Getting a Startup Job by Mark Juliano

By Mark Juliano

I’ve been working for and with startups for over 20 years, and it still amazes me that many people don’t understand how to get a job with a startup company. Below are some time tested methods that I’ve used to get jobs with startups, as well as those used by people I’ve hired.

Many Tech Startups are Run by Engineers (and other disciplines) — Who may not understand your area of expertise

As is often the case, high tech startups are often started by people with engineering backgrounds. While they instinctively know they need marketing and sales people, many of them don’t really understand what marketing and sales people really do. My advice — keep it simple, and be patient.

I recall when interviewing with FORE Systems (which had 4 founders — all PhD engineers) they asked me what would be considered to be “trivial” questions about marketing (I was interviewing for the Vice President of Marketing position). Questions included: 1) how do we get a good location in a trade show convention, 2) do we need to do advertising, 3) what is the minimum we can spend on marketing, 4) how do we get press coverage, and several others.

Instead of reaching a conclusion like — hey these guys don’t know anything about marketing — I answered each question, and wasn’t offended. In fact, I used the opportunity to educate them about marketing (and sales) as well as reiterate my expertise and experience.

Also — it is CRITICAL to demonstrate your technical expertise and knowledge, as techies will never feel comfortable with marketing and sales people who aren’t “one of them.”

DO SOMETHING for the Startup – BEFORE you get the job

This is by far the BEST single advice I can give anyone trying to get a job with a startup company. The reality is that virtually all experienced executives and managers can talk their way through an interview — making it hard to differentiate yourself. Using the FORE Systems example again (and I did this for at least 5 companies) – before my 2nd interview, I wrote a complete 20+ page Marketing Plan for the company. I addressed everything — the big picture things (strategy, planning, positioning, pricing). The small picture things — like exactly which trade shows, magazines, journals, etc. I’d target. Industry analysis and competition. And finally gave FORE a complete financial spreadsheet and budget for my department.

WOW!!! And YES every company was impressed, and I got the job. These plans probably took me about 20 hours to complete, and showed the company 1) how serious I was, 2) my expertise, 3) my knowledge of the company and industry, and 4) exactly what I could do FOR the company — not the other way around.

Some people ask me — but why would you tell the company what to do so they could hire someone else? NO silly — that’s the catch. I readily hand over this information and knowledge saying, “and yes, I’m the best person to execute this plan.

A similar example for Sales People would be — go ahead and call some of your Rolodex and give those interested contacts to the company. Again, they see you’re serious and willing to work hard to get the job, which of course translates to how you’ll work once you get the job.

You’re Both and Executive, your own Assistant, and your Staff

I can assure you that the biggest pet-peeve of Entrepreneurs is management and executive level people who immediately talk about 1) needing an assistant, 2) needing people to work for you, and 3) needing lots of resources. Please remember — STARTUPS DON’T HAVE MUCH MONEY!!! And entrepreneurs are scared to death of managers and executive who come from larger companies where they had huge budgets and staff. While these people talk a good game — they often can’t execute and do the SMALL things.

Basically, if you’re say the first Sales or Marketing person, you have to do your job, and everyone else’s job (since there are no other people 🙂 Trust me, it will become obvious to any company when you are stretched too thin and need additional resources of cash and people. Very few entrepreneurs can truly do strategy, planning and implementation simultaneously — but that’s the job of an entrepreneur.

Final Thoughts — Some DOs and DON’Ts

• DO remember it’s about he company, NOT you
• DON’T talk about compensation until you’ve got the job. My answer to the compensation question is always the same — “I’ve never let compensation get in the way of working for a startup company”
• DO let them ask questions first — but DON’T forget to ask questions
• DO ask all executives some of the same questions — such as “what’s your strategy?” If you don’t get similar answers — beware
• DO tailor your resume for each specific company, highlighting the relevant experience to that company. YES, it’s extra work — but not a big deal
• DO update your social network pages and be sure they are consistent with your resume and each other

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Sales Channel Choices and Decisions

By Mark Juliano

This article addresses one of the fundamental choices for any company — Which sales channel should a company deploy?

