Last week, a new angel investing network launched in the National Capital Region to support new business initiatives, mentor the next generation of entrepreneurs, and of course, generate great returns for investors.
The Capital Angel Network (CAN) is an informal network sponsored by the National Angel Capital Organization (NACO) where angels can view potential investments and discuss them as a group. The goals are to increase the quantity, quality, and success of angel investments in Ottawa, to create a greater pool of capital for innovative start-up companies and to complement existing angel groups.

Laurie Davis, a long time angel investor in the Ottawa area and a member of CAN’s board of directors, took a few moments to share his thoughts.

What was the impetus behind the creation of this new network?

Davis: I meet with entrepreneurs all the time and they tell me they have a great deal of trouble raising money. It’s always been difficult, but much more so in recent times for various reasons. It takes a lot time and effort to find enough angels to give you the amount of money you need. So if you can gather a number of angels together in a group, it saves the entrepreneur a lot of time and effort.

From the angel’s point of view, I enjoy working with others in a group and hearing their perspectives on things before agreeing to commit money.

What are your key objectives and goals?

Davis: Obviously this is only a useful exercise if companies get funded. In the end, the goal is to have people fund companies they find useful and interesting. We are going to track what happens and see if by the end of the year we have four or five companies that have been funded.

How is CAN different from other angel investor organizations that we have seen in Ottawa over the years, such as Purple Angel, Band of Scoundrels and the Ottawa Angel Alliance (OAA)?

Davis: I am a member of Purple Angel, a founder of OAA and friends with members of Band of Scoundrels. What are we doing different? We got some feedback when OAA wound down that there wasn’t much appetite for a formal organization. With OAA, you had to pay membership dues and commit to a certain level of investment. People didn’t like that level of formality. The bottom line is to try something different until you find something that works. The challenge of course, is to make sure you have real investors, as opposed to the room getting filled up with lawyers, accountants and other service providers looking for business. With the informal model that becomes a little harder, but we’ll be watching it.

Where do you think we have the most significant gap in turning great ideas into competitive commercial products that make it to market?

Davis: In general we have people who know how to go about building a product, but that whole go-to-market strategy, to know how to get a product to customers and to identify real customers – that’s the problem we have.

How will CAN help early stage companies overcome this hurdle?

Davis: We are not going to be tackling it directly. The key thing is, if you have a group of smart people in a room, the expectation is that someone will step up and help. The whole idea of angel investing is not to just provide money, it is to get involved and help where you can. We hope to see a lot of that.

What do you think of Terry Matthews’ recent announcement of his new commercialization fund?

Davis: It all helps. None of us are competing. There is a problem out there that needs to be solved and anything that can be done to solve it is a great benefit to the community.

What is the future of the venture capital model?

Davis: I wish I knew. It certainly is not pretty out there right now. If you look at it from an entrepreneur’s perspective, it is painful. And they are trying to address that by creating companies that need less capital. There are some businesses that you can launch with a few hundred thousand dollars, but others you simply can’t without tens of millions of dollars – and those are the companies no one wants to start right now. This is a huge problem and I don’t know how it’s going to be resolved. There is talk that institutional investors will invest directly in companies, as they once did – that would certainly help, but I haven’t seen this happen so far.

Technorati Tags: angel investor, angels, Purple Angel, National Angel Capital Organization, NACO, Capital Angel Network, Laurie Davis

For the first time in practically the decade-long lifespan of this technology-focused PR agency, I did not attend any part of the Ottawa Venture and Technology Summit held last week at the Chateau Laurier. Actually, that’s not quite true; I went to a packed StartUp Drinks in the Byward Market on Wednesday night and from there popped briefly into the thinly-attended Young Venture Capitalists OVTS networking event that was happening just a few doors away. But the point is, I didn’t see any of the company presentations, hear any of the speeches or, most importantly, glom onto any of the corridor scuttlebutt that is usually the most interesting aspect of these things.

In the days since, I have heard various reports from attendees from across the investor-entrepreneur spectrum and I have read what little reportage made the public record. Very little of what I’ve heard or read left me terribly hopeful that a new crop of exciting Ottawa technology ventures was about to get funded any time soon. The most consistent sentiment seemed to be contained in the comment VG Partners managing general partner Pat DiPietro made in an Ottawa Business Journal story on the fact that the OVTS and a similar event in Banff had a scheduling overlap. “But on the other hand there are no VCs investing, so it doesn’t really matter right now,” DiPietro said.

