Business Development · MBA

Do startups generally look for business development associates?

Luis Berga Co-Founder at Music Meets Video

July 10th, 2013

Hi everyone, 

I'm at an interesting point career wise and could use some advice. Currently I'm a Business Development Associate at a financial services firm. I'm starting to become kind of the face of the firm, as they send me to lots of events, meetings and calls with clients, referral sources, and other firms/people we should know. It's a really good skill to have in finance which is a world filled with socially awkward people who need more social people to grow the firm and close deals. 

However my true passion is for startups. I'm working on one now and would like to move my career in that direction. I'm interested in going to biz school in Austin for entrepreneurship and I'm seriously considering moving out there before school to work at a startup. 

So after all that set up, my question is do startups generally look for someone with my skill set or should I stick to finance until I begin my MBA? 

Also if I should pursue startups what is the best way to connect w/firms that are looking? Recruiter?

Thanks for all your comments,
Luis
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Jonathan Vanasco

July 10th, 2013

A BizDev role (with or without MBA) is generally dead weight and a liability to the P&L for most startups under 24-30months old.  All the capital, every damn cent, is generally needed for Engineering , Product , Vendors at that point.  

The founders also need to be doing a lot of the BizDev , as it's largely customer development at that point... and potential customers want facetime with management as a sign of their seriousness and commitment.    Handing a potential client off to a BizDev person has killed many deals.

By the time most startups are ready for a bizdev role, they're not really a startup anymore.  If you want the startup experience and knowledge, you're going to have to sell yourself in as more than just BizDev -- Project Management, Product Management, PR, Office Operations /Admin, etc -- if there's something more you can add to the team, you'll may be worth the cost.

Also you should think about what you want out of the job -- money , experience, or both.  The bulk of startups using a recruiter are somewhere between their SeriesA and SeriesB rounds - so any sort of equity compensation is going to be minimal.  You'll get a token stock option ( though the company will try to overstate it ) -- but it's a token; your compensation should be focused on market-rate salary and benefits.

Thomas Knoll Executive Advisor & Business Coach. I help entrepreneurs survive and thrive at building their teams and businesses.

July 10th, 2013

Hi Luis! Runnnnn! Run in the other direction. You have a real job and a career! Don't punish yourself by doing a startup. If that didn't deter you, then congratulations for joining the band of idiots known as entrepreneurs. =)

Stephen Huson Leader in Internet lead generation, SEM / PPC / SEO and analytics

July 10th, 2013

Hi Luis,  I would agree with most of the earlier comments.  A few things to add:

* Network, network, network. There are lots of gatherings of people that are in the startup world...look for them in your area. Coffees, beers after work, etc. You'll learn a lot and might find the opportunity you want there.
* BD skills are transferable to other functions...sales (inside sales is more likely in startup, since the founders are likely to be doing any needed outside sales...depending on stage of the business), marketing, customer support...all could be up your alley.  Keep you options open and be flexible if you really want to try out the startup experience.

Good luck!

Kovey Kovalan Entrepreneur and Consultant

July 10th, 2013

Hi Luis, Business Development position can be very important if result can be attained for the Startup you intend to work for. This position could involve raising capital, opening doors to potential clients, etc. Unfortunately, startups generally do not have the funds to hire a business development person, despite the dire need for one. So, if you are flexible about your compensation, such as performance based fee derived from the commission on the deal you bring in, it can be very valuable to the startup. If you become so valuable, then the you can negotiate an equity in the company, or option, or be one of the founders of the company (even if you are not the original founders). Therefore, I highly recommend chosing a startup you can be confident about the subject matter and be clear to yourself on what you can bring to the table. The success of the startup and your career will depend on being objective about what you can deliver successfully. Otherwise, everyone would be a sore loser with everyone pointing fingers with each other, and matters get ugly. Raising capital could be a good fit given your finance background but raising capital in this economy for early stage companies is extremely difficult, if not impossible. So, if you are going to raise capital, find a startup company that either has shown user traction (even if it has no revenue) or producing revenue (even if it is small amount of revenue). Since startups generally don't have funds, recruiter would be the last place to find a posting for such a position. Places like founder dating, Meetup.com, startup mentoring organizations like Score or a similar one in your neighborhood would be the best place to find the founders. Also, look up state funded startup incubators in your community and they generally can lead to affiliated organizations that can lead to startups in your community. Kovey

Fahad Siddiqui

July 10th, 2013

That's a very open ended question. The demand for your skillset is dependant on the industry of a startup. If it is part of finance, then sure. If it is pure technology, then improbable.

Recruiters are used by banks, law firms, accounting firms. Barely any startup I know uses recruiters. 

Get to know startups in your target area, and get networking. If they like you, you'll know soon enough.

Paul Travis Multifaceted Online Executor: Product Marketing to Program Mgmt. to Business Development

July 10th, 2013

The other thing that hasn't yet been mentioned is "rolodex".  You may be able to find a startup that is selling to the kind of people you've already been dealing with, which would significantly increase your value to them.

Todd Ellermann Experienced I.T. Leader, CTO, and Creative Entrepreneur

July 10th, 2013

I would tend to think of your skills as really important for a startup for A) fundraising B) if my product/service was in the financial space Otherwise I would be looking to see is this a really smart guy who can fill gaps and does he have enough experience running a business to help plug holes? Finally, is this guy willing to do whatever needs to be done? (I once had a PMP project manager spending his days doing $200 sales calls to other businesses, it was really helpful to have a really smart person willing to make those calls and notice patters, figure out what worked etc...) ******************************************************************* Todd R. Ellermann VP of Engineering VirtualTourist.com Founder Webagogy.com Researcher Betterwebapp.com Personal: toddecus@yahoo.com 805-850-8044 cell ******************************************************************* Does getting an ASU MBA with existing UofA BSCE make me a SunCat? or a WildDevil? Go Cats! ...said with a Devilish grin ;)

Thomas Knoll Executive Advisor & Business Coach. I help entrepreneurs survive and thrive at building their teams and businesses.

July 10th, 2013

Luis, quick question: what are you expecting to learn about startups in an MBA program?

Juan Posada Technology executive, startup advisor and entrepreneur. Also a garage tinkerer and maker movement supporter.

July 10th, 2013

Luis, Go get your MBA And pivot towards product management or go do your oyen startup. In my experience, BD is a function that the CEO/founders carry early on, by the time a startup needs to staff up with BD the significant upside is gone (50+ employees). There are always exceptions (say your startup wants to sell into the financial services sector), but generally I would say that BD is function for corporate America, and sort of a dead end in the startup world. I'd be curious to hear what other replies you get. Care to share? Regards, Juan

Michael Barnathan

July 10th, 2013

BD is pretty valuable to a variety of startups. Look on AngelList and CrunchBase (StackOverflow too, but I don't know if they do nontechnical jobs). Recruiters are iffy; really early startups don't want to spend the extra commission that they demand.

Make sure you know what you're getting into. Startups demand long hours and the pay often isn't great. You also really need to understand startup equity, vesting, and dilution like the back of your hand or you'll probably get shafted on any equity grant you accept. Do your homework.