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Clarity

Bob Schwartz

Greater Los Angeles Area

Serial Company Builder: $2 Billion+ in exits. Raised $100M+ in Venture funding. eCommerce, technology & consumer-facing internet companies.
Board Member, Advisor, Growth Coach

47B CEO - Board & Strategic Growth Advisory.
Active Portfolio Companies: Wpromote, Marketplacer, Sundance Group, Matilda Jane Clothing, Island.co, Good360.org, Temando

Past:
* Magento (commerce technology) Founding President: built from 30 people to 350 & to 30%+ global marketshare in few years w ~$200M sale to eBay, and then Adobe ~$2B;
* GM/Founder NORDSTROM.com: VC$ and Spin-off and roll back (currently multi-billion $/yr in sales)
* Advisor, Coach & Mentor to many (and loving it)
* EIR: Clearstone Ventures (VC)
* Youngest VP Packard Bell Computers
* Interim CEO & Advisor LiveBid (Sold to Amazon), Portero, Vivre.com

*Fees support non profit Good360.org

$8.33/min

80 Calls

48 Reviews

about 1 hour
Avg. call

Entrepreneurship Raising capital Mentoring Private Equity Venture Capital Branding Business Strategy E-commerce Retail Company Building

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Speaking: Building Commerce Companies & Brands With Soul

Delivered keynotes as well as small formats. Conferences, company events, private equity & VC events.
Focus is high energy and thought provoking trends supported by personal experiences and point of view from building numerous companies in varied industries (B2C, B2B, Tech, Retail) resulting in over $1 billion dollars in shareholder value and multiple multi-billion dollar companies and industry leaders.

Brand - Build Your Brand to Resonate & Mean Something

Your brand is not your name, it is everything that you do to give it life and have it live in the hearts and minds of your team, customers, and partners.

Funding & Acquisition

I've raised $100M+ in venture financing & more from private equity, and over $1 Billion in shareholder and founder acquisition value.
Strategy, fit, story, timing, targets

Growth Acceleration

I've produced over $2 Billion+ in exits for shareholders and founders.
Call me about your concerns and questions on growing your company to the next level: Company strategy, customer strategies, "company story", capital strategies, partnerships, talent, positioning, pricing, can't sleep at night ;-)

I recently built Magento from 35 people to 350 with over 30%+ marketshare and the worlds greatest commerce ecosystem, and in the past have built and advised many others from venture backed to public companies. (see Bio)

http://www.SchwartzGroup.com

eCommerce

- Magento, President: the leading eCommerce technology platform with over 30% global marketshare
- Nordstrom.com, GM/Founder: Launched, built, scaled and spun-off division with $15M VC funding from Benchmark (Nordstrom.com est 2013 revenue $2B)
- SchwartzGroup: Lover.ly ONEHOPEwine.com Portero.com Vivre.com
Been building commerce companies for longer than i want to mention (before the internet on Prodigy ;-)
Includes selling a companies to Amazon, eBay, & Packard Bell, Turning around a public company and advisor or Board to many more. See linkedin for details.

Answers 27
Reviews 48

Answers

Bob Schwartz answered

What are some good places to come up with future start up ideas? How important is it that the CEO come up with the idea themselves?

Ideas: best to come from seeing a need or opportunity and deciding if the PAIN to make it is less than the PLEASURE to the world (better/faster/easier/smarter).

Ideas are easy, starting can be easy too, building is the hard part...thats the CEO

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Start Ups

Bob Schwartz answered

How important is a polished/pretty prototype to pitch an idea to potential customers and/or investors? I'm using this as a means to support my pitch.

It depends how clear your idea value is without it, or with a rough one, or mock ups vs polished.
There are a few goals you are trying to conquer with a prototype, overall its about concept clarity and valuation.
1. customer/investor acceptance: "i want that"
2. customer feedback: "you should change that"
3. investor valuation: "wow, you are that far along" vs "its just an idea"
Without more details only you know what it will take to get the right clarity to the customer and investors to answers on above.

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Prototyping

Pitching Ideas

Fundraising

Bob Schwartz answered

Do angel investors in the United States consider investing in seed tech companies based in the Middle East?

Overall most investors with real experience (professional (vc) or angel) have a rule of thumb, the earlier the company is, the closer I want it to me. That said this an be mitigated if its a smaller investor AND you can show your surrounded by local experience and or you personally and your team have deep trusted experience.

