The root of all evil

FM Series banner headART 1 300x145 The root of all evilBy Leo Valiquette

Back in November, Peter Hanschke blogged about the need for the lean and mean startup to beware the million-dollar cheque. In that spirit, I have an anecdote to share which illustrates that the mere prospect of such a windfall can also do significant damage.

At a time when early-stage ventures, particularly those in Canada, are thirsting for capital, be it traditional VC or an angel round, it may seem counterintuitive to suggest that a startup should be wary of a nice fat cheque.

But as Peter explained, for a startup that has taken a lean and frugal approach to market that relies on iterative product development and using a Minimum Viable Product approach, a sudden windfall of cash can have all sorts of negative consequences. The most obvious of these is that the product, which has until now been developed with only those features and functions that have the strongest market pull, gets bloated with all sorts of additional bells and whistles that dilute its focus and send the sales and marketing teams running in too many directions.

My story isn’t a clear-cut example of this, but the same lessons apply. This venture, let’s call it BigContent, was developing a unique library of content which it would make available through a subscription model. It was incubated with a nest egg the founders had put together from a previous venture. In fact, it was their experience with that previous venture which provided them with the idea for BigContent, as well as the initial proof of concept. From a marketing standpoint, BigContent’s founders were doing exactly what they should to identify, define and validate a strong market opportunity which BigContent could exploit.

Executing BigContent’s business plan didn’t require external financing. The founders were wholly committed to bootstrapping the venture through to positive cash flow. BigContent proceeded to develop its library of content, a distribution model through which to deliver that content and a strong roster of subscribers. Everything was proceeding well toward a soft launch of its service.

And then a Big Name VC comes calling without an invitation.

Well, what startup on the eve of its launch is going to slam the door in a VC’s face? At the VC’s behest, launch plans were put on hold. BigContent’s founders revamped their business plan to reflect the addition of external financing. A VC round may not have been necessary to BigContent’s get-to-market strategy, but it would certainly have accelerated the process and made for a bigger, bolder launch.

Big Name VC made lofty promises, even said it would bring one of its compadres to the table. Meetings were scheduled, then cancelled. After several months of song and dance, the VCs said a polite “No thank you” and moved on.

The damage was done. BigContent’s lean and mean go-to-market strategy was in shambles. One of the principals had also resigned from the company. Months later, the team is still trying to get everything back on track for a launch, as per the original business plan.

I don’t intend this post as a knock against VCs, but this story does demonstrate that both parties to a deal must always beware. The onus is on the entrepreneur to have a clear understanding of where their business is going and what it will take to get it there. There is always more than one route to a destination and the choices which lie along the way seldom fit easily into the “right” and “wrong” columns. If there’s a moral to this story, perhaps it’s the importance of staying the course when in the midst of executing a plan in which you have confidence.

What do you think?

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Managing client expectations throughout an outsourced social media marketing program

By Alexandra Reid

Client expectations Managing client expectations throughout an outsourced social media marketing programDemonstrating a marketing program’s success is key to maintaining a happy client. Do good work and prove how it contributed to the client’s goals – seems like a simple enough equation. But managing client expectations throughout a social media marketing program can be tricky. This is because these programs typically require a huge amount of small work spread out over a long period of time and over a large number of channels. It can be tough to maintain the faith at the outset of a program while communities are still being developed. Without a strategy and regular communication, it will be challenging to convince your client to see past the masses of tweets and status updates and understand that all of your wee daily efforts add up and support larger goals that will provide a return on investment.

As an outsourced community manager, it’s imperative that I maintain regular communication with my clients and demonstrate that I am using their dollars wisely. While my clients can see all my activity online, it’s my responsibility to articulate how each of these activities are contributing to their goals and show that the program is on track for success. I really have two management responsibilities – managing my client’s online presence as well as their expectations.

Here are some tips that I employ to maintain good client relations throughout a social media marketing program:

Make sure the strategy is sound and detailed at the outset

As mentioned, you can’t prove return on investment if you don’t have a clear understanding of what it is your client is investing in. Social media provides lots of opportunities for businesses, including the ability to increase influence, provide customer service, foster customer loyalty, boost awareness about a product or service, bridge relationships with industry influencers and form partnerships, garner media attention and attract leads. What does your client want to do, how much are they willing to invest in pursuing these initiatives, what exactly will you do to carry out their requirements, and what can they expect as a result of their investment? The more precisely you can identify your activities and establish a time frame with specific objectives, the better you will be able to manage your client’s expectations.

Your client has every right to know exactly where their dollars are being spent every step of the way; to maintain good faith you need to articulate how those dollars are being invested. Your strategy should therefore mark clear checkpoints that indicate where the program should be at established time periods to assure them that your strategy is on course.

You can make predictions by examining your client’s online marketplace. How successful are their competitors? How engaged is the community that is interested in their space? What are analysts saying about their industry? Is the media particularly interested in that space right now? Does your client have a powerful story that will attract interest? Social media should be regarded as an element of a full marketing program. Whether the marketing team is in house or outsourced, you should be able to collaborate with those people to determine realistic social media marketing targets.

Track your progress and communicate that progress regularly

Carrying out a successful social media marketing program requires frequent communication. In my opinion, social media managers should be regarded as communications liaisons, connecting company representatives with their interest groups online. Communication runs between the account owners and their managers and between managers and their communities. It doesn’t matter whether social media marketing activities are carried out in house or if they are outsourced, communication is imperative to success.

For social media managers, the success that comes from maintaining good communications in both directions is twofold.  First, when communications is smooth between account owners and managers, social media communities thrive because they have the benefit of receiving the most current information and having direct access to company representatives.  Second, the social media success you see as a result of proper management will put you in higher standing with those people who pay for your work.

