RevRoad + The SOSTAC Method

Planning and executing your marketing strategy can be done in so many ways. The more experts you talk to, the more opinions you’ll get, and rarely will you find overlap. So, RevRoad set out on a course to answer the question: What is the best marketing framework to help entrepreneurs build a robust  marketing plan that is simple enough to use on a daily basis? Not surprisingly, we came up with many answers. However, we decided to look at successful marketers such as Netflix, H&M, and Coca Cola. All of these companies use versions of SOSTAC® to accomplish their goals. Originally developed by PR Smith in the 1990s, this framework has gone through a series of iterations, most recently updated to capture the intricacies of digital marketing. 

Obviously these are large global companies. How does SOSTAC® help entrepreneurs just starting out? SOSTAC®, although simple in format, results in tremendous value if done right. This is helpful to companies of any size. Other benefits provided by SOSTAC® include ease of use, referenceability, application to current marketing practices, and comprehensive solutions. The RevRoad marketing department recently adopted the SOSTAC® model for these reasons.

As a brief introduction SOSTAC ® stands for:

  • Situation — where is the company now?
  • Objectives — where do you want the company to be?
  • Strategy — how do you get it there?
  • Tactics — how exactly do you get it there?
  • Action — what is the plan?
  • Control — did you get there?

The following is a graphical representation of how the system works. 

The structure of SOSTAC is a simple logic that builds on an in-depth Situation Analysis which helps inform strategy and tactics. This type of logic enables better decision-making and therefore better plans. Most importantly, it is a more simplified approach, retiring the notion that a lengthy traditional marketing plan is needed to reach objectives. As the entrepreneur, you should reference it often. 

Furthermore, SOSTAC ® contains a logical order for tackling plans and is used to assess processes critically. Including an in-depth SWOT analysis, the main differentiator of SOSTAC is the focus on implementation. Each module involves answering a series of detailed questions like: 

  • Who is your ideal customer? 
  • What is your stickiness or wow factor? 
  • How will you reach your customers?  

Once these types of questions (among many others) are answered, you are ready to execute and track progress. 

“The SOSTAC ® marketing model, created by PR Smith, is a popular and widely used model for marketing and business planning. Whether you’re creating an overall marketing or digital marketing strategy or improving individual channel tactics like SEO or email marketing, this is the tool to use.”

— Daniel Nilsson, Marketing Editor After becoming a RevRoad portfolio company and selecting the Marketing service package, the first step is to build a SOSTAC ® model for your company. RevRoad will help create a cohesive and workable plan, then use the Control element to follow up and ensure it is working. This is a collaborative effort, during which we are dedicated to answering any questions you may have. We look forward to working with you. Ready, Set, Rev!

5 Ways Entrepreneurs Can Improve Their Personal Finances Immediately

Being an Entrepreneur comes with many challenges and hurdles to overcome.

Unfortunately, one of those prevalent challenges deals with your financial health.

Most entrepreneurs either fall behind with personal finances or neglect them entirely. This can put you in a position where you are burdened by financial stress.

The last thing any entrepreneur like yourself needs is just that; more stress.  

While it can be unsettling, it’s the reality. This is what you signed up for.

But just because you’re making daily sacrifices, doesn’t mean that you are not able to make important financial decisions.

In fact, quite the opposite is true. Now is the time to practice and refine good financial habits, and look for ways where you can improve your personal finances so that you don’t feel the financial burden any more than necessary.

Financial fatigue is a real thing that impacts many entrepreneurs, but also something you can improve with some discipline. 

Here are 5 ways you can improve your personal finances immediately.

1. Take control of your spending habits

In the early stages of building your company, it’s critical that you exercise complete control over your spending habits. Not just for your business and company related expenses, but for your own personal finances as well.

One of the biggest pitfalls that keeps entrepreneurs and others alike from achieving their financial goals is the lack of a plan in place for their personal spending and savings habits. The absence of structure and discipline in these two areas can end up leaving you in a difficult financial situation.

The root of the problem for most entrepreneurs comes from not tracking where your money outflows. This can be extremely detrimental to your financial plan and can undermine your  goals.

