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.

Back in July, the good folks at First Round Capital came to Cincinnati and held “Office Hours” with local entrepreneurs.  As they describe it:

One of the greatest opportunities in college was Office Hours. Every professor held them and suddenly became accessible. It was a few minutes where you could walk-in, sit down, ask questions, develop a relationship and catch a professor in an informal environment. We think the same opportunity for dialogue should exist for entrepreneurs and venture capitalists….  At Office Hours, we’d love to meet with entrepreneurs, people thinking about becoming entrepreneurs or folks who would like to join a start-up.

I loved this concept but honestly hadn’t thought much more about it until I read a post by Bill Taylor on “the rise of office hours in business and finance.”  Bill makes the point that it may be “time to transport that familiar ritual [of Office Hours] from the Ivory Tower to the halls of business.  He points to the efforts of Jason Fried at 37signals, Boston Globe columnist Scott Kirsner, and Flybridge Capital’s Chip Hazard as proof in this rising trend.

This really got me thinking.  I have always been a big believer of setting up meetings with smart folks just to talk about what’s going on.  I have often found these to be the most productive meetings and the ones that lead to the most interesting conversations and opportunities.  But in most cases, they are meetings that I have to set up weeks in advance in order to make it on my calendar.

So I’m thinking Office Hours might just be an alternative for me to try.  As Bill Taylor points out, it’s nothing fancy…nothing all that cutting edge,” but it could be a fun experiment for me to try both in Cincinnati and when I’m on the road traveling (like today to Boulder, CO).  It would be a chance for me to meet with anyone that is up to something fun in the world of marketing, media and technology.   This could be a start-up looking to get the opinion of a Brand Manager or maybe just a company looking to bounce some digital marketing ideas around.  I am hoping it would be a chance for me to learn as much for the people that stop by as they learn from me.

So what do you think about the idea?  Is something you would be interested in seeing me do?  If so, any suggestions on a format?  It seems like 20 minute blocks of time are pretty standard.  And for a location some go for an actual office while others lean towards the more informal environment of a coffee house or restaurant / bar.  The location also dictates what time of day / day of the week is best.

I would love to hear your thoughts.

“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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