Robert Martyna, Tradavo CEO, Bio

Bobby Martyna Bio

Bobby Martyna is a seasoned entrepreneur who has founded a number of venture backed companies in e-commerce, enterprise and communications software companies over almost two decades. Bobby Martyna is also the founder and CEO of Tradavo, a wholesale marketer and distribution agent for small format retail. The Tradavo startup was completely self-funded and is currently the market leader in providing services from design to sourcing to small format retailers.

Bobby Martyna holds a Bachelor of Sciences degree from Stony Brook University. He hails from Brooklyn, New York, and lived on the East and West coastlines (Manhattan Beach, Malibu, Mercer Island and San Francisco), until locating to Denver in 2003.

Previously, Bobby Martyna served as Managing Partner of Bay Area Principal Management Consultants, providing management consulting services to venture backed start-up companies in retail,
enterprise and communications software. Bobby Martyna also founded Quintessent Communications in 1997, acting as President and CEO through 1999. Quintessent was backed by Battery Ventures and Polaris Venture Partners, and became an industry leader in connecting communication company back office systems within six months of inception. In 1999, Bobby Martyna founded Andavo Corporation, backed by Accel Partners, and served as President and CEO.

Bobby Martyna reports that his teams have worked with many of the world’s foremost retail, consumer product and technology companies. Bobby Martyna lives out the concept of knowing-by-doing and his experience of management in the trenches provides Tradavo clients with a high degree of confidence. Bobby Martyna is a seasoned veteran, and his broad experience and maturity provide the type of leadership needed for a company such as Tradavo. More information about Tradavo can be found by visiting their website at http://www.tradavo.com

The Five Toughest Challenges for Startup Companies - Part One

Starting a company is one of the most difficult things anyone can undertake.  Having started several companies, I'd like to put forth what I've found to be the most difficult challenges. 

Here's Part One:

I.  Getting Started -- Everyone has ideas, dreams and visions about how the world could be a better place in both big and small ways -- a new product, a new service, a new way of doing things.  But most ideas are not pursued for a number of reasons -- no time, no money, never done it before. 

But mostly, I believe the reason they aren't pursued is that people are either "comfortable enough" with their status quo or they are not natural risk takers.  The risk to reward ratio is too high for them to take action.

How many times have you had what you thought was a great idea, you ran it past a few friends who may loved it (or at least told you they did), but then you let it die -- only to stand on the sidelines, watching someone else who came up with a similar idea and made it a success?  If you're like me, the answer is 'too many times'.  Was it laziness?  Lack of confidence?  Fear?  Or is life just fine the way it is? 

Chances are that the other person who ran with the idea wasn't any brighter than you -- she just decided that the idea was too important, too powerful and too compelling to let it slide -- and she went for it with a 'no turning back' commitment and sense of purpose.

Being a successful entrepreneur, first and foremost, involves having a strong, inner core belief in your idea and a passionate, undying willingness to pursue it.  If you have this, then it's a simple matter of taking the first step.  That first step doesn't have to be 'quit my day job' -- in fact, I strongly recommend against that in the early stages.  It could be a simple as writing down your idea and reviewing it with some friends.  I'm amazed at how many people have what I consider to be very good ideas, but they've never even taken the time to write them down. 

Are you serious enough to take this basic first step?  If not, move on, get in your car, sit down dispassionately in your cubicle and read your e-mails.

In my experience, once you capture your somewhat vague notions and put them in writing, three things will happen: 

One, your idea will become clearer and more well-defined; 

Two, you will think of a lot of features, functions, markets, opportunities that you haven't before -- and you may throw some less than good aspects of your idea out the window; and

Three, you will have taken your first step -- and you'll start building inner momentum and confidence in your ability to turn your dream into a reality.  You'll start to visualize many good people enjoying your product or service.  That's the key.

But the simple tautology is this:  The best way to get started is --(drum roll) Get Started. 

It also means making a commitment.  Your friends and family will call you crazy, or if they're polite, they'll laugh nervously or quickly change the subject.  If they do engage, they may point to many reasons why this hasn't been done before or why it can't be done.  Or they'll call it a great idea and hope that you shut up.

Treat all that as rocket fuel for your commitment -- and keep this quote firmly in mind and close at hand:

“Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative and creation, there is one elementary truth the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, Providence moves too.

A whole stream of events issues from the decision, raising in one’s favor all manner of unforeseen incidents, meetings and material assistance, which no man could have dreamed would have come his way.”

Johann von Goethe

Does that seem fantastic to you?  It isn't.  I have experienced this myself, and I will tell you that most successful entrepreneurs will say the same thing -- maybe not in those words, but the essence of the message is the same.

Consumer Products -- Where's the Growth?

