Insisting on hiring ONLY individuals/companies with a client portfolio can deny you huge benefits. Every start-up WILL begin with ZERO customers. Even Bill Gates, must have had to find a FIRST paying customer or client!

This article suggests other “indicators” you can use (aside from past clients list) to decide whether or not to hire a start-up – pointing out how doing so can yield MORE value than you pay for!

The First Customers Of Sincere First-Time Startups Often Get Served With Passion, Sincerity PLUS Get EXTRA VALUE

Someone has to give the startup a chance to serve. Usually, such first customers/clients get rewarded via services and products delivered with enthusiasm and passion – because the start-up will typically be HUNGRY for success and desirous of recognition – and referrals.

Of course, if the startup is smart, that attitude of giving MORE value than clients/customers pay for is one that s/he will make a PERMANENT feature of his/her business.

It is the key to achieving long term success.

You MAY Need To Assume Some Risk(A Real-Life Case Study)

I do not know the details of how Bill Gates got his first customer, but for very many people who start out in business for themselves, I think the following case study will be representative of their experiences (at least to some extent):

Start — “Ahmed has just started his custom software development service, and has sent out over 100 hundred introduction letters to companies in Lagos. One morning he follows up one of his letters to a company in Ikeja, and the CEO – James – (following two subsequent meetings) awards him a project.” —-End

From the brief narrative it is obvious that James could not have asked Ahmed to mention names of his(Ahmed’s) previous clients, since Ahmed was a first time startup.

This implies that James must have had to LOOK closely at Ahmed, listened carefully to how convincing/competent and sincere he sounded. PLUS he possibly asked questions (or made enquiries) about his background etc.

James would then have decided to “trust” that Ahmed knew what he was talking about – and could deliver the results he promised.

By taking THAT risk or “leap of faith”, James would effectively have afforded Ahmed the opportunity to get a paid job under his belt, which he would then use to “sell” his services to others not willing to proceed without evidence of past clients patronage.

If EVERYONE insisted Ahmed FIRST produce evidence of past patronage, he would probably have had to travel to outer space to find someone willing to give him a chance to serve – even if for FREE!

Apart from the “impossible costs” of getting there(I mean “outer space”), I believe language would have been a bit of a constraint for Ahmed

Thankfully, most entrepreneurs starting up do not have to go that far before they find their first willing clients.

But In Taking the Risk to Hire a Start-up, You’ll Need to Do It Intelligently – & Protect Yourself (Tips You Can Use)

If you want to try giving a FIRST TIME startup (with no clients portfolio) a chance, I suggest you proceed using the following suggestions as a guide:

1. Ask For a Demo/Sample or Preview:

Try and see if s/he can do some kind of cost-free preview, sample, demo or prototype for you to study/evaluate in making up your mind.

A willingness to provide this kind of “evidence” to buttress his/her claims of proficiency would guide you to decide how far to go in trusting him/her.

2. Request a Bio Or Profile:

Where has s/he been?

What was s/he involved in prior to starting up?

What kinds of achievements did s/he have e.g. reputation/pedigree ? work ethics?

Any testimonials (of any sort) from a past life?

3. Enquire About His/Her Rationale For Choosing a Target Audience:

Why did s/he pick you or your company?

What exactly does her company offer that s/he feels is of compelling relevance to YOU?

Is s/he just “shooting in the dark” approaching everyone or has there been conscious effort made to narrow down to a certain group of prospective clientele with defined demographics ?

4. Discuss a Case Study:

Depending on the type of product or service to be delivered, and so long as it does not pose the risk of getting misconstrued as an attempt to “pick” his/her brains*, try to challenge the startup with questions about what exactly s/he can do to solve a specific problem you have.

Get the specific MEASURABLE deliverables s/he promises to produce written down on paper.

*I assume here that you will NOT be guilty of trying to take advantage of a “newbie” entrepreneur, like some people I have encountered

5. Ask About After Sales Policy:

Ask what happens if s/he delivers but fails to meet the agreed standards or deadline etc?

One Suggestion: You could FIRST ask the startup to work with you to generate an “FRS” detailing the measurable results to be delivered.

For instance, in my work I (usually) use a Functional Requirements Specification (FRS) checklist which is generated in collaboration with the client at NO cost to him/her.

At the end of the project, the client is able to run through that FRS checklist and tick off those deliverable outcomes that s/he agrees appear in the completed work. Any “missings” are brought to my attention for action.

When the client’s (in-scope) changes or modifications have ALL been made, I send in a feedback/Job Completion Testimonial form to be filled/signed by him/her. This way both parties are agreed on the final outcome of the project.

6. Be Clear About Your Intentions:

If you’re not interested, say so. If you cannot say so(or don’t thing you can do so without hurting the startup’s feelings), then at least don’t encourage him/her to make follow-up visits. Here’s one way to deal with this problem:

Don’t say: “Why don’t you check on me again next week“, when you KNOW you will be away on leave!

Say instead: “I’ll think about it, and give you a call if i’m interested.”

If s/he does not hear from you, the message would likely be clear – AND you would at least be sure s/he would not resent you deliberately fixing appointments you do not intend to keep with him/her!

Having Said The Above, The Truth is That It’s a Bit More Difficult For The Nigerian Startup…

My experiences as an entrepreneur in Nigeria (before I relocated to Cotonou, to focus on providing online products/services) remind me that it CAN sometimes take a startup a relatively longer while to find ANY kind of first customer – EVEN if s/he expresses the willingness to do it for FREE, just to prove him/herself.

Why this happens I remain uncertain. But I have noticed it happens MORE frequently to startups engaged especially in delivery of intangibles (i.e. services) that are considered – rightly or wrongly – to be NEW, untested, unproven or unpopular.

Let me say however that I am proof that the situation is NOT hopeless.

This is because I successfully transited from the stage where no one gave me the chance to do for them what I claimed to be able to do (e.g custom spreadsheet software development) for two years, UNTIL my persistence led me to find paying clients who readily agreed to reward me profitably to work for them.

Maybe it did not have to be that difficult and traumatising, but looking back, I really don’t think I would have wanted it to be different!

I am tougher mentally and MORE competent/proficient skills-wise as a result of having to go back AGAIN and AGAIN to refine what I had to offer and return to try selling it in the somewhat hostile market place of my society.

Final Words: If You Need The Product/Service, Give The Startup A Chance!

Having said that, I do believe YOU would be better off (if you TRULY have need for his/her product or service) giving a startup a FAIR and IMPARTIAL opportunity to serve you.

If s/he offers to give you a FREE sample, give it a try.

If not, consider hiring him/her for a small project (remembering to protect yourself by applying some of the suggestions offered in this article).

Use the outcome to decide whether or not to hire the startup for a bigger project and/or to give him/her testimonials or referrals.

As I have illustrated at the start of this article, both parties ultimately stand to benefit.

PS: This article is based on excerpts of an original piece first published online, via www.iff.spontaneousdevelopment.com on 1st June 2007.