#So... you think it's pro-capitalism to start your own business instead of relying on pennies from the exploitative mega-corporation?
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twilight-deviant · 7 months ago
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Telling content creators it's wrong to explore artistic freedom and be independently funded by fans, and they should instead continue taking advertisement revenue from google* is
NOT
the anti-capitalism stance actually.
*(Yes, google owns youtube.)
#Watcher#This post is specifically and exclusively about the people who seem to have the capitalism bit wrong#It's almost fascinating how no one is hearing themselves speak#I feel like some of you don't understand WHY we support small businesses and are anti-monopoly#I've seen multiple posts saying “Shane is so anti-capitalism there's no way this was his idea.”#So... you think it's pro-capitalism to start your own business instead of relying on pennies from the exploitative mega-corporation?#Guys... we support small businesses KNOWING it will cost the consumer more#Stop thinking you're entitled to someone's product#That's what got us in this mess#I understand $6 is a lot for many many people but that is what makes certain things a luxury#Nothing used to be this way#Nothing used to be “free” so you can be monitored for your viewing habits and sold to advertisers#If you see a little guy trying to leave youtube/google and you paint them as the capitalist??? You. have. taken. a. wrong. turn.#I don't know how many more ways I can say it#It is better to support someone (if you can) than to pressure them into taking money from the trillion-dollar corporation#so that you can have what they put all their blood/sweat/tears into for free#If you want something badly enough you're going to have to pay for it#Them's the breaks#If you don't want it that badly then maybe it didn't mean enough to you personally#Thinking otherwise is how corporations like youtube take over and squeeze out small competitors#btw on monopolies: having almost every single video content creator (outside of tiktoks and video game streams) on youtube is BAD#You understand that's bad yes?#How tf are we going to diversify unless SOME CREATORS leave youtube???#It's almost the responsibility of larger creators to do so#Ironically what I said is backwards#In its ideal state‚ capitalism is supposed to inspire innovation and new business‚ giving every person a chance to succeed#But I think we all know that's not the reality we're experiencing#I just went with what everyone means when they say it
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ourmrmel · 6 years ago
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Free Online Tools for Setting up a New Business by Mel Feller, MPA, MHR
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Free Online Tools for Setting up a New Business by Mel Feller, MPA, MHR
President/Founder of Mel Feller Seminars with Coaching For Success 360, Inc. and Mel Feller Coaching with offices in Texas and in Utah.
 Whether you have a traditional, local brick and mortar store or an exclusively online business, you will need a set of online tools to make setting up your online presence both simple and efficient.
 Growth is usually considered positive and desirable. It is often regarded as a measure of success and something that should be pursued. While this is true in many cases, business growth can  present its own set of problems and challenges.
 Those in business generally have limited resources and this can increase the risks associated with growth, especially when it occurs quickly or is unplanned. As the owner of a growing business, you need to learn to manage growth.
 First, you should take time to consider what growing your business will really mean and the implications of operating a larger enterprise.
 If you are ready to take the next step and grow your business, you can access the tools that I have listed below.  I have really tried to focus on the best and the free ones. After all, a penny saved is a penny earned!
 Legalzoom.com
 Every new business needs a quartet of business support services. If you are setting up a standard corporation, LLC, partnership, proprietorship, or even a not for profit, Legal Zoom not only has the necessary forms for your state, but also the available consultation where you can speak to an actual attorney and get many of your questions answered. They also can help you with patents and trademarks for your business, a necessity for the open frontier of the Internet.
 Freshbooks.com
 Trying to keep the books yourself creates two problems: 1) it takes the owner away from their primary focus of the business and 2) it opens the door for the possibility of paying too much in taxes. Online accounting software has become increasingly popular in recent years because it allow a business owner to have an actual accountant periodically review their books while giving the owner control over the day-to-day accounting operations with little time investment. Freshbooks has the best combination of ease of use and powerful features, requiring little time to keep your data safely stored in the cloud and focus on your business.
 Squareup.com
 Without billing, it is impossible to trace individual transactions and begin increasing your bottom line. Squareup is the place to go for new businesses who have a strong personal presence in their community and can make a sale fast. Squareup offers a free square that you connect to your smartphone for instant billing and sales, with no monthly or hidden fees. You will get access to your deposits within 1 to 2 business days, eliminating the need for waiting on payment from checks or money orders.
 Squarespace.com
 Squarespace is a popular platform that has award winning designs and templates that will get you up and running quickly. The templates can be easily customized, and you can use your own artwork to give your website a unique and personal branding.
 Business Development
 From planning to finance to day-to-day management needs, launching a small business involves a steep learning curve. Take advantage of these free resources to gain the knowledge you need as you develop your business idea into a thriving enterprise.