A recent report from PWC, cited in Consumer Goods Technology, notes sharply lower growth projections for the next 12 months from 59 "large consumer products businesses".

Like everyone else relying directly on consumer optimism and retail sales, this is  bad news.

The good news, according to the article, is that companies are seeking growth from international sales, but even that is waning, as the effects of the US economic slowdown take effect on the global stage.

Focusing on the US Market, one of the areas of growth most overlooked is what consumer product companies typically call "Alternate Channels" or "Special Markets".  What this means, in reality, is sales that don't come through the Grocery, Mass or Drug channels -- or, for short, non-Wal-Mart sales.  The alternate channels include, for example,

• Hotel Gift Shops and Pantries
• Campgrounds and other Outdoor Retailers, such as RV Parks, Marinas and Golf Courses
• Community Pharmacies
• School Fund-raising Programs
• Small format retailers, such as independently owned and operated convenience stores.

A number of consumer products companies looking for growth, including Kraft, Pepsi and Nestle, are keyed in on these markets in a big way.  This is a $50B market -- and the aggressive companies are anxious for an unfair share of this market.  Unfortunately, getting to these small, individual businesses is no easy task.  Imagine, for example, sending a rep out to meet with an individual Marriott Courtyard or a KOA.

My own company, Tradavo, small today, but growing rapidly, is working both sides of these channels -- we enable small business and retailers to purchase products from a variety of consumer products companies, while giving those companies a very cost-effective way to target and promote new and existing products to these retailers.

Of course, the direct impact we'll have on the top line of a major consumer products company is small, but the brand impact -- the "ripple effect" of consumers buying in our channels is felt very immediately in traditional retail, where the needle can indeed be moved.

For consumer product companies, ignoring these channels represents a risk -- especially where growth over the next 12 months will be hard to find.

Further to the PR Question

Reinforcing the point made and covered in my previous blog entry on this subject, PR for Startups, Seth Godin makes a few more interesting points in this post.

His main theme is that startups, or even companies at later stages that are 'ready for their closeup', don't need to count on a large multi-media splash for their success.  Seth references some household brands that never went that route, including,

Starbucks, Apple, Nike, Harry Potter, Google, William Morris, The DaVinci Code, Wikipedia, Snapple, Geico, Linux, Firefox and yes, Microsoft

People and companies love good publicity -- it wasn't too long ago that 'clipping services' were popular.  These paid-for services were provided by firms that would scour the print media for references to your company and products, compile them, and send them on in a big envelope.  But for the vanity factor (and the big scrapbook of clips in the lobby), I can't imagine the utility of these services when any old search engine will do just fine.

So, it's not unreasonable to think that getting great coverage of a company or product launch is essential to success.  However, that's also last century thinking.  PR can help, and help in big ways.  But it's far more important to realize that the people you should be spending time and treasure to impress are your customers, not print magazine or newspaper editors.  And with web services, it's far better for users to take a look for themselves, rather than to rely on the considered opinions of editors.

Of course, as we look toward our own launch event at Tradavo in the coming months, I may regret this post.  But probably not -- the less coverage we get, the harder we'll need to work to build a groundswell of excitement in our user and prospect base.

Should I Stay or Should I Go?

Should I stay or should I go now?
Should I stay or should I go now?
If I go there will be trouble
And if I stay it will be double
So come on and let me know

Bit hit from the mid-80s, this song from the Clash (ed note: it's not from London Calling, but I think this is the number one album cover of all time) asks a question that is increasingly relevant for startup executives.  Asked more generally,

"What is the most efficient and best use of my time during startup days -- on the road or with the team?"

Here's a pretty common scenario -- you're busier than a one-legged man in an ass kicking contest when the phone rings on a late Friday afternoon.  You check the caller ID and it's an associate at VC firm who got a 2-pager from you a few weeks ago --and given a choice, these are the guys you want to work with.   So you pick it up, chat for a while about your mutual contacts, then you go through your business plan for about 45 minutes.  He says he's "interested in learning more" and wants to meet on Thursday in Menlo Park. 

You know you're in Chicago, LA and SF early next week and you think that you have a critical all day exec team meeting on Thursday that has been put off several times -- the product plan is at a fork in the road, the team is evenly divided on direction and you need to step up, help the team make the right decision -- in other words, lead.  Thinking quickly, you say you call back to confirm -- but he lets you know that if the meeting can't be on Thursday, the lead partner won't be available for weeks.

As you hang up the phone, your palms get pretty sweaty as you pull up your Outlook calendar, your travel itinerary and the meeting agenda.  And in the back of your mind, the ragged song begins...

"Darlin you gotta let me know..."

