Helzberg Entrepreneurial Mentoring Program
MARKETING PLAN
APRIL 13, 2015
JENNIFER BARNETT REID MUELLER
MARKETING COMMUNICATIONS CASTONE
PREPARED UNDER THE GUIDANCE OF DR. JAMES K. GENTRY, SCHOOL OF JOURNALISM AND MASS COMMUNICATIONS
TABLE OF CONTENTS Team Credentials
2
Executive Summary
3
Situation Analysis
4
SWOT Analysis
16
Target Markets
18
Recommendations
21
Timeline
30
Budget
33
Appendix
35
Sources: fineartamerica.com (top), klover.net (bottom)
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TEAM CREDENTIALS Jennifer Barnett Fox Jennifer is director of content development at Sweet Spot Marketing, part of the Anthem Ventures portfolio. Jennifer received her undergraduate degree from the University of Nebraska – Lincoln in journalism. She will receive her master’s degree in marketing communications from the University of Kansas School of Journalism and Mass Communications in May 2015.
Reid Mueller Reid is a marketing product specialist for fitness and wellness products at Garmin International. He received his undergraduate degree in English and secondary education from Kansas State University. Reid will receive his master’s degree in marketing communications from the University of Kansas School of Journalism and Mass Communications in May 2015.
Professor James Gentry This project was supervised by James K. Gentry, Ph.D., Clyde M. Reed Teaching Professor at the School of Journalism and Mass Communications at the University of Kansas. Prior to joining KU as journalism dean in 1997, Gentry was dean at the University of Nevada, Reno, for five years and before that was a member of the faculty at the University of Missouri School of Journalism.
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EXECUTIVE SUMMARY
City as well as to understand the challenges the group faced for meeting the needs
This year marks the twentieth anniversary of the Helzberg Entrepreneurial Mentoring Program (HEMP). The Second Stage entrepreneur program is designed to replicate the beneficial mentoring relationship HEMP founder Barnett Helzberg experienced with his long-time mentor Ewing Kauffman. Over the last two decades, the HEMP mentoring program has guided many Kansas Citybased entrepreneurs to put their “worst foot forward” in order to strengthen entrepreneurial skills, build better businesses, and become community-focused employers. During this time period, HEMP has taken on 200 member participants as mentees, with many remaining active in HEMP after the mentee period as mentors and fellows.
of its current members and future target demographics.
While the organization has been successful in creating strong mentoring relationships, it stands to improve in many areas and adapt for the future. HEMP currently has four marketing objectives:
Primary research for the project included interviews with current HEMP members, individuals involved in local and national Startup groups, and a national Second Stage source. HEMP members participated in a survey distributed through HEMP’s organizational survey tool. In an effort to meet these objectives, the University of Kansas students developed a number of strategies to enhance recruitment, build on existing communication efforts, and solidify the HEMP mentoring mission. Strategies include:
Attract 40 qualified mentee applicants per year Build community awareness Attract five qualified mentor candidates per year Increase funding and contributions
A team of University of Kansas graduate students worked with HEMP to develop a marketing plan intended to help HEMP in these objectives. In addition, the team added a fifth objective to improve internal communication. This endeavor included conducting primary and secondary research to understand HEMP’s unique position as a Second Stage entrepreneurial resource in Kansas
Create and disseminate definitions for HEMP, Second Stage and other key terms Increase social media presence and encourage public dialogue about HEMP Grow presence within the Kansas City entrepreneurial community Attract highly qualified mentee and mentor candidates Build member incentives for recruitment Improve communication through internal platforms Expand programming for incoming and existing members Incorporate fundraising into the website to boost sustainability
The University of Kansas student team created tactics to support each of these strategies and provided timeline recommendations, budget estimates and an appendix documenting primary research. 3|Page
SITUATION ANALYSIS
Source: theroasterie.com
“The challenges faced by Second Stage companies are significantly different than in other stages…. The ultimate decision makers in Second Stages face the challenges of scaling, time management and maintaining efficiency.”
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DEFINITIONS, TYPES AND STAGES OF ENTREPRENEURSHIP An entrepreneur, according to Forbes (2012), is a person who “identifies a need – any need – and fills it.” Dictionary.com (2015) adds to this definition that it is a “person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.” The essence of these definitions lies in their ambiguity – an entrepreneur can do anything from launching a social network to running a chain of laundromats. While the definitions are broad, entrepreneurs can be categorized into certain “types” and “stages” of entrepreneurship. Joseph Schumpeter, considered one of the 20th century’s best economic and political thinkers, classified entrepreneurs into two categories: the innovative entrepreneur and the replicative entrepreneur. Schumpeter believed both Source KCSourceLink 1 categories played an important role in economic growth (Investopedia, 2015). The “innovative” entrepreneur upsets and disorganizes the existing way of doing things. This is the coder creating a social network. The replicative entrepreneur sets up small businesses much like other businesses. This is the owner of a chain of laundromats. These entrepreneurial types can also be classified as “high-growth businesses” and “small businesses.” Both types, while significantly different, have an important role in a successful economy (Schumpeter Columnist, 2014).
KCSourceLink (2014) defines these types in slightly different terms, such as “Innovation-led” and “Main Street.” In addition, it notes a third somewhat separate type – the “Microenterprise” – which requires little capital to launch and no physical location. This leans more toward the Innovation-led type, but does not necessarily rely on breakthrough technology. This is by far the most significant subset in KC, comprising 136,794 entities, followed by Main Street businesses (42,151) and Innovation-led businesses (4,339). HEMP currently attracts primarily Main Street businesses, followed by Microenterprises. KCSourceLink
also
defines
the stages of entrepreneurship with the categories of “Starters” (referred to in this document as Startups), “Second Stage” and “Big Business.” The Startup category is largest (94,948 companies) and consists of nascent companies taking the first steps. Second Stage
consists of 2,015 companies that have grown past the Startup Stage and now generate between $1 million and $100 million in revenue. These are the companies of most interest to HEMP. Big Businesses employ over 100 individuals and number 1,374 in the Kansas City area. Within larger businesses, there are also many intrapreneurs. Investopedia defines them as employees who are assigned an idea or project and they are instructed to develop the initiative as if they are in an entrepreneurial situation (Intrapreneur, 2015). While there are many correlations between these individuals 5|Page
and entrepreneurs, these individuals are outside of the scope of this project. For more information on intrapreneurs, see Appendix A. For simplicity, we will be using the terms “Startups,” “Second Stagers” and “Big Businesses.” See Appendix A for Terms Defined.
Startup Stage Entrepreneurship From a consumer perspective, the First Stage of business – or the Startup phase – draws the most attention. The emphasis can be seen in the media coverage of the newest tech companies or the creation of a mobile application. While technology and apps are certainly types of Startups, there is definitely more to First Stage companies. One positive aspect of the attention that Startup ventures receive is the abundance of organizations prepared to offer assistance, resources and funding to get entrepreneurs off to a strong start. This often comes in the form of scholarships, mentoring and coaching, and financial assistance. When an entrepreneurial venture becomes successful and a business takes off, there is often a correlating economic impact and increased job creation for the community.
Second Stage Entrepreneurship The Michigan-based Edward Lowe Foundation coined the term Second Stage approximately 15 years ago as a result of its work with then-executive director Mark Lange. Lange is considered an expert in Second Stage growth and campaigns to provide businesses and their owners with the resources needed to grow, maximize impact and spur job creation. The foundation has become known as a nation-wide advocate for community-based economic growth created through Second Stage businesses. The foundation uses several other conditions to define Second Stage entrepreneurship:
Inability to scale company for new business demands Struggle for leader/founder to transition from being a “do-er” within the business to a manager Challenge of complexity within business models Increase in feelings of isolation among leaders/founders Desire to grow as leader and business owner
The challenges faced during Second Stage are significantly different than in other stages. Whereas the founders of Startups are mainly concerned about iterating quickly, receiving market validation and building revenue streams before running out of money, the ultimate decision makers in Second Stages face the challenges of scaling, time management and maintaining efficiency. Bill Hartnett illustrated this during an interview by telling the story of a HEMP member whose company was succeeding, but the success was draining the owner and CEO. Her mentor advised her on how to hire a new CEO with expertise to manage the business. This allowed the founder to return to a much more enjoyable position in sales and allowed the company to scale in a healthy fashion. While this is an exciting time for the entrepreneur, particularly because it means that the business no longer needs to worry about short-term survival, it opens the door for an entirely new set of problems. Entry into Second Stage comes with conditions that can no longer be solved in the same way they were in the Startup stage. These new issues create a significant need for resources that are different from those in the previous stage. While there are existing resources for Second Stage entrepreneurs, they are generally less than those available for Startups. Ultimate decision makers at Second Stage companies also face challenges with learning requisite skills. Bill illustrated this with his own story. He frequently found himself promoted into jobs he wasn’t equipped for. Since he was a quick learner, he emulated his superiors 6|Page
to get a grasp on his new job responsibilities. But when he reached a higher position, there was nobody to learn from. With the accelerated pace of operation and accompanying new challenges, entrepreneurs are less inclined to take the time to look for outside resources in the same way they did as a new Startup. This can be attributed to increasing demands as a business scales. There is more at stake – more employees, more inventory and more financial impact – for not only the business but also the community. At a time when solutions need to come fast, it’s critical that entrepreneurs know where to find these resources in a timely manner. Because of such a radical shift in priorities, entrepreneurs at this stage often feel isolated and misunderstood. The unique nature of their businesses makes them feel that the resources required are unique and therefore could be more difficult to obtain. This is particularly true if trusted resource networks and peers do not have the experience or knowledge base to help the entrepreneur. As a result, many entrepreneurs in this stage feel that they are facing these changes alone. Therefore, they want a network of like-minded peers who have already walked in their shoes as opposed to general educational events and traditional networking. Second Stagers tend to have a set of specific needs:
Refining the core business strategy Expanding markets (local to regional to national to international) Transitioning to management roles Handling more employees and evolving expectations Building a management team Enlarging product lines to accommodate larger number of customers
RESOURCES FOR ENTREPRENEURS Because entrepreneurs don’t typically have superiors to learn from, they must turn to outside resources for advice and business training. Several organizations have been created with the sole purpose of informing and guiding these entrepreneurs. Not only do these organizations provide formal knowledge and business know-how, they help develop the entrepreneur’s network of communities. Extensive research suggests that this network is one of the most significant components of success. A cohesive network of entrepreneurialsupport organizations can let each organization act as a node, providing an entry point into this crucial resource network. When entrepreneurs connect to even a single node, they gain access to a trusted advisor who will link them to the broader, highly confidential network, where they find a safe haven to talk through their questions and get help moving into the spaces where their companies can thrive. With the addition of a central hub, there can be a single place to promote network access and organizations can refer entrepreneurs to the best resource to meet their need. Maria Meyers, CEO of U.S. SourceLink and KCSourceLink.
Resources for Startups: Accelerators, Incubators and Angel Investors In Metropolitan Statistical Areas (MSAs) with high indices of entrepreneurship, many programs aim to cultivate entrepreneurship at the Startup level. Accelerators and incubators are the most common.
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Cohen (2013) defines an accelerator as a “short-term, high-intensity program led by mentors. It may provide seed capital for participating entrepreneurs to test a business model.” Accelerators provide education to a cohort of nascent ventures during a limited period of time. The key characteristic is that the participants start and graduate together. Accelerators typically invest $15,000 to $20,000 in a two-to-three person venture in exchange for six percent to eight percent equity. Accelerators generally take 10 to 12 ventures on for a duration of three months. Whereas accelerators make equity investments in participating firms, incubators charge ventures, called “tenants,” rent for physical space but do not invest in the firms, called “portfolio companies.” As a result, they are less aligned with the venture and less focused on growth required for a positive exit.
available to those in the Second Stage appear more limited. Our region is doing a tremendous job of focusing attention and efforts on the beginning phase of an entrepreneur’s journey. But it is equally important that we rally around the difficult stages as these entrepreneurs grow. If we want to keep these companies in KC, we need to help during what is often a lonely part of this journey. This is where connection, encouragement and support matter most. Joni Cobb, president and CEO, Pipeline As a result of these limitations, a number of HEMP members join other mentoring groups to help them achieve their ultimate business goals. Roundtables, Retreats
Source: Cohen, 2013 Angel investors make investments, but on an individual basis, whereas accelerators invest in batches. Angel investors typically have a board seat and mentor their portfolio firms. Cohen (2013) effectively summarizes the differences between the three: “Essentially, accelerators recombine financial resources and knowledge resources previously offered by angels and incubators, providing less money and more advice than either angels or incubators.”
Resources for Second Stages Second Stage companies have big business challenges that aren’t met by traditional sources of learning. This is true nationally and locally. Kansas City offers a number of opportunities for Startups, but the resources
Economic
Gardening,
Roundtables are considered the best way for Second Stage entrepreneurs to learn. These entrepreneurs have an immediate problem to be solved and they want to be around their peers. Peer groups are considered to be the best way to mentor (mentorship is discussed in further detail as its own subject in the following section), particularly in the framework of a facilitated roundtable. Trained facilitators run roundtables, allowing the process to flow through a neutral person. These neutral parties help inhibit the natural tendency of business leaders to tell others what to do. Participants are not asked to give advice, but rather to ask questions, share experiences, and problem solve through inquiry. This is akin to having structured independence. The challenge is that this technique isn’t for everyone. If participants make the comment that they “don’t have the time,” that’s a good indication that they need to be 8|Page
there. These sessions typically consist of 10-12 people in a room meeting for three to four hours once a month. Hot topics are identified for each session, and competitors cannot be grouped together. Chris Gibbons of Littleton, Colo., created the National Institute of Economic Gardening, which seeks to grow Second Stage businesses within a community. The concept is built around the desire to create growth at home (i.e. “grow your own”) and to help businesses gain market awareness. The institute also offers additional help such as marketing, search engine optimization (SEO), etc., and trains people to be program administrators. Beyond the community, it has a national virtual team. In some cases, state and local entities provide services through organizations like the Chamber of Commerce. Retreats bring likeminded people together. Invitees are generally unfamiliar with one another initially, but they find there’s someone who understands them, and a quick bond develops. The entrepreneurs often think that no one else has similar problems and through the retreats they find that they aren’t alone.
Mentorship Mentorship, also referred to as coaching, plays a significant role in the education, experience and success of entrepreneurs. Several studies have been conducted to better explain and understand the key benefits of mentorship and to recommend best practices. For example, in a study by Johnson-Hunter (2004), participants ranked mentorship as the most important factor in their success. One participant in JohnsonHunter’s study perhaps put it best: “Find a mentor. Be a mentor. Understand that the secret of success is not keeping success a secret.” Benefits of Mentorship In addition, a study by Collins (2007) found that mentorship accelerates learning and helps entrepreneurs overcome challenges in areas outside
their expertise. Collins points to numerous studies dating back to the 1960s establishing that management skills such as prior experience, stress management, marketing, and financial management are strongly associated with business success. In addition, mentorship prevents costly mistakes. The interviews from Collins’ research suggest that consulting, coaching and mentoring were useful human performance interventions for fear management by adding perspective and generating new ideas. A study of 52 groups conducted by Ring (2006) indicated a direct correlation between coaching and ROI. It also showed that coaching prepared people to take on new responsibilities, removing emotional barriers to performance and ensuring individuals are functioning at full capacity to support organizational goals (Collins, 2007). DeGraffenreid’s (2004) study of 247 companies in a federal business-mentoring program found that the protégé companies were more likely to survive and grow at a greater rate than their non-mentored counterparts in a control group. Mentoring may be most effective in addressing attitudes related to the fear of criticism/failure (Collins, 2007). Johnson-Hunter (2004) also found that entrepreneurs excelled when mentors were available as sounding boards: “It’s good to have someone to guide you or discuss problems with...[We need to] stay away from negative thought and those who are negative. They will say, ‘I told you to stay away from this,’ or ‘see, you have failed.’ This is weak thinking.”. Cohen (2013) points out several advantages to learning from others. Most notably, she argues that learning is accelerated when firms learn without the burden of “accumulating experience.” Mentored learning is widely available and relatively inexpensive when compared with the costs of mistakes.
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Effective mentor/mentee relationships Because mentorship is an inquiry process based on a trusting relationship, the mentor must serve as a trustworthy and objective sounding board for the business owner. Cohen explains this well: “Although it is a personal relationship, it is not just all about the person; it is about integrating the needs of the individual and the organization.” Johnson-Hunter (2004) found that one of the most important elements of the relationship is that it be challenging. Mentees must learn to try something new, to take small parts of what they learn and create an entrepreneurial “textbook.” Mary Dooe (2015) found that there is also something to be said about pairing younger and older individuals. The different age groups collaborate and benefit from each other. Seniors bring in experience and millennials bring in technology and social media skills: “…and the catalytic energy when those two mentor one another – it just creates a whole new business concept.” Stangler agrees, citing a study from the United Kingdom that found “companies that had mixed age founding teams – younger founders with older founders – were more successful than companies with just young founders or just old founders” (Dooe, 2015) Johnson-Hunter found that mentorship relationships are strongest when developed organically. This allows for a stronger relationship and is more likely to create “mentor overload,” in which mentees are most challenged and thereby benefit most. How mentorship is effective According to Cohen (2013), mentorship accelerates learning by reducing learning-coordination costs and expenditures – such as time or money – required to set up learning. Learning-coordination costs include administrative tasks like scheduling interactions and traveling as well as networking prior to learning interactions. In mentorship relationships, learning is
accelerated by mentor overload—time-compressed interactions with external advisors that delay implementation. Learning is also accelerated by experts who rapidly accumulate and transfer expertise to these nascent ventures. Cohen says this of mentor overload: They [entrepreneurs] are just getting challenged, and challenged, and challenged, and it’s sort of like their business plan gets ripped to pieces, but in many different directions, and this is one of the really challenging things. So, one of the mentors tells them to turn left, some say turn right, go up, go down, go backwards, go forwards, every which direction. The founders then figure out how to put this back together to make it even better.