This caused me to wonder if venture fairs have passed their sell-by date. Can anyone remember the last company that could claim to have met at one of these things the connection that led to successful funding?

Then my pal James Smith weighed in on his newish blog, Startup Great White North. Unlike me, James not only attended the Ottawa venture fair, he also winged out west to the Banff shindig. Despite the fact he there witnessed “institutional investors focused principally on shaking off modest Thursday night hangovers and cradling Blackberrys and iPhones like long-lost friends” rather than paying attention to the entrepreneurs’ pitches, he decided in the end that investors don’t regard those pitching companies “with the attention my mini-van driving wife might give to passing picked-over roadkill on the road to our cottage.”

I’m not sure I’m as persuaded as James but he does go on to provide a solid list of techniques that serious venture-seeking entrepreneurs can deploy to improve their outcomes from such an event.

While we’re on the question of the utility of VC fairs, we might as well start asking questions about the utility of the VC model itself. We have begun work on a series of articles about this very question. We will look at who is actually funding startups in Canada, the U.S. and Europe. We’ll ask experts which pieces of the model work and which don’t. And most importantly, we’ll examine the state of the ecosystem beyond VCs that needs to be in place to help companies, especially those that will never be VC-fundable, bring their technology to market. We’ll look at the proliferation of new government funding here in Canada and compare it with what’s in place in other markets. If you believe you have a perspective on this, we’d love to hear from you. You can email me at fmoran (at) inmedia.com.

Technorati Tags: Venture capital, investment, Ottawa Venture and Technology Summit, Banff Venture Forum, Pat DiPietro, James Smith, technology, technology marketing

A weekend-long, competitive startup boot camp in October that will see the winning team take away $5,000 in seed funding was the most interesting piece of a coherent new programming line up announced last night by The Ottawa Network, the city’s grassroots networking club for the technology sector.

The startup camp, which will be repeated in the spring, was the second of four “program pillars” revealed by TON president Rick O’Connor. The first pillar, Network, will see TON continue to hold business networking and educational events, although at two a month, these will happen only half as frequently as last year’s somewhat over-ambitious weekly schedule. The third pillar, Finance, will feature a repeat of last year’s popular Founders and Funders dinners that saw angels and venture capitalists rub shoulders for an evening with entrepreneurs looking for funding. Details of the final pillar, Grow, will come later.

TON will also start charging a membership fee for the first time since it was founded in 2001 by a cohort of down-sized refugees of the telecom crash who gathered together to commiserate and help each other found new ventures and find new jobs. General membership will cost $25 per year in a move O’Connor said the organization hopes will lead to a more committed, targeted and involved membership.

The first startup boot camp is scheduled for October 23 to 25, and TON hopes to attract up to 75 participants who will self-categorize themselves into the various functions a new company needs, such as development, marketing and so on. On the Friday evening, as many as a dozen of the participants will pitch their ideas for a startup and teams will be formed based on who else wants to join them to work on that pitch for the weekend. On Sunday evening, each team will make its pitch, with the winner coming away with $5,000 if it incorporates as a fresh start-up.

TON’s new programming line up is a welcome evolution for an organization that significantly revitalized itself last year after a couple of years of fairly moribund existence. We’ve been big supporters of the network almost from the beginning, and I saw several instances last year where exciting new ventures got a solid helping hand as a result of a TON initiative.

Even better, in my view, is the introduction of a membership fee. As Shopify founder Toby Lutka said at a different event a few months ago, “Twenty four dollars is a slightly more annoying version of free.” His point, which I thoroughly endorse, is that if you have created something of real value, people ought to be willing to pay you something to use it. Not incidentally, in the process of charging for something, you also find committed customers, rather than just tire kickers. Those who can’t afford the fee — TON has always been attractive to those looking for work or operating ventures on a shoestring — can still attend up to three events a year without paying anything.

I’ll be a regular at TON events both for its inherent value to my own business and so that I can continue to bring its news to readers of this blog.