The question seems trivial when asked of a technical founder/CEO  or CTO -- the task is clear and obvious:  Build a great product as soon as possible -- and that typically means "stay".  But unless the team is building a better version of something that is already market-proven (not a good idea in most cases), spending time with users/customers, partners and suppliers is absolutely fundamental to success. 

For many (e.g. web-based) startups, "spending time with users...", doesn't necessarily mean travel -- it could be fielding customer questions and problems (chat, I/M, e-mail and phone).

But for the large majority of founders and early stage executives, it's Sophie's Choice: 

Hit the road, get a much better sense for what's really going on in your market, meet the right people, present and demo at the key trade shows, pitch lots of investors.  That's gotta be the right answer.  But if I go there will be trouble.

OR

Stay at home, make sure your vision is clearly articulated, focus is maintained, the home fires keep singing,  perfect hires are made, momentum continues unabated and that the right stuff is really getting done and is getting done right.  What could be more important?  And if I stay it will be double.

So, who is going to let you know?  And is it easy enough to answer, "it depends on the circumstances?"

In my own experience, I've made the right choices and the wrong choices on this question -- and it's easy enough to see in hindsight where those choices led.  Seeing beforehand would have been invaluable.

And, in case you're thinking this is an easy answer, I disagree that it's completely circumstantial.  The team should answer the following questions for the next six months, which will then provide at least a framework for figuring out, for each team member, at least nominally, who would travel, how often, when and where.

1. Do we have a very clear understanding of our market?
2. Do we have one or more active and engaged customers?
3. Is our brand, company or founding team well known, or is word of the company spreading like wildfire?
4. Does the technical team have recent and intimate knowledge of  key technologies, platforms and techniques required for success?
5. Will the team dither and wither without day to day leadership?
6. Do we have enough cash to carry us through?
7. Are we confident that all our critical suppliers are capable?

I phrased these questions so that a NO answer means someone better get good at using  Farecast, Hotwire and Priceline!

I'm very interested in hearing from startup executives on this point  -- how you have you  answered this question?  In an ad hoc way, or more stategically?  What phase were you in?  What role did you have?  What were the deciding factors?  And did you make the right decisions?

PR for Startups

I've seen a number of references to the recent Calacanis article on PR tips for startups. Here's one from a blog I follow that does a good job summarizing the lengthy original post:

OnStartups

I share the viewpoint about PR firms in general, and particularly for web-based consumer-oriented startups, where grass roots branding (combined with blogging) has replaced big bang, major and industry media branding almost completely.

But I wouldn't go as far as summarily stating that PR firms are not valuable -- even in consumer applications, they can provide some insights that inexperienced founding teams may lack in terms of the basic PR etiquette.

I would say, in my experience, that PR firms are pretty awful in terms of thinking out of the box and going above and beyond for their customers. They follow a tried and (no longer) true formula that is now growing more than a bit tired -- and for the amount of coverage they generate, they are extremely expensive when viewed in terms of cost per customer acquisition.

Let's say your PR firm costs $10K/month plus expenses (which is table stakes) and they get you one placement each month in an industry publication that purportedly reaches 100,000 readers. If 10% of the subscription base see the (let's be generous and say) two page write up, and you convert 2% of those, your customer acquisition cost is $50, at a minimum. Great, if you're selling enterprise software. Not so great if that customer buys one $50 item and your margin is 30% (although a lot depends on the stickiness of your service). Much less great if you're counting CPMs.

The socializing CEO model suggested and embodied by Jason is demonstrably effective -- but is appropriate for some, not all. If the CEO is weak in that capacity, s/he should be complemented by an aggressive Co-Founder/Marketing VP or co-founder that loves to mix it up, on-line and off-line. But that's not nearly as interesting an interview as the CEO would be, in most cases.

My own company, Tradavo, services small format retailers and service businesses (hotels, parks, drug stores). Reaching these individual, independent units is extremely difficult -- and a traditional PR firm could be helpful. We're not quite ready for a major PR blast/launch, which we're scheduling for October. Sometime between now and then, we'll work out our strategy, which may include many recommendations from the Calacanis post.

A Breath of Sunshine

I've always loved mixed metaphors.

While people who employ them they are often criticized as schizo or not having a clear mind, it's always very obvious what they're trying to say!


Plus, metaphor mixing (mashup?) brings out aspects of both metaphors, as in --

A Breath of Sunshine = 1/2 a breath of fresh air + 1/2 a ray of sunshine.


So, my hope is that this blog will be a Breath of Sunshine (and a ray of fresh air) to anyone who comes across it. I'll be blogging about my company,Tradavo, my views on business, entrepreneurship, life, irony and of course, mixed metaphors.

I welcome comments and participation from all --