Shawn Ramsey

That may be the question on the minds of many entrepreneurs, but the right answer probably depends on the one asking.  When it comes to funding a company, one size definitely does not fit all. As an entrepreneur/founder, you need to think long and hard about what it is you really want and need. Are you simply looking for money? If so, how much money? What is your growth plan for the company? Are you looking to build a lifestyle business, or are you looking for a high return (hopefully) exit in the not too distant future? How much revenue can your company actually generate? And, how much of the company are you willing to give up? These are just a few of the MANY questions you need to ask yourself.

Over the past 20 years, I have worked with hundreds of entrepreneurial companies, in-house, on the agency side and even with an early stage investment firm. I have seen venture capital money help some of these companies grow to become great successes. I have also seen venture capital money take away the entrepreneurial essence of some companies, crush the spirit of some founders, and kill the company in the end. On the flip side, I have seen non-venture backed companies grow to become great successes, and others fail because of lack of funding, lack of experience, an over abundance of ego/arrogance, and/or any number of reasons.  

For an inexperienced entrepreneur, VC funding can bring more than just money. It can bring a team of experienced business resources with a network of industry contacts that can lead to more funding, customer sales, partnership opportunities, and M&A activity. These powerful value-adds obviously come at a price, but for many entrepreneurs that price is well worth the potential return on investment.

As you think about building your company, be sure to consider all possible sources of funding including alternative financing routes. If you have an opportunity to build a solid foundation on your own, your company may be even more attractive to investors looking to help you get to the next level. As an alternative, friends and family may welcome the opportunity to invest in your new company. Angel investors, early stage investors and even incubators and accelerators should also be considered. And, don’t forget about grants. They can help you get your company/technology off to a great start. Check out NC IDEA or NIH for some examples. 

As you think about where to turn for funding, you might want to check out these articles I found on the same topic. And, as always I would love to hear your thoughts on this post, ideas about alternative sources of funding, or anything else you think our entrepreneurial readers might benefit from. 

Relevant articles: 

http://www.inc.com/erik-sherman/first-step-to-success-avoid-vcs.html

http://www.inc.com/steve-blank/vcs-are-not-your-friends.html

http://miter.mit.edu/article/vc-or-not-vc-question

Many of you may have heard about Facebook’s COO Sheryl Sandberg’s recent discussion (at the World Economic Forum) about what she called the “ambition gap” between men and women. She went on to say that this gap impedes women all the way from childhood to the corporate boardroom, and that girls need to be more ambitious to achieve in the workplace. 

Sandberg got quite a bit of flack because the term “ambition gap” implies that women themselves are lacking ambition. Like the term or not, you can’t deny there has been and continues to be a gap between men and women in the workforce. Like many others, I am just glad that she brought it to the forefront (again). 

There are obviously so many challenges for women in the work place, and it’s easy to blame the lack of female leadership on those external factors. I have certainly been guilty of that myself. But, Sandberg’s discussion reminds me that I need to accept some personal responsibility when it comes to my future as a leader and role model. The first step for me, and others, is to believe I have what it takes to be a leader and to live up to that standard. The second step is to challenge those gender stereotypes, glass ceilings, and other obstacles in the workplace. Reform in the workplace, and even at home, can start with us. 

The change will not be immediate, and my generation might not reap the benefits directly, but it will come eventually. Research shows that women are already closing the education gap, with record numbers of women entering undergraduate programs as well as MBA and PhD programs. That is definitely a step in the right direction. Progress can be slow, but I am committed to doing what I can to push it along. 

If you want to learn more about Sandberg’s “ambition gap”, here are some links you might want to check out: 

http://technorati.com/women/article/facebooks-sheryl-sandberg-discusses-women-lagging/

http://www.thestar.com/article/1127386—facebook-s-sheryl-sandberg-says-women-burdened-by-ambition-gap-is-she-right

http://www.nytimes.com/2012/02/05/business/sheryl-sandberg-of-facebook-staying-on-message.html

http://www.forbes.com/sites/samanthaettus/2012/02/02/sheryl-sandberg/

Good News, Finally! 