 SBA.gov
 Searching online for information about developing your business idea can result in a lot of conflicting information. For straightforward business education and advice with no agenda, start at the U.S. Small Business Administration’s website—SBA.gov. Here you can find information about writing business plans, tips for entrepreneurs, and trustworthy information about how to finance your business, and more. It is an incredible resource for rookie and veteran entrepreneurs alike!
 Local Small Business Development Center
 Sponsored by the SBA, small business development centers throughout the United States have helped thousands of entrepreneurs launch successful businesses through free business education, consulting, and mentoring services. Find your local center here and call to request support from an SBDC advisor in your area.
 SCORE
 For over 50 years, non-profit business association SCORE has provided education and mentorship opportunities to help small businesses get off the ground and achieve their growth goals. SCORE.org provides free online learning opportunities as well as confidential in person mentoring services throughout the country from volunteer entrepreneurs with years of business ownership experience.
 Business Planning
 Whether you are just starting your new business or refining your existing business model, let these free tools lead the way in your business planning process.
 Bplans.com
 Writing a plan for a new business does not have to mean reinventing the wheel. Check out Bplans.com for sample business plans representing nearly every industry—from caterers to construction companies and beyond!
 Enloop
 Even with a sample plan in hand, starting with a blank word doc to write your business plan is horribly intimidating. Use Enloop to easily create a professional looking business plan complete with 3-year financial forecast reporting, and even get a free business plan score to help take your plan from good to great.
 Your first business plan is free, with affordable subscription rates for additional plans and added features.
 Business Financing
 Unless you happen to be independently wealthy, figuring out how to raise capital may be the most overwhelming challenge you will face as an entrepreneur. Should you look for investors, or borrow from a bank or online lender? Check out these free resources to help you in your quest to fund your small business.
 AngelList
 Whether you are looking for investors or hiring your first employees, Angel List is your must-have resource for startup recruiting. Hundreds of startups have been matched with angel investors on the site, gaining much needed capital to grow their businesses.
  Kickstarter
 Want to crowdsource your business funding without giving away equity? Launch a funding campaign with Kickstarter: a free to sign-up crowdfunding platform that helps you recruit micro-donors for your business. You can incentivize your donors with future products or gifts of your choice, and Kickstarter will take a small percentage only if your campaign is fully funded.
 StreetShares
 Tell your story and get a loan for your business. StreetShares is a free online marketplace that will connect you with peer-to-peer lenders for small business funding. Instead of relying only on your credit history, you can complete StreetShares quick application and recruit lenders by sharing your story and demonstrating the value of your business idea.
 Design
 With an abundance of free tools online, creating a professional and visually stunning digital presence has never been easier. Check out these free tools to generate high impact eye-candy for your brand.
 Canva
 Want the look of professionally designed graphics for your blog or marketing materials without the cost or the expertise? Canva will be your new best friend. Use pre-formatted templates to create social media banners, blog graphics, marketing flyers, and much more. Free and idiot proof, Canva will make your amateur, no-budget marketing effort and make you look like a seasoned pro.
 Pablo
 If just the thought of graphic design makes you sweat, Pablo by Buffer is a great place to start. Make your social media stand out with beautiful images created from your text in under 30 seconds. Even your grandmother can do this. We promise.
 Piktochart
 You see those incredible infographics buzzing through your Twitter feed and think “that must have taken a trained graphic designer hours to create.” However, did you know you could create similarly high impact infographics for your business, for free? Piktochart offers beautiful templates and easy-to-use tools that even non-designers can use to communicate information in a visually compelling way.
 Email
More than anything else, being a business owner involves a lot of email. For making decisions, communicating with staff, marketing to customers, and more—you likely live and die by your inbox. Check out these free email tools to make your email life a little more manageable.
 Gmail
 Call me biased, but I will state without hesitation that Gmail is the best there is in email communication. Whether you are using a standard free Gmail account or you have connected Gmail to your business email account, you cannot beat the easy to use organization of Gmail for archiving and inbox management.
 Boomerang
 Have a brilliant idea in the middle of the night, but don’t want to blow up your team’s inbox until morning? Alternatively, do you need to follow up on an email in a week, but need a reminder to do so? This awesome third party Gmail add-on for scheduled sending and follow-up reminders will help you restore some balance to your email.
 Free for the first 10 scheduled messages per month. Nominal subscription for unlimited messages and additional features.
