So I’ve stopped what I was doing, engaged with her, let her measure my arm and helped cut the yarn. A team building moment to be sure.

Makes me think about the importance I place on certain projects. Some seemingly small or less-important projects, with colleagues of any age, can be really special and can have the  ”forever” component of a friendship bracelet if there is an outcome of bonded relationships at the end.

The room was packed with C-Level execs at major Fortune 500 brands, included Dell, Anthropologie, Best Buy, Google, USAA, Intuit, HP, Macy’s, Samsung, Adidas, Nike, Crate and Barrel, and many more. I was amazed at the level of talent in the room.

Here I learned that consumers have never been so powerful, nor so connected, and about the value of user-generated content. I came away in awe of how marketing has radically changed just in the past few years, and the changes yet to come.

Gilliam & Gilliam Announce Acquisition

Company Pronounces “This is our Last Deal.”

AUSTIN, TX– (BUSINESS WIRE)—May 15, 2010—In the midst of global recession, Gilliam & Gilliam LP (G&G) again blazes a new trail, announcing today its latest ambitious acquisition. The new entity, known as Eden Corporation (NASDAQ: BABY), will be led by its founder, Eden Kristine Gilliam.

“After a full day of negotiations, we were able to push this deal through quickly.” said Jonathan Gilliam, Motivation Specialist at parent firm G&G. “Once agreed to by all parties, it came through in record time.”

“I am so excited I think I’m going to throw up,” stated Eden Gilliam, 7 days old.

Product delivered on schedule.

The agreement was finalized at 10:20pm on May 15, 2010. Weighing in at 7.3 lbs and 20 inches, G&G expects a lot of noise in the market.

Gilliam continued, “Our Managing Partner Leanna Gilliam (aka ‘The Boss’) once again gets the credit for this project. We couldn’t be more pleased with this incredible product.”

Last of three deals

Following the resounding success of first merger at G&G with Anabelle, Inc. and the subsequent spin-out of AvaLee Enterprises, this latest transaction was a surprise to all parties.

“There was a lot of hair on this deal, but we immediately welcomed Eden Corp to the Gilliam family…of companies.”

Having completed the last corporate transaction more than 5 years ago, Management admits it is a bit out of practice and has asked the newly acquired entity for maintenance instructions, however Eden Corp. has refused to provide any assistance. “A how-to manual was not part of the deal,” said Eden.

Competitive Concerns

“The disruption of our current business model had us concerned,” stated Anabelle and Ava Gilliam, 8 and 5 respectively. “This transaction will however provide much more leverage for the sister companies, as Management is now outnumbered.”

Eden Gilliam responded with a cute giggle. “The first two deals they did paved the way for me – this should be a cake walk.” she said. “My business model has always been disruptive; no one should doubt my ability to shake things up around here.”

She then cried.

For their part, Anabelle Inc. and Ava Lee Enterprises agreed to minimize organizational infighting and share resources as needed. They will return to her primary roles at the firm, Household Object Resilience Testing Engineers, a role that appears to focus on mainly on expensive glassware and fine china.

Deal valuation

Analysts valued the deal at Priceless. In an unusual move, the parties have drawn up no paperwork and will commence the agreement with nothing more than a finger shake, coupled with the standard spit-up clause. When asked about the risky move, Eden said “I didn’t see anyone else sticking their own foot in a pad of wet ink.”

While very optimistic about prospects of the new endeavor, Management has made a final decision about its future. “Sometimes you need to just make a cut or two to protect against further production,” said Managing Partner Leanna Gilliam, an opinion that did not sit comfortably with her partner. Most industry experts agree that a painful cut is not always the most pleasant to implement.

 “Yes it seems as if our space is way too crowded now,” Said Gilliam. “But there’s no question — this is the deal of lifetime.” 

A few years back I ran a US company that we moved to Dublin, Ireland lock, stock and barrel. We were a brazen Internet start-up with the requisite start-uppity employees; young, smart and passionate. Work was everything to us and, as Americans do, we personalized and internalized our work life.

Our approach to work puzzled our new Irish employees. They did not understand the heated debates and arguments among our American group. I remember hearing ”Why don’t they just go to the pub and have a pint?”

“Having a pint” as communications platform has stuck with me as a great solution to aligning goals and teams. Regular  off-campus one-on-ones do wonders for relationships and results.

Grab a pint and get over it, as they would tell us in Dublin. Perhaps you’ll forge closer relationships with those whose fortunes are so closely linked to your own.

Even industries and individual businesses that are still doing well are shell-shocked by the avalanche of bad economic news and consequently are taking a “wait and see” attitude.

The last few downturns have averaged 1.5 years in duration. This one may last even longer, and not everyone agrees on when this one even started. Uniquely, the lack of credit availability is truly frightening to marketing and business development folks because of the potential impact on customers’ ability to finance their purchases.

Yes, reality bites… and also presents opportunities. The basic truth is business must get done and your customer still needs you. In fact, as headcount gets slashed within your customers’ organizations, those who survive are taking on the responsibilities of those who are let go and consequently have even more on their to-do list, with even less in time and resources.

This means opportunities for business people who can truly help their customers face their own challenges and weather the storm.

Austin’s start-up community is blessed with amazing resources. I love it here: I can ideate a technology product, assemble a team, and launch a product without having to glance beyond Austin’s city limits. Try that in St. Louis or Des Moines. Our entrepreneurial Bootstrap ethos and innovative conferences like RISE demonstrate the power of our community to build new businesses and future employers.

Anyone who lives on billable hours in Austin will likely agree, however, that it’s hard to make a buck in this town.  I spoke with a marketing consultant recently who explained he doesn’t notice the recession because he’s always struggled with finding good work in Austin, even in boom times, and that “people just don’t want to pay for good help here.”

