Shameless Self Promotion for PortaBeer

Written on July 2nd, 2010 | Short URL: http://abcjr.me/2p

As my friends and family are aware, I’ve been an entrepreneur for as long as I can remember. No matter what I’m doing with my life — full-time job, school, whatever — I always have a project or three that I’m working on as a 5-to-9 job (I discuss this concept in a post over at Untemplater).

One of my recent projects, along with three great friends, has been developing a portable draft beer delivery system targeted to tailgaters and campers called PortaBeer (@PortaBeer). Beginning as a giddy conversation while camping with the guys last July, the project has taken on a life of its own. In the 11 months since we first came up with the idea, we’ve been able to haul in two awards (3rd Place, University of Pittburgh’s Big Idea Competition and 3rd place in the PCKIZ Business Idea Challenge for Point Park University), secure some engineering assistance, finance the R&D effort, develop a couple of quality strategic relationships and begin to see the results of all of our hard work. Not only that, we’ve founded a company where beer qualifies as a legitimate R&D expense.

In any case, as a result of the Pitt Big Idea Competition win, I was fortunate enough to talk about our product on The American Entrepreneur radio (AM 1360 in Pittsburgh) yesterday, guest hosted by Dave Wilke of Wilke and Associates.

Here’s the audio:

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Nothing like talking about a little beer heading into a Fourth of July weekend. On that note, enjoy, be safe and have fun!

Posted in Entrepreneurship | Permalink | No Comments |

Good Bartenders Teach the Art of Building Rapport

Written on February 12th, 2010 | Short URL: http://abcjr.me/k

Steve Blank is a damn good entrepreneur. He writes a very interesting blog and seems to be a great guy. He also points out a common entrepreneurial challenge in a recent post that I’ll paraphrase — a lot of engineers start companies, and those founders often really suck at the relationship part of building a business.

I’m a salesman at heart (you build these skills when the Cub Scouts force you to sell popcorn door-to-door when you’re 9 years old), but early on in my career, I sucked at the relationship part too. I’d try to impress people with whiz-bang knowledge, not realizing that I had to build rapport before I could get someone to be interested in my ideas. It’s actually a classic marketing mistake — If they like you, they’ll likely buy from you.

Then I hit drinking age.

I was so impressed by bartenders who could control a room and engage people they didn’t know, especially the folks who weren’t regulars. I realized they had something about them, some sort of skill that I just didn’t have. Maybe because there was alcohol involved, or maybe it was because a lot of people just wanted to have a good time and not worry about whatever crappy stuff they were dealing with in their own lives. Regardless, a good bartender could get anyone going.

So, I watched how they worked and figured a few things out. For those of us where the rapport stuff doesn’t come naturally, here’s the overused bulleted list in a blog:

• It’s all about the customer — Bartenders make the customer the center of attention. They ask where you live, what you do, how your day was. They greet you with some generic-but-informal name (buddy, chief, whatever). You’re the most important person to them at that moment, and it feels awesome.
• They’re warm — There’s nothing like being in the presence of someone who’s genuinely warm and welcoming. EVERYONE wants to be Norm from Cheers, because it feels good to be known. The masters make you feel like that, even if you’ve never been there.
• They give valuable freebies — There’s nothing that can make you feel special like a beer on the house. To add a little drama, a great bartender will use a glass or some other token as a reminder that you’re due when you finished your last drink. It’s like there’s a little unspoken communication between you two, and that builds a hell of a lot of goodwill.
• They bring people together — They can’t be in two places at once and there are a lot of other people that have to be served. A great bartender makes connections between people so that the attention isn’t always on them. It’s a little bit of sleight of hand, and you never know the difference. Plus, you never know who you’re going to meet.
• They know how to have fun — It’s all about feeling good, and great bartenders focus on having fun. They’re not talking about the technical aspects of making a perfect margarita or the new electronic system that only lets them pour exactly 16oz pints. They just make you feel relaxed and at ease.
• They remember the details — If you’re there more than once, they remember your name and what you do. They bring it up the next time they see you. They ask about the kids or what the daily grind is as a (enter your title here). You know that they paid attention.
• They know how to get your money – Maybe it’s just some great conversation or the extra beer, but you feel compelled to leave a few bucks more for the great bartender. You feel like they deserve it. And you do it voluntarily.

You can get a drink anywhere and great bartenders know this. So, they make up the difference in service and it works. You go back to that place. You have conversations that make you feel good at the end of the night. You tip enough to be surprised by what you left the next morning. In short, you do exactly what you’d love your customers to do. You want them to like you, to refer you, to give you their money voluntarily. You want them to love your level of service and tell people about it. You want them to realize that, even if there might be other solutions out there, you’re bringing a level of game that no one else can match. Perhaps most importantly for any start-up, you want them to like you enough so that when there’s the inevitable hiccup, they’re more forgiving and understanding.

If you really want to understand how to build the relationships you need to succeed, skip the Dale Carnegie books and spend $20 at your local bar. You’ll learn more and have a lot more fun doing it.

Posted in Entrepreneurship, Marketing, Reputation | Permalink | 2 Comments |

Money vs. Quality Deals

Written on February 1st, 2010 | Short URL: http://abcjr.me/4

I’ve noticed that there are two schools of thought in Pittsburgh about the availability of risk capital and the lack of funds going into local start-ups.  The first is that there are some very good deals in Pittsburgh, and there is precious little lower-level risk capital ($500k-$2M), and blame generally falls on the nearly impossible standards set by the local VCs/Angels. The second is that there is plenty of money out there and that money and finds great deals no matter what, inferring that the issue isn’t money, it’s the companies coming out of the region.