 Organizer by OtherInbox
 Organizer does exactly what its name implies—organizes your inbox. Once it’s added to your email, it will automatically sort through the hundreds of promotional emails, receipts, and newsletters into the folders of your choosing. Designed to prioritize the most important emails and securely keep them at the top of your inbox, Organizer is the ultimate time saver for those whose inboxes are perpetually stuffed. Because those promotional emails and receipts may become “out of sight, out of mind” once they aren’t filling your inbox to the brim, Organizer also sends a “Daily Digest” email to keep you in the know of exactly what emails have been filed into which folders. That way you can keep an eye on what is coming into your inbox without sacrificing the time to actually sift through each folder while focusing on the emails that are the most critical to you.
 MailChimp
 If you are a minor entrepreneur new to the email marketing game, you cannot beat MailChimp for beautiful and easy to create bulk newsletter content. Send up to 12,000 emails to 2,000 subscribers free. Your prospects will love the beautiful content in their inbox, and you will love MailChimp’s awesome features, including beautiful templates, advanced analytics, easy one-click personalization, and more. Constant Contact is another option that many small business owners try. It can be a little pricier than Mailchimp, but wins in terms of customer support since Mailchimp relies heavily on email and their robust self-service Knowledge Base and Constant Contact has chat, phone, or email.
 Unroll.me
 How much time do you spend every day getting distracted by random junk mail cluttering your inbox? In addition, let us not even talk about the headache of scrolling to the bottom of all those emails for the tiny unsubscribe button, followed by an elaborate guilt trip before you can finally say “goodbye.”
 Just say no to inbox clutter with Unroll.me. Unsubscribe from what you do not need, and roll the rest up into a once daily summary of all your newsletter subscriptions. When it comes to saving time, this might be the best free tool on our list.
 Internal Communications
 Whether you work with a distributed team or just travel a lot for business, these communications tools will help you stay in touch with your crew from wherever you are.
 Skype
 The first (and probably still the best) internet calling service out there, Skype is the standard for video conferencing between computers, as well as wifi-based calling between mobile devices throughout the world. If you need that personal face-to-face connection with employees or clients from far away, free video conferencing between Skype accounts is the perfect tool to use.
 Slack
 Between social media accounts, email, text messages, chat tools, and more, the multitude of ways that team members communicate can get confusing and leave room for communications to get lost in the shuffle. Use Slack to manage conversations with your team members across devices and accounts on one platform. Therefore, you can send an email, receive a reply over text, and follow up with a tweet—and no one misses a beat.
 Sococo
 With all the benefits of a physical office environment without the overhead, Sococo is a dream come true for distributed teams. Just log into your virtual office to see who is working, communicate with colleagues by text, audio, or video chat with a click of the mouse, and make conference calls right from your office. Try Sococo’s free starter plan and you’ll be hooked on the feeling of working in community no matter where you are.
 Money Management
 From accepting credit cards to tracking expenses to time tracking and payroll, the internet is full of amazing resources for managing your company’s finances with minimal headache. But how will you know what works? Check out the free trials for these awesome tools to find the money management workflow that fits your business needs.
 Expensify
 Any employee with experience completing traditional expense reports knows what a pain it can be. And administrators know how much time gets wasted tracking down employees for receipts or other information. With Expensify, you can simplify the expense reporting process with smart scanning of receipts, easy mobile tracking of expenses, and one-click reimbursement options. Expensify offers an always free basic plan, plus a free 30-day trial for team and corporate plans with all whistles and bells.
 Paypal
 Is not accepting online payments holding your business back from growth? Paypal offers easy online credit and debit card transactions as well as recurring payments with no sign-up cost and no direct fee.
 TSheets
 If your business is growing and you are hiring hourly employees, you’ll quickly find that tracking their time spent working feels harder than it should be. Enter TSheets, a GPS monitored app that lets employees track time right from their cell phones and aggregates timecard reports from every member of your team to with little to no effort required from you. Check out this awesome service with a 14-day free trial.
 ZenPayroll
 Once you have tracked your employees’ time, there is still the matter of getting everyone paid. ZenPayroll simplifies the payroll process, giving employees online portal access to update their information and letting you run weekly, bi-weekly, or monthly payroll for your entire team with just a few clicks of the mouse. Get started with a free 2 month trial.
 Productivity
 You have big ideas, you have a business plan, your company is funded, and you even have amazing graphics for your marketing efforts! However, to keep your business afloat day to day, what you need is to simply get things done. Try our favorite free tools for a boost in productivity to move your business forward.
 Evernote
 Many busy, on-the-go entrepreneurs swear by Evernote for keeping track of thoughts, plans, and ideas from wherever they are. The app’s free plan lets you clip content from across the web, create your own notes, share with friends, and comment on documents together. In addition, with seamless integration across all your devices, you can work from anywhere without missing a beat.