Chances are that you track your spending when it comes to your company expenses. Don’t neglect this when it comes to your own personal finances.

If you’re not sure exactly how to get control of this one, start with taking a look at your previous expenses and spending habits. Take a look back and review the last  three months of bank statements on everything you’ve purchased (personally) and start writing them down. 

Once you have them written down, start categorizing them by expense types  so you can better understand the nature of your spending. 

Doing this will give you a good indicator and baseline for your first month of budgeting.  Again, it’s important to keep in mind that it won’t be perfect. Most likely your budget will require some adjustments along the way.

Just like any exercise, the more you practice this, the easier it becomes. Eventually, you’ll get to a point where this becomes second nature. 

There’s a good chance that almost immediately you will notice areas where you are spending way too much. Start cutbacks on those expenses first.. Ideally, you will want to find ways where you can eliminate most of your variable expenses (or the ‘wants’) so that you can focus on saving more and increasing your savings rate.

2. Create (and stick to) a financial plan

Would you navigate your current business without any sort of plan, assumptions, or direction in place? Probably not.

That would only increase your chance of risk and failure.

Yet, most entrepreneurs are managing their personal finances completely blind. In fact, it’s more than just entrepreneurs. Most people are navigating their personal finances without having a proper financial plan in place to guide them.

Having a financial plan is necessary to ensure a successful financial outcome. Your plan is there to help guide your financial decisions with confidence so that you are continually working towards your  goals. 

There are a lot of reasons why entrepreneurs don’t currently have a financial plan. Traditionally, financial planning has been reserved for wealthy individuals, which excludes many  entrepreneurs just getting started. Additionally, financial planning has been known to be a time-consuming process, taking hours, days, and even weeks. This incentivizes  entrepreneurs to  choose running their business  over taking the time to build their financial plan.

Savology has good news. Now you don’t have to spend hours building a personal finance plan. 

Savology, which also happens to be a RevRoad portfolio company, provides free financial planning in just five minutes.

As an entrepreneur, having access to free, accurate, and personal financial planning tools is priceless. That’s why you need Savology.  

3. Get an accountability partner 

This one can be a real game changer and the additional motivation you need to help keep you focused and stay the course with your financial planning journey.

An accountability partner is exactly what it sounds like. It’s someone who helps you stay accountable to your financial goals.

Typically, this person ends up being a spouse or significant other. However, it can be any individual that you trust. Which means an accountability partner could end up being a close friend, a relative, or even your co-founder. Remember, trust and reliability is the most important thing with an accountability partner. 

Trust and reliability are important because you need to be able to share information (and likely details) of what you are working and be comfortable asking for their help to get you there.

If this is something that you’re considering, which we highly recommend setting up regular “check-ins”. This will allow you to have regular conversations about money, so that you can help one another stay motivated, focused, and working toward your goals.

4. Create and consistently review financial goals

Just as you would with your business, creating and reviewing personal financial goals is critical to your success.

The reason is simple. Setting goals is one of the best ways to create clarity around your personal finances, so that you understand what you are working towards and how you will get there. 

Remember, when you’re setting goals, don’t just focus on long-term goals. It’s equally important to set both short-term and long-term goals that work together. This is  comparable to setting monthly, quarterly and annual goals for your business.

Your long-term financial goals are there to keep you on track holistically, while your short-term financial goals are there to keep you on track day-to-day.. Both should complement one another and play a vital role in the financial decisions you are making.

Lastly, before you move ahead with any type of goals, it’s in your best interest to make sure that you are setting S.M.A.R.T. goals. The acronym stands for:

  • Specific (simple, sensible, significant).
  • Measurable (meaningful, motivating).
  • Achievable (agreed, attainable).
  • Relevant (reasonable, realistic and resourced, results-based).
  • Time bound (time-based, time limited, time/cost limited, timely, time-sensitive).

5. Diversify your risk by generating new income streams

As an entrepreneur, protecting your income is a financial priority. There’s a good chance that you are not paying yourself market rates, at least not right away, which is why it’s critical that you protect what little income you might be earning.

While it’s important that you are devoting as much of your time and resources to building your company, it’s equally important to make sure that you are not jeopardizing your income and putting yourself in a position where going bankrupt is a possibility.

