Robert Ochtel’s Blog

An Experienced Approach to Venture Funding

Entrepreneurs, Finding Strategic Partners Can Create Significant Value for Your Start-up Company

One of the key issues to be addressed by start-up companies is the ability to gain credibility in the market.  You may have the greatest technology since sliced-bread, but if no one endorses it, the road to success in the market will be a long one. On the other hand, if you are able to secure one or more strategic partners early on, your road to success will be that much easier.  As strategic partners bring instant credibility in the market place and can open product distribution channels that will allow your start-up company to gain significant, early market traction.  So, it is in the best interest of you and your start-up company to work to secure one or more strategic partnerships early so that you can expedite your success in the market. In what follows is a short discussion on how to locate these same strategic partners as an early stage start-up company.

Go to Networking Events

One of the easiest ways to get your name out there is to go to networking events in your area that focus on start-up companies. These events are attended by entrepreneurs and investors from all backgrounds, including large corporations.  This provides you with the opportunity to meet individuals from various large companies that may have a strategic interest in your start-up company and its technology, product or service offering.  This contact point may be a direct contact from a panelist at the event or indirect contact through an individual who either currently works at a large company you are interested in talking with or has worked there in the past and is willing to introduce you to a key contact point.  Any way you slice it, it is worth getting out there and go to targeted networking events that cover start-up companies and their issues or a topical matter you are interested in for you and your start-up company.  So, put yourself out there and attend networking events, you never know who you are going to run into.

Work Your Own Network

Most entrepreneurs have a long career before they strike out on their own to start their own company. Often this career was spent working for or engaging with large corporate entities. So to help yourself as an entrepreneur, work your personal contact network. Call your past friends and colleagues to tell them what you are up to.  These conversations will often lead to follow-on discussions which allow them to help you with potential key contact points within their or another organization. Nothing is better than and direct introduction through a trusted friend or colleague.  This provides you with instant credibility and will often walk you in the “front door” of an opportunity that you would never have found out about by cold calling, let alone getting directly into the person in charge of the project or opportunity.  So, take the time to connect with your person network.  This type of networking has the ability to open doors that you would not have through cold calling and more often than not, will expedite the discussion process.

 Attend Trade Shows

Finally, you need to attend targeted trade shows.  You can attend as an exhibitor or just an attendee walking the floor.  This approach to getting your name out there will allow you to meet with individuals from targeted companies that may have an interest in your product offering from either a strategic or tactical point of view.  Take the time to “work the floor” by going up to the booth of targeted strategic partners and explain to one of the booth attendees what your company does and who you are interested in talking with. More often than not, if the appropriate contact person is not at the show, the individual you are talking with will provide you with the appropriate contact point within the company. Also, be sure to get the business card of the person you are talking with, as when you contact the appropriate individual within the company, you can tell them that you were referred by this individual.  This will instantly open the door and at the same time provide you with a certain level of credibility to initiate the conversation.  So, take the time to attend targeted trade shows, it can open doors to potential strategic partners for your start-up company.                                

Gaining early credibility in the market is one of the keys to success for a start-up company. This credibility is most often accomplished through developing a partnership with a large, established corporate partner.  To facilitate the engagement with potential corporate partners you need to attend networking events, work your own network and attend trade shows. This will allow you as an entrepreneur to get your name out there and engage directly with potential strategic partners.  It will also help propel your start-up company forward and ensure both near term and long term success in the market.

This information was taken from Robert’s new book: “Business Planning, Business Plans and Venture Funding – A Definitive Reference Guide for Start-up Companies”.  Available at www.amazon.com.

August 23, 2010 Posted by | Venture Capital | , , , , , , , | Leave a comment

Entrepreneurs, Trade Shows Can Be Useful Events to Move Your Start-up Company Forward

As the entrepreneur of a start-up company you need to take advantage of anything that will help move your company forward.  Trade shows are focused events that often only take place once a year.  Generally, these events bring together a broad set of senior management and other individuals with a common interest in technologies, products or services for a specific industry.  As a start-up company looking to get your name out there, you need leverage these trade show events to your advantage. To do this, as a start-up company with limited funds, it is most cost effective to just attend these events as a “registered attendee”. This does not cost much money and will provide your start-up company with the maximum amount of exposure for a limited amount of money. This article focuses on some of the things to consider and do when attending a trade show.  If done properly trade shows can be useful events to move your start-up company forward.