Technorati Tags: The Ottawa Network, startups, startup boot camp, Founders and Funders, technology

If last night’s standing-room-only three hours of drinking-from-a-firehose delivery of hard-core business education was anything to go on, Ottawa’s entrepreneurs are hungry to learn from experienced veterans just how to manage, finance and market their companies.

Entrepreneur’s Edge, or e2, is a professional-development program that the Ottawa Centre for Research and Innovation has offered for four years. In an inspired cross between effective promotion and community outreach, program manager Peter Fillmore decided to offer a stripped-down version of the five-day curriculum. That gave rise to last night’s staging at TheCodeFactory of e2-Lite, an intensely concentrated introduction to the joys and perils of founding and managing a technology startup.

More than 50 people took up every available seat in the room, and all but a very few stayed right through to the end of a trio of presentations by Jim Roche, Rick O’Connor and Rick Norland. While the condensed nature of the content meant that bits of it were somewhat fractured and the presentation slides were densely packed, the staying power of the audience was testament to both the quality of the material being delivered and the ready appetite for it.

Technorati Tags: Entrepreneurs Edge, e2 Lite, OCRI, TheCodeFactory, entrepreneurship, professional development

Ross Video is not as well known as some companies in the Ottawa area. And yet, it employs 300 staff between its operations in Ottawa and the small community of Iroquois about an hour south, and has enjoyed average annual revenue growth of 20 per cent since 1991.

Ross Video makes a variety of video-production equipment used for broadcast and live events.  Its products ship all over the world, with customers that range from major television networks, Scotiabank Place and the Vatican to the Red Hot Chili Peppers. The company’s success has earned it some kudos. It won an OCRI Technology Company of the Year award in 2005, a Gemini Award for Technology in 2007 and an OCRI Product of the Year award in 2008. Still, it doesn’t command the immediate name recognition as other names in the Ottawa tech sector. Perhaps that’s due in part to the fact that the Ross Video name lacks the infamy associated with some of those other names.

As an Iroquois boy myself, I couldn’t help but chuckle at the irony as second-generation chairman and CEO David Ross talked about the company’s obvious staying power at this morning’s OCRI Technology Executive Breakfast.

For anyone who knows it, Iroquois is a quiet village on the shores of the St. Lawrence River with fewer than 1,500 residents. It greatest claim to fame was its wholesale relocation to higher ground during the construction of the St. Lawrence Seaway in the 1950s. This humble setting is the hometown of a success story that has more than a few lessons to teach to the Ottawa technology community about what it takes to build a global player.

The company was founded by David’s father, John, in 1974 with seed money earned from the sale of his prized Second World War twin-seat training airplane and a bank loan for a grand total of $8,000.

John Ross founded the company with two guiding objectives:

• Have a family-owned business
• Maintain control of his own destiny indefinitely

The emphasis has always been on building a company to last, rather than one to sell, which, as David stressed, is a tougher road that requires a far different mindset. It’s not enough to think a fiscal quarter or a year ahead, but a decade ahead. It is this emphasis on private control without diluting ownership through external investment, and the long-term business strategy this demanded, that has helped build a company well prepared for any economic downturn.

Among Dave’s best practices to build an enduring company:

• For its first 18 years, Ross Video sold only video-production switches and was hammered by recessions in the ’80s and ’90s. This taught the value of diversifying the product line to help make the company more resilient to downturns. One way was to develop more economical and stripped-down versions of its products. The Lamborghini model may sell well when times are good, but the Kia version will still sell well when times are tougher.
• But . . . don’t wait until a recession has struck to design the Kia model. When times are good, re-invest profits in research and product development. About two-thirds of Ross Video’s product line has been introduced within the past three years.
• Make sure your products touch on as many edges as possible with common markets, customers, materials, manufacturing processes and so forth. This drives a lean and efficient operation.
• Diversify the customer base, both by market and geography.
• Don’t sit on a pile of cash. Again, invest in new product development and diversification. “If the downturn is long term, the cash will eventually evaporate and only postpone layoffs.”
• Spread your technology bets. For example, don’t bet the company on some new emerging technology at the expense of older legacy products that still have a solid market. Again, diversify.
• Partner. Partner on marketing, sales channels, product development, manufacturing — whatever it is where your company is strong and another is not and vice versa. Ross Video has built a partner channel with more than 20 other smaller companies in its space that, for the most part, are in some fashion a competitor. And yet, these partnerships are beneficial on both ends.
• Consider carefully where there is the most benefit from outsourcing a process versus keeping it in house. Ross Video still prefers to keep its manufacturing inside the company and has taken advantage of new technologies to improve the cost efficiency of these operations.
• Take advantage of government funding, such as through IRAP or the SR&ED program.
• Customer service is critical, especially if you are second or third in your market. “People buy from people they like.”
• By the same token, “People work for people they like.” Treat staff with respect, invest in them and have regular celebratory events.
• Manage growth. Don’t be greedy and look to grow too fast. Ross Video has walked away from more opportunities than it has pursued.