THE NATIONAL LANDSCAPE OF ENTREPRENEURSHIP Research by the Kauffman Foundation (2015) indicates that nationally entrepreneurship is on the decrease, with 280 in 100,000 adults starting businesses in 2013 compared with 300 in 100,000 in 2012. This is likely due to an improved labor market and the end of the Great Recession – individuals are no longer starting businesses out of necessity. One exception to the overall decreased entrepreneurial growth was in activity for individuals between the ages of 45 and 54. The increase in this age group could be attributed to changing demographics in the United States as more Baby Boomers reach the end of their working years. According to the Index, the adult population created an average of 0.28 percent new businesses on a monthly basis in 2013. This translated into 476,000 new businesses over the span of 12 months. These 2013 levels are on par with the 2006 pre-recession levels with improvements attributed to better economic 10 | P a g e
conditions. An improving economy also changes the prevalence of the particular variety of entrepreneurship. In this case, poor economic times create opportunities for necessity entrepreneurs, while improved conditions allow for opportunity entrepreneurs. According to the Kauffman Foundation (2015), the construction industry had the highest rate of entrepreneurial activity (1.27 percent) followed by services industry (0.37) percent. However, STEM jobs (science, technology, engineering and math) will create the next generation of entrepreneurs. These jobs have grown three times faster than non-STEM jobs and pay twice the U.S. average.
country with the lowest in the Midwest and Northeast. Kansas City ranks 27th for highly entrepreneurial cities in one study. According to Your Economy (2015), powered by the University of Wisconsin, the Kansas City MSA consisted of over 140,000 establishments with less than 100 employees in 2013. Second Stage companies accounted for 18,237 businesses, or 12.8 percent of the total. This is an increase of 1.8 percentage points over 2012. It is also worth noting that this source defines Second Stage as 10 to 99 employees. Following other definitions that include companies with five or more employees, this number would be significantly higher as companies with two to nine employees represented nearly 64 percent of the total in 2013 – around half of this second group could meet HEMP’s candidate requirements.
Indirect Competition: Startup Stage organizations
Source: wecreatekc.com/talent
THE ENTREPRENEURIAL LANDSCAPE OF KANSAS CITY
The majority of cultivating activities geared toward entrepreneurship target the Startup Stage companies. These entities primarily include incubators, round tables and other group meetings. While some of these organizations compete with HEMP, the majority of them serve as fertile soil to plant seeds and raise awareness.
General Overview As a rapidly-growing hub of entrepreneurship, Kansas City is considered part of the Silicon Prairie. Groups such as KCSourceLink, UMKC Small Business & Technology Development Center (SBTDC) and the Kauffman Foundation are providing unprecedented access, opportunities and resources for entrepreneurs. Although Kansas City is often touted as one of the up and coming entrepreneurial cities, its startup impact is considered low when compared to activity across the United States. The highest levels of entrepreneurship reside in the Western and Southern areas of the
The Kansas City Startup Village (KCSV) is focused on entrepreneurial development for Startups with no cost to members, “KCSV thrives on a shared network of knowledge,” says Adam Arredondo, one of the cofounders. “You can go down the street and ask an expert in design for his opinions. It’s a community of collaboration.” Matthew Marcus, another co-founder, made an interesting analogy of KCSV to HEMP. “Proximity is important with KCSV, where everyone is bouncing ideas off of everyone. Think of it as ‘mentorship incest’ (he later came back and revised the 11 | P a g e
term to mentorship polygamy). HEMP, on the other hand is a marriage between the mentor and mentee. With KCSV, each person provides value at a different time, but you don’t develop the same relationship.”
Other groups, including Athena League, Women’s Employment Network, KC One for Women and Women Who Mean Business, specifically target female entrepreneurs.
This phenomenon of collaborative development is no more apparent than at Kauffman Labs through the 1 Million Cups (1MC) program. Every Wednesday morning local startups present their companies to a diverse room of hundreds of mentors, advisers, investors and entrepreneurs over coffee.
Direct competition: Second Stage organizations
There are several other groups outside of Kauffman that host weekly or monthly get-togethers with other local CEOs. KC Roundtable, for example, consists of 478 local entrepreneurs providing millennial entrepreneurs with peer support. Under 30 CEO brings millennial entrepreneurs together to share ideas and business resources. In general, the companies represented in these activities don’t meet the criteria of Second Stage businesses, but these groups should be considered when raising awareness and looking for potential feeder groups.
Pipeline Entrepreneurs is a multi-stage, year-long fellowship program for business leadership development and mentoring. Mentors work together with local and national executives and leaders to overcome business challenges including, but not limited to, refining a business pitch and securing financing. Services are provided at no cost to the mentee. Pipeline has served the Midwest since 2012.
SCORE, the non-profit arm of the Small Business Administration, provides mentoring, local workshops, webinars, resources, templates, tools and a network of mentor volunteers. This organization also targets companies in their early stages. Digital Sandbox – targeted toward Startup Stage companies – supports commercialization and proof of concept resources, and it includes access to early-stage funding, technology, business and market experts. UMKC e-scholars helps launch businesses that will reach $50,000 in annual revenue during the first year of operation. It is a nine-month certification program through UMKC’s Regnier Institute for Entrepreneurship, funded by a grant from the Ewing Marion Kauffman Foundation. Since inception in 2010, it has launched more than 100 ventures and now includes 120 mentors in its program.
According to Joni Cobb, president and CEO of Pipeline, Second Stage entrepreneurs have fewer resources, there are still several options for them and their executives.
Entrepreneur Exchange accepts leaders from companies with $3 million to $1 billion in annual revenue. Individuals are accepted by invitation only. The group appears to include a higher penetration of female membership than HEMP as well as notable members such as Neal Patterson of Cerner. HEMP member Dave Cacioppo of Emfluence is president of the group. Power of Two is a one-to-one mentoring program for businesses with business concept/product validation, regular sales, positive customer response and $1 million or more in annual revenue. It requires mentees to commit three hours per month and to attend weekly mentee meetings. The organization’s goals are to help companies achieve tangible revenue growth and to promote local and regional success. It charges mentees $1,200 per year. Vistage is a CEO and executive coaching organization that’s operated since 1957. The invitation-only group creates private peer advisory groups that are led by executive coaches called Vistage Chairs. The chairs are business leaders from a variety of industries who are 12 | P a g e
looking to share their time and expertise. Groups are tailored to address CEOs, small business owners, key executives or advisors in businesses earning $5 million to $1 billion in revenue. Members have “Advisory Board” peer group meetings, private one-on-one business mentoring sessions, interactive workshops, online resources and connectivity with fellow members.
HEMP Several interviews with current HEMP members and other entrepreneurs provided several insights into the organization and Second Stage entrepreneurship. A summary of key findings from primary research can be found in Appendix B. Full transcripts of interviews can be found in Appendix C. Background After the long mentoring relationship between Kauffman and Helzberg, the former wanted the latter to pay it forward. “Why did you take me under your wing like this,” Helzberg asked. “Because you do some of the things I suggest,” Kauffman answered. Because Helzberg knew he couldn’t teach, he created HEMP. Chuck Hoffman, a close friend and long-time HEMPer, told Helzberg it wouldn’t work. “You can’t create the chemistry between a mentor and mentee. It has to be organic.” Helzberg disagreed, and for the past two decades, HEMP has proved that by created chemistry between mentors and mentees. Today, the Helzberg Entrepreneurial Mentoring Program (HEMP) continues to be dedicated to strengthening entrepreneurial leaders through excellence in mentoring. It is considered the most prestigious entrepreneurial mentorship program in Kansas City.
Mentors and Mentees Bill Hartnett, HEMP class of 2003, attributes the success and endurance to the rigorous pairing process and what
he calls the “secret sauce.” Each criterion in the application process is designed to help create the best possible mentor/mentee fit. The company must have revenue and employees to show a potential to grow. If a mentee’s application is accepted, he or she goes through a series of interviews and a site visit. Hartnett says: We try to make the visit as invasive and uncomfortable as possible. Between eight and 12 fellows hop on a bus and show up during visiting hours. The applicant can’t have any other company members helping. We want to see why he needs the help. Does he want to improve, or does he just want the HEMP name? He’s interviewed in a room while other HEMP mentors and fellows take a tour of the business and ask employees what they like/dislike about the company. We’re looking for employees that want to be there for more than just a paycheck. In addition to the onsite visit and interviews, applicants must complete an HF4D aptitude test designed to evaluate a person’s potential for success. The final ingredient to this “secret sauce” is for HEMP to ask itself: “Do we have a mentor that can help?” In some cases HEMP has had to turn down qualified applicants because it doesn’t have an appropriate mentor. Once a mentee is accepted, he goes through a matching/orientation process. Mentors and mentees receive each other’s profiles beforehand and go through a speed-dating exercise. After that, mentees must set up a “coke date” to get together with a mentor or go out for coffee. Over the years, in only one case has a mentee said the relationship wouldn’t work. However, HEMP made the two give it a shot for a few months, and the mentee and mentor are now married. After the pairing process, the mentees go through a boot camp and a 360-degree review. They meet with their mentors twice a month for the first year and must attend 75 percent of approximately 40 annual events. Hartnett acknowledged that time can be an issue. Hemp 13 | P a g e
has had to excuse mentees in a few cases because they weren’t hitting the time requirements. This is something HEMP tries to vet out during the site interview, asking interviewees what they will cut out of their lives to make time for the program. The $3,000 “tuition” hasn’t been an issue, especially when each mentee gets $10,000 to $20,000 in value from the mentor relationship and programming. Hartnett is adamant that HEMP works “because of unwavering, unrelenting confidentiality rules.” Without permission from the mentee, the mentor cannot share anything with anyone. It’s the only way mentees can “put their worst foot forward,” he says. This is the type of culture HEMP celebrates. Putting the worst foot forward allows mentees to receive the guidance they need.
The Fellows Program HEMP began as a straightforward mentor/mentee program. A person applied as a mentee. After three years, she or he could become a mentor if interested and qualified, or could leave. But many people wanted to stay part of the group, and so the Fellows Program began. These members are no longer part of a formal mentor/mentee relationship, but are able to attend HEMP programming and join committees within HEMP to help the organization.
Programs The programs committee is responsible for setting up events, such as speakers, educational activities and the annual retreat. Ron Hill chairs this group and helped to recruit Steve Wozniak, a co-founder of Apple Computer, as keynote speaker for the 2015 retreat at the Kauffman Center.
Recruitment The best thing HEMP can do is attract better mentors and mentees. In the past, the organization has talked about success stories in HEMP as a way to attract
mentees. Take Danny O’Neill for example – his story with the Roasterie can almost be intimidating to mentee applicants. Instead, Hartnett says, HEMP needs to promote mentor qualifications to show what mentees can get out of the program. And HEMP needs to recruit more female mentors. A mentor never makes a financial investment in the company. She’s only in it for the joy of seeing success. This prevents creating a bias – if the mentor has a stake in the company, every piece of advice with be taken with reservation, mentors and mentees both asking “does this help you or me?” To attract great mentors, Hartnett wants to stress the quality of the mentees and highlight the $1 million or more in revenue requirement for membership. He says this shows that the mentee company is serious and established. In addition, Hartnett hopes the HEMP’s new hall of fame will raise awareness and attract mentors.
Marketing Scott King chairs the marketing committee, which has four main objectives: 1. Attract 40 qualified mentee applicants per year. 2. Build community awareness. 3. Attract five qualified mentor candidates per year. 4. Increase funding and contributions. This winter HEMP revamped its website, making the application form available online. In addition, the overhaul created a much more appealing platform for recruitment. One of the biggest pushes for marketing is to increase activity on social media. The committee has considered hiring a college intern to help with a social campaign, especially during recruitment. One of the greatest shots in the arm social could receive is content generation by current mentors, mentees and fellows. As King told members at the State of Hemp address, “You guys are the best marketing tools we have.” The 14 | P a g e
marketing team also runs a print insert in “Thinking Bigger.�
Financials Barnett Helzberg contributes 50 percent of the operating budget, mentee fees contribute close to 50 percent, and fellowship dues, contributions and programs provide the rest. The organization is working toward becoming self-sustaining. It is beginning fundraising for an endowment of approximately $5 million.
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SWOT ANALYSIS
Source: Reid Mueller
“HEMP is viewed in the community as the ‘prestigious, gold standard.’ However, many aren’t aware it exists. HEMP needs a stronger presence at pre-Second Stage events to raise awareness.”
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STRENGTHS
OPPORTUNITIES
200 participants (mentors, mentees and fellows) and growing
New website provides HEMP with an updated online appearance
Introduce HEMP to KC business community through lunch and learns, speaking opportunities, in-house referrals, etc.
Addition of online mentee application streamlines application process
Increase awareness as Kansas City’s best resource for Second Stage assistance
Attract and recruit new mentors and mentees from target markets and dedicated recruiting
Increase awareness of Second Stage and its offerings (current and potential members)
Create turn-key materials such as copy blocks to “insert” HEMP into First Phase groups
Approximately 6,000 businesses in the KC area qualify
Marketing committee with updated plan
100 percent of graduates since 2007 remain in the program
Willing to push boundaries
Helzberg name and finances fuel most of day-to-day operations ($200,000/year)
WEAKNESSES
THREATS
Non-profit with lack of time, money and resources
Low representation of women and minorities
HEMP members don’t universally recognize themselves as being in the Second Stage and some members are unfamiliar with the term Second Stage
Half of HEMP’s funding comes from Helzberg. Without his support, HEMP is not sustainable without additional financial and time contribution from members
Possibility of new ideas rejected by leadership before they are shared and voted on by membership
Many graduates view its greatest strength as a networking organization, but agree that working with the same people can result in staleness of ideas
Lack of consistent processes (recruiting, social media, marketing, Fellows' involvement) means lack of standardization and no repeatable processes or straightforward strategy for growth
Small marketing budget ($15,000/year)
Rely on membership for funding, marketing, time, resources, etc.
Lack of social media presence although willing to improve upon it
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TARGET MARKETS
Source: janiceperson.com
“…Older generations tend to be less risk-averse in starting businesses: ‘Many say, ‘I have failed so many times, I’m not worried about failing again because I know that I can pick myself up and keep going.’’”
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DEMOGRAPHICS Primary audience: baby boomers Baby boomers are the most important audience to target now, based on the economics of entrepreneurship and the current business model of HEMP. However, to remain sustainable as baby boomers age and retire, HEMP needs to shift its marketing and programming to attract Gen X and Millennials. Business ownership is shifting toward older age groups. From 2007 to 2012, those 50 and over increased in share of business ownership from 46 percent to 50.9 percent. The Small Business Association (2015) attributes this to Baby Boomers reaching or nearing the end of their work years and starting companies to occupy their time. According to Mary Dooe (2015), older generations tend to be less risk-averse in starting businesses: “Many say, ‘I have failed so many times, I’m not worried about failing again because I know that I can pick myself up and keep going.’”
Secondary audiences: millennials, women, minorities Looking ahead, the greatest opportunity for entrepreneurship could be the Millennial generation. A report from Barkley (2012) found that Millennials, born 1977 to 1995, account for 25 percent of U.S. population (80 million individuals). According to the Small Business Administration (2015), the number of business owners younger than 35 years old increased slightly from 15.2 percent in 2007 to 15.9 percent in 2012. Research from Barkley (2012) suggests that Millennials are digital natives, socially interactive, content creators and users, crave adventures, seek peer affirmation, are hooked on social media and believe in cause marketing.
In general Millennials:
Are 2.5 times more likely to be early adopters. Are significantly more likely to own a laptop, MP3, gaming platform, smartphone. Are frequently on the web (approximately 1120 hours weekly). Are less likely to watch TV, but more likely to stream shows on computers. Contribute and consume substantially more content. Have more friends on social media. Over 30 percent have 201-500 friends, and nearly 25 percent have 101-200 friends. Expect brands to be on social media. Interact with brands via social media. Rely heavily on social circles for making decisions. Place a high importance on personal success and believe it is in their own hands.
(Barkley, 2012) According to the Small Business Administration (2015), women made up 36 percent of national business owners in 2012. In Kansas, 2011, males owned 44.4 percent of businesses, women owned 27.5 percent, both genders co-owned 24.3 percent, minorities owned 7.7 percent. In Missouri, 2011, males owned 47.3 percent of businesses; women owned 26.1 percent, both genders co-owned 23.0 percent, minorities owned 8.6 percent. Jacquie Morgan, a Fellow and mentee of the class of 2010, is one of four female mentors in HEMP. She learned about HEMP through an introduction letter but didn’t pursue joining until a co-worker mentioned joining the group. Spurred on by the competitive spirit, Jacquie began researching HEMP and decided she wanted to be a part of the organization. Once involved, she wondered why more people didn’t want to be a part of HEMP.
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Jacquie is in the minority as a woman executive and a female mentor in HEMP. When asked why there weren’t more women-owned B2B businesses, Jacquie commented that in her opinion the lack of females could be because women hold back from being business owners and they also have a hard time breaking away from the traditional roles. Even in the Fast 50, there are few women in executive roles. When asked why, Jacquie said, “It’s difficult to know what’s ahead and typically women are risk-adverse. Plus, there’s more risk at home.” In the five-year period between 2007 and 2012, the share of minority and Hispanic business owners increased (14.6 percent compared with 11.5 percent), while the participation from women stabilized. In 2012, blacks made up 49.9 percent of the minorities, Asians made up 29.6 percent and Hispanics made up 10.3 percent (Small Business Administration, 2015).
Source: www.sba.gov 1
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RECOMMENDATIONS
Source: bloggerlocal.com
“In order for HEMP to make its presence known, it needs to clearly define who it’s there to help by building a unified brand.”
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GOAL The goal of this marketing plan is to provide HEMP with a long-term approach to maintaining and improving the organization as an effective tool for its members.
to potential candidates before they even apply. These new definitions and terms must be easy to disseminate, and they must be spread everywhere to strengthen and scale the brand.