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Venture Capital

angel investing

Bob Schwartz answered

When raising money how much of equity do you give up to keep control? Is it more important to control the board or majority of shares?

I read your question not about valuation but about control and fear of loss of control.

So it Less about equity % and more about provisions and type of equity. That is you could own 1% but have control of majority of voting shares.
Also provisions can be structured that say "if this than this". That is "if the business is bleeding more or not hitting # for x period or or or ...then capital partners have rights to take controlling vote"

Money in will want assurances to take actions if things aren't going the mid and long term direction it needs (they should know short term varies). When you take invested capital especially from professional money, VC, they have to be responsible for that money as it's often not theirs. When you take money you have decided to take a partner in your asset.

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Raising capital

Fundraising

Venture Funding

Bob Schwartz answered

What do you say to people who want to "pick your brain?"

1. Agree with replying back asking for what they are looking for or more specifics. This helps me understand if its a good use of my time and theirs (perhaps I'm not the right person for the subject or that it does not fit what i am targeting with my time)
2. I set a side a fix chunk of time each week to fill with mentoring or things that are adjacent to core work. For example every Friday from 930-1130. when those get full you offer the following week and the following week etc. This gives you mental boundaries such that you put curbs around doing this.
3. Use Clarity, offer to adjust rate if young or early stage first call (hope to see Clarity rate adjustment codes soon??). The idea that there is a cost tends to vet those who really see a value in the time. i donate mine to www.Good360org and that way its not perceived as "its all about the money"

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Business Coaching

Bob Schwartz answered

You are terminally ill and have only one minute to leave your children with a outline to a business plan. What do you scribble on the bed-side paper?

I love you, enjoy the journey.

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Strategic Planning

Business Strategy

Small Business

Bob Schwartz answered

What steps would you take to accelerate the growth of a software business with limited resources (no VC)?

You have limit time and resources so you need to think what I call "FIRST DOLLAR" approach. If you look across different modes to sell and target there has to be a few that would be the optimal. Focus only on those first don't look elsewhere - put each next dollar of effort into these (or this one) until it's optimal then target the next bucket to attack until you get momentum to broaden.
There has to be a few or one area that would harvest better or best results w you time. The idea here is to get the sales/revenue flywheel turning w focus or richest buckets of opportunity to create revenue momentum to allow you to scale.

1. Partnerships with those who sell into doctors - preferably similar Catagory (tech. IT. Time optimization. Software).

2. Work your customers and fuel the flames of referrals with those Dr using your product. Ask them "is there some one you can suggest that might also benefit from this?" A warm referral is sales gold. "Dr xxx suggested I show this to you".

3. hire college interns.

Congrats on "going after it

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Growth Strategies

Business Growth

Bob Schwartz answered

When hiring someone for business development — should it be based off of sales/commission or full-time/salary based?

Sales comp can get messy as you need to be careful it's outcome incentive is truly aligned with your Company goals and more revenue at all cost can be good for commissioned but kill a company, culture and product - and P&L.
Most common approach is OTE On Target Earnings with a 50/50 split.
So it goes roughly like this:
Your OTE is 120k
Your base is 60k (50/50)
The 60k incentive can be earn by achieving this ..... metrics and goals and could include % but better being payments Hitting Targets (at $25k deals you get X, and 50k you get X+, )
and because we are new at this we can review this quarterly to make sure we are aligned. On Target Earnings means this IS the target I want to pay you for getting us X.
You can also define this, and should, for ability to make above OTE amount.
It's simple but if you want more, just google OTE SALES or ON TARGET EARNINGS there are a lot of great articles on this.

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Startups

Business Development

Sales

Bob Schwartz answered

Are customers willing to wait 8 to 10 days for goods?

Give your customers a choice and let them decide price vs speed as long as you feel the 'value' equation works and isn't "are you kidding me" at the fast end as that can drag down your whole brand.
Then on the longer delivery, be very very very clear upfront pre-purchase both the time window and why (your value to them) and perhaps a few alternatives that reduces time (even if few days it gives customers choice and shows your 8-10 value). Also OVER communicate with simple clear email that show where their order is in the process and time left.. otherwise you'll be hit with lots of customer calls and potential cancelations.
Set your value, add choice that can also show your value, over communicate preorder and after order.

