When Cool Doesn’t Cut It

I’ve pitched a lot of crappy start-up ideas. Ideas for products that people didn’t want and were unwilling to pay for. Here’s the problem: the people I pitched to didn’t tell me that my ideas sucked.

Especially in the world of student start-ups, people (myself included) have a natural fear of giving negative feedback. We want to be nice and never hurt someone’s feelings. As a result, when someone pitches us a crappy idea, we might respond with “Cool!” or “Sounds pretty neat” instead of saying what we actually think: “That makes no sense, why would you build that?”

As entrepreneurs, we need people to tell us that what we are building makes no sense. Those that tell us it is “cool” and “neat” are doing us a big disservice by sparing our feelings but letting us continue down a potentially wrong path. We need people to challenge our ideas and make us answer tough questions. That is precisely how we learn and get better.

Here is a good rule of thumb: if you ask someone for feedback, see if they do one of these things:

A) Buy your product (if they are in the target market as a customer)

B) Use your product (if they are in the target market as a user)

C) Introduce you to one of their friends that is in the target market

If the person doesn’t do any of those things, your product doesn’t appeal to them. It doesn’t solve problems or add value to them, and they will not buy or use it. Figure out why and pivot.

I challenge you and myself that next time we hear an idea that doesn’t make sense or doesn’t solve a problem / add value to us, tell the truth. Give the entrepreneur genuine feedback that they can use to iterate and eventually build something we will buy.

Sticker Price Trick

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The new printer is only $149!

Well, no. $149 is the sticker price. The sticker price is a tool that marketers use to trick us into thinking that purchases are cheaper than they actually are. If you are making purchases for your business, you need to be well aware of this trick and be able to get past it quickly.

The sticker price is actually the first part of a larger, more complex price for most purchases. To calculate what buying something is actually going to cost, add up:

Sticker price

+ Sales Tax

+ Time, cost, and effort to purchase the item

+ Space to store the item

+ Time, cost to clean and maintain the item

+ Repairs

+ Utilities

+ Cost to transport the item

= TRUE COST

Wow. Yeah… a lot added up. The printer actually involves ink, paper, electricity, a spot to store it, time to purchase it, time to configure it, time to teach everyone else how to use it and configure the settings on their computers. This is the thought process that managers need to go through when making a purchase.

So, the next time you are making a business decision on what to buy, make sure you are thinking about the TRUE COST: what is actually going to affect your bottom line.

How to Fire Someone

Strategy, accounting, coding… nothing is as tough as firing someone. This is probably the most dreaded activity for most managers. It was also one of the haziest subject areas when I first started my role as a COO; I had no clue how to deal with it. After conferring with some great mentors and having to deal with firing a couple of times, I’ve learned some points on how to handle it properly. It certainly does not get easier, but here are some of the tips that I learned:

1. Make it expected

When you need to end a teammate’s relationship with the company, it should not be a surprise. That is because before getting to that point, you should:

  • Meet with the teammate and discuss the issues they are having
  • Clearly lay out the objectives they must meet to improve and stay on the team
  • Explain that if these objectives are not met, they will not be able to remain on the team

Keep in mind, if this person is definitely not the right fit for the team, you can provide objectives that they will not likely meet, such as major changes in attitude and personality. When they inevitably do not change, you can point to the warning and have a clear reason for getting to the point of termination.

2. Have specifics

You need to have highly specific reasons for terminating the business relationship, not just “you have been doing bad work.” Instead the reasons should be “You have been 20 minute late 5 times in the past month” or “your sales numbers are 30% below our targets.” This is why it is so important to have clear Key Performance Indicators (KPIs)… you know exactly where you want to be, and if performance is not there, you have a clear reason to make changes.

3. Schedule a time & place

Try to do any terminations at the end of a pay period (usually at the end or middle of the month) and have the teammate’s final paycheck ready at the meeting. It is best to have the meeting in a private setting first thing in the morning. The office conference room is a solid spot, and remember that you and a colleague should be present at the meeting… don’t do it alone.

4. Be honest & get to the point

When you sit down for the meeting, you will be incredibly nervous. The hardest part is the first sentence, so you must get to it immediately. No beating around the bush or small talk, it just makes the whole thing more difficult. I’d recommend saying (credit to Kevin Wang for helping adjust this sentence):

“Unfortunately, things just aren’t working out, and we have to let you go.”