Tactic 1: Copy blocks
OBJECTIVES, STRATEGIES, TACTICS AND EVAULATIVE MEASURES Objective 1: Increase community awareness of HEMP and its connection to the entrepreneurial ecosystem of Kansas City. HEMP has a limited presence in the Kansas City entrepreneurial system. Part of this stems from the limited and conflicting definitions of Second Stage companies. A few varying definitions of Second Stage exist, and these definitions only relate to a small strand of similar characteristics, including revenue and employment levels. These traits have little to nothing to do with the actual business. In order for HEMP to make its presence known, it needs to clearly define who it’s there to help by building a unified brand. This brand needs to explain the concrete benefits of an abstract program in a simple manner. Although HEMP emphasized the recruitment of new members as its primary objective, we feel that without increased awareness and consistent messaging about the organization and its unique offerings, recruitment will suffer.
Strategy 1: Create and disseminate definitions for HEMP, Second Stage and any other key terms. Solidify HEMP by defining it in terms that potential mentee candidates can relate to. HEMP needs to identify not just what they’re looking for (employee count, revenue, time in business), but who they’re looking for (transitioning from survival as a Startup to sustainability as a Second Stage, scaling to meet business demands and transitioning into the management role). This will convey the benefit of HEMP
Create copy blocks for each term frequently used by HEMP. At a minimum, we recommend creating copy blocks for HEMP and for Second Stage. Copy blocks should distill the larger idea down to an easy-to-digest paragraph or less. These paragraphs will become seeds for other content (web, printed materials, social media, etc.) to grow from. They also break the core idea down to a consistent message that can be delivered on a large scale. It is also important to consider Search Engine Optimization (SEO) with copy blocks to spread the word farther. We recommend using “entrepreneur,” “lead(er),” “business,” “Second Stage” and “mentor” as a few key words. These should be included within the copy. See Appendix D for sample copy blocks.
Tactic 2: Press plan Once copy blocks are complete, a press plan should be created. Note that this is not limited to traditional press, such as a newspaper, but any blogger or member of the KC entrepreneurial community that wants to tell the HEMP story. These groups and individuals can offer free press to HEMP. By having content ready, HEMP makes communication easier and offers a way to tell its own story. A press kit makes the blogger/publisher’s job easier, opening more opportunities for increased awareness about HEMP.
Tactic 3: About page The new HEMP website, updated at the beginning of 2015, is aesthetically appealing and well organized. However, the value proposition is difficult to find at a first glance. We recommend updating the About page starting from the copy blocks created in Tactic 1. This 22 | P a g e
will help to answer the “Why HEMP?” question potential candidates ask. It also makes the messaging consistent across all platforms.
Strategy 2: Increase social media presence and encourage public dialogue. HEMP increased its social presence at the start of 2015. As of March 24, 2015, HEMP had 652 Facebook likes, 168 Twitter followers and 251 LinkedIn members. As benchmark comparisons, Pipeline Entrepreneurs had 1,061 Facebook likes, 2,195 Twitter followers and 87 LinkedIn members; 1 Million Cups had 6,317 Facebook likes, 11,600 Twitter followers and 348 LinkedIn members.
the more noise you make (without being obnoxious) the more people will hear you. Quality is where HEMP can set itself apart as the entrepreneurship expert. This is where dialogue is necessary to show that HEMP is able to answer the more specific questions unique to the Second Stage entrepreneur.
Tactic 1: Social media intern Social media isn’t free. It requires someone to create content and facilitate public dialogues on a regular basis. This creates a challenge for HEMP given its minimal staffing and budget. If the managing director
Twitter HEMP Pipeline 1 Million Cups
It’s worth noting that both comparisons above (Pipeline and 1 Million Cups) are geared more toward Startup Stage companies in the KC area. Both of these groups also skew younger in age demographics. A stronger social media presence will help HEMP reach out to its secondary target market, Millennials. While many of these companies are in Startup Stage, they may be a short distance from Second Stage. Therefore, it’s important for HEMP to begin planting seeds early, especially given the typical decision process in applying to HEMP – several interviewed members typically showed a lag of several years between hearing about HEMP and applying. In order to improve its presence, HEMP needs to focus on quantity and quality. Quantity is straight forward –
and administrative assistant cannot dedicate enough time to this, we recommend hiring a dedicated social media intern. An intern may only be required part time, and can typically be hired for $12-$15 per hour. We believe this is vital to maintaining a strong social program.
Tactic 2: Member social presence HEMP’s mentors, mentees and fellows are its greatest assets. Between Facebook, Twitter and LinkedIn, HEMP performed the strongest compared to benchmarks in LinkedIn. We believe this is because of the specific questions and dialogues taking place on this platform. It may also be attributed to the familiarity of HEMP members with LinkedIn. In a survey conducted by 23 | P a g e
University of Kansas students, over 75 percent of respondents use LinkedIn, compared to 56 percent using Facebook and less than 30 percent using Twitter. We recommend requiring members to post on Facebook, Twitter and LinkedIn on a regular basis as part of their membership. Because this is an important skill for entrepreneurs to have in this day and age, it will benefit members as much as the organization. This strong presence will create powerful dialogues on a national level, making HEMP more transparent and more recognized.
Tactic 3: Social dialogue Use dialogue to show what makes HEMP a great organization for Second Stage assistance. HEMP significantly increased its social media presence at the start of 2015. However, much of the content comes from inspirational articles and quotes (For example, “8 Habits of Highly Productive People” and “5 Newsletters to follow to Becoming a Better Leader” were recently posted). This content isn’t bad, but it isn’t unique, either. In order to set HEMP apart, content posted needs to encourage active dialogue to showcase the wealth of experience and knowledge it has available.
Tactic 4: Social networking Apply a strategy of friend-ing (Facebook), following (Twitter) and sharing (LinkedIn) with fellow Kansas City entrepreneurial groups on social media outlets. For every post HEMP makes about its own offering, it should share two to three posts from other socially active K.C. entrepreneur groups. This allows HEMP to share information about itself as a Second Stage resource and also establish itself as an organization dedicated to supporting others within K.C.’s entrepreneurial community. As other groups recognize this sharing, it becomes an opportunity for the group to reciprocate by sharing information about HEMP to their followers.
Tactic 5: Blogging Add a blog to the website and search engine optimize (SEO) the site. Blogs emphasizing the mission of HEMP will help HEMP’s ranking within search engines. Onpage SEO can include, but is not limited to, the creation of website alt tags, keyword density optimization and content creation (blogs).
Tactic 6: Monitor social conversations about HEMP This can be done by setting up free Google Alerts for “HEMP,” “Helzberg Entrepreneur Mentoring Program,” and “Second Stage” for a quick snapshot of who is talking about HEMP. Using a Gmail account you can set up to 1,000 free alerts. If a mention is found as a result of the alerts, this becomes a new source to reach out to and get to know better.
Strategy 3: Increase involvement with entrepreneurial community. Tactic 1: Be an ambassador Establish a regular presence as an interested and active member of the Kansas City entrepreneurial community by cultivating relationship with local Startups and networking with metro-area corporations through lunch-and-learns. We recommend targeting individuals with an entrepreneurial mindset who attend a variety of Startup events with the intent to promote and educate the entrepreneurial community about HEMP and its Second Stage offerings. Survey results showed member support for developing stronger connections with “neighboring” entrepreneurs in the Startup Village and the Crossroads.
Tactic 2: Host events Consider hosting monthly or bi-monthly events for the neighborhood entrepreneurs in the Crossroads and Sprint Accelerator. These casual networking events are an opportunity for HEMP to demonstrate what happens 24 | P a g e
in the Second Stage through dedicated mentoring and to create a possible funnel for mentees down the line. HEMP also needs to have its members visible at Startup events, promoting the HEMP name. Invite promising Startup individuals to signature HEMP events such as the Circle of Reciprocity in order to demonstrate some of the unique offerings of the group. The member survey indicated a preference for increasing community awareness by hosting lunch-and-learns.
same committee also expressed concern that recruitment wasn’t more of a priority for an organization where new members fuel the organization. Last year was the first time the recruitment committee made targeted recruitment calls. While this proved effective, it requires a hefty volunteer commitment to make hundreds of cold calls.
Evaluative Measures
Hire a dedicated part-time recruiter to reach out to targeted HEMP candidates, including individuals invited to the HEMP open house events, award winners from Kansas City’s INC 500 list, and entrepreneurs met through local lunch-and-learns or Startup events. We’ve noticed that a few HEMP members are retired – they may be ideal candidates to help in this role.
Visits to HEMPKC.org, including the blog Activity on social media platforms (Numbers of Likes, Followers, Members and amount of discussion generated) Mention of HEMP on third party sites (We recommend using Google Alerts to monitor this) Attendance at events Search engine optimization
Objective 2: Attract 40 qualified mentee applicants per year. Data from surveys performed by both HEMP and the University of Kansas students suggests the need for consistent recruitment was strong. All expressed a need to move away from the traditional personal referral method in an effort to concentrate on a more active recruiting approach. While the referral method continues to serve HEMP, many members expressed doubt it could continue at a reasonable growth pace. Because HEMP generates a finite number of members, each new class only adds limited capacity for more recruitment.
Strategy 1: Get the word out Many on the recruitment committee were surprised HEMP continues to be such a well-kept secret in the Kansas City community. A number of people on the
Tactic 1: Get assistance
Tactic 2: Get social Social media has been discussed in objective 1, but has great significance with recruiting as well. Since LinkedIn is the preferred social media outlet among members, the recruitment criteria should be made available to members to share in the form of postings and participation in forums. Copy blocks mentioned in the previous objective can be a good way to share this information easily with members. Keep track of the social conversations by setting up free Google Alerts for “HEMP,” “Helzberg Entrepreneur Mentoring Program,” “Kansas City Entrepreneur,” and “Second Stage.” These alerts provide a quick snapshot of who is talking about HEMP.
Strategy 2: Open house While getting the word out is the first step in recruitment, it is only one piece of the puzzle. When individuals are considering such a large commitment of time and money, it is important to give potential candidates a bigger hook than just a blog post or another piece of collateral. Once HEMP has created more public awareness, it’s time to leverage that 25 | P a g e
awareness to bring the public in by hosting an annual open house. This is an opportunity to bring in Startups and Second Stages alike. While the event won’t be classified as a recruitment event, it provides many opportunities to strengthen recruitment connections and streamline efforts.
Tactic 1: Self selection A Wall Street Journal article by Emily Maltby recommends self selection as a way to weed out candidates with little interest. The article cites an instance where 1,200 applicants were invited to a corporation’s open house, but only 800 attended. It’s easy to apply, but more difficult to take the first step. Self selection weeds out those that don’t take the initiative of that first step. Those that attend the HEMP open house take the first step toward becoming a member.
Tactic 2: Utilize the space and the talent The HEMP we witnessed at the State of HEMP address was completely different than the HEMP we read about online. There is a passion and a chemistry that can’t be described in words. This is the chemistry Barnett Helzberg strived and succeeded to create. Walking into HEMP’s entry way, there is an overwhelming presence of knowledge, and you know you’ll walk out a wiser person whether you want to or not. A pamphlet or a booklet of success stories can tell prospects what HEMP is, but only a live interaction with its members can show what HEMP is.
Tactic 3: Identify potential candidates By researching potential attendees beforehand, HEMP can cover a lot of ground that would typically take several weeks of one-on-one interviewing and scheduled site visits. The entire recruitment committee can feel out candidates during the open house and regroup after the event to identify who the strong candidates are.
The line between Startup and Second Stage is thin. It’s important for HEMP to identify the strong candidates that could be in Second Stage in the near future and keep an eye on them. Just as collegiate talent scouts watch athletes at high school events, HEMP should search out Startups for potential candidates and track them through the next recruitment year.
Evaluative Measures
Open house attendance Number of qualified candidates
Objective 3: Attract 5 highly qualified mentor candidates per year. Attracting mentors is equally as important as attracting mentees, but perhaps more difficult. The pool of potential candidates is small to begin with. Plus, great business people can turn out as terrible mentors. Finally, being a good mentor requires a significant commitment of time. Because this can be a costly and challenging recruitment process, most of our recommendations are based on strategies HEMP already utilizes.
Strategy 1: Identify candidates Attracting the right mentor candidates provides powerful ammunition for recruiting mentees. However, it depends on finding the right candidates. These must be individuals with strong reputations, but also individuals that can teach and invest the necessary time into the mentor/mentee relationship.
Tactic 1: Define the ideal mentor candidate Similar to the copy blocks used to define HEMP and Second Stage, we recommend creating a persona of the ideal mentor candidate. The HEMP website already lists requirements, but we recommend creating a more indepth profile. Based on interviews with HEMP 26 | P a g e
members, we believe these candidates must have at least the following traits:
Successful, but not without failure: Mentors need to have achieved some level of success in order to lead mentees toward success. But at the same time, they must have faced many challenges and dealt with failures to address the struggles their mentees go through. Challenging, but not without optimism: Our interviews revealed that mentees benefit most from challenging mentors. This is how mentees learn and change themselves into leaders. Being mentored is supposed to be difficult. But at the same time, there need to be reasons behind the challenges. There needs to be reward at the end of the journey. Invested without financial gain: Mentors do not receive stake in the mentees company so as to remain unbiased in decision making. As a result, a person takes on the mentor role only for the joy of seeing the mentee succeed. Good mentor candidates are extremely charitable individuals.
Tactic 2: Create a short list of 10-15 candidates Based on the mentor persona, HEMP should begin by identifying 10 to 15 candidates within the greater Kansas City area. Before contacting a candidate, the person should be thoroughly researched to ensure a good fit with HEMP.
Tactic 3: Utilize in-house networks to court mentors The Kansas City entrepreneurial community is tightly knit, with several entrepreneurs involved in multiple organizations. As a result, most successful entrepreneurs have been around long enough to know other successful entrepreneurs. HEMP will need to call in on its own members to reach its ideal candidates and begin the process of courting them. Once paths to mentors are found, a courtship process should begin. This includes taking the candidate to
lunch a number of times, explaining what HEMP is to the candidate and developing a personal relationship to ensure he or she is a good fit.
Strategy 2: Promote incentives Mentors invest a lot of time in the mentoring process for no financial return. This makes the process of recruiting more difficult. However, we believe there are non-material rewards that can incentivize mentorship. These incentives need to be made explicit.
Tactic 1: Entrepreneurship Hall of Fame Let’s face it – to be a successful entrepreneur, you must have a big ego. What better to boost your ego than being inducted into the entrepreneurship hall of fame, which will open in the Fall of 2015. This is a great opportunity for entrepreneurs to receive social and professional recognition for all of their contributions to the community. As entrepreneurship has taken on a new culture of sharing and collaborating, entrepreneurs are already in a mindset of giving and inspiring. We believe Helzberg’s connection to this hall of fame will be a powerful incentive to recruit candidates.
Tactic 2: Fellowship with other entrepreneurs Regardless of whether you just entered Second Stage or you run a Fortune 500, it’s lonely at the top. HEMP offers something to its mentors that very few other places can – a sense of fellowship with other individuals in similar situations. HEMP needs to use this when recruiting mentors.
Tactic 3: Programs Any successful entrepreneur has been successful because he understands the importance of learning and has never stopped seeking knowledge. While a mentor is not paid, he also does not have to pay for most of the programming HEMP offers. He will have access to many 27 | P a g e
great sources and will be able to improve upon his own skills.
Evaluative Measure
Number of qualified candidates recruited
through the survey responses included: improving operating profit, improves employee performance through culture, creating venture exit plans and learning from personal mistakes as well as the mistakes of others (see Appendix F for a full list).
Tactic 2: Create roundtables Objective 4: Improve member satisfaction by implementing improvements to internal communication. Strategy 1: Create an internal communication platform. Tactic 1: Internal social network This platform could be an interactive expansion of the current HEMP directory off of the Participants page on the website. While the interviewees talked very highly of the usefulness of the directory resource, a printed book will most likely not be the resource of choice for the younger participants HEMP hopes to attract. A secure online portal, perhaps with optional password protection and applicable social media connections, could be a nice offering that demonstrates the exclusivity of membership in HEMP. Another option for enhanced communication is a subscription-based native app platform specifically designed for mobile communications. One example of this is APPrise mobile (www.thecommsapp.com).
Strategy 2: Create additional programming for incoming mentee classes and existing members. Tactic 1: Survey members The survey conducted by University of Kansas students found support within HEMP for the creation of expanded outcomes for mentee participants. In addition to addressing a mentee’s “worst foot forward” element(s), these additional topic offerings would echo HEMP’s own vision of entrepreneurial success in the Second Stage. A sampling of the topics generated
Use some of the topic suggestions from the member survey (see Appendix F for full list) to create roundtable events with Fellows. These events could be in addition to regular HEMP programming held during breakfast or the late afternoon. These expert-led groups are a great way to showcase the caliber of the HEMP’s current membership and could also serve as a “sneak peak,” invite-only event for entrepreneurs HEMP would like to recruit.
Evaluative Measures
Use of internal social media platform Survey responses Participation in surveys and roundtables
Objective 5: Make HEMP a self-sustaining entity. HEMP currently operates on approximately $500,000 a year. Over $200,000 of this comes from Barnett Helzberg, and the remainder comes from mentee and fellow fees, programs and other donations. In order to become fully self sustaining, HEMP needs to generate a $4 million to $5 million trust fund. While this objective is largely outside of the scope of our marketing plan, it is worth noting that this is important to HEMP members. In a survey of 137 members performed by HEMP, 72 percent of respondents agreed that HEMP must become selfsustaining. From our research, we understand that HEMP is in the process of fundraising for an endowment.
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Achieving sustainability will be a significant stride for the organization. Not only will it protect the organization from unanticipated setbacks, such as reduced funding from the Helzberg family, but it will also allow a greater budget to fund other objectives.
Strategy 1: Fundraising via website Although the process of writing grant proposals is underway, HEMP shouldn’t leave any stone unturned. Creating and maintaining a “Donations” page on the HEMP website requires minimal work. Because of the value HEMP provides to the community through the entrepreneurs it supports,
Tactic 1: Present HEMP’s cause HEMP has a powerful cause because of its economic impact on the community. By supporting local entrepreneurs, HEMP is directly responsible for creating jobs and increased stability in the local economy. HEMP needs to clearly explain this to potential supporters.