 Google Drive
 Have you noticed by now that I am a little Google obsessed? In addition, this may be one of our favorites. Google Drive offers you almost all the same benefits of Microsoft Office, but accessible from anywhere you have online access. Collaborate on documents with colleagues, track spreadsheet changes as you edit, and share with clients quickly without ever waiting for uploads or worrying about having compatible software installed—all free.
 Producteev
 This is your pen and paper to do list on overdrive. Manage projects between multiple users, set recurring events, and track both large scale projects and the smaller steps along the way that make the big to-do’s possible. Producteev is ideal for keeping up with your own work needs as well as assigning tasks to employees near and far.
 Scheduling
 With a growing number of clients and team members to consider, keeping track of who does what when can be a pain. Whether you are scheduling conference calls, meeting, or work shifts, try these awesome tools to streamline the process, saving you time and brain cells for improved things.
 Doodle
 Say “never again” to the headache of trying to coordinate a meeting, dinner, or other event with multiple parties who use different—even (gasp!) non-digital—calendar platforms. Instead, use Doodle to send out a quick poll with available date and time options. Skip the back and forth, let everyone cast their vote, and consider your meeting scheduled!
 When I Work
 Hands down our favorite tool for companies with shift workers of any kind. Instead of endless emails, sticky notes and phone calls to organize your weekly or monthly shift calendar, When I Work will keep track of employee availability, create a balanced shift schedule, notify employees when they work, and let them trade shifts with team members. All you have to do is set your requirements and approve the final schedule.
 Sign up for the 30 day free trial. You will likely find that the time you save scheduling employees through When I Work is worth every penny of the nominal monthly subscription.
 YouCanBook.me
 Consultants, therapists, salon stylists, attorneys, and other bill-per-hour service providers swear by YouCanBook.me for quick and easy client scheduling. Integrate this tool with your business website to allow clients to book services online. You can set preferences and session lengths for different services, and the app integrates directly with your Google Calendar to automatically work around any appointments or scheduling conflicts that may arise.
 In addition, as long as you do not mind the minimal “powered by YCB” branding, the standard scheduling service is always FREE!
 Social Media
 Every business owner knows you need to be on social media. Actually following through on a social media strategy is another matter entirely. Try these great, free tools to streamline your process and maximize your social media ROI.
  Hootsuite
 Publishing individual social media messages in real time is a drain on time and a recipe for low engagement. By signing up for Hootsuite, you can manage multiple social profiles from a single dashboard. Schedule posts, track mentions, engage with followers, and measure the effectiveness of your social media content, at no cost. It is the go-to tool for keeping your social media accounts in line.
 ManageFlitter
 If Twitter is a big part of your brand development, ManageFlitter is an awesome tool for improving your results. Easily unfollow dormant accounts, track useful analytics, and boost relevant followers with ManageFlitter’s free limited plan.
  Instasize
 If you manage social media accounts for your small business, you know the difficulty of editing on mobile for different apps. With InstaSize, you can format and edit videos and photos for Instagram, Twitter, YouTube, and more, with ease. The app allows you to add text and filters, retouch faces, and create collages that will make your business stand out.
 Stock Images
 Beautiful images are essential to making your brand stand out online. But if you’re not a professional photographer and your product isn’t visually compelling, how can you use images in your marketing effort? Try these free stock images site to search for images to use in your blog, social media, and other marketing materials.
 Flickr
 This user-generated photo-sharing site has a huge array of images available free with or without attribution. Check out the creative commons section of Flickr and read the usage terms to make sure your photo usage is on the up and up.
 FreeImages
 A great resource for business related stock images, FreeImages is a content marketer’s favorite bookmark for quick generic blog or social media graphics.
 Pixabay
 If you are feeling bored by the typical line up of free stock images online, Pixabay is a great resource to shake things up. The images here have a slightly more indie feel compared to the more generic vibe of traditional stock images.
 Unsplash
 Though the selection is smaller than most, Unsplash is an awesome resource for stock images that don’t feel like stock images? Updated every 10 days, this site’s collection of free to use, no attribution images will feel like a warm hug, creating that personal connection with your audience that typical stock images cannot quite reach.
 Storage & File Sharing Complicated computer networks and external hard drives are so 2005. Try these cloud storage resources to share files and collaborate on documents without a drawer full of USB cables and fifteen phone calls to your cousin who works in IT.
 Dropbox
 Modern companies are using Dropbox to share files between employees and collaborate on documents from multiple devices. Save all your documents to the cloud to access from anywhere, and share them via email invites with colleagues, clients, prospects, or whoever may need access. Your first GB of data is always free, which for a very small organization may be all you ever need.