As someone who has worked on a project that got an Angel round (and some subsequent cash infusions), I can understand the difficulty in finding that money and, as a result, I’m a bit biased. Looking at the landscape, I believe that there are some very intriguing companies/technologies coming out of our colleges, universities and innovative entrepreneurs, and that should be supported. Obviously, I’m not alone — the Pennsylvania government and local foundations infuse local organizations with capital that is then extended to these companies. However, when those companies have grown out of the alpha stage and to a point where they’re ready to start beta testing in real-world environments, are they the quality deals that attract VC investment? Is Pittsburgh’s risk tolerance unusually low?

My guess is that our VC community isn’t much unlike others around the country. I’d also guess that Pittsburgh has similar state-level resources to other areas and, perhaps a little more. What I don’t think we have is an ecosystem — a critical mass of successful entrepreneurs that have cashed out for several million and immediately feel the responsibility to return the favor to other hungry entrepreneurs.  The cities most often cited as models for the ecosystem — Silicon Valley, Boston, etc. — have earned that reputation honestly, but have taken decades to build that ecosystem. As one local VC said to me, “they weren’t built overnight, and we won’t be either.”

But, I think we’re getting there. There is a lot of energy in this community and, I suspect, additional resources will be devoted to not only supporting these companies, but helping to create that ecosystem that is critically important. I also believe that we need to do a little marketing to the outside world, showing off some of the companies that are making a difference. Would engaging other cities’ communities help facilitate some cash inflow by introducing their financiers to our companies? Would connecting with the diaspora help us to bring some of that money back to Pittsburgh? I think it would.

In the end, almost any money is good money, no matter where it comes from. Would I like to see more low-level risk capital? Of course. But, until we have a critical mass that can support some of these good-to-very-good deals (as opposed to great deals), we’re going to struggle to fund these companies. Should the state take a more active role? How do we get this done in a down economy? And, what are the best way to keep these companies fed in the meantime?

Posted in Entrepreneurship, Funding | Permalink | No Comments |

Persist Through the CRAP

Written on November 17th, 2009 | Short URL: http://abcjr.me/1l

Saw a TED video by Richard St.  John ( @RichardStJohn) , who discussed the 8 things that successful people do (video here). While the other aspects of his presentation might be things you’ve heard before (work, ideas, passion, focus), his perspective on persistence caught my attention, mostly because it incorporated mildly inappropriate language, a technique I enjoy using from time to time.

In his speech, he says that you have to persist through the CRAP – Criticism, Rejection, Assholes and Pressure. I hadn’t thought about it in such quite succinct terms, but that’s perfect.

Entrepreneurs have a unique expertise in persisting through the CRAP. Taken individually:

• Criticism — There’s no shortage of criticism. The risk of a selling a new, innovative product as a small company is full of pitfalls and opportunities for people to blow up your idea. I think that’s a great thing … people who tend to take the time to criticize are emotionally invested. Proving them wrong drives many of us to make it all work.
• Rejection — Funders, potential customers, friends, family … you don’t know what rejection is until you try to start your own company.
• Assholes — I don’t think I have enough time to cover all the different types. From the extreme critics, to the egotists, to the folks that have no problem wasting your time, they’re everywhere. Trust your gut and, if you’re not sure, ask around. Most of these folks have a reputation. If you hear from two people in close-knit community that the person is shady, run.
• Pressure — There’s nothing like the shut-off notice from the gas company, or a hungry family, to make you work extra hard to close a sale (or politely call every customer who is even 30 minutes past-due).

I’m going to think of my challenges this week in terms of persistence and in terms of CRAP. How many of them are just one element, or how many are all four? How do I manage those situations when I run into them? Am I as persistent as I should be? How does it change as a follower vs. a leader?

Posted in Entrepreneurship, Leadership | Permalink | 2 Comments |

But Wait… There HAS to Be More

Written on October 28th, 2009 | Short URL: http://abcjr.me/1n

It was reported today (via PopCity) that eighteen Pittsburgh companies raised $78.27 million in venture capital in the third quarter of 2009. This is obviously very good and echoes what my hunch was in my post about the feelings of optimism at AlphaLab’s Demo Day. The more money we can get across the continuum, the better, especially in the very early- to early-stage funding categories.

However, this is only part of the story. If you look at the PricewaterhouseCoopers (my spell check believes this word should be ‘slaughterhouses’, by the way) MoneyTree report (the source of the VC funding data point), you’ll find that a lot of critical investment money isn’t included in their research, including angel investment (see the criteria summary here). Obviously, the report is invaluable in allowing us to track what kind of investment activity is happening across the country, but I feel like there are some gaping holes in really being able to assess how much entrepreneurial funding activity is happening in a given area.

I suppose this is because it is very difficult to track this type of investment. For instance, a business plan project on which I worked will likely be funded within the next three weeks at about $50,000 (obviously a very early-stage investment). The individuals involved aren’t what I would consider part of the “entrepreneurial community” in the region, so no one will know about it. This also goes for another project on which I worked, which secured $500,000 in its first round; there were no trumpets sounded or press releases written, yet the company opened the offices in the heart of Pittsburgh with six new jobs within city limits.

Is the nature of angel investment such that tracking it just doesn’t work? Are angels usually uncomfortable having their investments publicly discussed? Or do many people in the realm simply not care about having this type of investment counted? While there are good arguments to be made that Pittsburgh needs more risk capital than it has available, I believe the picture has to be better than even what the PWC report says.

So, how do we keep better track of this information? How do we make it easier to brag about Pittsburgh’s entrepreneurial community?

Posted in Entrepreneurship, Funding | Permalink | No Comments |

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