5. End it quickly

If the person starts to argue or ask questions, you respond with:

“I understand that this is unfortunate. However at this point the decision is not reversible.”

6. Finishing up

At that point, you should stand up, shake their hand and escort them out of the building. At the same time, you should have someone standing by to immediately cut their access to company email, files, etc. Any passwords they have should be changed immediately as well. Ensure you ask for their key to the building if they have one, and watch them walk out the door.

This process should be done with courtesy, respect and professionalism. It is highly unpleasant for both you and the person who is being let go. The best defense is hiring slowly (to find the best people) and firing quickly (when it is clear someone is not a fit after all).

Feel free to shoot me an email if you’re struggling with needing to end someone’s role at your company, it always feels good to talk it out. Good luck!

Billing 101

Considering that the lifeline of any business is money, it is pretty important to ensure you bill your customers properly and get paid for the work you do. When I first arrived at influencers@, I had no clue how to do billing properly and my invoices got a snicker or two from customers. Through trial and error, I’ve pinpointed some best practices for billing. For new business owners and operators, feel free to leverage these and make your billing rock.

1. Be plain and clear

I remember when I sent an invoice to Ryan Durkin at Dailybreak and he said something along the lines of “Yeah, my invoices used to look like this too.” It turns out, lots of colors and a sleek design are NOT appropriate for invoices. On the contrary, accountants and operators want the bare minimum: just clear information like the date, invoice #, services rendered and amount due. Skip the fluff.  

2. Bill in regular intervals

Most companies pay their bills in regular intervals, so match that with your billing cycle. Sending an invoice weekly can be extra work for your customers, and many of them will only pay once or twice per month. To find a balance between managing cash flow and making my customer’s lives easy, I bill on the 15th and 30th of each month.

3. Set your terms: net 15

Invoices should specify how long a customer has to pay, and potentially offer a small discount for paying early. I usually set my invoices at a term of net 15, which means that my customers are expected to pay within 15 days of the date of the invoice.

4. Gather the tools: Quickbooks

I started with making invoices by hand in Google Docs and Adobe Indesign. Please do not ever do this! Instead, turn to accounting software like Quickbooks Online that manage your invoices, expenses and payroll under one roof. Quickbooks makes it easy to create and send invoices straight to your customers.

5. Deliver electronically

In today’s day and age, invoices should be delivered via email to your customer’s Accounts Payable department, while also CCing your primary contact at the company so they are kept in the loop. I send these invoices from my own email account so customers can reply directly if they have any questions regarding the charges.

6. Allow customers to pay via check & electronically

Most customers will pay invoices via a check. However, for convenience, consider leveraging an online payment system that enables your customers to pay via a bank transfer or credit card. Intuit has one of these systems that integrates right into Quickbooks, and it costs only $0.50 per transaction (no % fee, for real!)

7. Follow up when bills are not paid

Occasionally, a customer might lose your invoice or forget to pay. If so, a friendly reminder via email or call can be used to remind them and ensure that the payment is processed. Quickbooks shows a list of all unpaid invoices and the amount of days outstanding for each, so this can be used as a checklist for which customers need to be followed up with.

10 Lessons Learned as COO of influencers@

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It’s bittersweet to share that this was my last week as COO of influencers@. After 1 year with the company, I’ve decided to take a step back and explore other opportunities. This was my first post-graduation role and first time running a real business with employees, cash and customers. It was an amazing ride and I learned more than I could have ever imagined. Specifically:

1. How to hire people

I recruited nearly the entire team… 15 fantastic entrepreneurs, marketers, salesman, operators and more. Creating an interview process, learning about the different recruiting channels and being able to identify proper culture fit were all great challenges thrown my way over the past year.

2. How to do accounting, billing and payroll

When I joined influencers@, I took over all of our accounting, managing the P&L, billing our customers and paying our employees and contractors. I gained a deeper understanding for managing cash flow, properly categorizing expenses and creating sustainable billing and pay practices (pay and bill on-time, collect in 30 days, etc).

3. How to create process for a cranking business

As we grew, I had many opportunities to create processes that made our operations more efficient and cost effective. From our weekly check-ins to one goal a day system, I found numerous ways to boost team productivity.

