peter kestenbaum - 1099partners, hoboken tech meetup

NJ Tech Meet-up October 2010

Peter Kestenbaum201 388 0523

http://1099partners.com

1099er Staffing

Three core components in any emerging firm

The Market or Segment and available share/health

Your product/service or idea (uniqueness, value add).

Your ability to execute and staff to resources available (including funds)

Three core components in any emerging firm

The Market or Segment and available share No/Little Control Your product/service or idea (uniqueness, value add). yes or noYour ability to execute and staff to resources available (including funds) Ability to impact

Dollar Cost Reality(After you realize Sweat equity only goes so far)

$74,000 for an employee to take home $44,000..

Source :Michael Fleischer, WSJ 8/2010

Variable Work Force Usage(1099Partner view)

People are available to help emerging firms -Demographics.. >50% workerss over Age 40

-Life status changing. Financial, life style, values -No desire to work in Corp America,Too active to Golf 5 days a week -Retainer not hourly or contract workers

There are many sources, each with a different focus to explore.. But first

The Non Dollar Cost

Recruit timeTraining timeTermination time… performance, fitLost revenue opptyControl

Bad Bus Dev hire at HP, Google means 1 problem in hundreds… Emerging firm 100% of the sales team and 25% of senior leadership.. Try before you buy

Numerous Firms.. Samples

Solvate… Contract Services.. (Graphic artist)Salesconx.. Outsourced sales teams ( 5x $80K level)Cresting Wave (Enterprise Tech sales.. Ex IBM, Oracle reps)1099Partners (Partnerships, BD/Infrastructure…ex SUN, Telco, Agency.Com…)

Myths you want to believe

Sweat Equity is still attractive… Most of the best people have stock in dozens of companies

You can do it yourself, your cool, smart the next Mark Z

Investor will be so “wowed” by your thought will never ask about Management Experience, Bench .

Good/Bad/Ugly.. Using experienced people

Will get access to talented people/rolodex’sTurn on/Turn off (within reason)Benefits (none)Rate high… but investment for same result is lower.. Expect to pay retainer (maybe + bonus)

- 2 afternoons per week ex SUN/IBM/HP ten year NY sales manager with rolodex > full time 30 year old BD manager

Case Studies.. Just a few mentions (time permitting)

$3M west coastsoftware firm looking to start in NY$1M services firm hiring first sales personWeb Services firm

Summary

Help is out there to be had.. There are big benefitsIt is probably going to cost you something…It can get you jump startedChoosing and picking is not easyThere are firms to helpThere are tradeoffs