Five Steps to Flawlessly Navigating Your First Hire

Brandon Gearing
Marketing Coordinator
Connecticut Innovations

No matter the stage your company is in, your primary goal always remains the same: revenue growth. To accomplish this, early-stage companies often focus on product development, validation, market research and customer acquisition. But as your business takes shape, an important part of your growth strategy is your team. Talent is everything.

But when it comes time to grow your team, are you prepared? There’s a lot more to it than simply hiring employees. You’ll likely be faced with this task at least once, and if you’re like most early-stage companies, you’ll face it often. What are the steps to take to ensure that you not only hire the right person, but do so legally?

I talked to our vice president of human resources here at CI, Suzanne Kaswan, and got the skinny on all you need to know.

Step 1: Take stock of state and federal hiring regulations

Employing someone legally requires a lot of work. There are regulations, forms and standards that you’ll need to know about and understand. The Small Business Administration (SBA) put together a nice list of steps to take when hiring to ensure proper compliance. You should keep it handy, especially if you’re making your first hire.

Quick links:

Have new hires fill out these forms either prior to or on their first day.

Step 2: Write a killer job description

After evaluating your needs, the first step to finding the perfect employee is mastering the job description. This is going to be your first point of contact with potential candidates, so you’ll want to make sure it’s clear and accurate. You may be tempted, but don’t make any false promises in your job descriptions. If someone joins your team with an expectation that you can’t deliver on, you’ll be searching for someone new before you know it. HYRELL has some more great tips on writing job descriptions that are well worth a look.

Anatomy of a Killer Job Description

Step 3: Determine salary and benefits

Benefits

Right out of the gate, it’s important to note that you must provide some benefits to all fulltime employees. These are covered by the SBA and include social security taxes, unemployment insurance, workers’ compensation, disability insurance, leave benefits and family and medical leave.

You can provide other optional benefits including healthcare, retirement plans and pensions, and employee incentive programs at your own company’s discretion. Many employees value a strong benefits package as much or more than salary, so it’s important to consider what you’re offering if you’re hoping to attract top talent.

Salary

When deciding salary, you should do some research to determine the market rate for pay in the position you are hiring for as well as a number of other factors. This is a good overview of the steps to take when executing that research.

You should also determine how valuable the new hire will be to your company. If successful, how much will this person bring into your business? This number may be obvious for some positions (like sales people), but if the position doesn’t lend itself to bringing in revenue directly, think about how much time or money they may save you. Will they be doing tasks that allow you or someone else on the team to focus on revenue-generating tasks? Will they save you a lot of headaches? Apply a dollar value to the position and set a max salary cap.

On the flip side, you’ll also want to want to set a salary floor – the lowest you’ll pay someone in the position. This is when you want to factor in the market rate. You can expect to pay your new hire somewhere between market value and your max perceived value – the two dollar amounts you will have determined.

Quick links:

These are tools to help you determine the market rate of the position you’re hiring for.

Step 4: Properly classify the position

Once you have the position defined in terms of description, salary and benefits level, you must also be sure that you’re making the proper legal distinctions. There will be two things to decide:

  1. Exempt or nonexempt?
    This is a determination of whether or not your new hire will be eligible for overtime pay. Exempt employees are not eligible for overtime pay while nonexempt employees are. The Fair Labor Standards Act (FLSA) governs this distinction and it’s important to review the criteria before hiring. Employees that are classified as exempt are generally those who work in administrative, executive or professional positions because the work they do involves duties related to the company’s management. The criteria do vary, however, so it’s important to review the guidelines and seek professional advice if you’re unsure of how to classify your new hire.

Exempt or Nonexempt

  1. Independent contractor or employee?
    While many businesses rely on independent contractors because of the savings in labor costs, reduced liability, and flexibility in hiring and firing, it’s important to understand the differences in classification between an independent contractor and an employee.