Today’s TechJournal South was full of good news, which is a very welcome change of pace when most of what we have heard and/or seen from the media for months (maybe even years) has been negative. The first bit of good news is from the YPO Global Pulse Index, which indicates that the US rebounded sharply in the fourth quarter of 2011, climbing 4.5 points to 62.2 – the highest level of improvement in the history of the survey. The YPO Employment Confidence Index for the US also rose 1.5 points, also a record. These latest indices are very promising for businesses and job seekers. 

The second bit of promising news came from PwC US’s Private Company Trendsetter Barometer , which echoes those signs of growth and promise. The barometer reports that 78% of executives surveyed expect positive growth over the next 12 months, with double-digit growth expected by 35% of executives. Those surveyed also expect to hire more, with 54% planning to add to their workforce over the next 12 months. 

It’s about time to hear some good news for a change and kudos to Techjournal South for being the bearer of such news. Here at Crossroads PR, 2012 has been off to a strong start and I am optimistic that trend will continue for us, and our clients. What do you think?

Day One of CES 2012 is complete, and what a day it was for the Valencell team.

We had a steady flow of traffic at the booth from show opening to show closing. Valencell CEO Steven LeBoeuf’s participation the Sports and Fitness Tech Summit panel It’s Not Just Tech, It’s About Aspiration resulted in a long line of people waiting to speak to him afterward and a major spike in traffic to the booth.

For me, the panel was exciting not only because of my client’s participation but also because it reminded everyone that there is more to technology than just the entertainment value. The technologies showcased on Steven’s panel and throughout the Fitness Tech and nearby iHealth zones demonstrate that technology can really help consumers improve their health and lives.

As part of the Fitness Tech Zone, Valencell’s booth was surrounded by the latest and greatest in everything from fitness gadgets, applications, accessories, and believe it or not even health insurance. The onsite Valencell athletes worked hard on the treadmill and elliptical all day to demonstrate how Valencell’s technology captured their biometric/fitness data in real-time. That alone drew a lot of people into the booth. 

While our hardworking athletes were cool, I have to admit that nearby Polk Audio may have outdone us with their leaping snow boarder and flying gymnast. Wow!

It was a long day, but a good one leaving us excited for what the show has to bring over the next few days. We were so encouraged by today’s results that we already signed Valencell up for next year and plan to be part of an even bigger and better Fitness Tech Zone. 

As CES continues, I’ll be sure to keep you updated on the latest on-site activities.

I am spending this week getting ready to head out to CES 2012 with my client Valencell. Trade shows, especially one as huge as CES, can be a real challenge for many of our clients who are often smaller, entrepreneurial companies with limited budgets and limited staffing. 

What can small companies do to make a bigger splash in a very large, crowed and noisy environment like CES?  Here are some ideas to consider: 

• Press release - Do a press release prior to the show announcing your upcoming presence at the show, new product announcements, scheduled demos, speaking slots, etc. In most cases, don’t wait to do the announcement during the show. It is way too easy to get lost in the noise at the show and your announcement may fall on deaf ears. Sending an announcement prior to the show may allow you to be considered for pre-show editorial deadlines and drive extra traffic to your booth.

• Media - As an exhibitor, you typically have access to a pre-registered media list. Since most of the targets will not be relevant, mine the list for appropriate contacts. As always, do you homework before reaching out. Know their coverage area/beat, know what they have written before and know how and when they prefer to be reached. 

Do outreach well in advance of the show. If you wait until the last minute, you will miss opportunities. Some media targets may be doing sneak peaks prior to the show or have long-lead deadlines for print publications. And most plan their onsite meeting/interview schedule well in advance. 

If possible, add a touch of customization to your pitch. See if they’ve covered a product or company similar to your client and point it out to them during your outreach (example- send them a link to an article they’ve written.) If it’s a target you’ve previously met with and missed at another trade show, take this as an opportunity to reach out again.  Media outlets will appreciate a customized outreach note, rather than a standardized one.

