1. Recognizing Opportunities and Partnerships
(always be selling in a limited resource environment)
Monday, October 24, 2016
@ CET SQ1 • StL, MO

2. Manage Expectations ProductCamp style presentation format
~30 minute presentation with ~20 minute discussion, Q&A ongoing throughout
Experiential/case studies format
Peer learning – contribute or get called on
No right answers/no wrong answers
Yes, noted that there is great variability across industries, companies, strategies, etc.
Minimum number of slides – most successful presentations don't get through their slide deck
Our objective today is to understand the breadth and importance of seeking partnership opportunities
Examples?
Questions?

3. Opportunity Ideas are a product that you are always selling
Seek any opportunity to extend your startup runway
Opportunities should not be limited to product sales
Think backwards from what you want/need to scale the product/business that you are trying to create
Engineering expertise
Production efficiency and capacity
Distribution access (including vendor numbers)
Regulatory knowledge
Other
Examples?
Questions?

4. What works? Keep it simple! Mutually beneficial long term
Financial upside to grow with your business
Responsibility, leadership and project ownership
Same stage of career/development
Similar strategic goals
Aligned interests
Examples?
Questions?

5. Potential Upside Extend runway – how many months do you have?
Increase company/product market profile
Stronger sales team
Access to labs & facilities
Engineering & unique technical expertise
Expanded access to markets
Enhance marketplace and buyer credibility
Direct access to investment capital
Efficiency improvements/lowered costs
Access to proprietary flavor profiles or recipes
Procurement synergies
Regulatory environment technical expertise
Examples?
Questions?

6. Potential Downside
Lack of middle management responsibility – nobody has responsibility for success/failure on the deal
One partner company gets sold
Change in senior leadership results in swift change in strategy or reallocation of support resources
Lack of underlying strategic alignment
Product lifecycle considerations
No clearly defined means of peacefully exiting
Capacity oversold
Other
Examples?
Questions?

7. Examples Really big companies also seek partnerships
Partnerships can enable efficient access to a market or technology
Sometimes these relationships are simply sales contracts
And sometimes they are joint ventures in their own right
Examples?
Questions?

8. Sales Partnerships and Strategies
(profit before prestige, not all accounts pay the same)

9. Practice Your Sales Story
Start w/ you – what is your entrepreneurial journey? Why will people remember you?
What is your product’s unique selling proposition? How does it help the buyer?
Why do you need this particular sale?
What is your minimum threshold to do business?
What value-adds could be offered?
Examples?
Questions?

10. Understand Account Motivations & Objectives
Know the account – what is the buyer’s pain?
Retail buyers are motivated by:
Profit margins and sell through/turnover
Exclusivity/uniqueness
Sourcing local suppliers
How will you alleviate their headaches?
Traction counts – build up a marketplace presence online and at smaller retailers
Start small; undersell and over-deliver
Examples?
Questions?

11. How much does it cost you to successfully sell them?
Slotting fees – are there local supplier programs to avoid slotting?
Soft costs of managing multiple SKUs
Customer service expectations – 24/7/365 vs 9 to 5 weekdays
What do you have to offer – SKUs, flavors, even consumer insights and knowledge
Future plans and roll-out considerations
Examples?
Questions?

12. Know your options High margin Low turns Forgiving
Community values quality
More buyer/seller facilitator than store
Low margin
High turns
Not even remotely close to forgiving
Low price and on-time delivery are the only attributes valued
Will short invoices
Examples?
Questions?

13. Know your options Exurban/rural focus Agricultural emphasis
Families w/ kids
Very pet centered
Dominant but in a still fractured retail market
Low margin, High turns
Not even remotely close to forgiving
Low price and on-time delivery are valued
Looking for contractor cross-over items
Consolidated market
Will short invoices
Examples?
Questions?

14. Account Strategy is Important
Not all accounts are equally profitable
Some accounts require excess time to manage
Oftentimes a vendor number is required
Large accounts will take deductions which can be a survival threat to your business
Smaller accounts are generally:
Easier and less stressful to work with
High margin business
Great test locations for new products
Examples?
Questions?

15. Contact St Louis Makes Marc Bowers
• LinkedIn: search Groups for St Louis Makes
• www twitter com/StLouisMakes
• www facebook com/StLouisMakes
Marc Bowers
• www linkedin com/in/MarcBowers
• www twitter com/MBowers95