According to the SBA:

An independent contractor:

  • Operates under a business name
  • Has his/her own employees
  • Maintains a separate business checking account
  • Advertises his/her business’ services
  • Invoices for work completed
  • Has more than one client
  • Has own tools and sets own hours
  • Keeps business records

An employee:

  • Performs duties dictated or controlled by others
  • Is given training for work to be done
  • Works for only one employer

Misclassifying your new hire as an independent contractor could cost you in payment of back taxes, owed wages and benefits and could even result in legal action.

Step 5: Set expectations for your employees

Once your new employees are hired, it’s important to have documented rules, procedures and expectations. While it isn’t required by law, an employee handbook is strongly recommended for a few reasons:

  1. It will serve as a reference guide for employees
  2. It will serve as a management tool for supervisors
  3. It will serve as protection should any legal issues arise

Ann Kontner of SJ Steptoe & Johnson gives a nice overview of what should go into a handbook in this blog post. As an employer, you have some legal obligations regarding meals and breaks, so you’ll certainly want to include that, but other items may include standards of conduct, an “at-will” disclaimer, an equal opportunity employment opportunity statement, an anti-harassment policy, a benefits overview, a computer use policy, etc.

Quick links:

These are links to posters that you’re required to post in your workplace. You can contact the Connecticut Department of Labor at 860.263.6790 to request that a packet of all required State of Connecticut postings be mailed to you.

If this sounds like a lot, well, you’re right. Managing the human resources function of a growing business can be challenging, especially as your hiring becomes more frequent. Some early-stage companies choose to outsource human resources, and there is certainly some benefit to that. Others feel that bringing on a full-time human resources staff member (or team) is more beneficial, as it’s important for human resources to build a rapport with employees. There are pros and cons to either decision and each situation is unique.

What are the biggest human resources challenges that you’ve run into? Let us know in the comments.

Help Us Put Together the Best List of Small Business/Startup Blogs Ever

Brandon Gearing
Marketing Coordinator
Connecticut Innovations

One of my favorite things about the internet is its vastness. There is so much out there just waiting to be explored; so much to read, so much to watch, so much to look at and through all of that, so much to learn. It’s amazing, impressive, scary and overwhelming all at once. There are over four billion webpages indexed by Google and Bing. Four billion…with a “b.” 20 years ago, at the dawn of the internet, there were a whopping 130 websites. Now, just look how much is going on per second.

With so much out there, it’s easy to understand why there are no shortage of places to turn to when you want a little advice or inspiration. And that’s the beauty of the internet—anyone with a connection can publish something. The majority of the platforms that people publish on are free. People that were once voiceless now have a voice. There are very few barriers. That in itself is great.

But it’s also a bad thing. Why? Well, from the standpoint of someone who consumes that information, it leads to a whole lot of clutter, a whole lot of noise and a whole lot of junk. Getting to the good stuff is sometimes hard.

A lot of us start our mornings reading some of our favorite blogs. They teach us, inspire us, make us laugh, make us happy, and even sometimes make us upset or sad. At least the good ones do. The ones that don’t—they’re the junk.

As an entrepreneur, constantly learning is a part of your daily routine. You need to have a pulse on what’s new and what’s hot.

This post from Bplans has a lot of great suggestions for blogs that will keep you up-to-date on just that, and it’s what inspired this post. I read many of them. But as I was scanning the list, I also got to thinking. What do Connecticut entrepreneurs read? Who are their teachers and motivators?

So, I’m hoping I can make a deal with you.

The deal:

I’ll give you a list of my favorite blogs first, and then I want you to tell me what your favorites are. If I get enough responses, I’ll publish a list right on our blog for you to refer back to. These blogs can be about anything (within reason). If you think a fellow Connecticut entrepreneur or small business owner can benefit from reading it, leave it in the comments below. Deal?

Here are my nominations (full disclosure, I am a marketer, so I tend to read mostly marketing blogs. That’s why I need you!):

Marketing

Dannybrown.me

Danny Brown’s blog is chock full of useful marketing and social media advice, but that’s not why I love it. He also peppers in posts about life. He writes about family, life lessons and “not giving a crap.” His added personal touch brings it to the next level and gives me the inspiration that I’m looking for.