Technorati Tags: Entrepreneurship, OCRI, Technology Executive Breakfast, Ross Video, business development, management, video production, manufacturing, marketing, diversification, product development

“Venture capital is dead. It’s gone.”

Sir Terry Matthews didn’t mince words Thursday morning as the keynote speaker at OCRI’s Technology Executive Breakfast. Not that he ever does. And while some might argue that statement about the status of Canada’s venture capital industry, or at least its level of activity in the nation’s capital, may be a bit premature, that’s not the point.

The point is, who cares?

Matthews and partner Michael Cowpland began the first incarnation of Mitel in 1972 with persistence, sweat and a $4,000 bank loan. That was enough to get their first product to market in nine months. This was followed by Mitel’s breakthrough product: a PBX phone system with a software switch. Mitel beat out about 40 larger competitors to win a watershed contract with AT&T, the first time, Matthews said, that the telecommunications giant contracted out. That deal, and a $250,000 grant through Canada’s IRAP program, took Mitel from zero to a 20-per-cent global market share in five years and made millionaires out of penny investors.

And while sheer persistence and hard work were part of the secret sauce for Mitel’s success, and for every success Matthews has had since then as the man behind the creation of more than 80 high-tech ventures, he cited an even more important ingredient: the core competency of partnerships.

Partnerships build technology clusters. Partnerships allow a company to capitalize on another’s strengths without having to carry the overhead of developing a  particular area of expertise in house. Partnerships take advantage of another’s time and money invested in R&D to compliment your own.

Matthews holds Nortel’s utter aversion to partnerships to blame in no small degree for the company’s misfortunes.

And while there undoubtedly are challenges in the marketplace at present, Matthews insisted there is a resurgence at hand as ambitious and nimble entrepreneurs of the next generation make their mark. They just need a commitment of time and mentorship from those with experience and money to invest. Venture capital is irrelevant. Time is what’s important.

Matthews’ approach is to find the key contact in a post-secondary institution passionate about commercializing ideas into start-up companies to help him cherry pick the cream of the crop from among new grads. He wants to work with the handful who have the drive, ambition and adaptability critical to surviving and thriving in tough times. He puts these teams together, puts his resources behind them, and sets out to identify and develop a viable product and market niche. By engaging with the market, he will guide this team through the process of honing, refining and focusing the idea until there is a viable business ready to be formally launched.

In return for this intensive mentoring and a high-pressure work schedule that pays little attention to weekends and holidays, each team member is paid the lofty salary of $25,000. However, what they should be paid but are not is parlayed into ownership stakes in the new company.

Matthews believes there is no more effective way to quickly bring a product to market. And being first to market is the only way for North America and Europe to compete in a global economy that is now flat with few if any true trade barriers. With Asia pumping out engineering talent that works for a 10th of what ours does, trying to compete on cost is a death sentence.

So the next time you hear someone pining for the return of the good ol’ days of the telecom boom, or whining about the demise of the venture-capital industry, do as Matthews does and take a chapter from Darwin: it is not the strongest or the most intelligent that survive, but the ones most capable of adapting.

Technorati Tags: Terry Matthews, Mitel, Nortel, startup, IRAP, venture capital, OCRI, business development, commercialization

“Even if there’s blood on the street there’s always somebody making money. You just have to make sure you’re on the right side of it.”