Tactic 2: Create a “Donations” page A donations page is relatively easy to maintain. This makes it easy for people to donate in small amounts if they prefer. While this is pocket change compared to what Helzberg donates, it can add up over time, providing a support the overall operating budget, possibly funding the compensation for interns. The successfulness of this page directly correlates to HEMP’s ability to increase awareness through the first objective – the greater the traffic driven to the website, the greater the donations.
Evaluative Measure
Donations through website
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TIMELINE The timeline below places the recommendations into a one year calendar for the sake of simplicity. Note that this schedule is relatively aggressive – when implementing, it may be necessary to expand the timeline out into 2016 depending on time and budget constraints. Assuming there will be limitations to what can be done, we recommend starting with the primary tactics, followed by the secondary and tertiary components. Objective 1 is condensed into the summer based on the recommendation to bring in a social media intern – if this happens, there will be more resources during the summer. The schedule tapers off in the fall to account for recruitment and initiation activities.
Primary
Secondary Tertiary
N/A
April
May
July
Strategy 1, Tactic 1: Complete copy blocks.
Strategy 2, Tactic 1: Post social media intern position at local campuses and on website.
Objective 1
Strategy 2, Tactic 2: Determine level of member social presence and training necessary to meet this.
Strategy 1, Tactic 2: Complete press plan.
Strategy 1, Tactic 3: Update "About" page.
Strategy 2, Tactic 1: Hire social media intern.
June
Strategy 2, Tactic 2: Hold social training for current members. Strategy 2, Tactic 5: Kick off blog. Have social media intern write this if available. This activity should be ongoing for remainder of calendar. Strategy 2, Tactic 6: Begin monitoring social conversation about HEMP. This activity should be ongoing for remainder of calendar.
August September October November December
Strategy 2, Tactics 2, 3 & 4: Begin implementation of member presence, social dialogue and social networking. This activity should be ongoing for remainder of calendar. Strategy 3, Tactic 1: Create a calendar of local events that can be attended based on manpower and member willingness. Then start attending events to promote HEMP. This activity should be ongoing for remainder of calendar.
Strategy 3, Tactic 2: Begin planning first event: the recruitment open house.
Strategy 3, Tactic 2: Begin planning additional events for 2016.
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TIMELINE
Objective 2
Primary
Secondary Tertiary
N/A
April
May
June
July
August
Strategy 1, Tactic 2: Begin recruitment efforts via social media. This activity should be ongoing for remainder of calendar.
Strategy 2, Tactics 1 & 2: Begin preparation for recruitment open house.
Strategy 2, Tactics 1, 2 & 3: Host open house. After the open house, reach out to potential candidates.
Strategy 1, Tactic 1: Post part-time recruiter position.
Primary
Secondary Tertiary N/A
April
May
June
July
August
September October
September
Strategy 1, Tactic 1: Flesh out ideal mentor candidate persona.
Objective 3
Strategy 1, Tactics 2 & 3: Create a short list of candidates to recruit for 2015 and begin developing networks to reach them. Strategy 2, Tactic 1: Entrepreneurship Hall of Fame opens. This activity is ongoing for remainder of calendar.
October
November December
November December
Strategy 1, Tactic 3: Begin recruiting mentors. This activity should be ongoing for remainder of calendar.
Strategy 2, Tactic 1, 2 & 3: Create recruiting collateral based on incentives.
Primary Secondary Tertiary N/A April
Objective 4
May
June
July
August September
Strategy 1, Tactic 1: Research options for an internal social network and select a platform to purchase.
October
November
December
Strategy 1, Tactic 1: Implement internal social platform. Once up and running, this activity should be ongoing for remainder of calendar.
Strategy 2, Tactic 1: Develop and implement a survey to base programming around. Surveying should be an ongoing activity, occurring every other month.
Strategy 2, Tactic 2: Create round tables based on surveys. Round tables should be an ongoing activity. It can also be done remotely using the internal social platform to add convenience.
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TIMELINE
Objective 5
Primary
Secondary
Tertiary N/A
April
May
June
Strategy 1, Tactic 1: Write copy for how to present cause when requesting donations.
Strategy 1, Tactic 2: Create donations page. Maintaining this will become an ongoing activity for remainder of calendar.
July
August September October
November December
Once the components of the first year schedule are complete, the schedule below can be implemented on an annual basis to maintain marketing efforts.
Objective 1
Primary
Secondary
Tertiary
N/A
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Strategy 3: Plan and host events on a monthly or bi-monthly basis.
Strategy 3: Plan and host events on a monthly or bi-monthly basis.
Strategy 2: Host open house
Strategy 2: Review and select candidates.
Strategy 1: Continue recruiting mentors Strategy 1: Maintain internal social communication. Strategy 2: Implement surveys and round tables regularly.
Strategy 1: Continue recruiting mentors Strategy 1: Maintain internal social communication. Strategy 2: Implement surveys and round tables regularly.
Strategy 1: Update definitions, copy blocks, press kit and website as necessary. Strategy 2: Post social media intern position. Strategy 3: Plan and host events on a monthly or bi-monthly basis.
Objective 2 Objective 3 Objective 4
Strategy 1: Continue recruiting mentors Strategy 1: Maintain internal social communication. Strategy 2: Implement surveys and round tables regularly.
Objective 5
Strategy 1: Update cause and donations page as necessary
Strategy 2: Hire social media intern. Strategy 3: Plan and host events on a monthly or bi-monthly basis. Strategy 2: Begin preparations for open house and review potential candidates from previous year. Strategy 1: Continue recruiting mentors Strategy 1: Maintain internal social communication. Strategy 2: Implement surveys and round tables regularly.
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BUDGET The budget on the following page is based on an aspirational marketing budget of approximately $37,000, despite HEMP’s current marketing budget of $15,000. We expect much of the difference can be made up by using the talent available to HEMP from its members. The budget is also broken down into objectives, strategies and tactics so that items can be cut if necessary. If an item must be cut, we recommend cutting it based on the priority given in the schedule in the previous section.
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BUDGET Objective
Strategy
Tactic
Objective 1: Awareness
Strategy 1
Tactic 1
Strategy 2
Strategy 3
Objective 2: Recruiting Mentees
Objective 3: Recruiting Mentors
Strategy 1 Strategy 2 Strategy 1
Strategy 2
Cost
Frequency
Reason
$100
One time
Copywriter
$100
Tactic 2
$300
One time
Press agency
$300
Tactic 3
$1,000
One time
Freelance web designer and SEO assistance from agency
Tactic 1
$300
Weekly
Social media intern
Tactic 2
$500
One time
Member training
Tactic 3
$0
Required from members
$0
Tactic 4
$0
Required from members
$0
Tactic 5
$150
Weekly
Time without social media intern
Tactic 6
$200
Monthly
Agency assistance or labor for monitoring social
Tactic 1
$0
Tactic 2
$450
Monthly
Tactic 1
$300
Weekly
Tactic 2
$0
Tactics 1 & 2
Annual total (Strategies)
$1,400
Annual total (Tactics)
$1,000 $4,500 $500
$5,550 $12,950
$2,400
$5,400
$5,400
Required from members Based on catering: $15 per person, estimated at 30 people per luncheon, one luncheon per month. Part-time recruiter
$0 $19,750
$4,500
Covered in Objective 1
$4,500
$0
$5,000
One time
Estimated cost covers catering and labor to plan and market event
Tactic 3
$0
One time
Required from members
Tactic 1
$0
Best definitions will come from in-house experience
$0
Tactic 2
$0
Best definitions will come from in-house experience
$0
Tactic 3
$2,000
Tactic 1
$0
Cost covered by UMKC Bloch
$0
Tactic 2
$0
Non-tangible incentive
$0
Tactic 3
$0 Monthly
Mentors attend programs currently, so this item doesn't affect the budget. Estimated cost for internal social platform
One time
$5,000 $9,500
Estimated cost of courting potential mentor candidates, based on spending $200 per candidate for lunches, gifts, etc.
Objective 4: Internal Awareness
Strategy 1
Tactic 1
$20
Strategy 2
Tactic 1
$200
Bi-monthly
Cost for implementing and analyzing surveys
Tactic 2
$300
Bi-monthly
Objective 5: Selfsustainability
Strategy 1
Tactic 1
$100
One time
Based on catering: $15 per person, estimated at 20 people per round table Copywriter
Tactic 2
$300
One time
Freelance web designer
Annual Total
Annual total (Objectives)
$5,000
$2,000
$2,000
$0
$2,000
$0
$0
$240
$240 $1,200
$3,240
$3,000
$1,800 $100
$2,200
$400
$300
$36,690 34 | P a g e
APPENDIX
Source: khi.org
“HEMP members and potential candidates are often isolated at the top of their corporate/business food chains. HEMP is a place for them to relate to others in the same situation, thus feeling less isolated.�
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APPENDIX A TERMS DEFINED Accelerator Angel Investor
Big Businesses Entrepreneurs
Incubator
Innovative entrepreneur Intrapreneurs
Mentorship / Coaching Replicative entrepreneur Second Stagers
Startup
A short-term, high-intensity program led by mentors. It may provide seed capital for participating entrepreneurs to test a business model. Angel investors make investments, but on an individual basis, whereas accelerators invest in batches. Angel investors typically have a board seat and mentor their portfolio firms. A company with over 100 employees. People who “identify a need – any need – and fill it. This is a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk. Whereas accelerators make equity investments in participating firms, incubators charge ventures, called “tenants,” rent for physical space but do not invest in the firms, called “portfolio companies.” As a result, they are less aligned with the venture and less focused on growth required for a positive exit. The “innovative” entrepreneur upsets and disorganizes the existing way of doing things. This is the coder creating a social network and can also be classified as highgrowth. Employees who are assigned an idea or project and they are instructed to develop the initiative as if they are in an entrepreneurial dynamic. Because these activities occur within a large firm without the typical entrepreneurial risk, the intrapraneur has the freedom to explore a profitable idea or venture for the company without the risks of being an independent entrepreneur. Like entrepreneurism, the characteristics of intrapreneurism also include innovation, risk taking and flexibility. In theory, an interpreneur would be able to create and fast track a product without the normal corporate bureaucracy. Locally, Black & Veatch, a global engineering, procurement and construction services company, is launching an intrapreneur-like initiative called Spark. The program will support non-traditional thinking and risk taking within the company. Objectives for the Spark initiative include broadening the company’s portfolio, increasing innovation, anticipating trends and quickly moving ideas to launch. “The Macintosh team was what is commonly know intrapreneurship… a group of people going, in essence, back to the garage, but in a large company.” Steve Jobs, 1985 Newsweek article. Companies such as Lockheed Martin, Black & Veatch, Google and many others are known for their uses of intrapreneurs. An inquiry based process built on a trusting relationship between a mentor (teacher/coach) and a mentee (student). The replicative entrepreneur sets up small businesses much like other businesses. This is the owner of a chain of Laundromats. This type can also be classified as “small business.” Second stage entrepreneurs are transitioning from surviving as Startups to scaling and sustaining. Their leaders must transition from “doing” to “leading.” They are significant job creators with established national and global markets. A business taking its first steps. This company typically has not validated a product or process concept and is still looking for funding. It faces the challenges of surviving on a day-to-day basis and iterating to a minimum viable process before running out of funds. 36 | P a g e
APPENDIX B KEY INSIGHTS FROM PRIMARY RESEARCH HEMP members and potential candidates learn exceptionally well through emulating the boss, but a number of them have reached a point in their careers where there’s no one above them to emulate. That’s where mentorship has a significant role. Bill Hartnett illustrated the challenges he faced with reaching the top of the ladder. He joined HEMP during his time at EPIC, a subsidiary of Starlight Entertainment. While not a traditional entrepreneur, he was accepted based on his rank as “the ultimate decision maker.” Bill mentioned how he frequently found himself promoted into jobs he wasn’t yet equipped for. Because he was a quick learner, Bill emulated his superiors to get a grasp on his new job responsibilities. But once he reached a high enough position, the ultimate decision maker, there was no one to learn from, just board members. That’s where HEMP came in – it was a group to emulate.
HEMP members and potential candidates are often isolated at the top of their corporate/business food chain. HEMP is a place for them to relate to others in the same situation, thus feeling less isolated. Being the ultimate decision maker is emotionally taxing, and relationships are limited. You have to make decisions that not everybody likes, including firing employees. All of the interviews we conducted validated this finding. However, we noticed that there is an increase in feelings of isolation when individuals move from the Startup phase to Second Stage. The Kansas City Startup Village (KCSV) is a local network of Startup stage companies working within a few blocks of one another. The village thrives on a shared network of knowledge. Because of its close-knit location, one can go down the street and ask an expert in design for his opinions. It’s a community of collaboration. However, more established businesses don’t always have this strong connection with similar-stage organizations. By Second Stage, the company’s needs are too specific for this type of network. Matthew Marcus of KCSV provided an interesting analogy between KCSV and HEMP. “Proximity is important with KCSV, where everyone is bouncing ideas off of everyone. Think of it as ‘mentorship incest’ (he later came back and revised the term to ‘mentorship polygamy’). HEMP, on the other hand is a marriage between the mentor and mentee. With KCSV, each person provides value at a different time, but you don’t develop the same relationship.” Joe Ratterman of BATS Global Markets agreed that it can be lonely at the top. He counts on his teams to do the work, but that makes a different relationship than a peer relationship. Clark Foy, founder of MetriGear, also confirmed this, describing the importance of having a mentor or advisor board relationship: “Being the CEO of a startup is a lonely job. Having a board keeps you grounded and keeps you from making emotional decisions.” Deuce Livers, a 12-year member of HEMP and owner of Livers Bronze Company, has long relied on HEMP for guidance from his mentor Ray Pittman, now passed, and his fellow HEMP members. A graduate of the HEMP class of 2003, Livers has also joined other mentor groups including Vistage as a way to continue his learning and growth as an individual and a business owner.
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“Vistage is more rigorous in the fact that you may be called on during the meeting to talk about a topic,” Deuce said. “Many liked the online structure of Vistage and that things could be done from your desk. In contrast, HEMP is more laid back and people like that it is not so structured.”
There is a major shift in the type of leadership and job responsibilities required when transitioning from a Startup to Second Stage company. Leaders must learn to delegate responsibilities, among other things. HEMP needs to articulate that this is something its mentees learn. Bill recounted one instance from HEMP in which a woman was struggling with managing all of the responsibilities as her company grew. She was no longer able to take vacations. Then, outside mentorship helped her to hire a CEO and return to work that she enjoyed. Dino Signore, manager of entrepreneurial education at the Edward Lowe Foundation, says the challenge faced by Second Stage businesses is having too much business. The company has an emerging social system where the business leader is making the transition from a do-er to a leader. In some cases, people don’t know that they are in Second Stage and there are times when these changes can happen before the typical markers are encountered. You know that something is changing because things are getting more complex. You are in a different social system. Second Stage is about the intent to grow; otherwise, you’re not in the Second Stage. There are some people who want to be in this stage of growth and others do not. “Those in the Second Stage have an immediate need and they want to be there,” Dino said. “The challenge is that this stage isn’t for everyone. Those who don’t want to grow are the lifestyle entrepreneurs who want to control growth.” The history of BATS, a stock exchange based in Lenexa, Kan., illustrates the significance of this shift. BATS was founded in 2005 when Dave Cummings left Tradebot simply to challenge the status quo set by NYSE and NASDAQ – the venture was more of a spinoff from Tradebot than a completely new startup. The initial vision changed dramatically over the years, and BATS now operates in Europe and is a dominant global player. But Cummings didn’t initiate the recent phases. In 2007, Joe Ratterman took on the role of CEO. At this point in the company’s history, it was a mature business, not a Startup. As a result, the change in leadership was smoother. As Joe said, “Dave took risks that most people don’t normally take. I have a different risk tolerance. I look more for assurance of success.” Joe comes more from the operations side of management, and this is what the company needed in a leader at this mature stage. It was a time when the company needed awareness, not a minimal viable product.
HEMP is viewed in the community as the “prestigious, gold standard.” However, many aren’t aware it exists. HEMP needs a stronger presence at pre-Second Stage events to raise awareness. Since KCSV consists of pre-revenue and early-stage startups, it has no overlap with HEMP. That said, KCSV members are aware of the organization. “Prestigious is a good word to describe it,” Marcus says. “They have professional materials, and you see all of those involved wearing their suits and ties. We just put on what we have for the daily hustle.” Those involved in KCSV agree that HEMP has a strong program and provides good value to its members. However, they would like to see more community involvement from HEMP. Specific ideas included an open house to see what HEMP is about, 38 | P a g e
and more community involvement at earlier stage entrepreneurial activities so that Marcus and Arredondo can share HEMP via social media, something they’d be happy to do if HEMP represented itself at these events. Marcus also would like to see more social media from HEMP as well as value provided to those outside of the organization; for instance, if there were an inclusive program for earlier staged startups in addition to the exclusive, prestigious program. In general, he says he doesn’t see much content about HEMP – success stories, member names, and etc. “They need to celebrate it.” Jacquie Morgan of BalancePoint and current head of HEMP’s recruiting committee, is one who sees the silos within the Kansas City entrepreneur community referred to earlier. “The issue is that there are a lot of segmented groups but there are no synergies and entrepreneurs don’t know where to go.” Morgan also questioned if other than the financial requirements of membership if there were other markers that would allow an entrepreneur to see if he was a good fit for HEMP or another entrepreneur organization in the area. While HEMP is viewed as prestigious, Ron Hill of Redemption Plus said that he and other HEMPers are still adjusting to the new name, HEMP, which they think doesn’t sound as prestigious as the Helzberg name.
