Mark Evans Tech | 2/679 | Thoughts on Startups, Entrepreneurs and Marketing

Learn how we work with startups and entrepreneurs to create marketing strategies and tactical execution

April 25, 2013 BY Mark Evans Posted in Startups | 4 Comments

Why Toronto is the Best City for B2B Startups

Without patting ourselves on the back too much, Toronto is starting to emerge as one of the world’s leading and most vibrant startup communities.

In particular, Toronto has become one of the best places to launch a B2B startup. If I could be so bold, Toronto may be the best place to launch a B2B startup.

Here’s why:

1. A great pool of talent, particularly developers whose skills and experience are as good as anywhere and, as important, reasonably priced compared with places such as Silicon Valley. We’re also seeing a growing number of repeat entrepreneurs and more executives with solid marketing and sales experience. In other words, there’s plenty of startup bench strength in Toronto.

2. There are many large enterprise companies who can become customers of early-stage B2B startups. This includes Canadian companies, as well as foreign companies with Canadian operations. A Canadian startup, for example, could sell its product to a U.S. company based in Toronto, which would give it a great foothold to sell into the U.S. parent. An entrepreneur recently told me that Toronto is a great place to start a B2B business because the first five customers can be easily attracted to provide product market validation.

3. A strong and tight community of investors, entrepreneurs, service providers, incubators, accelerators and schools that make it easy to make connections and get the support needed to establish and grow a B2B startup. This is probably one of the biggest assets of Toronto’s startup community, although we may not completely appreciate it. You only have to look at the number of startup events to realize the vibrancy and activity of the startup landscape. I would argue the community has been nurtured over the past five years, and it is now starting to bear fruit.

4. There is growing access to capital, although there is room for improvement. Over the past few years, more capital has become available to B2B startups to make it easier for startups to get going. One of the reasons why B2B startups are attractive to investors is they can go after specific markets, driving development, marketing and sales efficiency. That said, there is still more series A money needed to accelerate growth once a B2B startup gains solid traction. The big thing that has to happen is the return of institutional investors, who have been on the sidelines for far too long. In the meantime, Toronto is a short flight from New York and Boston, making it easy for U.S. investors to invest in Canadian startups.

5. The rise of incubators and accelerators such as Jolt, InCubes, Extreme Startups, Ryerson DMZ, Drive and Hyperdrive that are developing, nurturing and developers entrepreneurs, while turning their ideas and projects into viable businesses. Many of the startups involved in these programs will fail but the experience gained by entrepreneurs along the way will be invaluable.

What do you think? Is Toronto a B2B startup haven?

Tagged b2b, startups, Toronto |

April 23, 2013 BY Mark Evans Posted in Startups | Leave a comment

Startup CEO = PR Pro

At a recent event, I was talking with a startup CEO about the success of some mobile apps he had developed.

“So, what’s the secret?,” I asked.

“Great coverage from blogs and the media,” he said.

“How do get them to write about you?,”, I asked.

“I email them. I’ve never used a PR agency,” he said.

Imagine that, an entrepreneur getting coverage by sending an email to a reporter or blogger. Who knew it could be that easy!

First, a few caveats. This particular entrepreneur has been around for a few years with a variety of startups, so the success of his approach is a result of a lot of legwork and relationship building. He’s also developed some interesting/news worthy applications.

That said, his ability to attract media and blog coverage should be inspiring and eye-opening to any entrepreneur, particularly those involved in an early-stage startup.

Truth be told, it’s difficult for early-stage startups to get media and blog coverage. There are so many other startups looking for attention that it’s hard to stand out, let alone convince a reporter or blogger to write about you. Second, you need to be a good storyteller, which is not part of many entrepreneurs’ skill set.

Yet, I believe a startup entrepreneur is the best person to get media and blog coverage – much better than PR agency/boutique.

Why? When an entrepreneur pitches a story, it comes across as more real and authentic. It’s a person building a business, not a hired PR gun. It’s an opportunity for an entrepreneur to establish a personal connection.

It is important for startup entrepreneurs to remember building relationships with reporters and bloggers can take time to develop. It’s like you can hit a home run out of the gate. As well, the initial goal may not be getting coverage. It can start with an invitation for coffee or offering some insight or information.