 Box
 Another file sharing and cloud storage service similar to Dropbox. At Box you can store up to 10 GB of data for free, but will have to pay for additional users. If you are a solopreneur looking to make the most of free cloud storage, Box may be a better solution for your needs.
 Google Cloud
 If you already use a variety of Google apps (which you should; see above), Google Cloud is an obvious choice for backing up files, documents, images, and other content. Integrate it seamlessly with other Google apps to never lose track of your archive files.
 I hope my comprehensive resource list will help you take your business to new heights!
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 Mel Feller, MPA, MHR, is a well-known real estate, business consultant, personal development consultant and speaker, specializing in performance, productivity, and profits. Mel is the President/Founder of Mel Feller Seminars with Coaching For Success 360, Inc. and Mel Feller Coaching, a real estate and business specific coaching company. His three books for real estate professionals are systems on how to become an exceptional sales performer.  His four books in Business and Government Grants are ways to leverage and increase your business Success in both time and money! His book on Personal Development “Lies that Will Sabotage Your Success”.  Mel Feller is in Texas and In Utah.  Currently an MBA Candidate.
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toomanysinks · 6 years ago
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These ad execs have a venture fund they’d like to sell you
Mike Duda comes from the world of advertising. In fact, he spent 13 years at the renowned ad agency Deutsch, becoming the youngest partner in the company’s history until another creative, Brent Vartan, came along and stole the title. Little wonder that in 2010, when Duda struck out on his own to create Bullish (formerly known as Consigliere Brand Capital), he stole Vartan, later making him the firm’s second managing partner.
It isn’t that the two wanted to outgun their former employer exactly. Instead, the idea from the outset was to create an ad agency that also happens to be an investment firm. In a way, they stole a page from many Silicon Valley service firms that, beginning in the go-go dot com era of twenty years ago, worked for pay and, when the right opportunities arose, for equity.
It’s turned out to be a pretty good approach. Bullish, which is based in New York and works on a pay-for-performance compensation model, has managed to sneak checks into some of the biggest consumer new brands out there, including Warby Parker and Peloton and Harry’s and Casper, companies that have happily agreed to include Bullish as a syndicate partner including because of its advertising know-how.
In the meantime, to keep the lights on as those privately held companies have continued to operate privately, Bullish has also managed to land more traditional big-league clients, including Anheuser-Busch, Pepsi, Nike and Walmart. It also counted GNC as a client and reportedly turned heads when it dropped it in order to invest $250,000 in the three-and-a-half-year-old vitamin supplement startup Care/of.
With Bullish now contemplating fund two, we decided to sit down with Duda last week to learn more about how the whole things operates, and where he and Vartan are shopping now.
TC: You’d spent your career in advertising. What circles were you traveling in that you were also seeing seed-stage startups — good ones —  in need of funding?
MD: It was through outlier circles. Like, Peloton struggled to raise money, so it got104 angels to invest, including high-net worths, and us, who looked institutional, though I laugh at that now. [Founder and CEO John Foley] didn’t know how to play the VC game. He’d been the president of Barnes & Noble and he had this idea that people thought was crazy. He had a PPM for his fundraise — he didn’t have the [traditional] ten-page PowerPoint. So a lot of people in New York passed, and those same people now funding the Mirrors of the world and Tonals of the world.
It was a similar situation with Birchbox. It trouble raising money because its founders are women, and most of the guys they were talking to were like, ‘Well, my wife would get bored of this after a couple of months.’ But the target audience doesn’t have a seven-car garage in Palo Alto. It’s a mom of two in Cleveland who subscribes to the New Yorker.
On the agency side, we worked on Revlon for two years, so we get that a consumer doesn’t have to be like just someone we know. It isn’t, ‘Oh, it’s a product for women; let me ask my wife.’ We actually do focus groups to [find] consumer insights.
TC: So the pitch is that it isn’t just money you’re bringing but a full marketing group, too.
MD: A marketing group with people from places like Deloitte and A.T. Kearney and Goldman Sachs and RBC who try to understand what’s really going on among the says 330 million Americans out there – – not just in New York, San Francisco, L.A. or Boston, which are the hotbeds for consumer investment in VC. We look at stuff that could be disruptive for the normals, which is sometimes unsexy stuff like a stationary bike with a TV.
TC: A $3,000 stationary bike is for normal people?
MD: There were 1.6 million stationary bikes being sold in the U.S. every year [when Foley first began pitching investors]. Harry’s taking on Gillette before Dollar Shave Club came along [is another example]. The jeans I’m wearing are from a company called Revtown in Pittsburgh, Pennsylvania, founded by Henry Stafford, who was the North American president of Under Amour and [previously worked for both] American Eagle and Gap. So this was a first-time entrepreneur who had corporate experience was paranoid about raising too much money and promising investors too much too soon. And we’re attracted to entrepreneurs who don’t want to raise tons of capital before they build a profitable business.