The first, and most fundamental thing a company needs to decide is WHO their customers are. This may seem obvious, but it’s not as easy as it seems… When I was in the telecommunications industry, marketing high-end, high-priced telecomm equipment, it was indeed obvious — the IT (Information Technology) managers of Fortune 500 (and worldwide companies), governments, and university/research institutions. For these markets, a DIRECT sales force was most appropriate.

At the other end of the spectrum was when I was CEO and co-Founder of Vinomis Laboratories marketing medical (nutritional) supplement products. Our customers were consumers, so it wasn’t possible to use a direct sales force — though we did have to decide whether or not sell on the Internet or through drug and nutrition stores (i.e. GNC). Selling through stores meant we would have to give the stores a 40-60% discount off list price, and we would not be able to “touch” our customers directly. Of course, the stores would provide a large widespread distribution channel. Given our Resveratrol supplement was a new category, we chose NOT to sell through stores, and instead used our website, coupled with online advertising, social media, and some radio advertising.

Below are the DIFFERENCES among the primary sales distribution channels:

DIRECT Sales (meaning company sales representatives)

• Cost — High due to hiring, salaries, benefits and travel expenses
• Profits — High (company keeps all the profits)
• Growth — Slow (it takes time to build a direct sales force)
• Control — High (company has control of its sales people, messages, etc.)
• Customer Contact — High (you see, talk to, meet with you customers)

IN-DIRECT Sales (meaning 3rd party sales reps, affiliates, etc.)

• Cost — Medium (less than direct, but still require training and some expenses)
• Profits — Medium (must pay reps some commissions, etc.)
• Growth — Medium (easier to get larger number of reps via rep companies, and recruiting)
• Control — Medium (yes, they sell your products, but may also sell others and don’t work for you)
• Customer Contact — Low (reps have the customer direct contact)

One of the companies I consult with uses Affiliates to sell their clothing in women’s homes. These fashion shows and “parties” are similar in concept to Tupperware, Mary Kay, etc. type selling. The key here is to train these affiliates to properly represent the company, and in our case we send company representatives to the home shows.

INTERNET Website

• Cost — Low (but higher than you think to build and maintain website)
• Profits — High (company keeps all the profits)
• Growth — Potentially HIGH — but requires a great deal of complementary advertising, social networking, etc.
• Control — High (company controls products, website, prices, etc.)
• Customer Contact — Low to Medium (you build the customer experience, but don’t directly “touch” your customers). Augmenting with customer service (meaning humans) can increase the contact

Contrary to popular belief, selling on the Internet is very difficult. Sure, it may be relatively simple to set up a website, use Amazon (and others) for e-commerce, buy online adds, etc. BUT however great your product or service, customers still need to FIND your website among the millions and millions of websites, online ads, and Internet information.

STORES

• Cost — Low (though company may have to carry the inventory with some stores)
• Profits — Low (stores get 30-60% discounts)
• Growth — Potentially High (if you can sell through a large store chain)
• Control — Low (very difficult to control what stores sell, how they train their people, etc.)
• Customer Contact — Very Low (you rarely see or speak to your customers, though should have a customer service center)

MARKETING

No matter which sales channel the company chooses, you need complementary marketing. Sales is NOT marketing. And marketing is not sales. Marketing includes: customer research, advertising, public relations, trade shows and conferences, writing articles, website information, brochures and literature, etc. etc. etc.

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Social Media Marketing

By Mark Juliano

These days many new businesses turn to Social Media for their marketing versus traditional marketing communications vehicles (advertising, public relations – PR, trade shows, etc.) This post deals with the pros and cons of each, and how to specifically use Social Media to your company’s benefit.

The MUST HAVEs — Website, Facebook page, Twitter and LinkedIn.

OVERALL — the most important part of using these Social Media websites it to: 1) post frequently, 2) link your sites to one another, 3) keep your information updated, and 4)

Most new businesses today have a Facebook page — we recommend TWO (2) different Facebook pages at a minimum. 1) your traditional Facebook page for your name, or in your company has multiple founders/executives, you should maintain a page for each person, and 2) a COMPANY Facebook page — for your commercial business.

All of these Facebook pages should link to one another, and post information that refers to each other’s Facebook page, and your own company’s WEBSITE, and specific pages on the website which related to your Facebook posts. A company Facebook page is unique on Facebook because it’s the page you post primarily company information, as well as information about your industry. Remember that your followers are not only interested in your company’s posts, but industry information — your goal in marketing is to build an online COMMUNITY.