The son of poor Croatian immigrants, he sold his first company for $100 million in 2000. His second company, launched in 2003, is now the largest privately held IT solutions provider and integrator in Canada. When not residing in one of his posh homes, he holds court in CBC’s Dragon’s Den.

Robert Herjavec is a living example of what hard work and vision can achieve. He took the stage to close out this week’s 2009 Ottawa Business Summit and treated his audience to his insights on what it takes to achieve business and personal success.

I scribbled furiously the entire time he spoke and have distilled his pearls of wisdom to the following:

1. There is no stereotypical external factor for success. Fame and fortune is not reserved for the beautiful people in the world, nor can a successful person be judged by appearances. One of his neighbours has a company with 12,000 staff, an original Monet on his wall and a 15-year-old car in the driveway. And, bad people do succeed. “There are people who beat their dog and run a great business.”

2. However, he has never met a successful person who didn’t have a purpose, and that purpose must be more than the accumulation of wealth. If all one pursues is money, they will hit a wall. Herjavec’s goal was to build the best company in its industry. The money followed.

3. Achieving that success requires vision. When he started his second company, the problem was too much available money and not enough vision about what it should be. Money keeps you in the game. It doesn’t make a good company.

(Geez, have we learned that lesson in Ottawa after the VC excesses of the tech boom?)

4. And on that note, with particular relevance to Ottawa: If you build a better mousetrap, the world will not beat a path to your door.  There is no such thing as a good idea. It’s all about execution. Sales and marketing. And while he would hire the fellow who can sell ice to Eskimos, Herjavec would much rather have the fellow with the foresight to sell water in the desert beside a broken-down bus.

5. “Discipline is the art of doing what is necessary even when you don’t want to.” Inaction is easy. Citing his own recent experience running a marathon for the first time and the amputee with a prosthetic leg who passed him, Herjavec put it plain: “Winners find a way, losers find an excuse.” Which invariably means, ”For you to win, somebody has to lose.”

6. The importance of leadership, which he defined as the ability to get people to do something they wouldn’t otherwise be able to achieve–lift them from their comfort zone.

7. It’s all about sales. “Nothing matters until you sell something.” Which also speaks to the value of branding and marketing to drive those sales. But after sales comes service - sales may sell the first night in a hotel room, but service will keep the guest coming back.

8. Business is a sprint. “You’ve got to go now.” It’s better to take action than sit around planning the next five days. Once you secure an opportunity, then it becomes a marathon.

9. Feed the whales, not the minnows. Especially in a tough economy, devote your time and effort to those prospects, those core customers, who will support your business in tough times. He didn’t cite the 80-20 rule, but it obviously applies. For example, Herjavec’s business positions itself around high value, high touch service. When faced with a customer who likes to shop around and bargain hunt just to keep his suppliers on their toes, his preference is to dump them in favour of more loyal customers who appreciate the value of what they are getting for their money.

10. And when it comes to suppliers for your business, it’s a love/hate relationship. At the end of the day, your business is your business and they’re looking out for their business, not yours.

11. Learn to focus, which he defined as the ability to make the most of the 24 hours in a day and ”distinguish the truly important from the urgent that happens every day.”

12. Your business is not your family, it’s just business. Avoid emotional attachments.

13. Make it fun and be resilient. Nobody likes a negative person. What’s important is not what you say, but how you make people feel. There may be really bad days when you just want to walk away, but that just proves you care. What’s vital is having the resilience to believe that tomorrow will be a better day.

14. It’s not who you know, but how brutally honest you are with yourself. “The worst lies you tell in business are the ones you tell yourself.”

15. And lastly, business is like a game of Whac-A-Mole. Keep swinging until you hit something.

Technorati Tags: entrepreneurship, management, Robert Herjavec, Dragon’s Den, Ottawa Business Summit

“What we’ve done is turn our people into raving capitalists.”

Not the label one might think to apply to the employees of Canadian airline WestJet, but that was how Duncan Bureau, WestJet’s vice president of sales, characterized the company’s singular focus on customer service while delivering the opening keynote at the 2009 Ottawa Business Summit this week.

The summit was a joint effort between the Ottawa Business Journal, The Canadian Association of Family Enterprise and the City of Ottawa to provide business owners and executives with education, information and inspiration.

