The Future of Sales with GrowthGenius

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The Future of Sales with GrowthGenius

Familiarity and a fresh perspective are key elements to the success of GrowthGenius, a Toronto-based scaleup that automates B2B prospecting.

GrowthGenius uses data-driven AI to generate more outbound sales. But Will Richman and Brandon Pizzacalla, co-founders of GrowthGenius, never had any past experience in sales.

Initially an obstacle, the longtime friends (since high school) now see their unfamiliarity with traditional sales-culture as a reason for GrowthGenius’s success.

“A big hurdle that gave us an advantage early on was that we started with a completely fresh understanding of how to connect with someone through cold outreach” said Richman, CEO and co-founder of GrowthGenius.

“A lot of sales organizations are broken. They get caught up on the terminology, the process, and how things have been done… We don’t focus on how things have been done in the past. We want to help folks out and bring immediate results”

Taking a counter-culture approach to sales has led to a few disagreements between the company’s founders and more traditional sales teams, including some GrowthGenius employees.

But the approach seems to be working.

In a little under a year, from September 2017 to July 2018, GrowthGenius grew a customer network of two in to 40, generating an annual recurring revenue (ARR) of over $1 million.

Solving a major pain-point for companies (in their case it’s helping businesses reaching the ideal customer) is another element to the company’s growth.

“Helping people close deals is so valuable and it’s something so many companies have trouble doing”

GrowthGenius does that by acting as an extension of a business’s sales team. After analyzing past sales data, GrowthGenius can extrapolate that information to create and send one-to-one email copy for targeted audiences, an entirely automated process.

From there, all the sales team has to do is focus on positive responses rather than waste time with prospecting.

Pizzacalla describes the process as “the future of sales” because now, and definitely in the near future, “no one is going to be doing the work that can be done by machines.”

Solving a particular pain-point and learning to sell their product at an early stage are two key lessons Richman and Pizzacalla would impart to other entrepreneurs.

Another is building your business with the right team members.

“The earliest people in the business” said Pizzacalla, “you should know them for a long time.”

That’s exactly what Pizzacalla and Richman did with GrowthGenius. Duncan McCall, head of customer team, partnered with Richman in a past business venture. Ryan Nahas, head of sales, was Pizzacalla’s roommate.

Doing so ensures you know how a team member will likely react in all sorts of situations, both good and bad.

It’s also important to onboard people who have a different set of skills, adds Richman.

As a business grows “you’re going to be doing very different things” said Richman, “and if you have the same skillset you’re going to fight over the same turf.”

Building a business solely with close friends isn’t exactly scalable, of course, so GrowthGenius’s founders recommend hiring through referrals.

About fifty percent of the 24-person GrowthGenius team were recommended by friends or current employees.

“If you’re bringing on awesome people they’re going to bring in other awesome people”

Becoming a Cybersecurity Hero

Technology continues to evolve at a cheetah-like pace and Canadian companies are helping to shape its future. But within this era of seemingly infinite technological breakthroughs, the challenge has become the need to safeguard companies (and us!) from cyberattacks. And it’s tough because the better companies (and us!) get at protecting themselves, there always seems to be a new threat knocking on the door.

This means, in Canada and around the world, there is a need for more innovators in the field of cybersecurity. Basically we need more cybersecurity heroes.

“It has become incredibly important to protect personal and customer data and because of that we need some great players to make possible change happen” said Abdullah Snobar, Executive Director of the DMZ, at the launch of CanHack 2018.

Partnering with the Royal Bank of Canada (RBC), the DMZ at Toronto Metropolitan University helped to foster the next generation of cybersecurity experts through CanHack, a competition exclusively for Canadian high school students. It’s just one of the ways RBC is supporting and creating meaningful work opportunities for students in the cybersecurity space.

CanHack is challenging students over the course of two weeks to work with industry experts and learn cybersecurity skills, an essential set of capabilities in today’s commercial sector.

Adam Evans, VP, Cyber Operations and Chief Information Security Officer (CISO) at RBC emphasizes that major businesses are becoming more and more digitized, creating a dire need to digitally protect customers. As a result, organizations like RBC have to change the way they hire. Companies don’t necessarily need individuals with the technical skills to solve the cybersecurity issues of today.