4. How to manage people that rely on me for a pay check

Managing volunteers at the NU Entrepreneurs Club was very different than our paid team members at influencers@. Knowing they relied on Spencer and I for a pay check added a lot of pressure that I’m glad I experienced as a young manager.

5. How to code software

When the college marketing agency expanded, I realized the necessity for a more powerful way to manage our workflow and track our data. I then sought out to build Campaign Tracker, a PHP web application that managed the entire lifecycle of our business, from event scheduling to payroll.

6. How to recruit developers

Finding capable technical leaders is a challenge for any start-up. I learned how to leverage my network and bring on hackers like David Thor to help create advanced architecture for a web product.

7. How to fire people

I needed to let several people go during my time as COO, and it was one of the harder things I’ve ever had to do. A post is coming soon describing the lessons I learned on how to fire someone properly. 

8. How to build a company culture

Culture is key, and at influencers@ there is a unique one. My business-style with Spencer’s wackiness made for a fun and productive work environment. From setting the tone of the office to taking group trips, I experienced culture building at it’s finest.

9. How to engage with vendors

I established relationships with many vendors, negotiated volume discounts and set-up proper processes for paying our invoices in a timely manner. Dealing with other businesses on a peer level was different than the interactions I had as a student at Northeastern – and a welcomed experience.

10. How to setup scalable IT for a start-up

There were many software applications I tested and implemented for our team, from Quickbooks to Producteev. I learned about the value of cloud management solutions like Google Apps (every single file our team worked on was based in the cloud). 

I’ll be announcing my next move soon, so stay tuned and please reach out if you have any advice to share.

Most importantly, I owe a huge thanks to Spencer Bramson, who gave me a chance last year to have a shot at running a company. He gave me real responsibility and a fantastic first role in my post-Northeastern career. I know he will go on to do great things, and wish him and influencers@ the best!

An Entrepreneurship Story

Over the past few years, the NU Entrepreneurs Club has grown tremendously. I compiled all of the stories and lessons learned into my first book: Getting Organized. Today, I am thrilled to share it with everyone. In Getting Organized, I write about many of the student leaders who made it all possible.

Check it out and download the free PDF!

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Getting Organized… in 2 weeks

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One of my most treasured experiences as an undergrad was building and scaling the Northeastern Entrepreneurs Club. It became a success story and enabled many students to pursue their passions and grow as entrepreneurs.

To reflect and share how our team built and grew the club, I decided to write it all down. With 30,000 words later, I wrote a book, titled Getting Organized.

The book is a manual for how to start and grow any student-led group on a college campus, and it uses the Entrepreneurs Club as an example. Throughout Getting Organized, I share stories about members and leaders, while providing step-by-step instructions on how to handle everything from marketing to fund-raising.

My hope is that it helps other student leaders create world-class organizations on their campuses.

Getting Organized will release in 2 weeks on March 10th. It’ll be available as a FREE e-book download. 

5 Software Products You Need

Thanks to a world full of eager developers and creative entrepreneurs constantly building new things, businesses have a mountain of low-cost web software products that we can leverage to make our organizations run more efficiently. Since I started as COO of influencers@, I’ve been on the hunt for the best mix of these products to implement for our team. Here are the findings… I hope you can use them for your team as well!

1. Google Apps

This system has become the lifeline of our business. Our email, calendar, contacts and documents all work around the Google Apps system. The only documents, spreadsheets and presentations we make are done via Google Docs, and all other files like photos and videos are stored on Google Drive. Everything syncs to the cloud from my team’s local computers, so it’s effortless to share files, change permissions and collaborate.

2. Producteev

When it comes to social collaboration, Producteev owns it by making it easy to assign tasks, follow up on to-do items and share information throughout the team. Producteev lets us tag different tasks and track what areas of the business are keeping us busy. It also enables us to prioritize what we need to focus on across all of our different business units.

3. Quickbooks Online

All of our financials are run through Quickbooks Online – it is an incredible tool to track expenses, invoice customers, pay employees and more. Everytime we write a check it is logged in Quickbooks, and when our team wants to get a pulse on how our business is doing financially, it’s as simple as clicking “Run Report” in our online control panel.