Also, be on the lookout for event-specific editorial opportunities well in advanced. Research editorial calendars and offer yourself as an industry/expert resource. 

• Social media – In addition to promoting your show presence on your own social media platforms (company blog, twitter, etc.) explore other opportunities to contribute content, such as posting/commenting on other blogs. While at CES, Valencell will be serving as a guest blogger for the CEA Digital Dialogue (Consumer Electronics Association). We pitched some creative angles/ideas and they welcomed one more resource onsite at the event. In the past, I have had clients serve as guest/featured bloggers for media blogs as well. Be sure to check out these and other guest blogging opportunities including partners, vendors, etc. 

• Awards – Many shows and/or their media partners give out awards, but many of those submission deadlines are well ahead of the show itself. Take an advantage of these opportunities by doing your research early. Even if you don’t win, it could help get your product/technology in front of some key industry influencers. 

• Speaking – Many shows offer speaking opportunities. Some are paid opportunities included as part of sponsorships, etc. but others may be free. Again, do your research and explore possible speaking opportunities. Keep in mind that these speaking deadlines six months to a year ahead of the show. 

• Book/ebook – In the past when clients authored/co-authored/contributed to industry-relevant books, we worked closely with the publishers to promote that book leading up to the event and scheduled book signings, book giveaways and interviews at the event. A more cost effective and achievable goal for small companies may be to publish an eBook that you can also promote prior to and during the show. 

• Share and share alike – Look for opportunities to share booth space (and even marketing campaigns) to save dollars - perhaps with a partner, a complementary industry player or even another friendly local company. 

• Stand out - Do something to draw attention to your company and stand out in a crowd, but make sure it supports your company’s overriding message/position to ensure quality (traffic) vs. quantity. For example, Valencell develops sensor technology that measures real-time biometric and physiological data for fitness applications. At CES, they will have real athletes working out on a treadmill and elliptical machine at the booth. It’s not everyday that you see folks working out on the tradeshow floor. It will hopefully draw some attention, but the end goal is to demonstrate the power of their technology in real-time. 

These are just a few ideas. Every company has an opportunity to do something unique and creative. If you need help creating some PR-buzz for your next event, let us know. I see visions of chatzkis and golf shirts in your future. Just kidding. Or am I? 

Be sure to check back next week as I blog directly from the show. If you are going to CES, stop by and see me and Valencell at booth N3638. 

Meredith Lepore at TheGrindstone.com recently wrote two articles that gave me pause for thought. The first was “Are Women in PR Just Grown Up Mean Girls” followed by “PR Mean Girls: Catty Is Just Another Label for Competitive.” Both articles talked about the perception (real or not) that the PR industry is full of catty women, and raised the question of whether that was a natural by-product of a female dominated industry or if the industry itself brought out fierce competition? Having been in the PR business for more than 15 years and currently leading an agency of seven women, I agree that the industry can be very competitive for both men and women. I also agree with one interviewee that tight competition for clients combined with the stress of deadlines is a big factor. Add demanding clients and demanding media to the mix, and guess what you get? More stress and more competition.

That stress and competition can bring out certain (not always pleasant) qualities and/or personality traits. And in an industry that is estimated to be 73-85 percent female, perhaps those qualities are naturally more evident in PR women. With all of that in mind, I am taking a strong stand against using the term “Catty” to describe myself, or the team of women I work with day in and day out. Don’t get me wrong. We are all type A personalities – very competitive, assertive, outspoken, persistent and driven to win. But, isn’t that what you would look for in a successful PR person or any successful businessperson, male or female? I am pretty sure our clients wouldn’t want a PR representative who is submissive, meek, demure, soft spoken, etc. That is definitely not what they pay us for and it is not likely to get the results they want. However, in addition to possessing all of those qualities I mentioned above (competitive, opinionated, etc.), we must also balance that with being patient, flexible, compassionate, and empathetic, etc. Trust me. There are some days when I have to remind myself of that. Or more likely, someone from my staff will remind me : )

When my colleague shared this infographic from Intuit, I thought it would make a perfect follow up to my last blog post on women entrepreneurs. It shares some really positive news about women-owned small businesses, which according to the graphic, are outpacing male-owned firms in job creation.

