Elephant Hunting

Venture-backed wireless companies often depend on deals with carriers and telecom equipment manufacturers for their success. For a startup, trying to land a deal with a major wireless carrier is a lot like elephant hunting: There is the chance for great glory, top-dog status, and plenty to eat – along with a substantial risk of injury and failure.
The startup/big-company challenge is hardly limited to the wireless industry. It’s always a treacherous thing for a startup to depend on partnerships with a much larger entity for the delivery of its product or service. Most large companies, inside the wireless industry and out, have complicated decision processes that can look somewhat random from the outside (and, to be fair, often seem pretty random on the inside, too). Any number of tiny issues can delay or derail a deal, and there is little that a startup can do to control these corporate processes. Adding to the hurdle is the reality of the business of network operations. Wireless carriers are by necessity risk averse when it comes to their service – in a business where the top priority is five-nines reliability, they must be risk-averse. Yet knowing this does little to assuage the frustration that startups often feel in dealing with carriers.
It’s always good to see young wireless companies that are able to execute around carriers – at least initially. For this reason, for example, many upstarts are finding success in the off-deck world. But some types of wireless businesses simply cannot work around the carriers. How can young companies maximize their chances of success in the hunt?
1.) Build your resource base: Carrier relationships are a long-term business. Ensure that your company has the financial and organizational resources to stay in the game long enough to see some results. Plan your fundraising around a hard-nosed view of the length of time it may take to get launched with a carrier. This often means keeping your burn rate low in order to have a long runway for operations with the cash you have on hand.
2.) Don’t reinvent the wheel: Make sure that your team is staffed with sales and business development people who are highly experienced in dealing with carriers in the geography you serve. Telecom is a relationship business, with established networks and protocols for how business gets done. Do not try to reinvent that learning – hire it.
3.) Ensure there is alignment around the table: Having a supportive board of directors that is familiar with carrier sales cycles is vital. Just as with your carrier-facing team, you don’t want to have to educate your board on the ins and outs of carrier sales. Instead, seek investors and outside board members who have experience in the wireless field and have contacts to help you gain access and valuable feedback during what is likely to be an extended sales cycle. Keep your board and your advisors continually in the loop to ensure their ongoing support.
4.) Present a strong value proposition: Understand the specific needs of the carrier you are pitching. As similar as they may look from the outside, each one has a different angle and a different culture. Use all your resources to identify the defining needs of each target carrier – and then address those needs in your proposal. Much as this sounds like Sales 101, many startups still present the same generic value proposition to all carriers. Don’t be one of them.
5.) Mitigate risk: Anything you can do to get early proof points of your concept in the market is to your advantage. Don’t throw too many of your eggs into one or two baskets. Regional carriers can be a great place to start.
6.) Stay on top of the partnership trends: The favored types of partnerships with carriers change on a regular basis. What may have been a no-brainer deal two years ago can be hopelessly pass