Canva Blog

If you don’t want to or can’t afford to spend money on an Adobe Suite license, Canva is an amazing free alternative for designing. Best of all, you don’t need any design experience to make it work. The Canva blog is your source for design inspiration and tips so you can make beautiful graphics for all of your marketing efforts.

CopyBlogger

CopyBlogger is a content marketing company that started years ago as a simple one-man blog. Today it’s a full-fledged content marketing operation that produces one of the most valuable content marketing blogs out there. If you want to get a grasp on how you can become a better online marketer, this is a good place to start.

Buffer Blog

For pros and newbies alike, Buffer does an excellent job teaching you how to make social media work for your business. I’m subscribed to the email list so great blog posts come to me every day. Buffer’s primary business is its social media management software, so these guys know what they’re talking about.

Discovery

Product Hunt

Product Hunt has come a long way since its humble beginnings in November 2013. The company just announced $6.1 million in funding thanks to its fast-growing audience. But why is it so great? Simplicity. It’s extremely scannable and I find something new and useful almost every day. And from a business aspect, Product Hunt could help you launch your product:

Photo Credit: https://medium.com/on-startups/the-artifacts-of-product-hunt-11682e9e01dd

Venture Capital

First Round Review

VC or not, this is one of my favorite blogs. First Round does an amazing job of mixing storytelling with actionable insights and advice. No fluff here. You need to subscribe to this blog right now.

A16z

Marc Andreessen is one of the most outspoken people in the VC industry. He’s well known on Twitter for his “tweet storms” where he sounds off on current issues in startup/entrepreneur/VC culture. His firm’s blog is also well known and well worth subscribing to.

Business

Penelope Trunk

Penelope Trunk realizes that there is an important connection between work and life and echoes that in all of her blog posts. No shallow business advice here. Just real stories and real opinions.

Seth’s Blog (Seth Godin)

Want quick reads that really make you think? Seth’s blog is for you. He’s a marketer by trade but writes about all sorts of business and life topics. Some of his posts are as little as a paragraph with one idea. One of my favorites is this:

Is the goal to get people to notice what we make?

or

Are we setting out to make something people choose to talk about?

If you don’t know your boss’s answer to this, find out. If you do, act accordingly.

Pretty thought provoking, huh?

Now it’s your turn.

What are your favorite blogs and why? It’s time we helped Connecticut’s entrepreneurs break through the clutter so they can find content they actually want to read. I’ll feature your answers in a future blog post and will, of course, give you credit. If you prefer to send them to me via email, you’re more than welcome: brandon.gearing@ctinnovations.com.

Also, invite your friends in the Connecticut entrepreneurial community to do the same. Go ahead and click the box below and share the challenge with your followers:

Thanks for your help!

To borrow from another Connecticut great—Mark Twain—rumors of our demise have been greatly exaggerated

Claire-Circle

 

Claire Leonardi
CEO
Connecticut Innovations

Over the past few days, you may have heard that CI has run out of money. That is not true. What is true is that we have very limited dollars to invest in the short term and that there will be a delay in funding  which will affect some programs and contracts, as well as a number of new investments in our pipeline. Rest assured we have set aside sufficient capital to fulfill existing obligations and that we remain committed to serving companies in all stages of growth.

We understand how this news may impact you, which is why we are doing everything we can to provide accurate information and take actions that will preserve the value of the state’s investment and the positive economic impact that Connecticut Innovations has created.

To give you more context, the 2011 Jobs Bill authorized $125 million in additional investment into CI to enable us to have a greater impact on starting and growing high-tech companies in Connecticut. Since that time, CI has more than doubled the number of early-stage, high-tech companies we invest in annually, along with the amount we invest, growing our investment from $9.5 million in 2011 to $24.6, $21.2 and $21.8 million, respectively, in 2012, 2013, and 2014—for a total of $67.5 million. We have also invested nearly $10 million to help promote a vibrant entrepreneurial community. To date, CI has drawn down only $20 million of the Jobs Bill allocation, funding the remaining amount of investment growth through existing resources and investment earnings.

