First week at my RIG internship

After reading these intern blogs singing RIG’s praises on the website myself, my first week at RIG has luckily completely lived up to expectations. It’s been full-on in the best way possible, in a blur of learning about everything from how 3D printing is used for gas turbine parts, to how to take meeting notes and research potential clients,  to how to set up a laptop and even (importantly) being taught how to use a cafetière for the first time.

The team at RIG are all immensely hardworking and have a breadth of knowledge about their clients, despite being ‘generalists’ who become specialised in a certain field very quickly. They are also funny, welcoming and friendly, and happy to offer advice and show how they do things, with James and Ellie inviting me to see them make a client call an hour into my first day. And they treat their interns well; even though it’s my first week, I’ve apparently been given the nicest laptop in the office!

On the first day I was also given information about two companies I would be working with, both very different and exciting. The first is an alloy-making company that makes parts for a variety of companies, and the second is a company with water-purifying technology that seems to have a huge potential for transforming a variety of markets, from agriculture to the swimming pool industry. I spent time reading about what these companies do, which was really interesting but meant that I needed to learn a lot of definitions! By the second day, I was reading a business plan, learning still more jargon, and was taken by Simon into a client meeting with the water-purifying company, where I learnt still more technical words and figures.

Since then I have been doing market validation, researching potential clients for the first company and looking at the size of the market in different countries for the other. Although this week has had the potential to be overwhelming, the warmth and helpfulness of everyone in the office has meant that it’s been really exciting, and I can’t wait for more time at RIG!

How to give your startup more power when selling to corporates

A friend of mine used to run a technology project at Tesco, working alongside a growth-stage technology company. Whenever he phoned that technology company, he represented Tesco with the full weight of its brand and its revenue potential: his calls would be answered at all hours of the day. On the other hand, even the CEO of the technology company was seen as only one element of a much wider project, from which my friend would shortly move on to the next one.

There seems to be a clear imbalance of power here. I think that this can sometimes arise from the very understandable eagerness as a growth-stage company to prove yourself and your product or service to the best and the biggest in your sector.

But growth-stage companies should remember that they have power too. And this should be reflected in your approach to potential customers.

Compare these two approaches:

  1. We have a really great product; we have experience in your sector and a proven ROI; we can save you £1m within the first year. Based on your characteristics x, y, and z we think you might be a good fit for us. We'd love to open a dialogue with you to see whether we might be able to help you
  2. We have taken funding from VC investors in order to demonstrate in the next 12 months that one of the major players in this sector can save £1m within the first year through using our product. We're going through a process of identifying which the best company would be to partner with to generate this proof. We feel based on your characteristics x, y, and z that you might be interested in exploring this with us.

The second approach creates a sense of scarcity: the startup is choosing the customer not the other way around. There is an opportunity here to save £1m, the entrepreneur is saying, but it's not open to everybody. The offer won't be around for long because our investors need to see a return. It's then up to the potential customer to convince the entrepreneur that they are the right people to capitalise on this opportunity.

Give yourself more power when selling to corporates by remembering that your resources are limited and so you have to be just as careful to select with whom you work as your customers are.

Do you have what it takes to be an entrepreneur?

Over the past few years, I have frequently heard the title ‘entrepreneur’ brought up in the context of golden career opportunities. At my own university, a lot of resources have been put into giving students the chance to learn more about entrepreneurship and potentially start their own businesses, whether it be through courses, societies, work experience programmes or seed funds. From a ‘hands on’ perspective, it is interesting to learn more about how our clients got their start in entrepreneurship and how they run their business. However, being exposed to this has really made me wonder: what fundamental qualities do entrepreneurs possess that make them successful at what they do?

Mike Southon and Chris West’s The Beermat Entrepreneur: Turn Your Good Idea Into A Great Business suggests some important qualities that all entrepreneurs have to some extent. Some of these outlined in the book include: a ‘can do’ attitude, ambition, charisma, eagerness and energy to get things done quickly, competitiveness, a touch of arrogance (i.e. knowing that you are good at what you do), and knowing how to inspire people to work with you in order to reach your goals. 

While I believe that all of these qualities are beneficial, and sometimes necessary, to have at any given point when running a business, I think there are a couple more qualities that should be added to this list. Looking at RIG and its clients, they all have this in common: they are passionate about their solution and they believe that their offering is better than their competitors’. The former can help you get through the ups and downs of starting up and can capture the interest of potential clients. The latter provides a great foundation for sales and demand generation. Recognising your strengths and knowing how to use them to your advantage can ultimately prove to be a valuable asset in taking your business forward.