Another important consideration is making it personal. An entrepreneur needs to do their homework when approaching a reporter or blogger. They need to understand what someone writes about, their interests and how they want to be contacted. It also helps to have read someone’s articles or blogs to gain more knowledge and insight.

At the end of the day, getting coverage from reporters and bloggers can be the dividend from making a concerted, long-term investment. Having a good idea of who you want to target and how to connect with them sets the stage for an entrepreneur to establish a foothold, which could lead to coverage at some point.

One last note: While startups entrepreneurs can be effective PR conduits, there are definitely roles to be played by PR agencies, boutiques or individuals. At the right time, PR practitioners can play a key role in helping startups reach the right people to deliver relevant and interesting pitches.

When it comes down to it, the biggest value delivered by PR practitioners is their networks and connections. They can get a reporter or blogger to take a look at a pitch that otherwise would be quickly deleted or ignored.

Links:

- How to make startup PR work

- When should startups pull the trigger on PR?

Tagged PR, startups |

April 19, 2013 BY Mark Evans Posted in Startups | 5 Comments

Seriously, Startups Shouldn’t Give it Away for Free

Summary: It makes little sense for startups to give away their products for free. If a product has value, people should for pay for it.

I was talking with a client recently about whether they should introduce a free version of their product to drive more users into the sales funnel. After throwing around some ideas, we decided it wasn’t a good or viable option, mostly because we didn’t think enough free users would migrate to the premium service.

It was an intriguing conversation given free is used so often by startups looking to attract users. Many of these startups don’t even have paid services, which makes them more projects (and please, please won’t someone, anyone acquire us!) than businesses.

To be honest, I’m not a big fan of startups using free.

Fundamentally, I believe that if you a product is any good and offers some value, consumers should pay for it – whether it’s a one-time shot or a monthly subscription. When a startup embraces free, it suggests they’re afraid their product doesn’t have enough value or their product isn’t good enough compared with the competition.

And freemium isn’t much better. Aside from companies such as Freshbooks and Dropbox, freemium is like dipping your toe in the water as opposed to jumping in with both feet.

Earlier this week, Josh Cohen had an excellent post looking at the “foibles of freemium”, and how it can be an expensive marketing proposition. Here’s how his thesis kicks off:

“[Freemium] can work wonderfully of course, but usually it crushes and destroys companies, not only because it costs more than anticipated but because the founders didn’t realize the business model itself caused them to make incorrect decisions.”

In many respects, freemium (and free) give startups false hope.

By offering people a free option, startups believe a wave of consumers will magically materialize, and that many of these freeloaders (5%, 10%, 15%??) will eventually be compelled to upgrade to the paid version. Of course, this is a dream given the low conversion rates – usually 1% to 2%.

Instead, startups should sell their products. If they want to offer a 14 or 30-day free trial, that’s great but, at some point, consumers need to pay or stop using the service.

Another reason I’ve been thinking about free recently has to do with Tempo, a smart calendar app for the iPhone. Simply put, I love using Tempo. It’s an intuitive, useful calendar that comes with features that make sense.

But here’s the thing: Tempo is free but I’d happily pay for it. Whether it was $5 for a download or $2/month, Tempo has more than enough value for me to cough up some of my hard-earned dollars.

I’m not sure about Tempo’s business plan or revenue model but it’s a perfect example of a startup that shouldn’t be afraid to charge. Yes, I know free is prevalent within the iOS world but not everyone has to give it away for nothing.

Given my approach toward free, it shouldn’t be surprising that I have started to buy more online products.

It’s not because I’m feeling particularly generous or feel that supporting startups financially is the right thing to do. It has more to do with the belief that good products are worth something and, as a result, paying for them should feel right because it’s a win-win proposition.

It could be that free and freemium are permanent parts of the digital landscape because consumer behaviour has been hard-coded. But it should not stop startups from embracing a pay-to-play approach.

If you charge for your product, what’s the worse that can happen? Not enough people may not buy it, which suggests your product isn’t valuable or good enough. If that’s the case, you can give it away for free or decide that maybe you’d be better off doing something else.