Mentor/Mentee relationships must be trust-based and challenging. Hartnett is adamant that HEMP works “because of unwavering, unrelenting confidentiality rules.” Without permission from the mentee, the mentor cannot share anything with anyone. It’s the only way mentees can “put their worst foot forward.” This is the type of culture HEMP celebrates. Putting the worst foot forward allows mentees to receive the guidance they need. A mentor never invests financially in the company. She’s only in it for the joy of seeing success. When asked about the idea of having an advising board of mentors, each with a financial stake in the company, Bill replied, “Yes, but HEMP can’t work that way. Otherwise, the mentoring process becomes biased. With every piece of advice, both parties will be asking if this helps you or me.” Bill illustrated the challenging aspect of his relationship with an example from his menteeship under mentor Margaret Reynolds. Bill managed a person who just wasn’t meeting his sales quotas, wasn’t even coming close. Every time Bill met with Margaret, she would ask him, “Did you fire Dean?” He’d say, “No,” and she’d say, “Then we have nothing to talk about. Until you fire him, we’re just fixing deck chairs on the Titanic. What will you have to eat?” Their meetings went like this for three months until Bill let the under-performing employee go.
To succeed, HEMP must attract the best mentors and mentees possible. Rather than raise general awareness and mentee application numbers, Bill recommended that HEMP needs to find great mentors and promote their qualifications to demonstrate what mentees can get out of the program. And HEMP needs to recruit more female mentors. To attract great mentors, Hartnett wants to stress the quality of the mentees and highlight the requirement of $1 million or more in revenue. This shows that the company is serious and firmly established as Second Stage.
Entrepreneurs typically have several connections and involvements within the entrepreneurial community. 39 | P a g e
Nearly half of our interviewees were involved with other organizations outside of HEMP (however, some weren’t involved in HEMP at all). While this can conflict with commitments to HEMP, it can also be an opportunity, giving HEMP a platform for networking with other communities. For example, member Dave Cacioppo, of emfluence, is also president of the forum-based Entrepreneur Exchange. This entrepreneur group is invitation only and serves businesses earning between $3 million and $1 billion. “There needs to be an easier way to go about finding groups and finding what kind of group that you desire,” he said. Dave recommended something like a website that would ask a couple of questions and would then funnel you to the right resource based on your answers to the questions.
Many HEMP members do not join initially. The seed was planted, and they joined several years after observing a direct need. Many of our interviewees received a letter or a personal referral for HEMP, which was immediately tossed aside. However, when a time came that the business was in trouble, they went to HEMP. Jacquie Morgan, of BalancePoint, illustrated this with her experience. Her first invitation to join HEMP was a letter, which she didn’t respond to. It wasn’t until a co-worker said that he wanted to join that she looked more deeply into in the organization. Once she began to research HEMP, she decided that she wanted to be a part. When she saw first-hand what HEMP was about, she wondered why more people didn’t want to be a part of the organization. Many members of the recruiting committee wonder the same thing. Ron Hill, founder of Redemption Plus and member of HEMP’s 2008 mentee class, came to HEMP in much the same fashion. Ron received a nomination letter to HEMP but threw it aside initially, assuming it would take too much time. Later on he decided he needed help, reviewed the program more in-depth and made the commitment to apply.
Communication within HEMP needs to be transparent. Many members we interviewed believe their suggestions for changes in HEMP have been ignored. To maintain a high rate of mentee and fellow satisfaction, HEMP needs to actively and consistently respond to its members. Ron Hill, the programs chair, talked about his idea to create an internal social media program to help drive conversations and guide the organization’s programming. He believes that a social media program within HEMP will be much more successful for an internal feedback loop than surveys. He noted how his company uses a “chat” program to speak about the company, and how he uses this to see what is and isn’t working. “Communication needs to be more transparent,” he said. Dave Cacioppo also expressed a desire for HEMP to take on a dedicated social marketing program incorporating the use of Facebook and LinkedIn then Twitter.
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APPENDIX C INTERVIEW TRANSCRIPTS Interview with Clark Foy – Founder of MetriGear – February 2, 2015 Before starting MetriGear, Clark went into management consulting and pursued an MBA. From there, he went into high tech for 15-18 years, doing strategic planning, product management, and ultimately VP of marketing. At last tech company, he spent much time abroad and set up a branch in Korea. He took a step back and decided to take a sabbatical to spend time with family and reenergize, then return to tech. During this time, he decided to do something with cycling. Climbing the French Alps with some friends at a training camp, a friend introduced him to another cyclist on the tech side. He had the original concept for Vector. They self funded metrigear and were off. First, he attributes the confidence to step away and reflect to success. Second, he attributes his openness of goals. He was upfront about his goal to be in cycling, and it fostered many connections. “Getting the right team at the right time is the most fundamental part of a successful venture. And so often at these startups, the people are there, they’ve got full time jobs. So then to be able to crack that with ‘are you bringing time, money, expertise’ so that everybody is motivated, feels equitable and moves the ball forward. That is the part that breaks down so often because people are early in their careers.” MetriGear formed in 2008, took a prototype to Interbike in 2009 and were acquired by Garmin the day before Interbike 2010. Clark and his partner funded the entire venture, paying for tools, hardware, prototyping and hiring contractors. They reached a point where they estimated they needed about $1 million to get it into production and get units out there to start the cash flow in. At that point, going deeper put everything at risk, including college money for children, mortgages, etc. So they started to pursue angel investors. Vector was such a niche market, angel investors were the best option (in fact, many are avid cyclists and knew about Vector). The decision they were faced with is – they both left their jobs to run a company that they would have fun running. To raise that money, they’d give 50% of the company up to people with an opinion. Acquisition was challenging because it wasn’t part of their plan. But the more they stepped back and looked at Garmin, they found that it was a good fit in terms of product offering, engineering, expertise, manufacturing, etc. They’re going to value “us.” So now, they could still drive the product line strategy and get paid. It was like someone was tightening a vice grip down on us. There were many sleepless nights asking: do you either give up control of the product line or risk everything. This was supposed to be a slam dunk. We had working prototypes, we had market validation and public desire, but we couldn’t consistently manufacture accurate sensors. Looking back and understanding how risk-wrought it was, I don’t know if I would have done it. But that’s the magic of startups. In the moment, you are so deeply in belief of your product and your team, you take risks that you can’t believe you’re taking. In many ways, that naivety as a startup is what allows you to be successful. Getting market validation turbo-boosts startup effort. It takes a big piece off the table – whether or not the market will value the product. During the venture, Clark built a board of advisors, and this is something he recommends to the startups he advises now. They must build a team of experts in various places that are one step away from the problem to bounce ideas off of. He gave each member equity. One half to one percent is a typical equity for this position. Not
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only do you need to have a board of advisors, but you need to leverage it as well. Being the CEO of a startup is a lonely job. Having a board keeps you grounded and keeps you from making emotional decisions. Some of the biggest mistakes are to make emotional decisions and to get “sideways” with the team. Startups are so small, everybody has to be all in, and roles have to be defined. You have to be able to have hard conversations. Clark says that being in a startup was the most emotional part of his life. This can affect decision making and relationships within the team. There’s no perfect path for how you navigate personal relationships, family life and outside forces to get to market – every startup has its own story. MetriGear decided up front how to divide equity. It was a full day meeting where they had a spreadsheet projected on the wall. If so-and-so had a provisional patent on something, then that’s worth something. Then if we have a product down the road, what percent is that worth (i.e. 15%). Someone may not have brought anything in, but will be spending 50% of time working on this. “That wasn’t easy. It put a lot of stuff on the table that you hadn’t quantified before. But it’s all out there.” As an advisor, Clark sees people putting that step off because it’s hard. If you don’t get that out on the table, you have a train wreck coming. But if you have an investor round coming up and have to lay stuff on the table, things often fall apart. Another big mistake is that people don’t do the paper work – employment papers, contracts, NDAs, company papers. You need to get a good lawyer and document everything. People often have a good idea and get so excited, that they don’t do the paper work. MetriGear used this to divide up initial shares and held apart 20% of the company for advisors, potential partners that may have another skill. After doing this, they were well set for the future. The core idea of Vector never changes – it’s a version from the first iteration back in 2008. The biggest pivot in their product was changing pedal platforms from SpeedPlay to Exustar. “SpeedPlay was pretty cagy with us. They didn’t understand. They tried to watch us and say what’s going on. Things just blew up in 2009 at InterBike. Their VP of sales came up on day two and said, ‘okay, there are two rumors on the floor right now. One is that we’re acquiring you, the other is that you’re acquiring us.’ That’s just how nuts things were.” Eventually, SpeedPlay came to MetriGear and said they needed to stop development with their pedal. There were only risks, so Clark and Dave got on a plane to Taiwan, looked at the production plants and decided on the pedals. This pivot was where advisors came in handy. An advisor with an expertise in cycling told Clark SpeedPlay’s conservative history, the history of the CEO having many inventions stolen. The advisor also helped him network with manufacturers in Taiwan. The thing about startups is they’re all consuming. And I actually left the tech world because it was all-consuming with no light at the end of the tunnel. I’m working 75 hours a week. And it’s intellectually stimulating and I work with great people, but it never ends. You come home from Seol, Korea, at four, and your CEO calls and wants you in a meeting at 5:30. What’s different with a startup is that it’s your product and your idea. I couldn’t wait to get to work and test a new idea. I would watch the machine running from webcams at home to make sure nothing caught fire, and I loved it. You also know and believe it will not last forever. In tech, there’s never an end in sight. But for us, there was a defined milestone where we’d be done, and as a result it was easy to draw on. Plus, with MetriGear I could bring my family in. My daughter would come by on the way home from work and help. My wife did the books. And my daughter’s gotten an excellent education. It’s given her a language and concepts she never would have had otherwise. 42 | P a g e
Interview with Dave Cacioppo – President and CEO of emfluence, President of EE, HEMP Member – February 3, 2015 (On the record) Joining HEMP
Joined HEMP in 2001, found out about it through a referral from a friend, still active but also is active in a number of groups and forums in the area HEMP is different in that it actively recruits people, this is logical low-hanging fruit but it is also a channel that gets burnt out easily and it’s not sustainable HEMP allows the public to attend some events
Women – come from the group Women Mean Business – high-level group of women, 20 inductees, a number of women come from this group Timeline for KC Entrepreneurs 1. Start-up – Kauffman 2. 1-2 years – SCORE 3. 3 years – HEMP, business incubator, Sprint Accelerator Entrepreneur Exchange
For businesses that are between $3 million and $1 billion (ex: Neal Patterson of Cerner) ?? Higher-profile people in this group?? EE is more forum-based, there’s only 1 even that it open to the public, has some more women in the group but not many more than HEMP Entrepreneur Exchange asks for a minimum of $3 in revenue, EE is invitation only, they go out and find the people
Mentee Experience
Very valuable for him and he and his business were better off at the end of the 3 years, now he goes to fewer HEMP events because he’s involved in competing activities and participates in other things HEMP is about the investment in self Money for application is easily justifiable for the mentees and HEMP puts in the same amount per mentee, maybe more Big need for it to be self-sustaining because Barnett is not going to be around forever, need to have enough cash Have to share what you need help with, no reason to hide or dodge the point, HEMP is there to help people get bigger When he started he discussed joining and the fee with his business partners to see if it was worth it, finances were their weak point “put worst foot forward” People don’t join HEMP for networking purposes and you do not solicit business or donations from other HEMPers, you can ask for help (everyone in the directory is considered a resource)
What HEMP Needs 43 | P a g e
Create more demand for new members. The current referral system works to a point, but that pool is exhausted very quickly. So far the tactic of referring has been cheap and effective and has had the highest return. Very weak in social – suggestion to start with doing Facebook, Linked In and then Twitter, create a coordinated digital strategy that encourages member participation **There needs to be an easier way to go about finding groups and finding what kind of group that you desire (referenced KC Source Link multiple times, this seems to be the only source but it’s difficult to use. He recommended something as simple a website where you would ask a couple of questions and that would then funnel you to what resource would be best for you based on the questions.)
Interview with Jacquie Morgan – HEMP member, recruitment chair – February 5, 2015 Joined HEMP in 2010, began as a mentee, now head of the recruiting committee Her first invitation to join HEMP was a letter, which she didn’t do anything with. It wasn’t until her co-worker said that he wanted to join that she looked into in deeper. Once she began to research the organization she decided that she wanted to be a part. When she saw what HEMP was about she wondered why more people didn’t want to be a part of the organization. Many on the recruiting committee wonder the same thing. Issue: With KC often touting itself as an entrepreneurial community, there are a lot of segmented groups, (example the group at Cerner doing their own thing) but there are no synergies and entrepreneurs don’t know where to go. ** She had never heard of the term second stage Issue: HEMP is not good with social media. LinkedIn has not been tapped into at all. Looking at posting on LinkedIn where the business owners already are, also look into Facebook ads. Don’t know why the marketing team has not yet tapped into. Questions for Christina: Other than the concrete financial requirements, are there other things that let you know if someone will be a good fit for HEMP? If they aren’t a good fit, where do you send them? Are there other resources that you refer them to? What segment HEMP serves – statistic-wise The 4% of businesses that earn between $4-20 million, some are beyond $20 million but most are in the $3-$10 million range and that’s a difficult area to grow, lots of challenges 1% gets to the $20 million mark and beyond Competitors Pipeline – comments that from what she’s heard from others who have gone through the Pipeline program that it’s better for start-ups, the requirements are less rigorous, good way to ready them for HEMP as a secondary stage Recruitment 44 | P a g e
There is a list of 6,000 potential mentee targets, some are as old as 5-6 years, but they still should be in range, also have purchased lists that contain lists of award winners Last year was the first year that the recruitment committee started making targeted call. Questioned what was being done with the lists. Compared it to college recruitment that it was science Questioned if it would be worthwhile to have paid recruiter because of the amount of ground to be covered. Would like to tap into INC 500 recipients, wondered why we aren’t reaching out
Ways to Change the Business Model If you listen to Barnett’s experience, his mentoring process with Ewing Kauffman did not end in just three years, it continued for many more than that. Entrepreneurs are already overwhelmed and HEMP “harps” on the required time commitment to a point that it drives people away. It will be a process to combat the perception/stereotype of belonging to HEMP takes a lot of time. Questions why the time commitment was 3 years, why couldn’t there be a longer sustainable model where the initial engagement was 3 years and those who were enrolled could continue to pay but they wouldn’t have to stay the three years, there would be the ability to come back and be mentored as your business changed and as you needed a different kind of mentor. Maybe you could be a mentor and a mentee at the same time. There could be a discount depending on your level of involvement but the program would be adaptable in order to allow you and your business to morph and grow. Women There are in general fewer women running businesses, particularly at the executive level. Even in the Fast 50, there are very few in executive. A lot of the women-owned businesses aren’t B2B business. From her opinion this could be because women hold back or they have a harder time breaking away from the traditional roles. She said that it was difficult to know what’s ahead and typically women are risk-adverse, plus there’s more risk at home. Minorities It’s hard to speak to a group that you don’t represent. Her minority classmate had a lot of trouble finding his place in the program. He didn’t have the benefit of anyone in his family being in the same position and he also had a hard time separating working in his business from working on his business. He seemed to be pleased with where he was and didn’t want to push the envelope. Level of Interaction between HEMP Participants HEMP has grown in size and is now at 180 members. As a result there are usually 30-50 people at each event at a given time and it’s never the same group each time. There are always people who don’t know each other, but they still want to be helpful to each other. This is why they mention the directory and their availability. HEMP members are at many different life stages so if they have time they may belong to different groups or have more time to volunteer because they’ve sold their business.
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HEMP is different because networking from a traditional perspective is frown upon. You are welcome to tap into other people’s experience and business can come from those relationships but the interactions are not about gaining business. Interview with Ron Hill – HEMP member, Programs chair – February 4, 2015 Prior to starting Redemption Plus 18 years ago, Ron sold computer software for a larger company. He came to the realization that management wasn’t that smart and approached them asking for his own franchise. They set him up in a failing Seattle branch they’d taken back from the owner. After turning it around, he decided he wanted to do something else and didn’t want to work for someone else. Ron started Redemption Plus with the vision of “enriching lives through insights that empower.” Over the last years, he’s refocused the company on a purpose over profit mentality. One example of this is the company’s initiative to provide a birthday party to someone who has never had one for every five parties purchased. While the company is a toy distributor on paper, they are much more than that in the community. Ron received a nomination letter to HEMP but threw it aside initially, assuming it would take too much time. Down the road he decided he needed help, reviewed the program more in-depth and made the commitment to apply. Out of his eight person mentee class of 2008, only one other person is still regularly involved. This conflicts with what we heard about 100% of HEMPers staying around after graduation since 2007. His class wasn’t tight-knit. However, Ron says they’re doing a better job of this now. Before HEMP, Ron was a member of YEO (Young Entrepreneurs Organization), which excelled at bringing strangers together, breaking them down, and making them share their businesses to create strong relationships. This is what HEMP is training its mentors to do. He joined the programs committee, and, after two years, was “nominated” as the chair. (Apparently there’s a joking, internal word for this. Christina nominates individuals to become chairs, and the individual needs a very good reason to turn it down.) He’s been more involved after being committee chair, but still founds the time commitment challenging. Of the programs, the retreat is most significant. In addition to the learning experience, this serves as a fundraising opportunity. Ron was unaware of any budget that they have. They also hold an annual fundraiser to raise money for HEMP. Ron created a spreadsheet of scores to rate different programs based on HEMPer feedback, but noted this has seen limited success – scores vary little. He believes that a social media program within HEMP will be much more successful for an internal feedback loop. He noted how his company uses a “chat” program to speak about the company, and he uses this to see what is and isn’t working. Communication needs to be more transparent. Ron doesn’t believe the $3,000 is a major deterrent for mentees. If anything, it is a way to check candidates for commitment. In addition, he thinks most membership fees are paid for by companies, not individuals (this was the case with him). He estimated the amount spent on each mentee at $15,000 per year. One challenge is that mentors and mentees must meet in person twice a week. He confessed he only met with his mentor (Bill Love) once a week. He also noted that their relationship focused on strategic elements of business more than tactical. He attributed this to his success with the program. Many mentors are too focused on the tactical elements of the business, and as a result are too involved in running the company vs. teaching the mentee. He doesn’t see HEMP sustainability as an issue, but also isn’t very close to that aspect of the business. He did mention he and other HEMPers are still adjusting to the new name, which doesn’t sound as prestigious. I think we also have a branding issue to address here. 46 | P a g e
Interview with Dino Signore – PhD, The Edward Lowe Foundation coined the term second stage, but really didn’t create the focus until 1999-2000. Mark Lang was the one who talked about this particular growth phase and his ideas where brought to the Foundation’s board. There’s a lot of help in the First Stage, including the SBA (SCORE, etc.), when it comes to the second stage, there’s less of that assistance available, and the business is too small to be big. The term second stage is trademarked but they are happy for the information to be shared. They would like to be referenced. The Foundation has become known as an advocate for the impact that businesses have in the second stage. Roundtables Considered to be the best way for people in the second stage to learn, these people have big business challenges that aren’t met with traditional sources of learning. They have an immediate need and they want to be around their peers. The challenge is that this isn’t for everyone. If they make the comment that they “don’t have the time” that’s a good indication that they need to be there.
