Yes, startups need dollars to move forward. But they also need help, lots of help. This help comes from getting introductions to potential customers, employees, and investors; finding beta customers to test their products; and even having advisors to help them work through tough decisions. They need others to advocate for them. But how do they get this help?
As founders engage with others in the early stages of their startup, their ability to motivate potential advocates through extrinsic rewards such as salary, equity, or cash is limited. The startup has very uncertain prospects and questionable value. No one knows how or if helping this startup will pay off. And how does a startup figure out what an advocate’s time and connections are worth anyway?
Instead, these advocates engage in what is called a social exchange – people engage with each other because there are mutual benefits even though there is no compensation. They help startups with no quid pro quo. Why do they do this? First, they may have received help from others in the past. In this case, they are paying back for the goodwill they’ve already gotten. Or, they may want help for themselves now, or in the future. So they are “paying help forward” in the hopes of a future payback. Either way, founders should specifically look for potential advocates as an important step that is different from seeking funders. With our colleague Curtis Wesley II, we published an overview of these advocates and their characteristics in the Strategic Entrepreneurship Journal in 2016. You can check out a video overview if you cannot access the article itself.
Startup founders need to understand the factors that encourage others to give them the help they need for their new firms to survive and grow. Here are some characteristics of potential advocates:
They value social exchanges. They are interested in the greater good of the startup ecosystem, as opposed to putting their own financial interests first. You will know them because they frequently volunteer to share their experience at local community meetings and they are known for being approachable. If a potential advocate asks for compensation in advance, they do not value social exchanges.
They want to build socioemotional wealth. Again, they are not the type who are “money first.” They like being connected and know there is social capital they can build. They help others for the connectedness of their actions and their ability to build their network.
They most likely have benefitted from help in the past. They knew when they got help that it would be their turn in the future. Now they are ready to give back.
They believe your startup will succeed and that they can help. Every potential advocate may not help every startup. Social capital is still a form of capital. You can only spend it once. If they help your startup and you are not successful, it may reflect poorly on them. So they will want to understand what you are doing. If they don’t think you have a good idea or they don’t think they are the right person to help your startup, they won’t help just to be nice.
Graphic Source: https://revenue-hub.com/hotel-marketing-give-group-sales-leg-up/
How do you get their help? First, be strategic in who you ask. Think carefully about who has the experience and the connections you need. Make sure that your startup is addressing issues important to them and where they think they can have an impact.
Second, recognize that this is still a pitch. Most startups think of “pitching” as asking for investment dollars. Asking for help needs to be thought of as a pitch too. You are pitching yourself, your idea, and the request for their help.
Third, use warm introductions. You are selling yourself and your idea. All “sales” efforts work better with a warm introduction. This goes hand-in-hand with being strategic. You don’t have to stick to your existing network. You can ask your network who you should ask for help.
Fourth, don’t start with the quid pro quo. Savvy advocates know that that their help is being solicited. If they took the call, they are not expecting anything from you. They are doing this for the social reasons. Don’t explicitly ask what you can do for them. Don’t worry, they will reach out for your help when they need. This is a reciprocal relationship. If they help you, they will want help for someone else later. Be ready to give back when they ask.
Finally, and most importantly, follow up. Whether or not they helped, make sure you follow up periodically and let them know what you are doing. This doesn’t mean assume that they’ve opted into your email campaigns. Instead, use personal emails to connect again. They may be willing to help later, after you’ve made more progress. And if they helped, it’s even more important to follow up. Let them know how they helped. You want to keep them engaged in contributing to your success.
As a startup, you are part of an ecosystem. Contribute to that ecosystem. Then, don’t be afraid to ask that ecosystem for help when you need it. There are willing advocates out there. They are unlikely to ask if you need help. So make sure you ask for help when you need it.