Broadly speaking, the most difficult thing in business is trying to make a sale to another company.  This holds true whether this “sale” is an entrepreneur trying to raise capital, an agency pitching a new campaign idea or a start-up trying to get a brand to buy their platform.

But despite this being one of the toughest things in business, there are really only two approaches that companies use to make a deal happen.  Some take the approach of going straight to the top, only wanting to engage with a senior executive who has direct budget authority.  Others take the opposite approach, instead looking for someone that can become their advocate within the company.  Usually this advocate is a more junior employee, the person that influences the budget instead of controlling the budget.

Anyone that favors the first approach generally views the junior people at the company as unnecessary gate keepers.  But as Phin Barnes, a Principal at First Round Capital, points out, it might be natural to take this view, but it is also dangerous:

Non-partners on the investment team are friction in the system, but if we do our job well, we can be the friction that keeps you IN, rather than the force that keeps you out.

Phin makes a great case that entrepreneurs should take the second approach and view junior people at a VC as advocates and allies instead of gate keepers.   And I would echo that anyone looking to do business with a CPG company or brand should take the same approach.

After all, in the world of Brand Management, there is tremendous noise at the top levels of management.  You are talking about executives that oversee billions of dollars of sales and hundreds (if not thousands) of employees.  Their time is managed down to the minute and their inbox is filled with hundreds of messages.

In other words, good luck breaking through that clutter.

But you can break through the clutter with junior people such as myself.  When I was an Assistant Brand Manager, one of the first lessons my Marketing Director taught me  was that my job was to know the consumer better than anyone else.  She stressed that my job was to use that knowledge of the consumer as the foundation for our marketing plans.   As a result, the senior brand leaders trusted my judgment when I said a campaign idea wouldn’t resonate with the people we were trying to reach.  And they took notice when I advocated for us to try marketing in a new area that are consumers were using (think social networks back in 2005).

Good business leaders use the people working for them as filters to find the best ideas.  They trust their people to be specialists with deep knowledge of specific areas of responsibility.

It is a simple truth that holds true in both the venture capital and brand worlds.  Instead of fighting against the system, I believe there is real value in making the system work for you.  If you can find an advocate, they can help you make your proposition better.  And more importantly, they can give you – an outsider – an insider’s seat at the business table.

“Don’t sell, help people buy” – Chris Fralic

On Friday, I came across a presentation called “Biz Dev for Startups” by Chris Fralic, a Partner at First Round Capital.  The presentation caught my eye for three reasons.

1. First, I just been hanging out with the crew from First Round at their Cincinnati Office Hours.
2. Second, Chris is a guy who knows a thing or two about Biz Dev, having previously held that responsibility at eBay, del.icio.us / Yahoo and TED Conferences.
3. Third, too many people misunderstand the difference between Business Development and Sales… especially companies that are trying to get a Brand Manager’s attention.

It is that last point that I think people really need to keep in mind.  As Chris outlines in his below presentation, Business Development is an “Exchange of Value” while Sales is generally just about generating revenue.

Every week, I probably get a dozen cold calls from companies that have a Sales mindset and our looking to tap into the bank account of our brands. Few of these brands get in the door.

But contrast that with the rare company that has the Business Development mindset of an “Exchange of Value.” These folks realize that Business Development is about forming relationships that evolve into longer lasting partnerships.  In other words, they follow Chris’s advice of:

• Asking what problem are you solving for your partner.
• Selling benefits, not features.
• Realize it “Should be as much about their needs as your offering.”

If you want to get a Brand Manager’s attention, I could not recommend more strongly that you act with a Business Development mindset instead of a Sales mindset.  Your chances of getting a meeting – and eventually business – increase exponentially when you act that way.

Business is a long-term game best summed up in the advice of fellow First Round Capital Partner, Josh Kopelman:

“Reputations are not built over a deal, but over a career.” – Josh Kopelman

BDforStartups

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