What we have been able to accomplish is dramatic not only compared to what we’ve done in the past, but also to what’s happening nationally. We have been named a top 10 seed funder in 2013 by Forbes; one of Entrepreneur magazine’s VC 100, which evaluates the most active venture capital firms funding U.S. startups in 2013; and a 2013 top 10 investor in seed/angel and early-stage venture capital deals by Pitchbook, a venture capital trade publication. These accomplishments are due in part to the support we have received from this administration.

CI has also been directly responsible for bringing significant non-state investment dollars into Connecticut’s economy. For example, from January 2012 until today:

      • CI has invested nearly $60 million in early-stage Connecticut companies, while others investing alongside us have provided an additional $135 million to those startups.
      • CI loaned more mature Connecticut companies nearly $39 million and leveraged an additional $114 million from banks and other investors.
      • CI’s $4.1 million investment in companies through our other innovation programs has been matched with $26.8 million from federal and private company resources.

Our current limitations are due to the fact that we had expected to have a tranche of funding allocated by the bond commission in September (which, along with our earnings, is how we are funded). The cancellation of the bond commission meeting caused our funding delay. We anticipate the ability to make new commitments in early 2015. As we learn more, we will share it with you and we welcome any questions you might have.

5 Amazing Things I Learned at #CMWorld That You Can Use in Your Content Marketing Efforts

Brandon Gearing
Marketing Coordinator
Connecticut Innovations

Recently, I was lucky enough to spend several days in the beautiful city of Cleveland, Ohio, with 2,500 other content marketers from 50 different countries. While there, we were schooled by some of the most brilliant minds in the industry. A few of my favorites were Joe Pulizzi, Andrew Davis, Scott Stratten and Mark Schafer. They highlighted a list of more than 50 different speakers.

Oh…and there was some guy named Kevin Spacey, who, as it turns out, knows a thing or two about content:

What I’m bringing back to you is five of my most important takeaways that I hope will inspire your team to really embrace content marketing so you can do it effectively. Content marketing is both necessary and possible no matter the stage of your company or the industry you’re in. As Spacey said during his keynote, “There are no more excuses. Anyone can build an audience. Just do it!”

So, let’s do it.

1. Content marketing is not a new concept.

Right from the very start, Andrew Davis, the opening keynote speaker, made sure we knew this. Content marketing has been around for more than a century. In fact, as many of us learned, John Deere is largely credited with being the first content marketer. His magazine, “The Furrow,” was started in 1895 to help farmers learn about new technology that could help make their lives easier. It’s still being published today.

1897_Furrow_Front_Page_1897

Knowing this, I think we can dismiss the notion that content marketing is a fad. It has staying power. It has survived more than 100 years. The idea has just exploded now because of the vast number of messages people are seeing on a daily basis and the distribution vehicles that are available. There is a ton of noise to compete with and it doesn’t begin and end with your competitors. How do you get in front of your audience when there is so much to compete with? Think about how much content you see on a daily basis. To give you an idea, here’s my morning:

  1. Wake up.
  2. Check any missed texts, phone calls and emails on my phone.
  3. Shower and get ready for work.
  4. Eat breakfast and browse Facebook, Twitter, Instagram, Snapchat and the latest news. There are thousands of messages that fly across my screen in just a 10-minute session.
  5. I flip on the TV and watch the news. I largely ignore the commercials and focus back on my phone where the news is tailored to my preferences.
  6. Drive to work.

Throughout my day, I continue to stay updated in the same way. I communicate with friends and family. I check my social networks for the news and information I care about. I read blogs that write about things I care about. I share things that I think my followers will care about. Everything I see is based on my preferences. And guess what? None of those preferences are your product…unless you make me care.

2. “If you sell something, you make a customer today. But if you genuinely help someone, you make a customer for life.” – Jay Baer

Jay Baer is a genius for this one. It borrows from the “if you teach a man to fish” philosophy. What it tells you is that if you sell someone your product, you have made one sale. But if you broaden your focus beyond sales, and concentrate on helping people, you will keep them coming back for more.

Content marketing is all about offering value to people. Helping people is a part of that value. Everything your business does should be focused on solving a problem that people have. Because you’re a good marketer, you know that no one cares about the technical aspects of your product. When you’re doing your marketing and selling, you’re speaking to how your product solves their problems, right?