I would also recommend using Facebook Ads to drive traffic to your company website, new products, etc. Facebook allows you to have limits on how much you spend on advertising — and it’s well worth it.

Twitter – is also a MUST HAVE — not to tell the world about what you are eating for lunch — but for the following reasons: 1) company announcements, 2) management additions, 3) new products, 4) to build a following on Twitter, etc. Remember you can install a Twitter and Facebook Page WIDGET on your website(s) so that your posts and tweets show up on your website, and customers/prospective customers can follow you on Twitter and Facebook. Widgets require a Facebook PAGE, which are generally for commercial uses.

LinkedIn – is also a MUST HAVE, for your executives and managers. Be sure your LinkedIn pages are up to date, and link back to your website. LinkedIn is a great recruiting tool, and potential partnership opportunity-builder.

REMEMBER — all of these LINKS help drive all of the Search Engine Optimization (Google, Yahoo, Bing, etc.).

Traditional Marketing —

Don’t forget this. While an online campaign, and social media campaign are wonderful, don’t forget about traditional marketing opportunities.

Almost every marketing consultant will tell you that Public Relations is the most effective marketing vehicle from a COST EFFECTIVENESS measure. There’s nothing like an article in local, state or national press — including online press. Yet, so few people know how to get press.

While I could, and have written and taught about Public Relations for decades — and could write a 20 page article on the topic — here are the basics:

1) Don’t just “pitch” to editors. READ their articles. COMMENT on their articles online. Get to KNOW the editors. Give them your customer contacts, etc.

2) Press Releases don’t get covered unless you already have a relationship with the press. And a press kit, while required, again doesn’t get press. It’s much better to draft a Press Release, and email parts of it to specific editors who are interested in the topic. CALL (using a Telephone) editors. Visit editors, take them to lunch, get to know them — it’s all about relationships.

3) Google Ads work, if you use low-cost keywords. So instead of using “peanut butter” for your Google ad, which will cost a fortune, use phrases like “non GMO peanut butter” or “home made peanut butter”. While these phrases get lower hits, they are much higher quality hits to your business.

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Private Labeling Marketing Strategies

Written by Mark Juliano (President & CEO of Renaissance Consulting)

Private labeling is a common strategy for many companies — defined as selling other vendors’ products under YOUR company’s brand name. The primary reason is to round out a company’s product line.

Examples:

At Network Equipment Technologies (NET), a manufacturer of telecommunications equipment, we sold Cables from other vendors. Cables were an add-on product that all of our customers needs. Yet, we had no desire to be in the low-tech cable business. We put our NET name on the cables and were able to command a 100% markup because they were a relatively low-price item, and customers knew the cables were certified compatible with our equipment. While at FORE Systems (based in Pittsburgh), we private labeled Video Products that our Internet networking customers wanted for video conferencing.

Currently, I work with ABC Fashions (name changed to protect the company), which sells women’s clothing to a select market of musical performance attire — such as black dresses for concerts, along with accessories. Naturally ABC does not make it’s clothing, but rather works with designers to select appropriate fashions, as well as request modifications to their existing clothing for the performance attire market. ABC uses small designers who don’t have a Brand Name yet, however, ABC is yet building its own brand name — that’s about to change.

ABC will be literally private labeling its clothing with the ABC Fashions name — and its customers now understand that ABC is a quality name in clothing. The company sells using a unique home-fashion-show model where women go to women’s homes to view models wearing their clothing. The company has found that its customer ALSO want to buy Casualwear, separate from its performance attire.

The issues for ABC — and any other company in this position — is that it could keep selling various designer’s clothing OR work with those designers to produce modified versions of their clothing (colors, sizes, and other modifications) under the ABC name — thereby not only promoting ABC’s brand name, but also discouraging its customers from finding the designer themselves and buying direct.

Other Examples

There are millions of similar examples of private labeling. All the major department stores do it. All the major pharmacy companies (i.e. Rite Aid, CVS, etc.) do it — yes, those “pharmacy label” product sitting right next to the major brand versions sold at less than the Name-Brands. But most of those pharmacies don’t actually make those products. Instead they buy them from a no-name quality manufacturer, who specializes in private labeling.

