, and you can bet that someone somewhere is building the same or similar idea to yours. All this said, this is what makes the web space so dam exciting and worthy of yielding high returns upon an exit. Its freaking hard!

I have just made the move back to Silicon Valley from NYC. New York City is an amazing place, yet the start up culture is still nowhere near the valley.
So I guess I’ve accepted that this will be an emotional rollercoaster for a very long time – wish me luck.