Your content should solve problems too. Home Depot is a brand that does it right. They sell home improvement items, so what do they do? They make “do it yourself” videos for various home improvement projects:

This is a retail outlet producing extremely valuable content. These aren’t advertisements about their products. These videos show people that Home Depot cares about its customers’ problems and wants to fix them. It also positions the company as a thought leader. These are two major wins!

On my next home improvement project, I may head over to YouTube to see if Home Depot has covered it in this series because I’ve seen these videos before. And once I watch it, guess where I’m heading to buy what I need to make it happen?

Home Depot.

3. “I’ve learned people will forget what you said, they will forget what you did, but they will never forget how you made them feel.” – Maya Angelou

This quote comes from the amazing Maya Angelou and was told to us by Robert Rose, one of the keynote speakers and chief strategist at Content Marketing Institute.

Now I don’t think that Angelou was speaking about content when she said this, but it absolutely applies to your content marketing. People love to get what I call “feels.” Make them happy, make them sad, make them excited. Make them feel some sort of emotion with your content.

The best way to do this is usually by telling a story. Every industry has its stories. Find yours and tell it. Here’s one of the more popular examples of great storytelling:

Chipotle’s mission is to serve “food with integrity.” This video is an absolute home run in delivering that message. I grabbed a few top-rated (verbatim) comments on the video just to show how it resonated with people:

  • “That poor cow. looked sooo sad”
  • “beautiful movie ! proud to be a vegan..”
  • “Shocking!!! if we don’t do something now who knows what will happen to us”
  • “I saw this at school I like the song but it almost made me cry because the poor cow”
  • “I cried… It BURNS”

So, we gather that people were saddened by some of the images, shocked by what happens to some of the food we eat and proud that Chipotle caters to vegans and has “food with integrity.”

Emotion spawns brand advocates. It creates customers for life. Emotion is one of the most powerful things in the world. If you can draw it out of people, it will be more effective than just about any other tactic you’re using right now.

Here are some other great examples of storytelling that may inspire you:

And perhaps one of the best examples of brand storytelling of all time…The LEGO Movie.

Pretty amazing, right? You can do this, too. I know that many of you reading this don’t have large staffs or big budgets. The concept of storytelling doesn’t have a price tag, though. Your production value might not rival some of these examples, but if you can tell a good story, you’re going to do really well.

4. “Content is fire. Social media is gasoline.” – Jay Baer

Another quote from Baer here. The guy is good, what can I say?

One of the common problems companies have with social media is not knowing how to use it effectively. By now, everyone knows they need to do it. They just don’t know how to do it.

I actually did a podcast on how to use Twitter for B2B recently, so if you want to dive a little deeper into that, I recommend checking it out.

But back to Baer’s point. Your social media strategy is entirely dependent on your content strategy. You can’t have a good social media strategy if you don’t have content.

You need to produce great content “fire,” and then promote it with social media “gasoline.” Listen to the way Baer breaks it down here:

It makes sense, right? If we’re producing helpful content or content that incites emotion, we need a way to get people to it so maybe it can go “viral.” If you think throwing it up on your website is the way to do that, well, you’re wrong.

Even the best content needs to be promoted. Social media is that “gasoline” to make that fire bigger. You have access to networks with billions of people. Bring your great content to them there and if you do it right, watch what happens.

By the way, if you don’t yet have a large audience on social, you should:

  1. Still produce content and share it on social.

2. Experiment with some paid advertising.

If advertising on social media is a bit foreign to you, I strongly suggest subscribing to the content put out by both Jon Loomer and Mark Schafer. I sat in on sessions with both of these guys during CMWorld and they have my stamp of approval.

5. Twitter (and all social media) is powerful social proof for your business

While we’re talking about Mark Schafer, let me bring up an important point he made during his session. Twitter (and all social media) is an extremely powerful social proof for your business.

What does that mean? Well, let’s first understand the concept of social proof. From Wikipedia:

“Social proof is a psychological phenomenon where people assume the actions of others in an attempt to reflect correct behavior for a given situation.”