10-12 people in a room Meet 1/month for 3-4 hours No competitors of people that have had bad past business dealings Identify hot topics for the month
Perspective Program Train facilitators on how to lead the roundtables. The best format is through facilitation. There is someone in the room who is neutral. This enables others to follow some process and protocols so that it can be effective. In the Roundtables these business leaders bring their conditioning of wanting to tell people what to do. This is not effective. You are not there to give advice. Instead, it’s important to talk about the problem, ask questions, share differences and solve problems through inquiry. This is akin to having structured independence. Without this, people will butt heads and giving advice typically turns into one person who stops listening. When you reach the Second Stage The problem is having too much business. The business has an emerging social system where the business leader is making the transition to manager than leader. Sometimes people don’t know that they are in the second stage and there are times when these changes can happen before the actual change. You know that something is changing because things are getting more complex. You are in a difference social system. Second stage is about the intent to grow; otherwise you’re not in the second stage. There are some people who want to be in this stage of growth and others do not. There are some who don’t want to grow. These are move of the lifestyle entrepreneurs who want to control growth. Resources for Second Growth 47 | P a g e
National Institute of Economic Gardening is a concept created by Chris Gibbons of Littleton, Colorado. The economic gardening helps grow the businesses in a community. This is built around the desire to create growth at home, “grow your own.” And help business gain market awareness. This resource also includes elements of additional help such as marketing, SEO, etc. It trains people to be program administrators. There is also a national virtual team in addition to the community team who has been trained on the tools and is able to speak with entrepreneurs. In some cases state and local entities join through things like the Chamber of Commerce, legislators, etc. The group is a network that can go to a region or a state for business assistance. Because entrepreneurs are not always visible, they need assistance in creating these partnerships. Approach of the Edward Lowe Foundation In the second stage, entrepreneurs know their business well. It’s important for an organization to be able to “catch them in flight” and meet them where they are currently. You can’t ask them to slow down. You have to adapt to them and they need to adapt. This is how you’ll create jobs. Youreconomy.org – shows the impact of second stagers in a region Mentoring Dino said that in some cases that mentoring could work for some but those results could be negated if that person is not trained in consultative skills. The Edward Lowe Foundation believes that peer groups are the best mentoring once the rules of the roundtable are learned. Someone without those skills could perceive the mentoring as a negative, especially if they don’t have the understanding of inquiry. He compared it to being a coach without a framework. Retreats Bringing likeminded people together. The send the invites and often these people don’t know each other. They start as strangers but what they find is that there’s someone who understand them, a quick bonding with their peers. They think that no one else has these problems and through the retreats they find that they aren’t alone.
Interview with Deuce Livers – Livers Bronze Company – February 8, 2015 Unlike many HEMP participants, Deuce is a second-generation owner of the family business. Before joining HEMP he was part of a number of management groups. These groups were made up of similar business owners. The group dynamic would work for a while and then it would lose its efficacy in about three years. Mary Lou Jacoby, a fellow HEMP-er and family friend introduced him to HEMP. Deuce joined the organization in 2003. The reason for joining is that he needed help with his business. The example he gave for this was if someone needed help with marketing you would reach out to someone in the group or Christina and she would find an appropriate contact for you. Since joining, HEMP has been through a number of changes, but he commented that the program has always been good. The group is always willing to share their experiences and the best dynamics come from the enjoyment of food and drink, camaraderie and networking. He is still very active in the group and expressed pleasure at the changes he’s seen happen over the years. 48 | P a g e
Recruitment has brought in new ideas and diversification of the group. Before the majority of participants were in sales, marketing and technology. Now there are more people in manufacturing. This addition has brought new focus to new ways to think about technology, the environment, etc. In describing his mentor experience with HEMP he said that the three years in HEMP are a lot of work. You are asked to read a lot and always are asked to follow up on connections, whether that’s a book to read, place to check out, or a contact to reach out to. Mentees who are not doing the work can be kicked out of the program and the mentor reports back on the progress of his or her mentee. His mentor visited his business every Thursday. His mentor Ray Pittman was very instrumental in HEMP and has since passed away. Prior to Christina there was another executive director. She was described as being “rigid” and clashing with some of the members. This was brought to Barnett’s attention. She was fired and Christina was hired. Deuce said Christina is kind yet firm. Vistage Deuce has also belonged to Vistage and he commented that this is probably one of HEMP’s competitors. His year-long membership to Vistage was given away free by his bank. Vistage does much the same thing that HEMP does with a monthly meeting. In this group, people are asked to email a problem. One problem from the group is chosen for discussion. Vistage is more rigorous in the fact that you may be called on during the meeting to talk about a topic. He said that it’s not as open as HEMP but many liked the online structure and that things could be done from your desk. In contrast, HEMP is a lot more laid back and people like that it’s not so structured. Much of the networking happens over food and drink. He also commented that if people don’t “get it” after three years, than they probably aren’t cut out to be a part of HEMP. The fee is considered to be a business expense and the interactions are a good way to keep learning and making your business better. Cost: $1200.00/month Fellows For a number of years, Deuce was a part of the Fellows committee. One becomes a Fellow after graduation. When he was put in charge of the group he realized that no one knows who the fellows are. He took a cue from another management group he had been a part of and began a Fellow’s breakfast. This continued for 3-4 years. Roundtables This concept was done several years ago. They did moving roundtables where there was a mentor at each table. The mentor would help direct the conversation. Typically 25-30 people were involved in these. Detractors HEMP is not sustainable. No one has the money to fund it outright but there are some people who give to the organization more than others. Need to try and find those people to increase that giving.
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Interview with Adam Arredondo and Matthew Marcus – Kansas City Startup Village (KCSV) – February 11, 2015 Adam Arredondo created his business in the vicinity of 39th and State Line in September 2010. Two years later, Matthew Marcus moved back from Boulder, CO, to handle the property his mother willed him in her passing. This property received the first Google Fiber installation in the world, and the Kansas City Startup Village (KCSV) was born. A series of “serendipitous collisions” preceding this event led to the creation of KCSV, which now consists of 15 properties, 30 companies and over $15 million worth of fundraising. Marcus attributes the entire string of events to “coincidences, random occurrences and serendipity,” starting with his mother purchasing that house over twenty years ago, before Google even existed. Adam and Matthew joined forces to create Local Ruckus, squatting in a conference room at UMKC. When they were forced out, they worked with Leap.it, the tenant of Matthew’s fiber house and first startup in KCSV, to use the basement for their company. KCSV thrives on a shared network of knowledge. You can go down the street and ask an expert in design for his opinions. It’s a community of collaboration. Marcus makes an interesting analogy of KCSV to HEMP. “Proximity is important with KCSV, where everyone is bouncing ideas off of everyone. Think of it as ‘mentorship incest’ (he later came back and revised the term to ‘mentorship polygamy’). HEMP, on the other hand is a marriage between the mentor and mentee. With KCSV, each person provides value at a different time, but you don’t develop the same relationship.” Since KCSV consists of pre-revenue and early-stage startups, it has no overlap with HEMP. But they are aware of the organization. “Prestigious is a good word to describe it,” says Marcus. “They have professional materials, and you see all of those involved wearing their suites and ties. We just put on what we have for the daily hustle.” They agree that HEMP has a strong program and provides good value to its members. However, they would like to see more community involvement from HEMP. Specific ideas that came to mind included an open house to see what HEMP is about, more community involvement at earlier stage entrepreneurial activities so that Marcus and Arredondo can share HEMP via social media. This is something they’d be happy to do if there were representation. Marcus also would like to see more social media from HEMP as well as value provided to those outside of the organization, for instance if there were an inclusive program for earlier staged startups in addition to the exclusive, prestigious program. In general, there just isn’t much content about HEMP – success stories, member names, etc. “They need to celebrate it.” Adam and Matthew both had entrepreneurial mindsets growing up. Matthew recounted how he discovered he could make a cool logo with his initials (MWM) and decided that someday he wanted to create a company with that logo on it. He spent several years in Corporate America but never felt that he fit in. So he left to pursue his own ventures. Adam recounts the same experience with architecture and corporate experience. A key piece of advice they offer is the importance of networking. There is always a ton that you don’t know. Good entrepreneurs are able to have an idea, find the gaps in knowledge and look for answers, either in their own wheelhouse or in outside help. Networking helps to uncover these unknowns. Currently, the duo is working on a fast track for entrepreneurs to get plugged in.
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Interview with Bill Hartnett – HEMP member, Mentor chair – February 11, 2015 Bill Hartnett started on with Starlight Theater in 2000 as the 501(c)(3) approached the risk of taking in too much money and losing its non-profit status. Epic Entertainment was created as a for-profit subsidiary and tax shelter for Starlight. As the ultimate decision maker for Epic, Bill was accepted into the 2003 class of HEMP. Bill mentioned how he frequently found himself promoted into jobs he wasn’t equipped for. Since he was a quick learner, he emulated his superiors to get a grasp on his new job responsibilities. But when he reached a high enough position, there was nobody to learn from. Plus, it’s lonely at the top. That’s where HEMP came in – it was a group to emulate. In 2008, Starlight brought in a new CEO who wanted to manage over Starlight and Epic. Bill was asked to leave the organization. He recounted how he called up the president of HEMP to resign during his years as a fellow. The president called Barnett Helzberg. Five minutes later, Barnett called Bill to refuse his resignation. “It’s like a cult,” said Bill. “Once you’re in, you’re in.” He was allowed to stay in HEMP for the year when he did consulting and miscellaneous side jobs before joining Harvest Entertainment. Harvest already existed as an “equipment and guys” company (providing the equipment and manpower for events). But they wanted to expand and do full events. Hartnett came on as the Vice President of Business Development, handling marketing, PR and sales. The recession allowed Harvest to take a long-term view of how it wanted to compete. It restructured with an emphasis on service. “The event services industry is viewed as rude and high-priced. It’s shown in every movie or TV show by the mic feedback when someone gets up to talk. But it’s a human industry. Companies don’t hire companies. People hire people. To win, we just had to suck less.” So Harvest changed its hiring process, mirroring the Zappos model, to focus on attracting great individuals. Bill remained a fellow in HEMP for all of this. “The Fellows program was created because people didn’t want to go when they graduated.” These are people that didn’t want to leave, but didn’t want to mentor either. Bill served as the programs chair for several years and moved to the mentor chair for 2015. He says the key trait of a good mentor is that he/she is compelled to help people. There is an extensive process for pairing mentors and mentees, and not everyone makes a good mentor. In fact, HEMP exists because there are poor mentors that want to help: After the long mentoring relationship between Kauffman and Helzberg, the former wanted the latter to pay it forward. “Why did you take me under your wing like this,” Helzberg asked. “Because you do some of the things I suggest,” Kauffman answered. Because Helzberg knew he couldn’t teach, he created HEMP. Chuck Hoffman, a close friend and long time HEMPer, told Helzberg it wouldn’t work. “You can’t create the chemistry between a mentor and mentee. It has to be organic.” Helzberg disagreed, and for the past two decades, HEMP has created chemistry. Hartnett attributes it to the rigorous pairing process and what he calls the “secret sauce.” There are reasons behind the application criteria. The company must have revenue and employees to show a potential to grow. If a mentee’s application is accepted, e goes through a series of interviews and a site visit. “We try to make the visit as invasive and uncomfortable as possible. Between eight and 12 fellows hop on a bus and show up during visiting hours. The applicant can’t have any other company members helping. We want to 51 | P a g e
see why he needs the help. Does he want to improve, or does he just want the HEMP name? He’s interviewed in a room while other HEMP mentors and fellows take a tour of the business and ask employees what they like/dislike about the company. We’re looking for employees that want to be there for more than just a paycheck.” In addition to the onsite visit and interviews, applicants must complete an HF4D personality test. The final ingredient to this “secret sauce” is for HEMP to ask itself: “Do we have a mentor that can help?” In some cases HEMP has had to turn down qualified applicants because they didn’t have a mentor that could help. Once a mentee is accepted, he goes through a matching/orientation process. Mentors and mentees receive each others’ profiles beforehand and go through a speed dating exercise. After that, mentees must set up a “coke date” to get together with a mentor or go out for coffee. In only one case, a mentee said the relationship wouldn’t work, but HEMP made them give it a shot for a few months. The mentee and mentor are now married. After the pairing process, the mentors go through a boot camp and a 360 review. They meet with their mentors twice a month for the first year and must attend 75% of approximately 40 annual events. Hartnett acknowledged that time can be an issue. They’ve had to excuse mentees in a few cases because they aren’t hitting the time requirements. This is something they try to vet out during the site interview, asking interviewees what they will cut out of their lives to make time for HEMP. The $3,000 “tuition” hasn’t been an issue, especially when each mentee gets $10-20 thousand worth out of the mentor relationship and programming. Hartnett is adamant that HEMP works “because of unwavering, unrelenting confidentiality rules.” Without permission from the mentee, the mentor cannot share anything with anyone. It’s the only way mentees can “put their worst foot forward.” This is the type of culture HEMP celebrates. Putting the worst foot forward allows mentees to receive the guidance they need. Bill illustrated this with an example from his menteeship under Margaret Reynolds. He had a hard time letting people go. There was a specific person who just wasn’t meeting his sales quotas, wasn’t even coming close. Every time Bill met with Margaret, she would ask him, “Did you fire Dean?” He’d say, “No,” and she’d say, “Then we have nothing to talk about. Until you fire him, we’re just fixing deck chairs on the Titanic. What will you have to eat?” Their meetings went like this for three months until he let her go. According to Hartnett, the best thing HEMP can do is attract better mentors and mentees. In the past, they’ve talked about success stories in HEMP. Take Danny O’Neill for example – his story can almost be intimidating to mentee applicants. Rather, HEMP needs to promote mentor qualifications to show what mentees can get out of the program. And HEMP needs to recruit more female mentors. A mentor is never invested in the company. She’s only in it for the joy of seeing success. I brought up my interview with Clark regarding an advising board of mentors, each with a stake in the company, and asked if HEMP had considered something like this. “Yes, but HEMP can’t work that way. Otherwise, the mentoring process becomes biased. With every piece of advice, both parties will be asking if this helps you or me.” To attract great mentors, Hartnett wants to stress the quality of the mentees and highlight the $1 million or more requirement. This shows that the company is serious and established. Apparently, there are many nightmare stories of mentoring startups. He hopes the mentorship hall of fame will raise awareness and attract mentors. Last, Bill and I discussed finances. Barnett contributes 50%, mentee fees contribute close to 50%, and fellowship dues, contributions and programs contribute the rest. The organization is working toward becoming self-sustaining. It is 52 | P a g e
beginning fundraising for an endowment of approximately $5 million. Within the month of February, approved case statements should be ready to go out to potential funders. Bill closed out our interview by emphasizing how the HEMP business family rallied around him in his time of need. This is what separates HEMP from other organizations. This is why he is so dedicated to its success.
Interview with Joe Ratterman – CEO of BATS – February 16, 2015 Prior to BATS, Joe worked in software, primarily at Nightingale Financial. Having this understanding of market data with a tech background was a significant advantage with starting a new venture. BATS started with 13 people, which is large compared to most startups. “Not everyone had a desire to lead the charge,” Joe said. This made leadership easy to establish. Dave Cummings had invested the most, so he was the leader. In 2005 Dave Cummings left Tradebot to form BATS and later returned to TradeBot as CEO. He founded BATS simply to challenge the status quo set by NYSE and NASDAQ –the venture was more of a spinoff from Tradebot than a completely new startup. The initial vision changed dramatically over the years. BATS now operates in Europe and is a dominant global player. In 2007 Joe took on the role of CEO. At this point in the company’s history, it was a mature business, not a startup. As a result, the change in leadership was smoother. “Dave took risks that most people don’t normally take. I have a different risk tolerance. I look more for assurance of success.” Joe comes more from the operations side, and this is what the company needed in a leader at this mature stage. It was a time when the company needed awareness. Joe agreed that it can be lonely at the top. He counts on the team to do the work, but that makes a different relationship. He has “interests, not hobbies.” These include aviation and fitness. Because he travels frequently, he’s able to keep up with his aviation interests. “…And fitness is just part of being human. You have to find time for it.”
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APPENDIX D COPY BLOCKS Copy blocks are a way to refine an organization, idea, product or service down to its essence. Below are sample copy blocks for HEMP and Second Stage. We encourage you to use these, but also recommend refining them to your needs if necessary.