Because of this, you’ll want to focus on generating new income streams, whether that’s from a side hustle or passive income. This can provide you with earning opportunities that will help you pay your necessary bills, allow you to contribute to your monthly savings, and importantly extend your runway.

By establishing multiple income streams, you’ll be able to diversify and lower your personal financial risk. Ultimately, this gives  you more financial resources to build your business.

The concept of this is similar to creating additional revenue streams within your business. By selling through new channels or introducing new products, you create additional opportunities for sales growth. What you are doing is essentially protecting your business against financial risk. If one sales, or revenue, channel underperforms, your business still has a chance of surviving and thriving because of the established revenue and profitability derived from existing channels. 

Moving beyond financial fatigue 

Financial fatigue is real for the majority of entrepreneurs. But it doesn’t have to be, nor should it be the default option. By using the five tips above, you’ll be well on your way to making steady improvements to your personal finances. 
Importantly, it’s critical to focus on building a personal financial plan, before anything else. In just five minutes you can build a free, personal, and accurate financial plan with Savology. Your plan will show you your current financial trajectory and our strengths and weaknesses. That way you can focus on addressing the areas that need attention right away.  Build your free financial plan today!

How to Give the Winning Pitch

Written By: A.J. Rounds

As a member of the founding team at RevRoad, I’ve reviewed hundreds of pitches and learned a few things that may be helpful for you as an entrepreneur. 

Bring Your A Game

When you pitch your company to venture capitalists, investors, or other partners, bring your A game. I’m not just talking about the 10/20/30 rule coined by Guy Kawasaki (although, also extremely helpful). I’m referring to answering crucial questions in your presentation.

Pitching is an art, and there are few who do it well. Out of the entrepreneurs I’ve seen pitch, about 25% present extremely well, while 20% pitch on an average level and give the basics. The remaining 55% need to read this article. 

My goal in writing this is to help you secure the resources and partnerships (in some cases Venture Services) you need to succeed. 

What should you include in your pitch?

Let’s dive in. 

Know your customer

Before you begin building your pitch, answer the following questions.

  • Do you know your audience? 
  • Have you identified your target market by needs, demographics, geography, and ability to pay?

If not, that’s step 1. It is also helpful to understand what their experience level is when it comes to using your product or service. What do they currently say about your company?

Now you are ready to begin constructing your pitch.  

Problem/Solution

Can you explain what you do or offer in one sentence? If not, please practice.

Frame it in terms of the problem your target market has and how you solve it. 

Additionally, ask yourself if your market is big enough. Is your solution good enough? Putting your audience through a long, tedious exercise of trying to understand what your company does, the problem you solve, and how you are different from other options in the market will not help you.

Make it quick, easy, and obvious.

Revenue Model, Projections, Timeline, & Financial Outlook

Remember, often you are pitching to an audience that is financially minded. Be sure to spend time on your business model or revenue model. 

Questions you should answer include: 

  • What is your revenue model? Is the revenue recurring (preferred)? 
  • Do you have multiple streams of revenue? 
  • What is the price point of your product and corresponding profit margins?  
  • What is the lifespan of your product or service? 
  • How have you funded your business to this point? 
  • Who else is on your cap table? 
  • What does an exit look like for you and when?
  • What is your current valuation?
  • Are your financials and projections realistic? 
  • What is the timeline to revenue milestones? 

Traction 

One of the things I expect to hear about when listening to a scalable company pitch is traction achieved.

Maybe that’s a revenue number. Or, if you are pre-revenue, maybe that traction number equates to followers, an email list, or even submitted pre-orders. 

Market Size 

Closely related to traction is your market size. You should also be very familiar with this information.

Please don’t present an unrealistic TAM when pitching your business. I often hear the statement, “If I can just convert 1% of the population of China or the U.S. market, then we will have achieved our goals.” This is an instant turnoff for educated investors or partners.

Talk more about your Serviceable Obtainable Market (SOM) or what portion of the market you can realistically reach.

Defensibility & Competitors

In your pitch, include how your product or service is unique and defensible. Do you have intellectual property or patents filed?

Risks are mitigated when your closest competitor can’t easily copy your value proposition—which brings me to competition.