To be sure, I am conflicted. As an avowed bootstrapper I have benefited from our low-cost support structure. I have also felt the pain of many a goose chase from well-intentioned but relatively unsophisticated Austin companies. 

I would posit that our garage culture extends too far into company maturity and our tendency to seek out “free-miums” with consultants and advisers hurts the success rate of Austin companies. Why?

I have a few theories…

1. Austin still trades on the tech boom myth that a cut-rate deal leads to windfall compensation at some future point. How many of you reading this (yes, me too) still hold millions in start-up paper? 
2. The influence of famously stingy organizations on our business culture. Those of us who’ve lived on the receiving end of Dell contracts understand this. 
3. The ratio of service providers to actual work is high. Many of us who love and choose to live in Austin trade a lucrative business environment for the privilege of living here. I recently heard one expert joke that in Austin you make money in  the “travel business” as in “traveling” to “business.”
4. Many Austin executives tend to be overly-impressed with folks from big-name companies, colleges and markets. Sure we have great engineers and designers, but when it comes to hiring the best business experts we tend to look elsewhere. Truly a shame.
5. When we have a critical problem, we do not eagerly seek out new expertise or service provides. We are still very much a do-it-yourself town.

I’m no big spender, but could this skimping reflect a lack of business savvy? Do we believe that tech companies in Silicon Valley and Alley scrimp and save when it comes to hiring the brightest bankers, lawyers, executives and advisers? Maybe now they must, but in my experience they have been too busy making money, launching products and grabbing market share to worry about negotiating hourly fees down another five bucks.

Since opportunity cost is difficult to measure we never know what we miss, and on we go, swimming in our pond, struggling against national competitors with stables of well-cared for experts, advisers and partners. 

My challenge for service providers: Don’t audition for work by doing free work, unless you are truly investing in a company and can afford the time. Estimate your marketable value  and stick with it.  If you don’t value your time, no one else will. Take pride in your expertise.

And for Austin companies still who never seem to make it to the next level? Pay experts what they’re worth. Leverage the best experts and focus on winning. And do it local – no need to look past the Great Hills Starbucks or 360Uno’s for the right person or firm. They will likely respond with more value than you ever  dreamed.

Let’s move the Austin technology community to our rightful place as influencers and innovators.

Case in point: My wife spent about an hour on Shutterfly, one of the highest-traffic photos sites, attempting to get photo cards printed on the cheap. After a few technical glitches she gave up, and then remembered a friend describing a good experience on Costco’s site.

Costco? for online photos? Turns out the Costco experience was quicker, easier and about 50% cheaper. Being the marketing wonk I am, I thought about what Costco did that Shutterfly couldn’t.

Here’s the breakdown:

1. Wife has superior experience getting the card done and sends them to the store to print.
2. Wife goes to Costco to collect her prints, takes a detour through the store.
3. Costco adds logo on backs of the cards, which are then mailed to family and friends.
4. Husband wonders how $21 photos became $250 in bulk groceries.
5. Costco wins a big purchase, free viral advertising and a happy customer in worst economic recession in decades.

Now try this with other businesses that are supposedly exclusive to innovative online companies. Netflix? Try a video kiosk at McDonald’s for a buck, and grab a burger while you’re there.

Having decided against cookie bouquets or those squeezie toys that look like computers, I thought about what I could do or say personally that would actually mean something to my clients. I tried to think of gestures or remarks that demonstrate to my customer “I truly care about you and your business.”

I finally settled on exactly that. I called each of my important contacts and left a sincere, personal voice message telling them I really care and thanking them for their business and their friendship over the months/years.

Surprising to me was my clients’ response in a busy holiday season: Many actually called me back and expressed to me things I hadn’t heard before from them, things like their appreciation for helping them in their business, my personal service and other kind remarks. A nice gift for me!

For customer-facing professionals, there’s no better feeling than delivering a solution that really improves the well-being of a customer and being paid a decent wage for it. When you truly believe that your products and services can help people better themselves, their co-workers and employers, you end up doing better yourself. Similar in concept to my recent post on “Business Karma”, really caring for your customers pays dividends beyond the financial. It actually helps you prospect better and enjoy your job.

So don’t forget to show you care through word and deed. You may be re-inspired by reciprocal affirmations which may turn out to be your best executive gifts of the season.

Hall’s blog is a great update on what’s going on in Austin’s tech startup community. If you have interest in funding, start-ups and high tech I recommend subscribing…

My firm was just selected to join the Microsoft BizSpark program as a “Network Partner”. This means if you run a startup with under 1M in revenues and less than 3yrs in business, we give you bunch of free stuff to support the technology side of your venture.

I believe this to be a great deal and expect there will be many sign-ups based on the value of the licenses alone. The program provides free access to:

• Software. Access to current, full-featured development tools, including Visual Studio Team System, plus production licensing to develop and bring your solution to market.
• Support. Professional technical support from Microsoft and a global community of business experts.
• Visibility. Opportunity to achieve global visibility to an audience of potential investors, clients and partners.

Most technology entrepreneurs know that, when done right, an association with Microsoft can present real client and partner opportunities. The BizSpark is no different and allows smaller companies to gain visibility to potential clients, investors, and partners.

To enter the program, all you need to do is join online and when you do you get near-instant access to the software, and your only obligation is to pay Microsoft a small fee (USD$100) due at the end of the three years (or end of participation in the program)

You’ll need sponsorship from a Network Partner (that would be me). Feel free to contact me with questions.

So, you may ask, what’s in it for Microsoft?They have decided that their future is tied to supporting the next generation of successful companies and by introducing them to their technology stack early in their development. FYI I receive no compensation, just a chance to meet cool new companies and learn what they’re doing.