“Companies are looking for people…with the critical thinking skills who can solve really hard problems really quickly”

Developing problem solving and analytical skills was at the core of CanHack; students didn’t necessarily need advanced computer programming skills to participate. The competition’s problem sets were spread across four levels, with critical thinking and innovative problem-solving at the core of every problem set. Winners will be announced on November 27, 2018.

To find out more about cybersecurity, the newly launched Canadian Centre for Cybersecurity is actively protecting important government services against digital assaults and a wealth of cybersecurity information can be found at the Cybersecurity Awareness Month website.

Bouncing back from startup setbacks

Marie Chevrier spent years building DropGift, a startup that allowed users to send gift cards through Facebook, pouring her heart and soul into the project.

Soon after (and rather suddenly) a leading competitor to DropGift was acquired by tech giant Facebook. Chevrier and her team were left with no real future opportunities in the space. Startup setbacks, like what happened with DropGift, can happen at any time. An essential skill for entrepreneurs, then, is being able to bounce right back.

“For me, that first business was kind of like my MBA” said Chevrier, now CEO of Sampler, which helps brands distribute physical product samples to digitally targeted customers.

DropGift may have failed, but, as Chevrier now understands, the experience gave her the core skills necessary to launch Sampler. Understanding that failures are part of the entrepreneurial process is essential to keep in mind when building up a startup. Sampler, for instance, faced more than a few setbacks early on.

In its infancy, Sampler used Facebook as its sole platform to connect audiences with brands. But, as the Sampler team soon found out, being beholden to Facebook caused some problems.

“Every time Facebook changed their policies, we would have to jump through 20 hoops” said Kelly Stewart, head of marketing at Sampler.

Eventually, after growing increasingly frustrated, Stewart, Chevrier, and the Sampler team decided to change their operation entirely. To remove the obstacle of Facebook entirely, Sampler created their own platform to connect with audiences.

An ongoing issue became an opportunity for growth.

“Don’t be afraid to go back to the drawing board, no matter what stage you’re at… It can be a huge payoff if you’re willing to take that risk.”

Setbacks in a startup setting can, of course, come in many forms. Problems can be tangible, like a software glitch, or a valued employee may suddenly leave the team. The latter situation is something Chevrier dealt with recently at Sampler, when a key operations employee decided to start their own entrepreneurial venture.

“Instead of looking at it as an ‘oh crap we’re screwed’ situation… I decided to make it into an opportunity and go deeper into their role.”

So, before the team member departed, Chevier spent time working alongside them, gaining a newfound understanding of the business, especially aspects she hadn’t paid attention to in a while. The lessons learned were also invaluable when rewriting the position’s job description, which had evolved drastically since the initial hire, something other startup executives should consider doing, says Chevrier.

Finding the silver lining isn’t always an easy task, especially when your business is on the line.

When facing a serious problem, one that you don’t think can be remedied, Chevrier has a strategy for that, too: get some rest.

“Everything is better after a good night’s sleep… Give yourself the trust that you’ll figure it out once you’re well rested.”

Being a leader today – fast, furious and sometimes uncomfortable

In order to help your organization grow, it’s important to be uncomfortable heading the charge for change, which might make your team feel uncertain and uncomfortable.

Below are six things every leader should do to become a more agile leader.

Erase your comfort zone: One of the responsibilities of a leader is to try new things by creating new abilities for your team and organization. Be ready to switch gears in order to stay competitive.
Think fast and move quickly: Some decisions can’t wait for you to “sleep on it”. Know when to seize a moment because timing is everything.
Build confidence even when uncertain: in today’s world it’s about how fast you can adapt. Some of the most critical moments won’t give you all the answers before you need to make a decision – and that’s okay!
Lose the anxiety of failing – it helps no one: Don’t let the thought of something failing hold you back from making a necessary change in your organization. Holding back from a decision due to being scared to fail could keep you on the status quo.
The unpopular decision can sometimes be the right one to make: some decisions can be stressful for not only the leader, but the whole organization.
It’s important to go with your gut and make sure everything is done to support the direction you want to head towards.
Think Globally: We’re more connected than ever before – take advantage of that and understand the impact you can have on the global stage – this will only help you better create agility in your management approach.