Who are your competitors? Are they well-funded? Do they have large market share? Where might your product overlap with theirs? There are many templates available that can help you create a competitor analysis report.  

Team

Discuss your team. Who are you? Who are your teammates? Why did you get into this vertical? 

Talk about your successful exit(s) or epic failure(s). Maybe even both. This shows you’re an experienced entrepreneur that understands the roller coaster ride of entrepreneurship. If done right, talking about these items will give you credibility and show your passion for your company. 

If you have an advisory board, which is highly recommended, discuss who those individuals are and the value they bring to the table.  

It’s also helpful to mention who’s working full time in the business and who is not. This is critical. At RevRoad specifically, we seldom work with companies that don’t have at least one founder working full time in the business.

Summary and CTA

Include a concise summary and clear call to action as the last slide of your presentation and boom, you are ready to pitch!

As someone who listens to entrepreneurs pitch for a living, I recommend that you follow these guidelines. Your chances of a successful pitch will skyrocket. 

Whatever the pitch event, be it the annual Entrepreneur Competition hosted by RevRoad, a pitch to become a RevRoad portfolio company, or a community pitch competition like the Silicon Slopes Tech Summit Competition, incorporate these tips and you’ll nail your presentation.

Good luck! 

Applications to join RevRoad close on April 30, 2020.
Apply to RevRoad here
Learn more about RevRoad here

6 TikTok Tips for Business

TikTok has quickly become a dominant platform in the world of social media marketing. Gathering user-generated content, cross-pollinating content, and advertising are some of the main reasons why your company may want to utilize TikTok. 

Getting started on a new social platform can be overwhelming, so here are a few tips to help you through the process. 

  1. Be Fun & Vulnerable
    People are on TikTok for a lot of reasons, but the common denominator is to be entertained. If your content is not entertaining or interesting, then it is a waste of time. Be fun, real, and vulnerable.
  1. Keep it Short
    Videos can only be up to 60 seconds on TikTok; however, many gravitate to stay within the 15-second range.
  2. Focus on the Music
    Music is a critical piece of creating shareable, popular content on TikTok. Utilize the trending music and original sounds in your videos.
  3. Maintain Consistency
    When you consistently create content around a specific topic, you generate interest. If users find your content relevant, useful, and interesting, they start following you. Gradually, you start getting more likes, shares, and engagement..
  4. Collaborate
    Every industry has influencers. Find out who they are and make something happen. Reach out to them, duet or react to their videos, and participate in their challenges.
  5. Use Trends & Hashtags
    Check out the “Discover” tab for trends. If you see something relevant that you like, copy it. Make it your own. Expound on the creativity of others. Find trending hashtags that are relevant to your business.

Download your “TikTok Tips” sheet here. Enjoy!

Watch the free TikTok workshop here.

As Humans: a letter from our CEO, Derrin Hill

I write this in deep sadness after the events of this past week and seeing the senseless torture and killing of an unarmed black man as he lay in the street—handcuffed and pleading for his life. George Floyd, like many others, suffered the effects of racism that plague our nation. One of the three officers kneeling on him has now been charged with murder.

As the events of this week unfolded I felt it important to share our complete and united support as a leadership team and as a company for equality, fairness, and equal opportunity for all—regardless of race, ethnicity, gender, religion, political views, or sexual orientation. 

We are grateful for each member of our team and for the respect each of us show one another. 

We fully support protesters’ rights to protest peacefully. We also support law enforcement and their efforts to enforce the law when done lawfully. 

We stand against the bad actors in any group. This includes those in law enforcement who use their position of power in unjust ways to target, harm, and kill others. It also includes protesters who riot, injure people, and destroy property. 

Thankfully, there have also been reports of healthy dialogue and constructive conversations between people and groups involved. Some of those conversations have been with the protestors and officers facing off toe to toe at our own Utah State Capital and resulted in them leaving as genuine friends.

I hope that kind of dialogue will happen at every level and result in systemic policies and structures to address the very real issues of racism which have been brought to the forefront again. I also live in hope that with each of us doing our part, we can soon live in a world where racism and its ugly cousins, bigotry, and inequity no longer have a place. 