I am happy to see that Crossroads Public Relations is in good company, as one of 8 million women-owned businesses in the US. Together, these businesses generate nearly $1.3 trillion in revenues and employ more than 7.6 million people. On the flip side, 99% of women-owned businesses employ fewer than 100 people and make up only 6% of the US workforce.

The good news is that women-owned businesses are expected to account for 57% of the 9.72 million small business jobs created between 2009 and 2018. And, it just so happens that Crossroads is based in North Carolina, one of the top 10 states for women-owned businesses.

Here’s to being in the right place at the right time! 

Okay, that may be a little extreme but a recent study does say that women entrepreneurs might just be the key to new job creation. According to the study from the Kauffman Foundation and the Fast Company article that brought it to my attention, while women form 46% of the workforce and over 50% of college students, only 35% of startup business owners are women.

As if that is not depressing enough, the report goes on to share even more depressing statistics about women entrepreneurs. Apparently, women trail men not just in share of entrepreneurial activity but in revenues (just 1.8% of female-led firms have revenues of over $1 million vs. 6.3% of male-led firms), patents (5.65% of female firms seek patent approval versus 13% of men) and job creation (36% of women-led firms create jobs to 44% of male-led firms).

The report attributes some of this to the fact that women simply don’t have the same kind of role models and networks as men do, to inspire them and help them start their own companies. 

All may not be lost though. The report does suggest steps that will help more women start their own companies. For example, women should be invited to serve on more boards, successful women entrepreneurs should make themselves more visible as role models, and more funding/initiatives should be made available to help high-growth women entrepreneurs. 

The following quote pretty much sums it up. “With nearly half the workforce and more than half of our college students now being women, their lag in building high-growth firms had become a major economic deficit…Women capable of starting growth companies may well be our greatest under-utilized resource.”

As a woman entrepreneur, this report really hit a nerve. Here in Research Triangle Park, NC, we work with a lot of other entrepreneurs, primarily in the technology industry, and very few are women. As a matter of fact, in the eight years since we started this company, I can’t remember one client company that was founded by a woman. 

The good news is that this report also inspired me, to work harder to be a successful woman entrepreneur and to serve as a role model for other women who want to start their own business. I hope all of my readers, women and men, realize the importance of this report and also decide to do what they can to help more women become not just entrepreneurs, but successful ones. If that success can help create jobs, it benefits everyone. 

If you have ideas on what we can to make sure the next report focuses on the growth and success of women entrepreneurs, please share. Thank you. 

Earlier this week, Om Malik with Gigaom posted a great piece, with solid advice for entrepreneurs. He talks about the importance of transparency for startups - when it comes to raising money, communicating/leading a team and more. 

He quotes serial entrepreneur, Lewis Cirne, as saying “If you have a culture of hiding, it is perpetuated in the company and has an impact on the business, and leads to erosion of trust.” 

Om says a timely proof point for this need for transparency is the ongoing News Corp’s World of the News scandal. 

I think every entrepreneur, actually every business leader could benefit from his advice. You can check the article out at http://bit.ly/pfqSkn. 

I wanted to use this blog post to welcome Michele Chandler to the Crossroads PR team, as our newest Account Coordinator. Michele brings with her some great technology experience, specifically in the digital media space, having joined us from Althos Publishing – home of IPTV Magazine, Mobile Video Magazine and more.  She is an NC State grad, having majored in Communication/Communication Media with a minor in Journalism. We are excited about having some new blood around here and look forward to benefiting from Michele’s creativity and fresh perspective, as well as her strong social media and new media skills. You will be hearing from Michele directly soon. In the meantime, please join me in welcoming her to our world.