The tech sector thrives on delving into the unknown. And some of your best opportunities and wins can come from the hardest decisions and biggest chances.

As a leader, It might make you feel uncomfortable to take a gamble with a team behind you. But with the right talent, a clear strategy and a hunger to succeed, the rewards of being an agile leader will continue to put your organization steps ahead of your competitors.

Many corporate accelerators are adding to ‘innovation theatre’

With this growing interest, comes a line of partnerships and spaces that have emerged over the years. Unfortunately, not all of these efforts -corporate accelerators to be exact- have lived up to their mission.

The sad reality is many corporate accelerator models are “by corporates for corporate interest”, adding to ‘innovation theatre’, otherwise known as innovation just for show.

Today, many corporate accelerators have become a place to draw up excitement by experimenting with innovation, but failing to help scale and commercialize any startups. A large part of this is because many corporate accelerators are not truly unlocking their internal resources and extensive networks to solve the problems they say they care about.

The fact is, many of these corporate accelerators haven’t found a formula that gives both startups and corporates what they want. The current state of these spaces have not established a ‘win-win’ for both parties.

So, how can corporate accelerators do better?

To become a constructive part of the global innovation ecosystem, it’s necessary to build a model that can help startups leverage corporate assets in order to scale and grow (instead of it feeling like it’s the other way around).

Stop working in silos – there are a number of great incubators and accelerators within the ecosystem. Instead of putting resources towards something new or hiring an incubator/accelerator to run an accelerator, find ways to support what’s already working within current incubator/accelerator programs that can also support your end goal.

If you’re a corporate going forward with an accelerator program, then you need to understand the playing field. Trying to add corporate bureaucracies and fixed procedures will not be conducive to an environment that should be focusing on startup growth.

In many cases, there seems to be more effort, time and money being put into launching corporate accelerator spaces than there is notable opportunities for entrepreneurs. And until these points are addressed, startups -the ones who can’t afford to waste time during a pivotal part of their growth- will feel disconnected and dissatisfied by the efforts of such spaces.

Canada: The need for more

Canadian entrepreneurs have the opportunity to create a global impact. Our startups and innovators are world-class leaders. However, if we don’t create an ecosystem where they can flourish, our prosperity is at risk. And unfortunately, that’s where we are now.

Creating a successful home-grown business benefits all stakeholders. We see this with countries that are currently leading today’s innovation economy. They do it on the back of entrepreneurs and by commercializing their ideas. However, in Canada, Blackberry (launched by RIM) is still the only company that has been listed among the world’s top innovators. And that was almost 20 years ago.

If we want more Canadian tech companies to become household names around the world, we need to stop riding waves and become market leaders. Our government pumping money into an innovation agenda isn’t enough. There needs to be a shift in our mindset and strategies. We need to be more aggressive and assertive in our approach.

It’s time to understand what role we each play in making sure critical steps are taken to help us transition from being a country with potential to one that is prosperous.

We can only do this if our country’s universities, businesses and political leaders come together to consider programs, policies and initiatives that work hand-in-hand with entrepreneurs. It’s time to boost links between our most important stakeholders and stop working in silos. Our ecosystem, and the players within it, have matured. And now, it’s time for us to make some hard decisions. We need to double down on our high potential startups and programs in order to guarantee success. Spreading our resources equally to all players is no longer an option if we want to get to the next level.

The stakes have gotten higher and it’s no longer about creating a vision to help startups grow and compete in the global innovation economy, but developing a path to make sure they win on the global stage.

From startup founder to founder blues: The growing mental health issues in the tech sector

Almost half of Canadians -49 per cent to be exact- have experienced mental health issues at one point in their life, according to a new national survey by Sun Life Financial Canada.

From work-related stress to living with depression, mental illness has affected a whopping 63 per cent of millennials, 50 per cent of Gen Xers and 41 per cent of “late bloomers” Sun Life says in a news release.

It should come as no surprise that mental health issues affect a broad swath of society. However, the increase of mental illnesses has costed the Canadian economy more than $50 billion every year. For businesses that means a total of $6 billion in lost productivity, which works out to almost $1,500 per employee each year.