Tagged free, freemium, tempo |

April 16, 2013 BY Mark Evans Posted in Startups | 3 Comments

Five Must-Haves for Startup Salespeople

In a recent blog post, I talked about how marketing and sales are pretty much the same thing for a startup given the resources and responsibilities. It got me thinking about the best characteristics for a startup salesperson. Here is what I think they need to bring to the table:

1. The willingness to work for a small, non-established company. It sounds straightforward but salespeople like selling, but working for a startup can mean trying to push a small rock up a big hill – without the compensation and perks. A salesperson needs to be excited about a startup’s ability to resonate with customers may have not know the product exists.

2. The ability to multi-task. In a startup, salespeople need to do a lot more than just sell. They have to do business development, marketing, customer service and administrative duties. In a sense, all of the above involves selling but in a different and indirect way. While salespeople like to be out there selling, working for a startup has to be a lot more.

3. Good listening skills. The products sold by startups are created to solve a problem but it doesn’t mean customers know they need or want them. It means salespeople have to listen as much as they speak, which can be a challenge. It means taking a soft sell approach in which a salesperson learns what a customer needs rather than what a salespeople wants to sell them.

4. Embrace the idea of being product developers. The one thing salespeople do is talk with potential and existing customers on a regular basis. As a result, they can get a good understanding of the problems or needs faced by potential customers, the products or features they would like to see, their budgets and the competition.

5. Be team players rather than lone wolves. While salespeople need to be out talking to potential customers, they also have to understand the different parts of the company, and be willing to get involved in other parts of the business. They need to have a willingness to accept recommendations and ideas from other people and, at the same time, be willing to bring their ideas and feedback to the table.

Links: Ben Horowitz on how to hire great salespeople, and Amrita Chandra on the six must-have traits for a startup marketer.

Tagged sales, startups |

April 11, 2013 BY Mark Evans Posted in Startups | Leave a comment

Six Ways Startups Can Build Trust

In thinking about how my startup marketing business has grown over the past four years, one of the most important elements has been trust. It has been the best way that I’ve been able to get people say “Yes, I want to work with you”.

For startups, trust needs to rank as high as the value of their product. There are plenty of startups offering similar products so it is crucial to differentiate from the pack in some way – trust being one of them.

So how do startups make customers trust them so attract and retain business? What does it take to convince people to trust you’re committed to meeting their needs in a win-win way?

In many respects, it comes down to being transparent, honest and accessible. Consumers want to feel a connection with a business. It doesn’t have to be fawning loyalty but consumers have to feel something for your brand that they don’t for others.

Here are a few ways for startups to establish trust:

1. Be clear about what you do and how your product serves their needs. Startups that make it easy for consumers to quickly and easily grasp what they do and the key benefits can begin to establish a relationship on the right foot. By not being clear about what in it for the consumer your product, it’s difficult to get things headed in the right direction.

2. Be open about who is behind the curtain. Startups are created and operated by people, who sell products to people. A pet peeve is reading a startup’s “About” page that doesn’t tell me the people involved with the business. It makes me think “What are they trying to hide? How come there’s no information about the founders or management?”. If a customer is going to trust you, it helps if you’re not trying to be the Wizard of Oz. Instead, provide some information about you and your story.

3. Tell me where you live? Tell me where your business is located or, at the very least, a telephone number. A Website that only has a contact form is do much for building trust. There isn’t a lot to be said for being mysterious or stealth-like, especially if you’re asking people to pay for a product.

4. Make your pricing easy to understand. Be clear about how much someone gets for what price, particularly if you’re offering different types of services (e.g. bronze, silver, gold). Create an easy to understand graphic that spells how each tier is different, and why buying silver is better option for my needs, compared with bronze. And if you’re asking for a credit card before someone decides to make a purchase, make sure it’s for a really good reason.

5. If your product or service fails to perform, own up to it. Don’t try to blame it on another supplier, dismiss it as a minor issue or, worse, ignore it. If you screw up, admit it, apologize and make it right. It doesn’t mean giving away free service but you’ll earn a lot of trust by being honest.

6. Don’t ask for too much information. When kicking off a relationship, it can be strange when one side wants a lot of personal details. In time, I may disclose this information to make the relationship stronger but trying to get it out of me from the get-go is creepy.

At the end of the day, it is difficult to startups to stand out. If customers trust you, it can be a great way to keep them around for a long time and turn them into evangelists.

Tagged startups, Trust |

inbox