Why write this message when any of us could just silently watch what happens?

Because each of us need to do our part as humans to add constructive solutions to the cancer of racism in our world. 

A favorite poem of mine is one I first read at the holocaust memorial in downtown Boston. It was written by Reverend Martin Niemöller: 

First they came for the socialists, and I did not speak out—because I was not a socialist.

Then they came for the trade unionists, and I did not speak out— because I was not a trade unionist.

Then they came for the Jews, and I did not speak out—because I was not a Jew.

Then they came for me—and there was no one left to speak for me.

I am not African American, but I am human. George Floyd was human. And since we are all human, we should care for one another as humans. 

Thanks again to each of you for looking out for the concerns of others, for doing your part to make your family, RevRoad, Utah, the USA, and our world a place of unity and mutual respect. 

With love for each of you,

Derrin Hill

RevRoad, CEO

The Power of Clear Company Values

Written By: A.J. Rounds

Grit. Growth. Gratitude.

These words make up the simple values at RevRoad’s core. 

In 2020 we modified our values to replace the third value, previously known as +1 (going above and beyond what is expected for our portfolio companies), with Gratitude.

Does that mean that + 1s have disappeared? No—quite the contrary. The +1 mentality will still be a part of RevRoad’s culture. We will always go above and beyond for the success of our portfolio companies, but we feel it is important to publicly acknowledge, by way of gratitude, the opportunity we have to work with passionate entrepreneurs striving to scale their businesses. 

Every day we are grateful for the insights and energy our portfolio companies bring to RevRoad. Since the switch in our values, not only does our team vocalize and demonstrate more gratitude, but our portfolio company founders have responded similarly. 

What we’ve found is that implementing gratitude into everyday company values and practices has improved the team synergy, overall productivity, and appreciation for all the incredible people that make up the RevRoad family. 

Share this with someone below who you think exemplifies one of RevRoad’s core values: Grit, Growth, and Gratitude!

Learn more about RevRoad here

Where Marketers are Spending Their Money in 2020

Written By: A.J. Rounds

2020 Marketing Landscape 

We are now entering the second quarter of 2020. At the time of this writing, you and I are currently under heavy restrictions of quarantines and physical distancing for COVID-19. However, that doesn’t mean that marketing budgets disappear. In many cases, companies are ramping up their marketing spend. The following paragraphs are the top marketing objectives, budgets, and results predicted for 2020. 

Top Marketing Strategies and Objectives 

Marketing channels most implemented in 2019 and carried through 2020 continue to be email, social media advertising, and blogging/content marketing tactics as reported by Sales and Marketing Management. SEO strategies follow as a close fourth place. 

Top marketing objectives for 2020 include converting leads to customers, increasing sales leads, increasing brand awareness, producing thought leadership content, and increasing website traffic. Interestingly enough, SMM also reports that most leads are still found through referrals, trade shows, and events. The percentages are as high as 63% (referrals) and 44% (trade shows) respectively. Print advertising and direct mail are the least utilized at 3% overall. 

Marketing Dollars Spent

In support of these marketing strategies, SMM also reports that 56% of budgets are being allocated to digital marketing, 52% of budgets to website development, 36% to trade shows/events, and 27% to content/email marketing.  

RevRoad Marketing Initiatives for 2020

This data coincides with current RevRoad and portfolio company marketing strategies.  RevRoad is also ramping up our marketing spend online, building home and landing pages to convert that marketing spend, generating more content on LinkedIn, social media, and blogs, while still building person to person relationships (at a socially safe distance). RevRoad continues to invest resources into new videos produced by our amazing video team to promote online. 

As mentioned, we will be revamping our website to be more focused on you and other entrepreneurs who’d like to apply. This includes restructuring and formatting content better. Our goal certainly falls in line with converting leads into sales and increasing brand awareness. As a start, we recently launched a services page complete with videos to ‘show’ not ‘tell’ about the services we offer to scalable companies like yours. 

Summary

Without question, the largest portion of marketing budgets for 2020 will be allocated to digital strategies. Based on what SMM reports and what we’ve seen at RevRoad, the marketing channels mentioned above produce the greatest ROI. 
Good luck with your marketing efforts. Whether it’s a pandemic or other changes to the economy, don’t be afraid to adjust your marketing strategies to accommodate changing business needs. Keep going. You’ve got this!