Unfortunately, one-quarter of Canadians have never discussed their mental health problems to a professional. And a new generation of startups are stepping up to solve that. These entrepreneurs see the issue as a chance to make a difference and lucrative opportunity to truly innovate an underserved (and oft forgotten) market.

Canadian startups — like Inkblot, WellCalm and Newtopia — are building new solutions that can prevent, diagnose and even treat mental health issues across Canada. Of course, working in the space is no easy feat. For a long time mental health was rarely discussed, often underfunded and a burden placed on our overstretched health system. Today’s health gamechangers are working to solve that.

Making a difference and making money

There’s no cut-and-dry solution to fixing the country’s mental health woes, but technology can help, explains Jeff Ruby, founder of Newtopia — a health and wellness company that raised $10 million in Series A funding to expand its health management and coaching offerings.

It can play a role in connecting people with the tools they need to take charge of their overall health, although it isn’t the ultimate solution most people want it to be, he emphasizes.

“Innovators who are hoping to play a bigger role in the space need to think about solutions pragmatically,” Ruby advises. “I think there’s an important role for technologies to play, but there’s also a caution. Technology alone is not the sole answer. It’s a combination of technology-enabled services that have a human component. Solutions (like wearable devices or apps) aren’t the answer alone.”

WellCalm founder Samira Ramzy couldn’t agree more. Since co-launching her wellness business that offers massages and mental health workshops in 2015 the company has seen a bevy of startups enter the health and wellness space all looking to hit it big.
“It’s not an easy money-making industry to get into,” she says. “We have to work twice as hard to educate consumers and help them understand that mental health support isn’t a weakness and then provide the services that they need. You can’t just start a business and then expect people to line up around the block to access it”

Of course, despite the hurdles Ramzy and other entrepreneurs like her experience, for those that make it there are several opportunities to grow . According to CB Insight [link], health and wellness tech startups saw a record number of investment in 2017.

Some of the biggest deals include a $40 million Series B investment for Quartet Health [link], one of the largest mental health tech deals since 2012 that featured heavyweights like Google Ventures , OAK HC/FT Partners, Polaris Partners, and F-Prime Capital. Not too far behind was a $37 million Series B deal with Headspace [link] and a whopping $35 million deal for Lyra Health.

The entrepreneur effect

72 per cent of entrepreneurs are dealing with mental health concerns, compared to a mere seven per cent of the general public, according to a study from the University of California. This has lead to the term “Founder Blues”.

Between 2011 and 2015 “Founder Blues” have led to several high-profile suicides in the startup world, including the death of Austen Heinz, a biotech entrepreneur and the founder of Cambrian Genomics; Aaron Swartz, the co-founder of Reddit; and Jody Sherman, the founder of Ecomom.

“Being an entrepreneur is an emotional enterprise. There’s a lot of unknowns… their companies become their identities,” say Dr. Arash Zohoor, family physician, co-founder and CEO of Inkblot, an online therapy platform. “Their level of anxiety when it comes to running out of money, meeting investor expectations, the reality of marketplace… they all are very difficult.”

So how would an entrepreneur know when it’s time to seek help with their mental health? Are these online mental wellness platforms the answer to the stigma found in the startup ecosystem? And how does Dr. Arash balance the stress of being an entrepreneur while helping treat mental health issues in his patients? Take a listen to Robert Gold, host of BusinessCast, interview Dr. Arash Zohoor, family physician, co-founder and CEO of Inkblot.

Make sure to also visit our official iTunes page.

Why e-commerce stores are going from click to brick

Warby Parker. Alibaba. Frank and Oak.

All three e-businesses are based in different countries and target very different markets yet have one big thing in common: They’re transforming the retail industry one brick-and-mortar store at a time.

For a long time e-commerce was seen as the more attractive option for businesses selling consumer goods. These internet-first companies favoured the internet because it was cheaper than physical spaces that often came with high overhead costs (think: expensive leases, paid on-site staff and more).

But, that’s all changing now. The biggest trend in the tech e-retail space is now offline stores. Big names that cut their teeth online are opening up flagship locations. What started as test pop-up shops lead to an unprecedented surge in physical stores.