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Online Retail

E-commerce

Bob Schwartz answered

There is this billionaire that I know. I need a job but I am too afraid to ask him for one, plus he is located on a different continent.

Don't assume the billionaire is the best person in general for you to be talking to about your path or next step or he/she will have The Thing for you any more than someone you know very well or in your closer network.
That said if he/she has company(s) then find one you fit best in and perhaps a role that they are looking to fill that you fit well. Then apply for it or reach out to other people that are in that company.
Once you apply or connect THEN ping your billionaire with "hey just wanted to let you know, I've always be intrigued with your success/companies etc and I applied (or trying to connect with) to join...."

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Job Search Strategies

Leadership

Career Counseling

Bob Schwartz answered

I'm 50 years old and I've just lost my job. I am tired of my industry, so I want to start a business. What advice would you give me?

1. First know that you're young, believe it and own it. Don't wear the "ageism" thing. Could have been more true for that company or role (though illegal) but 50 is credibility and experience. Own it.

2. I hear "I want to start a business" a lot today. But that's like saying "I want to have a baby" or "I want to get a puppy". Dude babies and puppies grow up as do businesses. So change you mental framework to "I want to build a company". Frankly starting is easy. Go to legal zoom and in five minutes you'll have started a company, now what? It's not about starting but rather about building a company. See next point.
3. WHY? ask "what do I want out of this?" it could be you're seeking "I want freedom to choose" or "I don't want to ever have to look for another job again" or "I have something that I can offer or an idea". Find out what you want out of this "starting a business" and that will give you clarity to what fits that goal and how to map to get there.

4. Family pressure etc. It's hard. Everyone goes in the journey of the bread winner. They will be nervous but you'll teach your kids life lessons in the next actions you take. So map out the above
- here is what I want out of this, and what it means for you (your family).
- here is how am going to get here (and here's what it means for you the family)
- financial anxiety plan: 12 months in the bank is great but each month you burn without a focused plan or revenue will bring more anxiety for you and the family. Great companies are also started on the side while founders have a job or doing contract work on the side. This is a way to reduce family financial anxiety.

Ok this may have not been the answer you wanted but hopefully it's the answer you need. THE WHY- WHAT DO YOU WANT OUT OF THIS? A PLAN THAT MAPS TO GETTING THOSE THINGS. A WAY TO EASE FAMILY ANXIETY.

The type of business is up to you. Easiest is the one where you have the most value /power (experience, contacts, customers, partners) the hardest is where you bring a lot less.

Life is a series of projects!

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Start-ups

Entrepreneurship

Reviews

Had a great conversation with Bob. He's smart, experienced, and friendly. Highly recommended!

Felipe Cortes Source: Clarity

Great chat!

John Crestani Source: Clarity

Bob asks smart questions and gives actionable advice. His perspective is well grounded in clear successes and experience. Valuable call!

Franz Maruna Source: Clarity

Great chat with Bob. He's creative and knew my e-comm industry which is kind of rare in a way. Gave some excellent insights on how to handle a current situation we are in. Thanks!

Chad Hamzeh Source: Clarity

Bob is FANTASTIC. His energy is contagious right from the beginning of the call and his experience is unparalleled. Can give you advice on any situation you are currently in with your business.

elizabeth schneckenburger Source: Clarity

Amazing call. Bob took the time to understand our business then give an abundance of wisdom. Also a very fun guy to chat with. Highly recommended to book a call in.

Mark Patchett Source: Clarity

Incredible call! Had a lot of fantastic strategic ideas based on real world experience - very helpful in setting a clear course for where we are headed. Highly recommended.

Dane Alexander Source: Clarity

Bob provided a tremendous amount of insight and was extremely helpful. He really listened and made some excellent suggestions that I would have never considered. He's a definitive domain expert and highly recommended. Thank you Bob!

Bryan J Source: Clarity

Incredibly illuminating call. Bob was great! Highly recommended.

Jonathan Sapir Source: Clarity

Bob is the man when it comes to E-commerce, valuation and raising funds, really enjoyed our conversation and won a new friend, highly recommended

Ahmed Al Kiremli Source: Clarity

Extremely knowledgeable and helpful!

Todd Ramsey Source: Clarity

Member since June 2013