That’s not the case with all of our investments, obviously. Casper and Peloton have both raised a fair amount of money, but their growth kind of followed suit.
TC: Why jeans?
MD: I think [Stafford[ was kind of ticked off and wondering why do people have to choose from either the Gap or a $200 pair of jeans. He wanted to build a great pair of jeans that sell for under $100 and that he can sell through great advertising. The pair I’m wearing right now is $75 and it’s a great pair of jeans. Not that I have the ability to stretch, but if I could put my foot over my head without them on, I could do it with them on, too, because they’re stretchy and durable and well-made. Also, from an operations from business standpoint, this is an adult who has built up businesses before and brings that sensibility so that we can get the scale right. Though a direct-to-consumer brand, it’s not too precious to go into physical retail earlier, either.
TC: Most direct-to-consumer brands are showing up in the offline world faster. 
MD: DTC 2.0 is definitely going to be more about going where your customers are. When Harry’s went into Target, it was a genius move, because there are people in Overland Park, Kansas who may not see its digital banners, but they’re in a Target, and they’re like, ‘That’s new, that’s interesting.’ So it’s another form of marketing.
TC: What about social media? All the platforms are already saturated. Who’s doing really novel things out there, in your view?
MD: I’ll maybe start with the stuff that just annoys us. First, I think a lot of VCs and other people involved with early-stage companies think marketing is a customer acquisition cost and it’s not. If you have to rely on Facebook and Google, you’ll never grow because your [costs] never go down.
When we think of DTC companies, we’re looking for is,  what can you do that gets talk value, not just at your initial PR launch but that [produces] advocates in a kind of flywheel talking about you. People do talk about this stuff. People like to be the one to discover something before anyone else and like to talk about it.
TC: What about TV spend? I’m always astonished to see fairly new brands spending what I’d guess is a lot of money on television ads.
MD: With digital marketing, the accountability is not there as much as people thought. And that’s why about a year ago, you started see the [men’s wellness company] Hims start spending $6 million or $7 million a month on TV advertising during March Madness. Was that a flawed strategy? No. TV works. That’s why you see companies that reach a certain size go to TV; it’s like some sort of validation that this a real company. TV is a storefront for companies that may not have one.
TC: I do wonder how these brands, many of which are great, deal with fickle customers. There are some old brands that I will always love — Patagonia, Hermes – – but a lot of newer brands that I love but I will throw over in two seconds for a newer, shinier brand when it also has a compelling product.
MD: It’s more like someone is probably not serving you well enough. They’re letting you forget about them. Is it Amazon’s fault that RadioShack and JC Penny are going out business? Probably not. They weren’t serving the customer. If you build a relationship with your consumer rather than advertising to her, you have a much better chance of keeping that person as a customer longer term. Patagonia makes great stuff, but so do other people. It’s that the company’s values are bigger than the product itself [that keeps people coming back].
TC: You’re going to start raising a fund later this year. How it will it be different than what you put together the first time around?
MD: We undershot our proposition the first time around. Being an executive at an ad agency, I wanted to be more conservative rather than sell the dream and not achieve it. It was actually harder to raise $10 million than what I was told it would have been if I’d been raising $25 million or $30 million. But we wanted to show proof of concept. Now, a lot of people have left the seed and pre-seed area as investors have raised bigger funds and we see a great opportunity, in a world where there is literally trillions of dollars in play, to get in as early as possible, then play pro rata defense [to maintain our stake]. And in our case, we’ll probably offer up later rounds to the [limited partners] who support us.
TC: A lot of seed and pre-seed deal flow comes to investors from Series A investors. Which are those firms in your universe?
MD: By and far, the most helpful firm to us was First Round Capital. Without their time, we wouldn’t be where we are.
I’m dating myself, but back in 2009, they did office hours. They were commercializing this angel VC investing thing. And I went to one of their office hours and [firm founder] Josh [Koppelman] spent 10 minutes with me and gave me his card and it was like a ‘Dumb and Dumber’ moment. I called my wife, and I was like, ‘He’s saying I have a chance!’ Then I flew to San Francisco to do another office hours . . .
TC: You flew cross country expressly for another of these office hours?
MD: Yes. And 78 people showed up. And it was like the land of broken toys. There were older gentlemen in three-piece suits, and a 19-year-old guy who showed up with a Rock’em Sock’em Robot and people who flew in from San Diego and Portland. And they just gave every one 10 minutes and I was like, ‘Here’s our proposition. It’s a marketing agency with a fund.’