In a cut-throat, commoditized business that’s seen dozens of players fold in the past couple of decades, WestJet has in 13 years grown from an upstart, with three planes serving only a handful of destinations in Western Canada, to a fleet of 76 planes, 55 destinations, $806 million in cash and one of the highest earnings before tax margins among North American carriers.

Key to WestJet’s success has been its focus on cost efficiencies and finding ways to keep its fleet flying and generating revenue, such as partnering with Transat to fly its short-haul routes when Transat’s own narrow-body aircraft fleet for that purpose grew tired.

But perhaps the greatest difference has been made by a corporate culture that makes employees owners with a vested interest in the organization’s success. At present, about 87 per cent of WestJet’s employees are shareholders in the company. The value of profit-share payments to employees to date is approaching $150 million, more money, Duncan pointed out, than many airlines have made in that same period.

While this model may not be for everyone, in an industry where service is the strongest differentiator, the WestJet example includes a number of common sense lessons to achieve top-notch employee engagement and performance.

1. As Duncan emphasized, travellers are considered guests, and this emphasis on serving the needs of guests has resulted in 90 per cent of travellers who use the airline recommending it to others.

2. Build a culture of opportunity rather than entitlement, in which employees feel confident in taking the initiative to ensure an optimal customer experience. Employees are empowered to act and think like owners. At WestJet, “great customer service comes from the heart, not from a manual.” There is no weighty policy book. Nor do executives get the kinds of perks that create a divide with the rank and file, such as reserved parking.

3. Hire for attitude and train for ability. Except for pilots, of course. As Duncan said, he can’t make someone smile and demonstrate enthusiasm for their job.

4. Celebrate success and recognize excellence frequently and loudly.

5. On the flipside of that, don’t hesitate to sack the “duds” who don’t fit in or are not performing and threaten to poison the organization.

6. Communication. Communication. Communication. Maintain an active dialogue (which means the listening is happening on both ends) with employees.

7. And lastly, imbed in your culture the lessons learned in Kindergarten — share, play fair, don’t hit people, put things back where you found them, don’t take things that don’t belong to you, say sorry when you hurt someone, look both ways before you leap, and keep the balance between work, life and play.

Tomorrow I’ll offer the Dragon’s perspective from the afternoon keynote by Robert Herjavec, one of the five dragons on the CBC television series, Dragon’s Den.

Technorati Tags: Ottawa Business Journal, Canadian Association of Family Enterprise, City of Ottawa, WestJet, Duncan Bureau, management, employee engagement, retention

It was business building 101 this morning at OCRI’s monthly Technology Executive Breakfast, with three executives representing different stages of a company’s growth offering pearls of wisdom and insights learned at the School of Hard Knocks.

Mark Edwards, president of Bent 360: MediaLab represented start-up companies; Rob Woodbridge, CEO of Rove, spoke for growing companies, while Jim Roche, founder and former CEO of Tundra Semiconductor and president and CEO of business and management consultancy Stratford Managers, represented established companies.

Here’s a rundown of the key points discussed by the panel:

1. Diversity among a group of partners or company founders is key to ensure one person’s weaknesses are offset by another’s strengths. Diverse backgrounds and skill sets are vital.

2. Focus. Focus. Focus. A company must have a clear understanding of its own identity. To whom is it selling? Why? What is its value proposition? As Jim commented, if an organization suffers from this lack of clarity, there will be confusion within the ranks, people will come to work at cross purposes and revenue growth will stagnate. Rob shared his experiences about the benefits of Rove’s decision to refocus around one single enterprise product rather than chasing multiple opportunities in both the enterprise and consumer markets with eight products.

3. There is no such thing as overnight success. Citing author Malcolm Gladwell and his book Outliers: The Story of Success, Jim talked about the 10,000-hour rule — the amount of hard work needed to truly master something and achieve success. He contended that behind every “overnight success story” there are, in fact, years of effort under the radar and behind the scenes.

4. Cold calling. Few people tackle this one with gusto, but as the panelists emphasized, if you start with people you know, your list of prospects will run out in short order. If you’re not making contact with clients or prospective clients on a regular basis, then you’re not in business. Mark himself aims to make five calls a day (not necessarily all cold). He emphasized the importance of using tools and databases such as LinkedIn, Dun & Bradstreet and Hoovers to develop contact lists. From there, the trick is to start calling and work through an organization until you have found the receptive individual who has buying authority, or can serve as your internal advocate with those that do. Just leaving a phone message breaks the ice and makes the follow-up call a warm one, he said.