HEMP 48 words Learn to lead with HEMP. HEMP creates a one-on-one mentoring relationship, matching seasoned, successful mentors with emerging entrepreneurs to attack the highly specific challenges faced in Second Stage. In addition to mentoring, mentees benefit from networking opportunities and business educations from peers, veteran business owners and top CEOs. 69 words Learn to lead with HEMP. For business owners transitioning into the Second Stage, HEMP creates a one-on-one mentoring relationship, matching seasoned, successful mentors with emerging entrepreneurs to foster critical leadership skills that can be applied to the highly specific challenges faced by Second Stage entrepreneurs. In addition to three years of valuable mentoring, mentees benefit from networking opportunities and business educations from peers, veteran business owners and top CEOs. 103 words Learn to lead with the Helzberg Entrepreneurial Mentoring Program (HEMP). For business owners transitioning into the Second Stage, HEMP creates a one-on-one mentoring relationship, matching seasoned, successful mentors with emerging entrepreneurs. These relationships foster critical leadership skills that can be applied to the highly specific challenges faced every day by the Second Stage entrepreneur. In addition to three years of valuable mentoring, mentees benefit from numerous networking opportunities with peers and veteran business owners, business educations discussing greatest successes and lessons learned from peers and top CEOs in the community, and field trips to locations of entrepreneurial interest within the Kansas City area.
Second Stage 32 Words Second stage entrepreneurs are transitioning from surviving as Startups to scaling and sustaining. Their leaders must transition from “doing” to “leading.” They are significant job creators with established national and global markets. 54 words Second stage entrepreneurs face an entirely new set of challenges. They are transitioning from surviving as a Startup to scaling and sustaining as a Second Stage. Their leaders must transition from “doing” to “leading.” Second Stage 54 | P a g e
companies are significant job creators with established national and global markets that bring outside dollars into their communities. 97 words Second Stage is a critical time as entrepreneurs face an entirely new set of challenges. What made them successful during Startup won’t necessarily drive future growth. They are transitioning from surviving as a Startup to scaling and sustaining as a Second Stage. Their leaders must transition from “doing” to “leading.” In contrast to small businesses and lifestyle entrepreneurs, Second Stage companies are significant job creators and many have established national and global markets that bring outside dollars into their communities. A Second Stage company typically has 3+ years in business, $1 million+ in revenue and 5+ employees.
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APPENDIX E HEMP SURVEY RESULTS, APRIL 2014 HEMP Statistics: (Please note statistics and figures are from April 2014.) Total HEMP Participants: 138 120 102 100 80 60 40
Male 40
36 22
Female
40 22
20 7
7
0 HEMP Overall
Mentees
Fellows
Mentors & Counselors
58 of these participants, or 42%, responded to our survey.
Survey Demographics: How many years have you been in HEMP?
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Years in HEMP 13
14 12 10 8
8
7
6
6 4
8
6 4
3
2
2
1
Years in HEMP
0
Are you currently‌ Retired 12%
Working 88%
Working Retired
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Gender of Respondents Female 20%
Male 80%
Male Female
100% 80% 51 - 60 40%
60%
41 - 50 26%
40% 31 - 40 7% 20%
Under 30 0%
In
61 - 70 22% 71+ 5%
0%
Age of Respondents: Our last survey told us that you are not using HEMP's social media channels to connect with other HEMPers, why or why not? Please check all that apply.
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100%
80%
60% 35% 40%
19%
16% 10%
9%
20%
0%
Prefer to connect directly to HEMPers
Do you refer Mentee candidates to HEMP?
No 15%
Mentor/Counselor 32% Yes
Yes 85%
No
If no, why not? Please check all that apply.
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100%
80% 51 - 60 40%
60%
41 - 50 26%
40%
20%
Under 30 0%
31 - 40 7%
In
61 - 70 22% 71+ 5%
0%
HEMP will need to raise $4-5 million in order to be a self-sustaining organization. On a 5-point scale, where "5" means "Strongly Agree" and "1" means "Strongly Disagree," how important is it for you to be part of a self-sustaining organization? Please rate on a 5-point scale where “5” means “Strongly Agree” and “1” means “Strongly Disagree”.
100% 80% Strongly Agree 43% 60% 40%
Agree 29%
Neither 17%
Disagree Strongly Disagree 7% 3%
20% 0%
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Comments on the above question: Raising $4 - $5 million means elevating this organization to a whole new level. Many contributors are going ask the WIIFM question - how do they benefit? As a mentor, I'm supportive of the organization but feel that I donate a significant amount of my time pro bono and am not sure how I benefit by making a donation. I would like to see HEMP perhaps undertake some revenue-generating initiatives (realizing that we must be careful about UBIT as a non-profit. But I think we could pursue certain programs that meet our mission but might also generate revenue. I think that the people that have been supported and helped by HEMP should give back, either directly or help with fund raisers etc... The foundation of any organization is different. HEMP was and is a thriving organization but it is relatively "young". I feel it will be critical for a balance between the charitable contribution of Barnett and Shirley with a growing foundation of contribution - hopefully in the next 10 - 15 years the company would stand on its own. It would be wonderful to have an endowment to perpetually fund at least a portion of HEMP's operating budget. Maybe if I hit the lottery?????? We are not in the fund raising business. We should avoid putting pressure on members by requesting "donations". "How important is it for you to be part of a self-sustaining organization?" I don't want to belong or not because it is a self-sustaining org. Rather, would like for it to be self-sustaining so we can focus all of our time/energy on developing our leaders and organization. Raising that kind of money will be a huge challenge. KC Rep, which has been in business for 50 years and has a large network of supporters has an endowment of around $10 million. I think we would need to go after grant money and aggressively compete for local dollars and sponsorship. We must get there. Nobody lives forever. ď Š Not sure why we need that much... this is an organization that struggles to attract new Mentees in part due to its "model". I still believe the model must change before this will change. There are some that will be able to give more and some less. I think $4-5m is a tough target for HEMP to make. HEMP is a strong organization that has relied too heavily on the financial support of Barnett. In order to sustain this great organization I feel that the members need to shoulder more of the burden. When considering donating to HEMP, which are you most interested in contributing toward? Please check all that apply.
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100%
80%
60%
Doesn’t matter to me 41%
40%
Events 31% Operating funds 22% Endowment 21% Recruitment 14%
special projects 10%
20%
0%
Should HEMP share its expertise on mentoring outside of the Kansas City area?
I dont know 33%
Yes 41% Yes
No 26%
No I don’t know
YES This could be a money-raising activity. HEMP could launch a "franchise" type of effort providing the template for an effective organization along with some level of support. But revenue would need to be raised if this is done.
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I think it's a template that Could move well to other cities, but would require a sponsor the same caliber as Barnett. We have learned too much to not share it. Plus, we could franchise this idea. We cover a large area and I have customers that could really benefit from Hemp. As long as it doesn't take from priorities we have at HEMP. Always good to help others. Sharing HEMP's mentoring expertise with other cities to start similar programs would help entrepreneurs as a whole, but only if those the mentors sharing had time and the cities provided funding to do that as HEMP needs funding from its members to sustain locally. The more HEMP shares it's expertise, the more it is viewed as the expert in the area of entrepreneurial mentoring, I believe that will draw more and better Mentee candidates. I would only say that we should try to expand to other geographic areas if it would allow us to be compensated for this special thing we've created. Sharing is just another way to give back to others in need. If HEMP has the time and/or money to "share" to other markets then do it. If the other markets can establish a successful mentoring program maybe they can share with us which will make us a stronger organization. Only if it does NOT deter HEMP KC from growing and becoming more sustainable. I'd put the onus on the org. outside KC to do most of the heavy lifting. But not necessarily opening offices anywhere else, but finding partners outside of KS instead. Perhaps consider a state or two (KS & MO). After that is figured out, move to regional, then to national. We should consult with other communities for a fee, after we become self-sustaining. Sharing is part of the HEMP model. Huge advantage to Hemp KC if there are other entities innovating and sharing their lessons learned with us. Also revenue can be generated to support Hemp kc. Part of paying it forward. Why not? As long as it doesn't hinder our KC operations. The execution of this idea is worthy of sharing outside of KC.
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If they don't someone else will. A cow that nurses itself gains no weight. HEMP has built an excellent prototype model that would benefit other organizations. If it doesn't distract from our core goals, it's a great way to give back and get recognition for it. If we can help entrepreneurs anywhere, it is a positive thing. I know this was tried in Michigan, but could this become a "franchised" arrangement. We have so many of the processes well defined that should (or could) be quite transferrable. It’s a program that needs to spread across the country. NO Might water down our product here. We should first have all the systems ironed out on the local front--and the processes AND funding concerns solved for the local model--before adding the distance and logistics issues into the mix. I think the focus at this juncture needs to be in Kansas City. There is much more we can do as an organization and if we begin looking at other markets, I fear we would water down the existing HEMP experience. There is much to do here to generate awareness & enthusiasm for HEMP. Still today many entrepreneurs do not know anything about HEMP. Help Kansas City business grow. Continue to get our house in order. I feel like we have a full load running this organization already. I think the program is very valuable. Expanding beyond the KC area may add complications/costs HEMP is not prepared to address. Not for now. I would first ensure that the business of the business of HEMP was sound before exploring other markets. Let's not get too big, and let's not abandon the base that ties HEMP's business community together. Not yet. I think HEMP is in the middle of a lot of initiatives at the moment (self-sustaining, new brand, new website) and needs to take care of itself here and now first before we branch out just as we would with our businesses. I believe HEMP still has a ways to go to be clearly recognized in the community for what it does. To be self-sustaining after Barnett is no longer around should be the key focus for now. We'll share our expertise, but not expand. No if we're already needing to look at fundraising to keep KC alive.
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May not have the bandwidth to export it while keeping good care of members here. We need to take care of our own turf and be self-sustaining before trying to grow elsewhere. We are not there yet. Doesn't have the infrastructure. Concentrate on in house value to mentees, fellows and mentors. UNSURE Not sure. Only if staff are not distracted and funds do not have to be raised, would I consider sharing. I don't know. It depends what you mean by "share" -- it's important that HEMP be on a solid financial footing here, to better serve the Kansas City organization. I would not be opposed to inviting representatives from out of town to attend selected HEMP events, in order to pattern their own similar organizations in their locales. I have not thought about it. Seems there is still work to be done here! I have heard the "elders" talk about how this has been tried in other cities with mixed success. It seems like the success here in town is rooted in long time networks. It seems like it may be difficult to transplant unless those networks in another city could be tapped into. Spread a wide net, but do not water down the KC effort. Would be challenging to keep the quality high with remote locations, but could increase the size, viability of the organization. Don't have info needed to respond. I appreciate the mission of HEMP, but not sure if/how if differs from other entrepreneurial and/or leadership organizations in other communities. I think it is a complicated process and not sure that it would have the same culture. I am not convinced KC can support this level of funding. There are a lot of competing organizations. I'm not sure how that would work. I think this might be a good topic for a forum.
What does HEMP need to do, or quit doing, in the next 3-5 years, in order to be successful?
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DO: Initiate revenue-generating programs. DO: Continue to improve Mentee programming. DON'T: Become a bureaucracy. More learning opportunities, less social opportunities. More innovation. Higher caliber speakers. Charge more for Fellows. We need a home run and we need to get some highly recognizable people on board as mentors; i.e. Cliff Illig, Neal Patterson, etc. I would advertise more, get on local TV with events, (invite them) look at bigger classes of mentees etc....and consider some of the Mentee Requirements to participate by looking at industries and what it takes to hit the 1M requirement and adjust for those that are service related which don't have inventory etc... Run it like a business. Continue reaching out to the members for feedback. Not really necessary to become too large. HEMP needs to continue to provide high quality mentors with name recognition to help promote the organization as well as continue to offer programs that provide value to the members. HEMP needs to continue to build programs to keep fellows actively engaged. Even fellows today view HEMP as a Mentoring body exclusively. Forums, social events I feel are key to building the organization. Continue to add quality new entrepreneurs and retain fellows after graduation. Continue to help small businesses grow profitably - Choose business owners that are generous and willing to help HEMP with its financial needs. Look at a strategic PR initiative to position HEMP as the preeminent entrepreneurial mentoring organization and thought leader on building and growing entrepreneurs. Attract great mentee and mentor candidates. The quality of the pool of participants will do more than anything else to perpetuate the entity. I guess we need to find ways to attract more potential mentees and mentors. That seems like the key to me. Keep the relevant topics open to the group. It gets more people involved, seeing value and sharing with other HEMPERS. The Public Outreach has been VERY SMART....keep it up. Raise more $$? Bring in more outsiders - companies, mentors and mentees versus recruiting from inside the organization. I'm not sure I have sufficient information to answer. 66 | P a g e
Find a way to identify businesses that are scalable and help them get to the next level. It needs to grow. Celebrate successes. Organizations that have fun are successful, make more fun without losing focus! Make it easier for entrepreneurs to participate. I'm almost 20 years in business and doing well, but the 3-5 times used recently make it harder to participate due to conflicts during business hours. HEMP does so many things well, it has been a real pleasure thus far. I am thrilled with my mentor, but I know that others have struggled. Focusing on bringing more talent to the mentor pool would be great. Also, building the infrastructure that ensures HEMP can self-sustain is important since it creates the underpinnings of success. Focus on getting star quality mentors. Attracting excellent mentees. Attention to committee chairs, board and exec com through succession planning. Limit fund raising events to once a year. Raise its profile and be able to be recognized as a viable force in KC, even without Barnett's involvement. Would it be possible for hemp to grow large enough to add a few more paid positions for things such as recruitment. Being a volunteer org things usually go by the 80/20 rule and I would hate for hemp to be hurt by burning out the 20% coming up short for committee members, etc. Work on the transition period when Barnett can no longer be active. Need to see if we can really raise enough of an endowment to be financially secure. We need to attract and keep young, diverse entrepreneurs. Stay focused. Quit scheduling purely social events among the annual classes of Mentees -- as they take time that really doesn't advance the cause. Having a class go bowling, for example, doesn't move the ball down the field... Have open communication and resources that facilitates business owners. I don't know. Stronger matching criteria Education on how to continue to get help after mentee graduation--is that possible? As our businesses change, different expertise may be needed. Help with teasing out what the mentee really wants/needs from the relationship. Keep innovating. Invest at least 10 % of our annual budget and human resources to R&D regarding ways to get better. We need to allow the committees and chairs make decisions and feel that the organization is run by those that want to participate. I respect Barnett very much but at times he pushes a decision on something a committee has been working on for a while. It ends up being a waste of time and discouraging to volunteers. Change its organizational model so the self-sustaining revenues are easier to attain. Get younger.
