Dan Springer, CEO of Responsys, offers advice on how to raise venture money. Springer suggests that raising money depends on three factors: 1) What you have to offer, 2) The state of the venture market, and 3) An entrepreneurs long term goals. Springer argues that it is challenging for an entrepreneur with little experience or just an idea, as opposed to a business, to raise money and advises that entrepreneurs might be well served to raise money when they have a stronger value proposition. In addition, Springer also recognizes that the state of the venture market also affects the ability of an entrepreneur to raise capital. Finally, Springer proposes that entrepreneurs consider the value of the long term relationship with venture investors when bargaining on venture deals and highlights the benefits of leaving enough room in a venture deal to ensure investors get a good return.
Dan Springer, CEO of Responsys, talks about the potential conflicts of interest between entrepreneurs and investors. Springer advises entrepreneurs to discuss these situations with venture investors in advance of making a deal so that all parties understand the potential outcomes upfront.
Dan Springer, CEO of Responsys, discusses the benefits of working with attorneys in an entrepreneurial environment. In terms of choosing your own counsel, Springer highlights the importance of finding a great attorney with deep expertise and that you trust. In terms of working with other attorneys, Springer provides advice to entrepreneurs working with challenging individuals.
Dan Springer, CEO of Responsys, shares tactics for nurturing and protecting human capital. Springer argues that managers often make the mistake of giving unrewarding but urgent work to their best performers, which is a short term strategy that can lead to burnout and the loss of a company's best human capital. Instead, managers and entrepreneurs should focus on the long term and give their most rewarding tasks to star performers in order to nurture and protect them, because ultimately these team members provide the most value to the company.
Dan Springer, CEO of Responsys, talks about the challenges of dealing with problematic employees. Springer suggests that it is easier to deal with clear under-performers whereas the greater challenge is to address team members who have both positive and damaging qualities. Springer suggests that the best response to these situations is to have a clear and frank conversation with the team member which gives them an opportunity to improve.
Dan Springer, CEO of Responsys, provides counter-intuitive advice to young people by suggesting that when starting your career you should negotiate for the lowest possible title and salary at the organization of your choice. Although Springer provides this advice light-heartedly, he does so to emphasize the importance of setting up a situation in which you can exceed expectations and can rise to the top. In addition, he warns about the dangers of negotiating too hard for higher salary or positions which potentially make organizational members uncomfortable or lead to expectations that are difficult to meet.
Dan Springer, CEO of Responsys, suggests strategies to retain good people. Springer suggests that the most important strategy is to help team members feel excited about their career path, whatever that might be. In addition, Springer has found that smaller rewards throughout the year for excellent work have a large effect in helping employees feel appreciated and want to stay with the company.
Dan Springer, CEO of Responsys, acknowledges that the most frequent and important negotiations often occur with customers. Furthermore, Springer advises that the keys to a successful negotiation with customers include: 1) Preparation to discover what the customer wants and 2) Identifying the few things on which you will stand firm.