From a marketing standpoint, this means that people rely on their friends’ suggestions to make decisions about your business. It is Yelp personified.

From a social media standpoint, it means that the more people that follow your business, the more social proof you have. When you come to a Twitter profile and see that someone has 25,000 followers, does that pique your interest a little more than someone who has 100?

Yup.

But before you go run off and start buying your followers and likes from some follower farm…stop. Irrelevant likes and followers will hurt you a lot more than having a smaller number of followers that actually care about your business and engage with you.

Consider two scenarios:

  1. I throw a baseball into a room of 25,000 mannequins.
  2. I throw a baseball into a room of 100 living, breathing people.

Which room is more likely to have someone catch the ball? You guessed it, scenario 2.

You want people that can potentially catch your baseball and then come ask for your autograph.

In marketing terms, you want people that will engage with your content and then eventually become leads.

Spending money to get an audience works, but only if you do targeted campaigns through the various platforms. Refer back to Jon or Mark if you want to learn more about that.

So, yes, size does matter. But only if you do it right.

The wrap-up

The bottom line is this: Content marketing is powerful and extremely effective when done correctly. I think many of us know this, but sometimes, one of the best ways to evaluate what we’re doing is to take a step back and look at what other people are doing.

We’re sometimes so engrossed in the day-to-day activities of our companies that we don’t consider the big ideas. CMWorld opened my eyes to some big ideas that simply make sense.

Like Mr. Spacey said:

Kevin-Spacey

Got a sixth thing to add to this list? Let me know in the comments. And don’t forget to share this with someone who could use a little marketing inspiration!

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What Young Companies Can Learn from Hiking the Adirondacks

Doug-Blog-Circle

 

Douglas Roth
Director, Investments
Connecticut Innovations

I recently took my 12-year-old son, Patrick, backpacking in the Adirondack Park near Lake Placid, New York. We plotted a course that would take us two days through Avalanche Pass and up Algonquin Peak – the second highest peak in New York. Avalanche Pass and more notably, Avalanche Lake, are tucked between two mountains whose sheer rock walls rise directly out of the water on both sides of the lake. According to the Adirondack Mountain Club’s trail guide, this is “…probably the most spectacular route in the Adirondacks.” This was also my son’s first trip carrying a full backpack – his share of the load. It was during this hike that I realized that many young companies would benefit by recognizing that the peak is not the ultimate goal.

Although the morning started with everyone energetic and upbeat, as the trail began to wear on Patrick’s feet and the weight of his pack seemed to get heavier, I had to encourage him along the way. I found myself trying to convince my son that the steep climb was going to be worth it, that the views from the top would be spectacular, that we didn’t have much farther to go and that we were almost to the top. As we climbed above the tree line into what is referred to as the arctic alpine zone, the weary hikers felt a sudden sense of rejuvenation. The peak was within sight!

Once we got there, the reward was instant. The top was beautiful; you could see breathtaking 360-degree views of the Adirondacks. We felt an immediate sense of accomplishment. We made it.

This is not unlike the feeling an early-stage company gets when it reaches its first peak – whether it be launching version 1.0 of its product, securing its first paying customer, reaching a specific usage metric, etc. It’s a worthy accomplishment, for sure; but not the ultimate goal.

At the summit, after a brief rest, a drink of cool water pumped from a mountain stream and posing for several pictures, we started our descent.

In many respects, traversing down the side of a mountain with a full pack can be more difficult than climbing up. It was on the way down the backside of the mountain with increasingly sore muscles and tired legs that I remembered that really accomplishing our goal meant not just summiting Algonquin Peak, but rather summiting it and returning to our car at the trail head.

There is a similar dilemma with startups. Many entrepreneurs have their eye on the wrong prize – the peak – but haven’t thought through how the company is going to get down off the mountain; and completing the journey is really the true goal for either the hiker or the entrepreneur. This mindset manifests itself in many ways, none of which position the company for success.