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Become more successful at recruiting mentees and being more visible. (I honestly don't know whether or not this is in line with HEMP's vision.) Continue to recruit great mentees Excellent choice for keynote in Nov. Continue to focus on the mentee. Continue to focus on the Fellows (where the ongoing $ comes from) Needs to concentrate on monitoring and providing quality relationships for mentees and current mentors and fellows; less concentration on fund raising; money will take care of itself when the relationships are priority. Relying on Barnett's charm and charisma. Continue to improve recognition within the KC business community. Update the online system to make sure it's current and to the moment. Expansion shouldn't occur if it isn't in most modern form. Continue to recruit excellent Mentees. Encourage additional networking and use of other HEMP members businesses. More visibility. Need everyone helping with recruiting. More of same more aggressively. I appreciate that the program is looking for committed mentors and mentees, but I feel that the program requirements and structure have become a lot and somewhat rigid. You can't "legislate" a good mentoring relationship. I agree with the need to encourage some of these aspects, but ultimately you can lead a horse to water, but can't force it to drink. Likewise, you can provide mentoring and other resources to business owners, but they have to choose to take advantage of these to really get the benefit. So, I'd foster relationships and back off of some of the structural requirements. Recruit new Mentees with thriving business that want to make money and are high energy and highly motivated! Continue to bring in 15 new mentees annually and recruit sufficient new mentors to support the mentees. We've fallen short of our goal in Mentees the past few years. Do we have a sustainable financial model to shoot for? I don't think I can answer that with my current knowledge of the plans for the future. Broaden its acceptance criteria; possibly build a multi-tiered system. Become self-sustaining and stop trying to do everything at no cost to members. We need better ways to share what the organizations is about....our community does not understand who we are.... 68 | P a g e
APPENDIX F HEMP MEMBER SURVEY CONDUCTED BY UNIVERSITY OF KANSAS STUDENTS In addition to encouraging Mentees to put their “worst foot forward,� do you see a benefit to HEMP creating collective achievement goals for each incoming class? Response Percent
Response Count
Yes
64.9%
24
No
35.1%
13
answered question
37
What are some examples of the types of goals? Shifts in culture that have improved employee performance 3/19/15 11:50 AM (CDT) Improve operating profit, increase number of customers, increase average sale size 3/19/15 11:50 AM (CDT) Revenue Growth Net profit growth Reduction in the percentage any one client has of the Mentee's total revenue. Increased Valuation An "Exit Plan" for the entrepreneur, even if they don't plan to sell. 3/19/15 12:04 PM (CDT) Every organization should have outcomes tied to vision, mission, goals. HEMP has struggled with this. It needs to define its measures of success. 3/19/15 12:08 PM (CDT) with the diversity of businesses, a "class" goal doesn't make a ton of sense to me 3/19/15 12:11 PM (CDT) HR onboarding goals. Accounting metrics to keep your eye on. 3/19/15 12:21 PM (CDT) Specific areas of development each Mentee sees as an area of weakness. Good to have a broad range, but a specific area of focus is needed 3/19/15 12:43 PM (CDT) n/a 3/19/15 12:45 PM (CDT) No answer in light of how I answered the question 3/19/15 1:03 PM (CDT) I say no because I'm not sure what that means. What is the desired outcome of 'collective achievement goals? With so many variables among the mentees' situation, it risks being information without much value. 3/19/15 1:14 PM (CDT) Meeting each of new mentees businesses with scheduled 2hr get to know session. Including other class mentees and mentors. 3/19/15 1:17 PM (CDT) to bond as a group...make a larger impact...adopt a not-for-profit and do their thing, for example. 3/19/15 1:33 PM (CDT) 69 | P a g e
Additional networking, better understanding of various areas of unrelated businesses 3/19/15 2:07 PM (CDT) Need clarification on what is meant by "collective achievement goals" One might be to help each other where a mentee has a certain expertise...example: workflow process. 3/19/15 2:28 PM (CDT) creation/nurturing of community 3/19/15 2:33 PM (CDT) i put no in the above question so i don't think there should be a response to this 3/19/15 2:31 PM (CDT) I think what is set up now is Great 3/19/15 2:44 PM (CDT) no goals 3/19/15 3:02 PM (CDT) I believe the goals that HEMP promotes as "success" measures: Revenue & # of Employees, at a minimum. 3/19/15 3:22 PM (CDT) Not sure I understand the term. "Collective Achievement goals" 3/19/15 4:38 PM (CDT) I answered no to this question. 3/19/15 5:10 PM (CDT) the businesses are too diverse in product/service, size, and age to come up with collective goals. 3/19/15 5:22 PM (CDT) Everybody makes mistakes, and see those that others have made makes yours not seem so bad! 3/19/15 6:39 PM (CDT) Build relationship with mentor and vice versa 3/19/15 7:58 PM (CDT) I think individual company achievement goals are far more important than class goals. 3/20/15 12:01 AM (CDT) Maybe set some growth oriented goals for the class so that there is peer pressure to grow as an added incentive? 3/20/15 10:51 AM (CDT) n/a 3/20/15 12:34 PM (CDT) It raises hopes for others, that something can be accomplished by seeking and accepting help from others who maybe had these same problems. 3/20/15 3:34 PM (CDT) Identify specific tasks with mentors that will increase a % in net profit annually. Identify (with mentors) how mentees will specifically be able to maximize the effect of all marketing efforts and get guidance on how to market most effectively in order to grow sales. 3/21/15 8:50 AM (CDT) I'm not sure about your definition. But if class members could show a combined big fat juicy percentage of growth (net income?)that would be useful to show the world Hemp's influence. But, this is complicated. 3/21/15 11:02 AM (CDT) Complete a business plan to include competitive analysis, budget, cash flow projections, marketing plan, sales plan, technology plan etc. 3/22/15 11:26 AM (CDT) Class goals don't seem relevant or motivating to me in the least 3/22/15 3:44 PM (CDT) 70 | P a g e
I do not have enough information to respond to the question above. What is a "collective achievement goal for each incoming class?" If I had one example, I could provide some input. 3/22/15 6:47 PM (CDT) Sharing experiences with other business owners to determine if there are situations or opportunities of which an owner is unaware. 3/23/15 8:40 AM (CDT) n/a 3/23/15 9:21 AM (CDT) Net Profit Increase Goal Revenue Goal Social Goals - How many other HEMPERS have the had lunch with - other than at events 3/23/15 9:37 AM (CDT) Accountability related goals. Tapping into the positive peer pressure and competitive nature of the members. 3/23/15 10:58 AM (CDT) How do you think HEMP could increase awareness of itself in the community? Response Percent
Response Count
Hosting Lunch and Learns
67.6%
25
Integration with First Stage groups
21.6%
8
Increased Influencer posting on LinkedIn
37.8%
14
Direct mail
35.1%
13
Recruiting
51.4%
19
Other (please specify) Show Responses
43.2%
16
answered question
37
skipped question
1
Do you think that HEMP listens to, responds to and incorporates participant requests in a timely manner? Yes [1]
Almost always [2]
Neutral [3]
Sometimes [4]
Never [5]
Rating Average
Response Count
35% (13)
43% (16)
11% (4)
11% (4)
0% (0)
1.97
37
answered question
37
skipped question
1
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Do you think HEMP should develop stronger connections with entrepreneurs in KC Start-up Village and the Crossroads incubators? Definitely [1]
Most Likely [2]
Neutral [3]
Not Likely [4]
Not At All [5]
Rating Average
Response Count
24% (9)
38% (14)
30% (11)
5% (2)
3% (1)
2.24
37
answered question
37
skipped question
1
Do you regularly (at least once a month) participate in LinkedIn in the form of postings and/or participation in forums? More than Once a Month [1]
Once a Month [2]
Once every 6 Weeks [3]
Once every 2 months [4]
Never [5]
Rating Average
Response Count
16% (6)
16% (6)
19% (7)
3% (1)
46% (17)
3.46
37
answered question
37
skipped question
1
As a graduate of HEMP, would you like to continue entrepreneurial learning through organized Fellows events and roundtables? Response Percent
Response Count
Yes
97.3%
36
No
2.7%
1
answered question
37
skipped question
1
Which social media platforms do you use on a regular basis? Response Percent
Response Count
29.7%
11
56.8%
21
75.7%
28 72 | P a g e
Blogs
35.1%
13
Other (please specify) Show Responses
24.3%
9
answered question
37
skipped question
1
How do you currently share or talk about your involvement in HEMP to others? Casual Conversation 3/19/15 11:50 AM (CDT) I don't unless asked 3/19/15 11:50 AM (CDT) Signature on all emails Conversations with colleagues and clients Helping with Mentor recruitment and talking with potential mentors. 3/19/15 12:04 PM (CDT) Word of mouth, LinkedIn, Facebook 3/19/15 12:08 PM (CDT) through personal interactions and conversations 3/19/15 12:11 PM (CDT) At every opportunity in local meetings and with new companies I meet with. 3/19/15 12:21 PM (CDT) Directly 3/19/15 12:43 PM (CDT) share my experience via personal conversations with other business owners 3/19/15 12:45 PM (CDT) Simply describe when relevant. 3/19/15 1:03 PM (CDT) Within the HEMP community, quite frequently. 3/19/15 1:14 PM (CDT) Yes 3/19/15 1:17 PM (CDT) mostly one-on-one w/other business owners looking for guidance to grow. 3/19/15 1:33 PM (CDT) Email, Text & phone 3/19/15 2:07 PM (CDT) Mainly through social contacts as in-person conversation merits. I'm not a very socially connected person. Prefer the one-on-one mentor/mentee relationship. 3/19/15 2:28 PM (CDT) Personal discussions - the camaraderie of people who understand the trials and tribulations of starting/running a business. 3/19/15 2:33 PM (CDT) Face to face when meeting with others 3/19/15 2:31 PM (CDT) Mainly in Person at Business Functions. Also will post pictures from Hemp Events on my social media Platforms. 3/19/15 2:44 PM (CDT) 73 | P a g e
An organization that helps young entrepreneurs using experienced mentors. 3/19/15 3:02 PM (CDT) The HEMP Logo is on the signature line of every email correspondence I send 3/19/15 3:22 PM (CDT) Invite people to come to HEMP events as guests. 3/19/15 4:38 PM (CDT) I speak about HEMP whenever I have the opportunity in face to face interactions. 3/19/15 5:10 PM (CDT) I have tried to recruit several potential mentees but have had little success. There should be some form of training, materials, and written process for those who try to recruit. 3/19/15 5:22 PM (CDT) Informal discussion with my colleagues in other fields. 3/19/15 6:39 PM (CDT) Verbally, email, networking 3/19/15 7:58 PM (CDT) Almost all the time. It is one of the highlights of my avocational efforts. 3/20/15 12:01 AM (CDT) Word of mouth, social media, testimonials 3/20/15 10:51 AM (CDT) I describe events I go to and my relationship with my mentee. I am also on the lookout for potential mentees or mentors. 3/20/15 12:34 PM (CDT) word of mouth 3/20/15 3:34 PM (CDT) Networking 3/21/15 8:50 AM (CDT) All the time in business and casual conversation. 3/21/15 11:02 AM (CDT) Verbal communications 3/22/15 11:26 AM (CDT) One-on-one w other business owners, clients and other business associates when I see an opportunity to talk about how it has helped me and my business and to recommend it to someone else. 3/22/15 3:44 PM (CDT) I describe it as the most powerful mentoring experience I've had while running the business in real time. 3/22/15 6:47 PM (CDT) Talking to others and using HEMP experiences to support a point I am conveying. 3/23/15 8:40 AM (CDT) I usually share information through one on one conversations 3/23/15 9:21 AM (CDT) Face Book - Going to start using Linked In 3/23/15 9:37 AM (CDT) Absolutely. 3/23/15 10:58 AM (CDT) How would you describe HEMP in 3-5 words? Exclusive, Valuable, Supportive, Resourceful, 3/19/15 11:50 AM (CDT) 74 | P a g e
Collaborative business improvement 3/19/15 11:50 AM (CDT) Resource for Entrepreneurs' to grow effectively. 3/19/15 12:04 PM (CDT) A wonderful self-contained entrepreneurial island 3/19/15 12:08 PM (CDT) entrepreneurs helping entrepreneurs 3/19/15 12:11 PM (CDT) Smart, confidential, worth the time. 3/19/15 12:21 PM (CDT) Education for entrepreneurs 3/19/15 12:43 PM (CDT) great networking w/ fellow business owners 3/19/15 12:45 PM (CDT) Unique opportunity for entrepreneurs to gain counseling from experienced business people. 3/19/15 1:03 PM (CDT) Identity is lacking clarity 3/19/15 1:14 PM (CDT) Valuable, time consuming. 3/19/15 1:17 PM (CDT) THE network of successful, growing entrepreneurs in KC. 3/19/15 1:33 PM (CDT) Fabulous opportunity 3/19/15 2:07 PM (CDT) supportive,social, problem solving 3/19/15 2:28 PM (CDT) Glorious community of mutants (ahh) entrepreneurs! 3/19/15 2:33 PM (CDT) A business tool to learn, meet and share 3/19/15 2:31 PM (CDT) An Entrepreneurial Family of Awesomeness!! 3/19/15 2:44 PM (CDT) Helping entrepreneurs succeed 3/19/15 3:02 PM (CDT) Energetic, Compassionate, High Achieving, Community 3/19/15 3:22 PM (CDT) New insights for business owners 3/19/15 4:38 PM (CDT) Willing exchange of ideas and experience. 3/19/15 5:10 PM (CDT) Helping good people get better. 3/19/15 5:22 PM (CDT) A tune-up for your business! 3/19/15 6:39 PM (CDT) Family network mentoring excellence 3/19/15 7:58 PM (CDT) Bright people growing their businesses. 3/20/15 12:01 AM (CDT) 75 | P a g e
Growth-Phase Entrepreneurial Community 3/20/15 10:51 AM (CDT) Prestigous, people development, fun 3/20/15 12:34 PM (CDT) People helping people 3/20/15 3:34 PM (CDT) Experienced guidance for entrepreneurs 3/21/15 8:50 AM (CDT) on the move 3/21/15 11:02 AM (CDT) Strong, connected, accomplished business professionals 3/22/15 11:26 AM (CDT) Ultimate small-business growth support 3/22/15 3:44 PM (CDT) HEMP propels business owners through mentoring 3/22/15 6:47 PM (CDT) A brain trust for Entrepreneurs 3/23/15 8:40 AM (CDT) Unique, highly-experienced, entrepreneurial support 3/23/15 9:21 AM (CDT) Entrepreneurs Helping Entrepreneurs Grow 3/23/15 9:37 AM (CDT) A rich network of experience, expertise and fellowship that can help most any stage of business. 3/23/15 10:58 AM (CDT) Besides membership, what are other valuable ways you benefit from involvement in HEMP? Building personal relationships with like-minded people 3/19/15 11:50 AM (CDT) develop valuable relationships 3/19/15 11:50 AM (CDT) Vast amount of help whenever I need it Increased prestige in the community from my involvement Friends 3/19/15 12:04 PM (CDT) Mentoring, socializing 3/19/15 12:08 PM (CDT) Comradery, being with others who have similar issuing being in charge 3/19/15 12:11 PM (CDT) Met some great friends. The support for all areas of life is amazing. 3/19/15 12:21 PM (CDT) Connecting with all the HEMP resources 3/19/15 12:43 PM (CDT) contacts, networking 3/19/15 12:45 PM (CDT) Great expeience 3/19/15 1:03 PM (CDT) Fellowship 3/19/15 1:14 PM (CDT) 76 | P a g e
Valuable insight of other members 3/19/15 1:17 PM (CDT) learning...and the great people. 3/19/15 1:33 PM (CDT) Working with each other, recruting additional members 3/19/15 2:07 PM (CDT) As a mentor, I enjoy the stimulation of keeping my mind active in retirement and helping mentees overcome challenges. 3/19/15 2:28 PM (CDT) Meeting other members, mental stimulation, pleasure in seeing entrepreneurs grow & succeed. 3/19/15 2:33 PM (CDT) Not sure what you are asking with the question 3/19/15 2:31 PM (CDT) Personally I have made friendships and after meeting many of the people have used their services or bought their products. Benefits will be as much as you want to put into it 3/19/15 2:44 PM (CDT) Networking 3/19/15 3:02 PM (CDT) Networking with other members, forum group, Education events 3/19/15 3:22 PM (CDT) Meeting great people, Learning better ways, avoiding mistakes. 3/19/15 4:38 PM (CDT) People who are familiar with HEMP are normally impressed when I relay that I'm a Mentee in the program. My perception is that it "legitimized" my business in their eyes. 3/19/15 5:10 PM (CDT) Networking 3/19/15 5:22 PM (CDT) Social interactions with other HEMP members, outside of the HEMP organization. 3/19/15 6:39 PM (CDT) Continuous learning and finding other ways to do things 3/19/15 7:58 PM (CDT) Wonderful networking with members, fellows, etc. Great way to help solve problems. 3/20/15 12:01 AM (CDT) Stay connected to entrepreneurial community, give back, continued learnings, resource network, etc. 3/20/15 10:51 AM (CDT) As a mentor, I feel like I am being developed as well. The relationships fostered is fantastic and I feel like I am learning more about my community, too. 3/20/15 12:34 PM (CDT) camaraderie among peers, vibes you get from close association with peers, especially where everyone is willing to be of help to, and not for what they can get out of someone else. 3/20/15 3:34 PM (CDT) Learning to focus on the business more than in the business. 3/21/15 8:50 AM (CDT) cross generational awareness learning from speakers sharing what I know with others camaraderie 3/21/15 11:02 AM (CDT) Networking, education 3/22/15 11:26 AM (CDT) 77 | P a g e
What do you mean "besides membership"? This is a poorly worded question. 3/22/15 3:44 PM (CDT) Being a fellow of HEMP has credibility in itself. People believe that HEMP fellows are effective and good at business, etc. 3/22/15 6:47 PM (CDT) Access to information and assistance. 3/23/15 8:40 AM (CDT) Networking, education, subject specific expertise, credibility of being a part of a well regarded organization 3/23/15 9:21 AM (CDT) Associating with great business leaders - great learning programs - interesting ideas 3/23/15 9:37 AM (CDT) It encourages "paying it forward." 3/23/15 10:58 AM (CDT)
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APPENDIX G SOURCES Cohen, S. L. (2013), How to Accelerate Learning: Entrepreneurial Ventures Participating in Accelerator Programs. Retrieved from Proquest. Collins, D. D. (2007). Entrepreneurial Success: The Effect of Fear on Human Performance. Retrieved from Proquest. Dooe, M. (2015, Jan. 09). The New, Older Entrepreneurs. Innovation Hub. Retrieved from http://blogs.wgbh.org/innovation-hub/2015/1/9/new-older-entrepreneurs/ Edward Young Foundation (2015). State Economic Rankings. Your Economy.org. Retrieved from http://youreconomy.org/profile/ranking_state.lasso?type=e&key=all&state=MO&year1=2012&year2=2013&MS A=28140 Edward Young Foundation (2015). Index. Your Economy.org. Retrieved from http://youreconomy.org/index.ye Entrepreneur (2015). In Dictionary.com. Retrieved from http://dictionary.reference.com/browse/entrepreneur Fromm, J., Lindell, C. Decker, L. (2012). American Millennials: Deciphering the Enigma Generation. Barkley. Retrieved from http://barkley.s3.amazonaws.com/barkleyus/AmericanMillennials.pdf Grill, J. (2012, Dec. 10). Kansas City is Building America’s Most Entrepreneurial City. The Huffington Post. Retrieved from http://www.huffingtonpost.com/jason-grill/kansas-city-entrepreneurship_b_2264500.html Hirai, A. (2015, Jan. 25). Six Tips for Older Entrepreneurs. Caycon. Retrieved from http://www.caycon.com/blog/2015/02/six-tips-for-older-entrepreneurs/ Intrapreneur (2015). Investopedia.com. Retrieved from http://www.investopedia.com/terms/i/intrapreneur.asp Johnson-Hunter, P. (2004). Educational Experiences of Habitual Entrepreneurs. Retrieved from Proquest. Joseph Schumpeter (2015). In Investopedia.com. Retrieved from http://www.investopedia.com/terms/j/josephschumpeter.asp Kauffman Foundation (2005). Kauffman Thoughtbook: Entrepreneurship is a Contact Sport. Retrieved from http://www.kauffman.org/thoughtbook2015/paths-to-entrepreneurship#entrepreneurshipisacontactsport KCSourceLink (2014, April). KC Entrepreneur Report. Retrieved from http://www.wecreatekc.com/wecreatekc-reportby-kcsourcelink.pdf Larsen, W. (2015, Jan. 26). Due Diligence on Accelerators – What Entrepreneurs Need to Know. Entrepreneur. Retrieved from http://www.entrepreneur.com/article/242164 Lichtenstein, J. (n.d.). Demographic Characteristics of Business Owners. Retrieved from https://www.sba.gov/sites/default/files/Issue%20Brief%202,%20Business%20Owner%20Demographics.pdf Maltby, E. (2009, Nov. 17). To Find Best Hires, Firms Become Creative. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424052748704538404574539971535489470 79 | P a g e
Nelson, B. (2012, June 05). The Real Definition of an Entrepreneur and Why it Matters. Forbes. Retrieved from http://www.forbes.com/sites/brettnelson/2012/06/05/the-real-definition-of-entrepreneur-and-why-it-matters/ Schumpeter Columnist (2014, Feb. 16). What Exactly is an Entrepreneur? The Economist. Retrieved from http://www.economist.com/blogs/schumpeter/2014/02/our-schumpeter-columnist Small Business Administration (2015). Small Business Profiles for the State [Kansas] Retrieved from https://www.sba.gov/sites/default/files/files/Kansas13(1).pdf
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