Have a conversation with your client about how often they want to be updated on your activities and successes. I provide my clients with metrics every week or every month depending on how closely they want to monitor my progress (see social media measurement for more details on what I include in my reports).

When you send them your report, be sure to explain what has been accomplished. Was there a surge in followers and likes as a result of a particular initiative? Did your client receive a record number of mentions? What drove that level of engagement? If something didn’t work, tell your client about that too, but be sure to communicate what you learned as a result. They will be far more understanding if you maintain open and honest communications throughout the extent of the program. Bad things happen and sometimes these things are out of your control. Being able to identify what went wrong gives confidence to your client that you are effectively steering the program’s course.

Encourage the client’s participation

I’ve found that allowing clients to participate in social media activities gives them a better understanding of what’s required to build and maintain social media communities as well as the results that can come from certain activities. Familiarizing your clients with the social media space helps them to understand your job and all that is required to grow a presence online. Understanding the full scope of work as well as the individual activities that go into running a successful social media program helps to ground their expectations and instill a greater appreciation for the work you do.

For example, because LinkedIn only allows individuals, but not companies, to participate in Groups and Answers, I encourage my clients to participate through their personal accounts on behalf of their companies. I’m here to write and edit their responses as necessary and can even post their responses if they provide me with their login credentials, but I try to convince them that they will be better able to establish a thought leadership position by showcasing their own knowledge.

In one case, a client saw more than 100 responses to his Group discussion. He was “chuffed” to see such a positive reaction to his work and the experience helped him understand the benefits of the platform. I also encourage clients to participate in social media by posting Facebook status updates and tweets when they are feeling particularly inspired. Again, I’m here to review, edit, add comments and post if necessary.

How are you managing your client’s expectations for your social media program?

Image: Totally how to

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How to make better inventions: Part 1

By David French

FM Series banner headART 1 300x145 How to make better inventions: Part 1

This is part one of a two part series. Part two will be published next week.

I recently had an extended discussion with someone which resulted in the conclusion that there is more to patenting than just getting patents. We started with a discussion of the business value of a patent and then addressed the business value of patenting. Here is the concept.

If you are going to start the patenting process, it is absolutely essential that you do some searching.  Searching is essential because you can only patent an aspect of your own idea that is new.  There is no point in filing a patent application if you cannot identify a feature that is new. So a patent novelty search is about searching for bad news: defining the boundaries of the forbidden territory that you cannot claim because it is delimited by the “Prior Art Wall.”

My conversational partner had previously taken coaching from me on how to do his own patent searching. He remarked how amazed he was at the amount of valuable information he learned when he carried out a patent search for the first time. Reviewing the efforts of other inventors helped him clarify the problem he was addressing — he got to see his own initiatives in the context of the alternate solutions that others had proposed. He observed that prior inventors are, in a sense, available to act as consultants to coach you in respect of your own invention. He experienced his first dose of competitive intelligence in the field of his invention.

I liked hearing this because it is a “good news” aspect of the patenting exercise. Whether or not a prefiling patent novelty search establishes that the road is clear for you to attempt to obtain patent rights, there is tremendous value to be obtained by just carrying out the search.

For novelty purposes, blocking prior art can arise anywhere, from any source. However, we search at the patent office amongst issued patents and pending applications because the records there are highly indexed. Here is a link to the main website at the U.S. Patent and Trademark Office – U.S. PTO. And here is a link to the best page to start searching using key words. Note that this is the page for searching issued patents. There is another page for searching pending applications.

Searching at the U.S. PTO is preferred because the records there are full text as of 1976. Searches at the Canadian Patent Office can only address the words used in the Abstract or the Claims associated with a patent or application. To start searching at the U.S. PTO, simply choose two words that are closely related to your idea and enter them as search Term 1 and Term 2. The fields for the two search terms can be left at the default “All Fields” for now.

Demonstrations search

Let us assume you have an improved garden rake. In such a case, two words to enter might be “rake” and “handle.” We can defer limiting the search to documents including the word “garden” since you always patent structure and there may be rakes that have a similar structure used for other applications.  Entering these two terms gives you the following result:

Results of search in U.S. patent collection db for rake and handle: 3,199 patents

This is far too many documents to look at.  But beneath the above report and above the list of the first 50 references is a box that starts with “Refine search.” In that box we can add to the initial search terms to produce the search string “rake AND handle and (claw or hook).” I am assuming that these are all features of our inventive rake concept. Entering these terms gives results as follows:

Results of search in U.S. patent collection db for ((rake and handle) and (claw or hook)): 485 patents

This is still too many documents to look at. However, looking down the list of the first 50 hits we see that U.S. patent 7,987,658 has the title, “Multi-purpose garden tool with pivotable gardening head.” Clicking on this reference to open it, we see an Abstract which describes in a complicated way a garden tool   (note that it does so without using the word “garden”). Do not spend too long reading the Abstract. A quick activation of the link “Images” takes us to a page where we can see the drawings if we have a TIF reader (if you do not have a TIF reader, you can download one for free by clicking on the red “Help” link in the yellow bar above the black space where the pictures should be on the “Images” page).

From the drawings associated with this patent we see that it really does relate to a garden rake. Locating this reference enables us to switch to “classification searching.”

Conclusion of part 1

This article is divided into two parts to give readers time to reflect on the valuable learning opportunities provided in each of the parts. The object is to demonstrate that searching at the patent office is a doable procedure that is available to anyone who takes the time to learn the relatively simple steps and protocols.

A major benefit of searching is the mind-broadening effect of seeing how others have addressed a problem, which can help you make better inventions!

Looking forward to seeing you in part 2.

David French is the principal and CEO of Second Counsel Services, which provides guidance for companies that wish to improve their management of Intellectual Property. For more information visit www.SecondCounsel.com.

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