When backpacking, the peak is when you are most exposed and vulnerable. The same is true for early-stage companies. Reaching the summit is a notable achievement worthy of recognition, but it isn’t the ultimate goal. Reaching this point without knowing the path back down can leave the company dangerously exposed. This is not the time to realize the company does not have the right team in place or enough resources to take advantage of the opportunities that “bagging the peak” have created.

For example, some early-stage companies have a “build it and they will come” attitude. They rely too heavily on building the perfect product and assume that the product alone – reaching the summit – will be enough to generate market awareness and revenue. With no regard to marketing and sales, pricing strategy, or implementation processes – no plan for getting off the mountain – too much is left to chance or to be developed later.

You hear the stories of the high-profile startup that does not have a revenue strategy and is only focused on the number of users or the number of messages sent via the platform, which neglects the high priority of the monetization plan. For an early-stage company, reaching the summit without a plan or adequate time to climb back down can end with disastrous results.

Fundable milestones – goals that, if achieved by a startup, position it for additional funding – might seem like the top of Algonquin Peak and the ultimate objective. For a young company, however, a delicate balance must be struck between achieving certain goals, leveraging those successes to achieve other goals, all the while maintaining the ability to continue hiking. Investors may be impressed that you summited Algonquin Peak, but don’t allow your company to reach the top of the mountain at dusk without your flashlight, nothing left to drink in your water bottle and without the energy needed to complete your mission.

…and keep your eye out for the bears!

Why You Shouldn’t Miss the Next SBIR Conference


Merrie London
Manager, SBIR 
Connecticut Innovations

 

If you’re a technology entrepreneur, you know how critical it is to be on the lookout for possible competitive advantages. You also likely know about the federal Small Business Innovation and Research (SBIR) and Small Business Technology Transfer (STTR) grant programs. If not, it’s time to get familiar.

Both of these grant programs provide tremendous opportunities for small high-tech businesses looking to fund R&D. The government solicits small businesses with innovative ideas to solve problems relevant to participating government agencies. The programs are great for commercializing the right ideas, but are also highly competitive.

Wouldn’t it be nice to secure a competitive advantage over the rest of the businesses vying for the same grant that you are?

One of the surest ways to get the inside scoop is to attend the regional and national conferences offered throughout the year. I recently attended the SBIR National Conference in D.C. and can’t say enough about how much of a benefit it is for small technology businesses.

The convention not only provided firsthand insights about the SBIR/STTR federal programs, but also offered critical nuggets of wisdom on how to compete for funding. All of the participating agencies discussed their strategic directions and shared tips on what to do and what not to do when you submit a proposal.

But it wasn’t only the agencies talking; the speakers and sponsors for the events included technology giants from a wide range of industries that gave small businesses a chance to get up close and personal in private, one-on-one discussions. Imagine having a decision maker with money to spend as a captive audience! (Outside this conference, you might have to wait months and dazzle several gatekeepers for even a chance at a similar opportunity.)

But that’s not all. Government, academia, and businesses of all sizes had an opportunity to showcase their technologies in the exhibit hall where participants could take it all in and chat with the reps. There was even a “speed dating” segment. (No, not for romantic opportunities, but to meet potential strategic partners!) For those unfamiliar with how this activity works at a convention, think “musical chairs” but with enough seats to go around. Picture a room of tables with big business reps giving their elevator pitches. Every few minutes an alert sounds and the line moves to the next seat. The result is some very good connections made that could lead to highly productive relationships for both sides!

The conference was also co-located with the National Innovation Summit and Showcase and the TechConnect World Innovation Conference and Expo. Not only is that a good strategy for attracting attendees, it’s also a great opportunity for cross pollination of interests and ideas. When smart, inventive, and enthusiastic people (like you) get together, the potential for connections and groundbreaking work is BIG, regardless of the industry.

If you’ve never been to one of these events, I highly recommend attending one in the future. It’s worth the price of admission just for the networking alone.

And speaking of the price of admission, we provided $395 reimbursements for companies that had never won SBIR/STTR awards before. We’re so sold on the value of attending that we’re willing to help get you in the door. Government agencies all in the same place, with dollars to spend, telling you exactly what they’re looking for is an opportunity you should really consider. Not to mention other innovators, investors, business developers, grant writers and customers with tangible needs in the same building. Can you see how attending the next SBIR National has the potential to make a real difference in your company’s future? The next one is in Austin, Texas in November. Check it out!