5. When to shake up the management team or make a change was also discussed. Jim acknowledged that most organizations tend to be slow to identify and act on weaknesses that affect an organization. He emphasized the importance of executives acting on their gut instinct since they rarely have the luxury of making a decision with all the facts in hand. If you think there is a problem, there likely is. He considers it a sign of good leadership to be able to provide clear and consistent feedback on a subordinate’s performance with direct, and even brutal, honesty.

6. The value of mentoring was also discussed, not just in receiving it, but in giving it. According to Mark, the rewards flow both ways and he isn’t afraid to seek out as mentors people younger than himself if they have opinions he values and experiences that are relevant. Jim commented on more formalized mentorship in the form of advisory boards or boards of directors and spoke about the leads these people can provide into new customers or financing opportunities.

7. And then there was the cold hard truth that any company operating in the B2B space will have to look outside of its own backyard if it wants to growth. Jim said a Canadian B2B company should expect 70 to 80 per cent of its revenues to come from outside its home market. And though it is a challenge for an earlier-stage company to manage it, a presence on the ground in a foreign market, especially one as distant both geographically and culturally as China, is critical. The challenge is ensuring these staff remained linked into the organization and its culture through frequent contact with the home office, both by phone and in person.

8. And lastly, I can’t fail to mention Mark’s endorsement of engaging with a PR resource to help raise a company’s profile in its target markets.

Technorati Tags: entrepreneurship, business development, marketing, management, leadership, OCRI, Malcolm Gladwell, Outliers, B2B

Although it had its genesis in a consulting practice that was already several years old, and its first employee had been in place for several months, inmedia Public Relations Inc. was legally incorporated on November 5, 1998, and so today is our tenth birthday.

I would be less than forthright if I said that 10 years after launching a technology focused PR firm that I had accomplished what I thought would be in place a decade out. The tech meltdown damn near put us under and the continued severe contraction of Ottawa’s tech sector means we have slim pickings here at home. And my initial business proposition, that we could create an agency of excellence and extract a premium from the marketplace for that excellence, has proven to be a tough pitch in a market that too often has yet to be weaned off mediocrity.

But we survived the meltdown, the only exclusively B2B technology PR practice in the city to do so. Today, we get very well paid for our excellence from clients who have come to understand the difference. And our deliberate business development strategy over the past three or four years has been to embrace Ottawa clients certainly, but also to aggressively pursue business anywhere and everywhere we see a good opportunity.

My excellent colleague Danny Sullivan’s self-repatriation to his native Scotland a few years back opened a whole new front for us, and our far-reaching Google Adwords campaigns and this blog have brought us amazing opportunities from many other corners. With Ottawa accounting for about 35% of our revenues, we have embraced clients and projects in Calgary, Toronto, Montréal, Fredericton, Moncton and St. John’s; in Boston, Jersey City, San Jose and Chicago; and in Edinburgh, Glasgow, Farnborough and London.

If the business outcome has not been everything I hoped for 10 years ago, the experience has been nonetheless incredible. Most noteworthy has been the extraordinary people who have come to work with me here at inmedia. In an industry where average employee tenure has been pegged at less than a year, inmedianauts tend to hang around for much longer, with the average tenure here topping three years and some having spent five, six and even seven years on board. The consultants who work here are the real product that we sell, and I have had the unmitigated pleasure of consistently being able to bring to market the very best product in the PR industry, period.

Similarly, we have worked on some amazing projects with some of the brightest minds in technology, business and marketing. Our web site lists nearly 90 clients with whom we have worked over the past 10 years, and each and every one of them has represented a unique story, a unique set of market dynamics and a unique set of media and analyst targets to whom that story needed to be told. It is this ever-changing nature of the business that makes PR consulting so fascinating to me.

It has been rewarding, challenging and frustrating, as most any worthwhile venture inevitably is. It has also been a period of considerable personal and professional growth, and I look forward to learning even more as this little PR company continues.

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