4. Toggl

Most teams are constantly moving from one task to another. Especially if you are doing those tasks for customers, you’ll want to track time. Toggl is both a web and mobile app that allows us to easily track the time we spend on certain tasks for certain customers. It allows us to effortlessly figure out how much time to bill for when we do design work and more. Here is an in-depth review of Toggl.

5. Pipedrive

If you are selling anything, you need to track the interactions you have with customers in a CRM. Pipedrive makes it simple to track leads, see our sales pipeline and remember who to follow up with. It enables us to have different sales pipelines for different products, compare performance of sales reps and much more.

So, if you are starting a new business and thinking about what software solutions might help you move faster and work smarter, try these out and let me know what you think!

Colossal Customer Service

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“We have a problem!” proclaims influencers@ service lead, Dan Wendt, as he hangs up the phone. “The Brand Ambassador who is supposed to do today’s in-store sampling promotion has a family emergency and needs to cancel.” Matt Martin, our account manager, looks at Dan, then back at his computer. “We can’t disappoint the customer, she is expecting us to be there. I’ll do it myself.” Matt says. With that, Matt begins packing his bag for the hour drive to the promotion, knowing that he’ll have a mountain of other work to complete when he is back, and by that time it will be far past “business hours.”

Matt ended up performing incredibly well at the promotion, sampling and selling a substantial volume of product, ultimately wowing our customer. While it isn’t Matt’s direct role to do promotions as a Brand Ambassador, it is most definitely his responsibility to consistently deliver colossal customer service – going above and beyond to keep our customers happy and build strong relationships. This is what makes Matt such a talented people person and an excellent account manager – he will do whatever it takes, even sitting in traffic and driving an hour to a promotion, in order to ensure our customers succeed.

Similar to the attitude at Zappos, it is crucial to strive towards providing world class customer service every time, regardless of the size of the customer or magnitude of the issue. It’s easy to quickly forget this rule and get frustrated, but it is always worth the extra effort to make customer service a top priority. Consider the following to always deliver world class customer service:

1. Customer service is everyone’s job

Everyone at your company should be talking to customers. I know some firms that go as far as having developers speak directly to customers. Whether you are the Product Manager or COO, you should be jumping in to help customers whenever something is needed.

2. The simple things go a long way

Customer service can be as simple as giving a customer a quick call to check in on how they are doing, congratulating them on a big product launch or letting them know in advance if you foresee an issue with their service. You don’t need to spend a ton of time or money to make customers happy.

3. Focus on actions, not explanations

At the end of the day, customers care about results. Spend your time delivering tangible results and actions as opposed to describing what happened in the past or what you can do in the future. Do it now and show your customers that you mean business.

An Opportunity to Fail

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David Oates, Ze’ev Klapow and I spent the majority of 24 hours this weekend participating in NU ACM’s Beanpot Hackathon, organized by Wylie Conlon. There were roughly 90 young people at the event, all tasked with rapidly prototyping new software in just 1 day. As I watched demo after demo of incredibly usable products being showcased, I was reminded of the importance of having an opportunity to fail.

I’ve been to start-up weekend style events before, many of which focus on coming up with ideas and plans, usually emerging with a polished slide deck to share with the judging panel. While this is certainly a fun exercise, there is something to be said about taking those ideas and quickly turning them into something real. By having something real and tangible, even if it is crappy, you can gather genuine feedback, and most importantly, you get the opportunity to fail. Ideas on a slide deck are not real enough to fail – they are safe and secure. A prototype on the other hand is real and genuine – it hurts when it is shot down. You are more motivated to fix it and make it better.

So with that said, here is what I learned at the Beanpot Hackathon:

1. You need an opportunity to fail

Make something, don’t just talk about it. Talk is cheap and doesn’t give you a real opportunity to fail. A minimum viable product does.

2. You can create software incredibly quickly

I was amazed by the quality and depth of many of the projects demoed. A huge amount of progress was made in a very short period of time.

3. You can have fantastic results if you’re having fun

The students at the Beanpot Hackathon were coding for hours because it was genuine fun. It was the same stuff that companies pay $100,000 salaries for, and we were all doing it just for fun on a Friday night.

All in all, it was a fantastic experience. Well done to the organizers and thank you to the sponsors. I can’t wait for the next one!