Situation: An early stage software-as-a-service (SAAS) company notes that a number of companies have privacy statements on their web sites. Is this something that is common, and should they consider their own privacy statement on their site?
Advice from the CEOs:
If your services include the collection of users’ personally identifiable information many users will want to know that the information that they put on the site is secure. Get legal advice on the handling and storage of personally identifiable information. You may want to qualify for TRUSTe or a similar service.
Others will be competing in your space, or close to it. Look at these companies’ sites for what type of privacy statement they use.
Research how important this is to your target audience. Get assistance from someone who is good at drafting surveys. Hire a summer intern or local college student to conduct the survey. This is a quick way to answer your question.
Determine your business policy regarding privacy. If policy considerations dictate that you should have a statement, then find a model statement that you like and use this. Model a statement after one that appeals to you from another company. Make sure that you cover anything that you feel is important, and retain any prerogatives that you feel are important.
Create a link to a separate page that contains a model privacy statement. Count the number of clicks that it receives. You may find that nobody clicks on this.
Situation: A company is enjoying a good year and is busy both adding new business and serving current clients. However, the CEO finds that when business is good he doesn’t have time to focus on all of his initiatives. This frustrates him. How do you make time for initiatives?
Advice from the CEOs:
How extensive is your To-Do List? If you have two or three major, time consuming initiatives, and a host of small tasks, prioritize both categories. Focus on what you can do given the time you have available. Put lower priority on the smaller tasks, and delegate as much as you can, or put them off until things slow down. This will help deal with your frustrations.
Block out time for yourself.
Do this early in the day, before you have lots of distractions on your desk.
Allocate 1-2 hours early in the morning, and get to work a little later. Let you staff know that you are not to be disturbed unless it’s an emergency, but that they will have your full attention when you get to the office.
Plan you initiatives, segment them into smaller pieces, and schedule them.
Use Mindmapping to segment them, or a piece of software like MindManager to assist your thinking.
Among the segmented pieces, look for opportunities to delegate to free up your time and involve staff in the initiative.
Develop a Task List in Feature/Deliverables terms with a broad timeframe.
Prioritize and build into your Quarterly and Annual plans.
Situation: A company wants to expand its markets and customer base. Currently their business is dominated by a single customer. What best practices have you developed for identifying new customers and markets?
The key to getting new customers is to devote dedicated time to this task.
If your company is populated by engineer or software specialists, consider hiring a sales professional – a commission based hunter sales person who has experience landing big accounts in markets similar to yours. You may pay this person a good percentage of sales for brining in this business, but gaining the additional business can be worth it.
Much depends upon your relationship with your large customer. When a single client has rights over or ownership of the technology of the company but is not pursuing broader markets that the company is interested in, is it feasible to negotiate rights to pursue this business?
The larger client will pursue their own interests, not those of the smaller vendor. Perhaps a win-win deal can be worked out, but it may be difficult – particularly if the larger client is concerned that use of the technology in other markets could affect its interests in their primary markets.
Be very careful in this situation. The easiest tactic for the larger company to defend itself from a perceived threat is to sue and simply bury the smaller vendor through legal expenses. While the smaller company may be legally within its rights, deep pockets can beat shallow pockets through attrition.
In the case that the larger client simply continues to buy all capacity of the smaller company, an alternative is to raise rates, or perhaps to just say no.
Consider recreating the opportunity – create your own adjunct proprietary product with your own software or design talent and expand your horizons with this product.
Be aware, the large client can still sue if there is any appearance that your proprietary product impinges on their product rights. As in the case above, the larger company has the resources to bury the smaller company in legal expenses regardless of who is legally correct.
A company manufactures components for an important large customer. That customer now specifies that all components need to be manufactured under clean room conditions. The company can’t afford to lose this customer but is at a loss as to how they should respond. How do respond to demands for expensive process upgrades?
Advice from the CEOs:
Start with a discussion. Ask them exactly how clean production must be, and what their concerns are. You can also offer to perform destructive testing (at the customer’s expense) to demonstrate that your current processes meet their specs.
Look at the overall cost of the clean room conversion versus your anticipated profits on the job. Make sure that your profits justify the conversion.
Increase your prices to the customer based on the new requirement, and make sure that the increased price pays for your conversion at a minimum. If they ask why your prices have increased, explain that the process that they now demand is more expensive because of the costs of operating under clean room conditions.
If the customer is a very large player and is doing this because of demands placed on them by their customers or regulators you may have little bargaining room other than complying and adjusting your prices accordingly.
Consider a prefab clean room. Especially in high tech areas like Silicon Valley you may be able to find older rooms at a bargain rate. If you don’t have space in your current location or upgrades will be very expensive consider leasing new space for this job.