And, if you’re interested in knowing more, click here or contact me!

Merrie London
merrie.london@ctinnovations.com
860-257-2894

Four Ways Entrepreneurs Can Increase Their Chances of Receiving VC Funding

MikeCircle

 

Mike Wisniewski
Investment Associate
Connecticut Innovations

Entrepreneurs are some of the most passionate people in the world. They care deeply about their ideas, believe wholeheartedly in their company and are extremely motivated to succeed. These are all excellent traits to have, but that passion can sometimes lead to tunnel vision, which can hurt your chances of securing funding. In my experience meeting teams and listening to pitches, I’ve noticed a few things that entrepreneurs commonly overlook or underemphasize. Because of this, I’ve come up with four areas you should focus on. While these things won’t necessarily turn your company into the next Facebook, making sure your bases are covered may increase your chances of securing venture capital.

  1. Be a Student Rather than the Smartest Person in the Room

    No matter the industry, it’s beneficial to develop relationships with people who are smarter and/or more experienced than you. Even if you’re the world’s foremost authority in your field, there are people who you can learn from. This especially rings true when it comes to entrepreneurship. It’s important to get out of the lab or office and reach out to mentors, subject matter experts and potential customers. These externals can not only help validate your idea, but can also become team members or board advisors that will help you understand customer pain points, formulate strategy and structure your business model. They may even contribute funding.

    Tip: Beware of “mentor whiplash.” You’ll have several business assumptions to test along the way and you’ll receive advice from multiple perspectives. Some of the advice may be contradictory and overwhelming. You should listen to all of it, but it is your job to synthesize the information and make the call.

  2. Build a Strong and Diverse Team

    Investors value a strong team just as much as they value your idea. Your team should be one of the main things you pitch to a potential investor. Are they experienced company builders with the necessary relationships? Experts in their field? Have they been there, done that? If not, it’s time to build. Where do you find these people? If you’re embracing mentorship and building relationships, the answer should be obvious: your own network. Doug Roth, director, investments at CI, covered this in a recent blog post. Building a team from your own network may reduce risk and increase the likelihood of success.

    Tip: Know thyself. Networking is not always a strong suit for technologists, but typically is for experienced CEOs. If your networking skills are weak, you’re going to need to either develop them or bring someone on board to do it for you. This is important not only for building your core team, but also for developing outside partnerships and collaborations. Partnerships are one of the core building blocks in a typical business model, and, if built correctly, will create value for your company.

  3. Do your Homework

    If you’re fortunate enough to pitch a VC or angel, don’t blow it! Doing your homework really shows. I always appreciate when the entrepreneur knows the business and slides inside and out and is prepared for Q&A. Anticipate and research common questions that VCs ask and be ready to answer them.

    Tip: Know the investment philosophy of the VC you’re pitching to. All VC firms have distinct missions, areas of expertise and industries of interest. Know the philosophy and speak to it during your presentation. In the same vein, know how the VC typically invests. How much do they usually invest per round? Do they prefer to work with other investors? What stage do they typically invest in? Understanding these things will help form your expectations before the pitch.

  4. Deliver on the Opportunity

    During your pitch, make sure you cover all the bases when it comes to your business. Come prepared to talk about your team’s experience, the technology and competition, your business model and financials, the realistic size of your market (and if it’s growing) and your go-to-market strategy. These things should all be a part of the story in support of the ask. With that, VCs will consider risk factors. Is there anything you offer that might mitigate risk? Things like experience, external market validation, another investor at the table, or significant sweat equity and skin in the game from the core team are all very helpful.

    Tip: Hone your pitch. When it comes to delivery, I like a mix of passion and expertise. Confidence and charisma don’t hurt, but don’t go overboard. The same goes for your expertise –do not get into the weeds of the technology unless asked. The best pitches are concise and underscore how we can work together and mutually benefit. After all, it is a partnership.

Have anything to add? Let me know in the comments.