And 75 of of the 78 people got 10 minutes, and two got 30 minutes, and one of them — me — got an hour and a half with Chris Fralic and Kent Goldman, who were kind enough to spend time with someone who kind of wanted to do what they do in a different way. Really, they’re the ones who gave me the confidence that this could work.
Photo above, left to right: Mike Duda, Brent Vartan. Courtesy of Mike Duda.
source https://techcrunch.com/2019/03/19/these-ad-execs-have-a-venture-fund-theyd-like-to-sell-you/
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fmservers · 6 years ago
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These ad execs have a venture fund they’d like to sell you
Mike Duda comes from the world of advertising. In fact, he spent 13 years at the renowned ad agency Deutsch, becoming the youngest partner in the company’s history until another creative, Brent Vartan, came along and stole the title. Little wonder that in 2010, when Duda struck out on his own to create Bullish (formerly known as Consigliere Brand Capital), he stole Vartan, later making him the firm’s second managing partner.
It isn’t that the two wanted to outgun their former employer exactly. Instead, the idea from the outset was to create an ad agency that also happens to be an investment firm. In a way, they stole a page from many Silicon Valley service firms that, beginning in the go-go dot com era of twenty years ago, worked for pay and, when the right opportunities arose, for equity.
It’s turned out to be a pretty good approach. Bullish, which is based in New York and works on a pay-for-performance compensation model, has managed to sneak checks into some of the biggest consumer new brands out there, including Warby Parker and Peloton and Harry’s and Casper, companies that have happily agreed to include Bullish as a syndicate partner including because of its advertising know-how.
In the meantime, to keep the lights on as those privately held companies have continued to operate privately, Bullish has also managed to land more traditional big-league clients, including Anheuser-Busch, Pepsi, Nike and Walmart. It also counted GNC as a client and reportedly turned heads when it dropped it in order to invest $250,000 in the three-and-a-half-year-old vitamin supplement startup Care/of.
With Bullish now contemplating fund two, we decided to sit down with Duda last week to learn more about how the whole things operates, and where he and Vartan are shopping now.
TC: You’d spent your career in advertising. What circles were you traveling in that you were also seeing seed-stage startups — good ones —  in need of funding?
MD: It was through outlier circles. Like, Peloton struggled to raise money, so it got104 angels to invest, including high-net worths, and us, who looked institutional, though I laugh at that now. [Founder and CEO John Foley] didn’t know how to play the VC game. He’d been the president of Barnes & Noble and he had this idea that people thought was crazy. He had a PPM for his fundraise — he didn’t have the [traditional] ten-page PowerPoint. So a lot of people in New York passed, and those same people now funding the Mirrors of the world and Tonals of the world.
It was a similar situation with Birchbox. It trouble raising money because its founders are women, and most of the guys they were talking to were like, ‘Well, my wife would get bored of this after a couple of months.’ But the target audience doesn’t have a seven-car garage in Palo Alto. It’s a mom of two in Cleveland who subscribes to the New Yorker.
On the agency side, we worked on Revlon for two years, so we get that a consumer doesn’t have to be like just someone we know. It isn’t, ‘Oh, it’s a product for women; let me ask my wife.’ We actually do focus groups to [find] consumer insights.
TC: So the pitch is that it isn’t just money you’re bringing but a full marketing group, too.
MD: A marketing group with people from places like Deloitte and A.T. Kearney and Goldman Sachs and RBC who try to understand what’s really going on among the says 330 million Americans out there – – not just in New York, San Francisco, L.A. or Boston, which are the hotbeds for consumer investment in VC. We look at stuff that could be disruptive for the normals, which is sometimes unsexy stuff like a stationary bike with a TV.
TC: A $3,000 stationary bike is for normal people?
MD: There were 1.6 million stationary bikes being sold in the U.S. every year [when Foley first began pitching investors]. Harry’s taking on Gillette before Dollar Shave Club came along [is another example]. The jeans I’m wearing are from a company called Revtown in Pittsburgh, Pennsylvania, founded by Henry Stafford, who was the North American president of Under Amour and [previously worked for both] American Eagle and Gap. So this was a first-time entrepreneur who had corporate experience was paranoid about raising too much money and promising investors too much too soon. And we’re attracted to entrepreneurs who don’t want to raise tons of capital before they build a profitable business.
That’s not the case with all of our investments, obviously. Casper and Peloton have both raised a fair amount of money, but their growth kind of followed suit.
TC: Why jeans?