“It wasn’t a question of having a grand plan, but I knew what I didn’t want to do."

When thinking about starting a new business, sometimes one of the hardest steps is to know when to take the plunge and just go for it. We asked Tony O’Shaughnessy what were his key reasons for starting his own company, ABS, and how he knew it was the right time to go into the venture:

“It wasn’t a question of having a grand plan, but I knew what I didn’t want to do. The decision to start a business was a combination of pure luck and circumstance. I had been in IT for seven years and I knew it was the right time to start. Even though ABS was an IT service provider, I knew that I didn’t want to carry on just as an IT manager, I wanted to do something different.” 

We also asked him to tell us more about the obstacles he came across during his entrepreneurial career and how he managed to overcome them:

“The obstacle to success for me – when looking back at my own experience – was my own lack of in-depth business knowledge, particularly service strategy and management. That really hurt us at one point in our development.

“If I was advising people starting up a company now, I would want to ask them if they have a clearly defined strategy, do they really know what management is about? In the majority of small to medium companies I know, the managers tend to be the best ‘doers,’ who are normally the worst managers to have.

“The steepest learning curve for me over the years was that we ended up giving people who were great doers – because they were very skilled at computer programming or analysis – a team to manage. Because we both had very little experience in management, we tended to aggregate problems. Especially with small companies, being very proactive with little management knowledge will only go so far.

“Retrospectively, it’s easy to say that it would have been useful to bring in mentors or consultants to help, but that wasn’t how we approached it. We were thinking that we had this great idea for a product or solution and we wanted to tell the world about it. What tended to happen is that we learned the hard way by running into the problem, wondering why the strategy isn’t clear, why the customer is only getting part of the message, why internal people love the company in one dimension and find it frustrating in another. It was a very long haul process about what is or isn’t a priority. Because we didn’t have the necessary structure in place, it cost us time and money.”

When is an elephant worth forgetting??

Continuing on the theme of elephants….

I was lucky enough to be at GeeknRolla – the excellent TechCrunch Europe startup event – a couple of weeks back, and two very similar conversations I had during the day with online-software entrepreneurs stayed with me.

The conversations with the went something like this:

“We have started to gain good traction in the SME market, we have secured a good channel partner / we are proving that we can scale…now we just need to win a {blue chip / really big} customer to get the next round of funding”

There’s something about winning an elephant customer that seems irresistible: while the idea of having large annual recurring contracts is attractive, for a new company that has worked hard to get its model working and scaling in the SME space, winning an ‘elephant deal’ is almost certainly a double-edged sword.

One of RIG’s former clients had an online enterprise software offering and it was making good progress winning large companies. Then it had the chance to bid for an enormous global customer. In the process of preparing the tender it had become clear that a lot of customization and special support would be needed, but it was such a prestigious account that the client pressed ahead and ended up winning it. 

The strain from having to service the new customer was evident – development resources were insufficient to cover the new customer, continue core development and keep the existing customer base happy. Funds that might have been put into marketing to drive the critical transition from predominantly out-bound to predominantly in-bound lead generation were diverted to providing customized support. It is very hard, even as a growth-stage technology company, to serve multiple masters, and even harder as a start-up. 

If you have worked out how to acquire, deliver to, service, and retain SME customers in a scalable way, then you are already doing very well. SME customers are often under-rated: they can be very dependable, and as a service provider, you don’t have the risks associated with revenue concentration.

Think carefully before you go elephant hunting. Scalability is a key driver of the valuations that SaaS companies can receive. At the point where a company is having to customize and maintain customer-specific resources, it can still call itself ‘SaaS’ but it starts to look more and more ‘old economy’. Savvy buyers and investors increasingly recognise this. So, as ever, if you do choose to try to break into the enterprise market, make sure your assumptions stand up to heavy scrutiny.


Networking: where do I start?

Despite the fact we live in a ‘global world’ it never fails to surprise me how localised various industries seem to remain. Indeed, the old adage, “it’s not what you know; it’s who you know” seems to remain a significant component of doing business in the 21st century. And it is with some modicum of frustration that I note that this challenge – of knowing the ‘right’ people – seemingly exists regardless of the compelling nature of your solution.

To clarify, I am not suggesting that a business will not be successful without actively ‘networking’ but rather that networking itself, or more importantly monetising those networks, remains a key component of business.