Responsibility in Families

Written By: A.J. Rounds, Chief Marketing Officer at RevRoad

Responsibility in family. What a fantastic topic. Families come in all shapes, sizes, and varieties. 

Cultures and societal norms can play a big part in what defines responsibility in every family. In other words, it can be defined in many ways. 

Most can agree that parents have a responsibility to care for their children’s well being, while children have the responsibility to learn to be responsible family members, good citizens, and demonstrate responsible behaviors.

Teaching Children Responsibility

One of the ways in which children can learn responsibility is by watching and emulating the examples set by parents.

Being responsible means taking action.

It is beneficial for kids to learn that helping yourself, your family, others, and the community is a choice. But taking that first step towards responsibility is not always easy. 

Responsibility often requires an act of courage.  

Parents have the responsibility to guide and support courageous behaviors. 

Taking the initiative to be responsible requires a push out of our own bubble. It requires us to leave our comfort zone for the sole purpose of helping someone else. 

Sometimes, the choice to do so is simple. If we see a pregnant woman on the train it’s a good idea to offer our seat. If we see someone struggling with many bags, we should open the door.

These small acts of kindness are essential to creating a responsible society and are often taught within the family unit. But there are other, different types of responsibility that we need to partake in as well — actions that require a little more courage and choice. 

These behaviors are often less clear and require value judgements, judgements taught and supported at home.

Recognizing Responsible Situations

Think back to being a kid on the playground. Maybe, as we dangled from the monkey bars, we noticed another child bullying a classmate. The easiest thing to do would be to ignore the incident and keep playing. The responsible thing to do, however, would be to stand up to the bully. Doing so would be scary but show bravery, and ultimately a powerful act of responsibility.

Responsible situations happen daily. There are always opportunities to act responsibly. 

 What about stepping in to help out a community after a disaster? Or reporting to the scene of a crime?  These things can be difficult but that doesn’t mean we shouldn’t do what we can to help.

Sometimes responsibility means inserting ourselves into situations in order to do good, and teaching family members why and when it’s important to do so. 

Let’s make a resolution to find the courage within ourselves to take on responsibilities where necessary and teach family members to do the same. By teaching responsibility in families, we are preparing the world’s next generation of entrepreneurs and business leaders.

RevRoad Rolls Up Its Sleeves to Help Portfolio Companies During COVID-19

Written By: A.J. Rounds

Following health and safety guidelines, RevRoad has moved all its events and meetings online. Even so, our dedication to showing up for entrepreneurs remains strong. We remain focused on helping portfolio companies find unique ways to thrive during the pandemic. As we ebb and flow, our goal is to help our portfolio companies grow based on the needs of their target markets.  

Branding exercises, web development, social media, and PR, are just some of the marketing services RevRoad offers portfolio companies to meet the current demands and market complications with COVID-19. In a recent website and email campaign initiative, we launched a bundled discount program involving portfolio companies Hallo, Skillstruck, Education Lifeskills, and Literal. This At Home Learning program offers digital learning products to K-12 students for free until the end of the 2019/2020 school year.  

Another way RevRoad has adjusted to address current challenges is the increased allocation of more resources into digital ad spend and social media. Recently, a portfolio company in the ag tech industry did just that. Still sales-focused, they realized they needed to expand their reach to the online space. Their hope is to attract farmers that need tech solutions to compensate for fewer available workers as a result of the pandemic. 

As of mid April 2020 more than 22M Americans have lost their jobs resulting in a mass job search during the COVID-19 pandemic. In response, recent portfolio company, Mentorli, is hosting a virtual career fair. The Mentorli team is excited to announce the #GetHired Summit, aimed at combating unemployment in the U.S. The team has been working around the clock to pull together keynotes, companies, and resources to help find jobs. The summit will be hosted virtually on April 29–30. Visit gethiredsummit.com to reserve your seat or get more information. 

There are so many exciting things happening at RevRoad. What kind of out-of-the-box thinking can we help you with during COVID-19? Apply today and find out.