MD: I think [Stafford[ was kind of ticked off and wondering why do people have to choose from either the Gap or a $200 pair of jeans. He wanted to build a great pair of jeans that sell for under $100 and that he can sell through great advertising. The pair I’m wearing right now is $75 and it’s a great pair of jeans. Not that I have the ability to stretch, but if I could put my foot over my head without them on, I could do it with them on, too, because they’re stretchy and durable and well-made. Also, from an operations from business standpoint, this is an adult who has built up businesses before and brings that sensibility so that we can get the scale right. Though a direct-to-consumer brand, it’s not too precious to go into physical retail earlier, either.
TC: Most direct-to-consumer brands are showing up in the offline world faster. 
MD: DTC 2.0 is definitely going to be more about going where your customers are. When Harry’s went into Target, it was a genius move, because there are people in Overland Park, Kansas who may not see its digital banners, but they’re in a Target, and they’re like, ‘That’s new, that’s interesting.’ So it’s another form of marketing.
TC: What about social media? All the platforms are already saturated. Who’s doing really novel things out there, in your view?
MD: I’ll maybe start with the stuff that just annoys us. First, I think a lot of VCs and other people involved with early-stage companies think marketing is a customer acquisition cost and it’s not. If you have to rely on Facebook and Google, you’ll never grow because your [costs] never go down.
When we think of DTC companies, we’re looking for is,  what can you do that gets talk value, not just at your initial PR launch but that [produces] advocates in a kind of flywheel talking about you. People do talk about this stuff. People like to be the one to discover something before anyone else and like to talk about it.
TC: What about TV spend? I’m always astonished to see fairly new brands spending what I’d guess is a lot of money on television ads.
MD: With digital marketing, the accountability is not there as much as people thought. And that’s why about a year ago, you started see the [men’s wellness company] Hims start spending $6 million or $7 million a month on TV advertising during March Madness. Was that a flawed strategy? No. TV works. That’s why you see companies that reach a certain size go to TV; it’s like some sort of validation that this a real company. TV is a storefront for companies that may not have one.
TC: I do wonder how these brands, many of which are great, deal with fickle customers. There are some old brands that I will always love — Patagonia, Hermes – – but a lot of newer brands that I love but I will throw over in two seconds for a newer, shinier brand when it also has a compelling product.
MD: It’s more like someone is probably not serving you well enough. They’re letting you forget about them. Is it Amazon’s fault that RadioShack and JC Penny are going out business? Probably not. They weren’t serving the customer. If you build a relationship with your consumer rather than advertising to her, you have a much better chance of keeping that person as a customer longer term. Patagonia makes great stuff, but so do other people. It’s that the company’s values are bigger than the product itself [that keeps people coming back].
TC: You’re going to start raising a fund later this year. How it will it be different than what you put together the first time around?
MD: We undershot our proposition the first time around. Being an executive at an ad agency, I wanted to be more conservative rather than sell the dream and not achieve it. It was actually harder to raise $10 million than what I was told it would have been if I’d been raising $25 million or $30 million. But we wanted to show proof of concept. Now, a lot of people have left the seed and pre-seed area as investors have raised bigger funds and we see a great opportunity, in a world where there is literally trillions of dollars in play, to get in as early as possible, then play pro rata defense [to maintain our stake]. And in our case, we’ll probably offer up later rounds to the [limited partners] who support us.
TC: A lot of seed and pre-seed deal flow comes to investors from Series A investors. Which are those firms in your universe?
MD: By and far, the most helpful firm to us was First Round Capital. Without their time, we wouldn’t be where we are.
I’m dating myself, but back in 2009, they did office hours. They were commercializing this angel VC investing thing. And I went to one of their office hours and [firm founder] Josh [Koppelman] spent 10 minutes with me and gave me his card and it was like a ‘Dumb and Dumber’ moment. I called my wife, and I was like, ‘He’s saying I have a chance!’ Then I flew to San Francisco to do another office hours . . .
TC: You flew cross country expressly for another of these office hours?
MD: Yes. And 78 people showed up. And it was like the land of broken toys. There were older gentlemen in three-piece suits, and a 19-year-old guy who showed up with a Rock’em Sock’em Robot and people who flew in from San Diego and Portland. And they just gave every one 10 minutes and I was like, ‘Here’s our proposition. It’s a marketing agency with a fund.’
And 75 of of the 78 people got 10 minutes, and two got 30 minutes, and one of them — me — got an hour and a half with Chris Fralic and Kent Goldman, who were kind enough to spend time with someone who kind of wanted to do what they do in a different way. Really, they’re the ones who gave me the confidence that this could work.
Photo above, left to right: Mike Duda, Brent Vartan. Courtesy of Mike Duda.
Via Connie Loizos https://techcrunch.com
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