Focus on the Correct Trade Show Events

As part of your business planning process and ultimately outlined in your business plan, you need to focus on attending a limited number of trade shows each year.  If you are an industry insider you will know which trade shows that are important to your targeted industry.  If you are not, talk to your customers and ask them which trade shows they regularly attend on an annual basis.  All trade shows, even within the same industry, have different focuses, and as such, some trade shows, although similar in theme, are much more important and effective to attend than others.  Unless you have attended a specific trade show, you will not really know which events are more valuable to your start-up company and its technology, product or service offering.  Therefore, it is very important to not waste your time and money on trade show events that will not bring significant value and result in a productive experience for you and your start-up company. 

As a minimum, you should plan on attending three to four trade shows a year.  This will provide you with a broad exposure to what is going on within your industry and will also allow you to consider which trade show you will need to exhibit at in the future.  So, as an entrepreneur, you need to focus on the correct trade shows that will bring the most value to your start-up company. Generally, these are trade shows that are focused on your end customer base and at the same time are closest to the end market application that you are targeting as a vendor.  Doing this, will allow you to focus only the necessary trade shows that will help move your start-up company forward.

Set up Your Important Meetings Ahead of Time

One of the keys to having a successful trade show is to set up your meetings with important current and potential customers and possible strategic partners a head of time.  This is very important, as with most industry focused trade shows, they are widely attended by the senior management of virtually all customers and vendors that are important to that particular industry.  Therefore, you have the ability to meet with all of your potential customers and many possible strategic partners, and show them your technology, product or service offering by only having to travel to a single event. Therefore, you need to necessarily take advantage of this opportunity.  So, several weeks to a month ahead of time you need to get on the phone with your current and potential customers and set up times to meet with their senior management at the trade show.  These meetings generally last an hour and are often where start-up companies can meet “face-to-face” with their key senior management of their customers for the first time.  These events and associated meetings are often very productive for both parties and can be the beginning of a long term relationship. 

The same is true for potential strategic partners.  If you are aware of a company that has a technology, product or service offering that can complement or supplement your start-up company’s product offering, it is important to set up a meeting with the appropriate individual within senior management from this company so that you can meet them and properly explain the potential value and synergies of your company’s working together.  Therefore, for each trade show you attend, it is very important to get on the phone and set up as many potential meetings as possible. This will provide for a productive event and allow you to move your start-up company forward.  

Prepare and Attack the Trade Show Floor

As a start-up company, attending a trade show, it is important to set aside the appropriate amount of time to walk the trade show floor.  This walking the floor of the trade show should not be a random event.  To take the most advantage of your limited time available at the event you need to first prepare and then attack the trade show floor.  To do this, after you register, you need to sit down and spend the appropriate amount of time to go over the trade show guide and exhibitor map and identify those exhibitor booths that you would like to visit as potential customers and strategic partners. In addition, you need to identify all of your competitors and visit their booths to better understand what they are showing, and to pick up as much G-2 that you can on their technology, products or service offerings.  By diligently mapping out your targeted customers, strategic partners and competitors, you can then put together an attack plan to make the best use of your time while you are on the trade show floor.  Also, remember, it is very important meet and talk with the appropriate senior management at your targeted companies of interest. This should also include your competitors.  If these individuals are not available, get their card and contact information.  This will be invaluable for follow-up to the trade show and will allow you to contact them as appropriate after the event.  Therefore, it is very important to make the best use of your time while you are on the trade show floor by first planning and then attacking the floor to the best advantage of your start-up company.    

Trade shows can be very useful events to help move your start-up company forward. By focusing on the correct trade shows, setting up your important meetings ahead of time, and properly planning and attacking the trade show floor, even with a limited budget, you can make the most of these events. This can include meeting and engaging the appropriate potential customers, strategic partners and competitors.  Therefore, as an entrepreneur, you need to identify and attend a limited number of targeted trade show events each year.  By doing so, you will have the opportunity to identify and then develop and nurture the necessary relationships to move your start-up company forward in the future.

This information was taken from Robert’s new book: “Business Planning, Business Plans and Venture Funding – A Definitive Reference Guide for Start-up Companies”.  Available at www.amazon.com.  For more information on the book go to www.carlsbadpublishing.com.

January 11, 2010 Posted by | Venture Capital | , , , | Leave a comment