It was with this in mind, and with aspirations to replicate the success of Debra Meaden, that I began my ‘networking career’ back in July 2010 – beginning from a standing start my objective was two-fold:

  1. To identify appropriate  networking groups, forums and events through which to network into my target sectors and with key decision makers
  2. To gain access to these key decision makers on behalf of my client

Challenge 1, which I somewhat naively thought would be easily solved through a few hours of internet research was in reality rather more challenging.  Although a plethora of networking groups, forums and events exist identifying the right ones and subsequently maximising my time was a key consideration.  With this in mind I set out to find groups which met my 4 criteria below:

  1. They needed to be industry specific
  2. They needed to be attended by key decision makers
  3. They needed to be free or of minimal cost
  4. They needed to be easy for me to access

What I hadn’t allowed for in this criteria however was that the group itself need to accept or preferably welcome industry outsiders.  Indeed, as I quickly found out a significant number of groups were not keen to admit people who they saw as targeting their members with the eventual aim of selling to them – in retrospect hardly surprising.

As a result, this process was much like internet dating, involving some rejection, a little flirting to establish the relevance of each party to the other and an eventual agreement that ‘we were well suited’.

Eventually, after over a month of searching I joined two very different networking groups, one in each of my target industries.

To be continued….


Choose your competitors

If you want to appear tall, stand next to someone shorter than you.

Choosing who to compete against can be just as important as choosing who to sell to. Below are three areas highlighting why this is the case:

1. Positioning against a judicious choice of competing solutions / processes is the most meaningful way to explain to a potential customer exactly what it is you do and how you do it better than alternatives. Every purchaser makes his/her choice based upon comparisons; it is in your best interest to provide them with those comparisons. It enables your prospect to define to themselves what it is you do and how you do it – this is absolutely something you should control.

2. Shortening your sales cycle through market education. When customers buy a solution, they can be considered to have gone through a learning journey regarding their needs. Monica Nicou et al break the steps down in their book ‘Sell Your Knowledge’:

  • No awareness of need
  • Senses threat / possibility
  • Observes insufficiency
  • Makes a diagnosis / identifies a need
  • Expresses demand

Imagine your favourite pair of jeans – you are going to reject a salesman’s offer to sell you a new pair because as far as you are concerned, you don’t need any. Now imagine your wife tells you she hates the jeans. You sense a threat – there could be trouble unless you sharpen up your act. You notice that your jeans are ripped – you’ve put your finger on the insufficiency. You make your diagnosis and identify a pair that satisfies requirements.

In the same way, selling to a company that has made a diagnosis will be a far quicker (and cheaper) process than selling to companies with a less developed understanding of their needs. When entering a new market, if you choose one with the right competitor that has begun the ‘educational’ process with its marketing efforts, you are likely to be faced with a much shorter sales cycle.

3. Creating a compelling argument. One of our clients had beaten a competitor at every pitch they had gone head to head with them on. Relaying this information on at subsequent pitches against this competitor subsequently turned out to be the most effective way to win the business.


Choose your customers

One of the topics I like to discuss with prospective RIG-ers at interview is what the first steps are that they would undertake to plan the demand generation (i.e. marketing) strategy for one of our typical earlier stage clients. I describe this ‘typical’ client as having the following characteristics:

  • A market ready B2B SaaS offering
  • One paying customer
  • A recent angel investment with the objective of driving sales and marketing

There are numerous mechanisms, processes, and strategies in planning the initial stages of an effective marketing effort for such a company. However, I try and guide the discussion to the central tenet of any successful plan – the fact that you need to begin by choosing your customer. This becomes remarkably obvious to the candidate when I tell them, but it is non-the-less a vital step in any marketing strategy.

The key of course, is how to invest limited resources to maximise chances of market traction. In order to do this, you want to sell your solution to an organisation which has:

  • A problem / opportunity which your product solves / enables them to exploit better or cheaper than alternatives
  • An awareness that this problem / opportunity exists
  • Available budget

Now you have chosen your customer, in which markets do you find them? What is the best way to reach them? How are you able to articulate your proposition in such a way that it is most compelling? How do you make it more compelling than going with a competitor, doing nothing at all or doing something in house? How should you price the solution and what is the anticipated return on investment? How do you navigate the complex sale?

Once you have found a way to do it, how you codify this process to drive both repeatability and visibility for the purposes of revenue predictability? What are the key hires and what can be done to ensure the optimal candidate is recruited and able to perform? When is more investment required? Would growth objectives be better met if partnerships were formed in certain areas? How are the best partners found and what management processes are needed to reduce the risks of failure?

These are all the challenges we not only advise our clients on, but actively execute for them, and they are all areas that I will cover in future posts.

At this stage in the interview, the candidates are always suitably fired up about our business!