While at Vinomis, we sold Resveratrol (red wine grape) supplements and actually had them made for Vinomis at GNC. As the CEO, I wanted to use GNC because they had all the quality and manufacturing certifications. GNC benefited because they could use their excess manufacturing capabilities, and large quantity discounts to get Vinomis the best prices. And basically, GNC could formulate virtually any supplement in any form we desired (capsules, tablets, liquids, etc.).

Conclusion

Private labeling can and should be a core strategy for virtually any company wanting to expand their product line, and provide additional products for their customer base.

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Mark Juliano – Entrepreneurship vs Industry Knowledge

I have now worked for about 10 different successful companies in my career, as well as consulted to 100s of business in many different industries, and taught entrepreneurship at Carnegie Mellon University (CMU) and San Francisco State University (SFSU)

So the question remains: Is a function of Entrepreneurship and business knowledge, education and experience, or is it industry-specific knowledge and experience? HINT: of course it’s both …

First, some of my companies:

FORE Systems, ROLM, TTC, AVIDIA — Telecommunications and Internet networking

TalkShoe — Internet, podcasting, social networking and Web 2.0

Vinomis Laboratories — medical supplements

Brava! Fashions — women’s clothing and fashions

Haley Systems — artificial intelligence software

Perhaps the best example of my point is Brava Fashions, my latest venture. I mean, fashion is about as far away from artificial intelligence and telecommunications.

So what do they have in common? 1) sales and marketing, 2) business strategy, 3) Internet marketing and website development, 4) finance and profits, 5) creativity … I could go on. Basically, I know what I know which is business and entrepreneurship, as well as decades of marketing, sales and executive experience.

Let’s take an example. In my various companies, I’ve used a wide variety of sales models including: direct sales reps, distribution, Internet sales, international sales, and retail sales. The key for helping Brava Fashions sales was DECIDING which of these makes the most sense. Each has its pros and cons, and for Brava — the decision was direct sales (Home fashion shows) and Internet website.

BUT — what the heck to I know about fashions? Actually, a decent amount. I lived in NYC for years and dated a woman in the fashion industry for many years. And simply living in NYC and San Francisco just gets fashion in your blood. Finally, I’ve researched and invested in companies including: Nordstroms, Levis, Under Armour, and many more.

Still — I don’t know a lot about the fashion industry. That’s where Kathyrn Fox Ma, the CEO of Brava Fashions comes in with over 30 years of fashion experience and a degree in fashion. She’s worked for companies including Liz Claiborne, and Cole Haan in both wholesale and retail.

So while the answer is you need BOTH business/entrepreneurship experience and Industry experience — if you as a startup founder don’t know BOTH — then partner or hire what you don’t know.

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Advising New StartUp – Brava Fashions

I haven’t blogged for a while. I am now working with a new startup based in San Francisco called Brava! Fashions. The company is selling women’s clothing — initially performance attire to musicians, and then casual wear to working  professional women.

The company is using a new sales model — direct-to-consumer HOME Fashion Shows, also called Trunk Shows by some people. The idea is to get women to host fashion shows in their homes and invite friends and others who are interested in the area.

So, is this model NEW? No — think Tupperware, think Mary Kay Cosmetics, think Carol Anderson (CAbi) another women’s fashion company in a different part of the industry from Brava!

And, what’s in it for Brava and its Home Fashion Show Hosts?

First, the company can directly interact with customers, show off their clothing and sell in a comfortable, non-pressure sales situation.

Second, Brava can recruit women as an arms-length sales force, using their friends and contacts, as well as their homes. The hosts love it, the customers love it, and Brava loves it.

Third, it’s unique! There’s little competition using this model. It gets past the millions of Internet websites. And it eliminates the stores, who don’t understand Brava’s fashions and the unique needs of customers.

Finally, there is no middle-man (i.e. store) who takes margin, so Brava earns more profits and customers pay a lower price.

Women hosts like the home fashion shows because 1) they earn commissions, 2) they host fun fashion shows, 3) they make new friends, and 4) they build a home-based business.

In a world buying and selling is going to impersonal website, and customer service from untrained representatives often located in foreign companies — it’s a breath of fresh air to actually see live models, interact with other customers, and meet company representatives.

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