For example, in 2017 womenswear e-retailer Everlane launched its first store despite for years vehemently claiming it would never open one. Meanwhile, last year bed-in-a-box startup Casper unveiled its first retail outlet with plans for more to come. More impressively last month Chinese e-giant Alibaba announced a $2.6 billion plan to open a series of brick-and-mortar stores across China.

So why are so many internet-first companies suddenly pursuing offline spaces? Easy: Experts are finding for the few that run physical stores right there’s a lot of money to be made.

The death of (offline) retail has been greatly exaggerated

Amazon first started the offline trend back in 2015 when it opened its first bookstore. Since then the internet juggernaut has made $1.3 billion from its in-person stores. It makes sense considering a majority of retail spending still takes place in brick-and-mortar stores.

A 2017 study by the Retail Council of Canada, Microsoft and research tool WisePlum found that shoppers prefer physical retail store experiences. Why? Offline stores offer instant gratification, the ability to compare prices and inspect products up close all at once.

These facts don’t surprise Jen Koss, co-founder of Brika — a retail store that sells artisan crafts from indie designers. The company launched its first brick-and-mortar store on Queen Street West five years ago and hasn’t looked back.

“I was surprised by how a physical store can have a very deep connection with the customer,” she explains. “[My co-founder and I] have seen how customers will remember the smell of candle, how the store is organized, the people working when they walk in,” she explains about how the little things often to bigger sales and create long-term customers.

Entrepreneurs should also understand is that customer service really matters with physical stores, she says. “A lot of it comes down to investing in the best quality store staff,” the Harvard graduate explains. “It comes down to personal relationships that you create in the store. Focus on who you hire, how you train your ambassadors and how they become part of the brand.”

IRL: Location, location, location

Another critical point to remember is to always choose the right location. Physical spaces can easily be judged based on their surroundings and how accessible it is for customers. If you have the best products, but it’s incredibly hard for the public to get to your store you’re doing your company a disservice.

One popular way for startups to dip their toe in the real-to-touch store market is to experiment with pop-up shops. This allows companies to visit unique locations and get to know their customers before signing anything long-term. This middle-of-the-road approach can also help generate brand awareness, take entrepreneurs to where their customers often work or live and a simple way to reach a whole new demographic. For looking for on-the-ground advice Shopify has created a guide that outlines everything from location to pricing includes everything an entrepreneur needs to know.

Choose your own adventure

Of course, e-stores don’t always need to invest in the physical real estate to stay profitable. Companies like Etsy rely solely on partnering with existing space-focused companies like Hudson’s Bay or Macy’s for short-term leases or “stores within stores.” These special arrangements can end up lowering the financial burden for emerging entrepreneurs while providing a lot of the same retail benefits.

Another unexpected bonus of this approach is that it can easily position an e-commerce company among other quality brands. For retailers looking to emulate an offline store success they should focus on finding one location (i.e. a store) that customers can associate with their brand, but for everyone else complementary company to work with can work just as well.

Out of office: How to make remote teams work for your business

When technology firm IBM revealed it was rolling back telecommuting perks many called it the beginning of the end for the work-from-home trend. The tech giant helped pioneer remote working in the 1980s and since then has gone on to be a leader in the space. Before the announcement, a whopping 40 per cent of its employees in 173 countries around the world worked outside the office.

Of course, out-of-office arrangements — which let employees work from home or shared co-working spaces — in Canada remain incredibly popular. Almost half of all Canadians work remotely, according to workspace provider RegusCanada.

For IBM, the office reversal was part of a bigger strategy to increase collaboration and boost productivity after 20 consecutive quarters of falling revenue. Other companies that have invoked similar policies — think Reddit, Bank of America and more — espoused similar sentiments.

But while reining in remote workers may seem like the perfect fix for productivity issues, it’s only a temporary solution. Why? It’s simple: The same problems that plague employees outside of the office can easily carry on in a new environment. To truly make a difference executives need to better communicate their expectations, say experts.

Starting off on the right foot

Tech startups have long relied on remote workers to help them rise in the industry. In fact, most companies these days offer up flexible work schedules in order to attract the best talent, especially since a majority of full-time workers, aged 18 to 29, now prefer it. And, since millennials make up most of today’s active workforce — outnumbering both Gen-X and Baby Boomers — business leaders are keen to keep it.

82 per cent of millennials say they would be more loyal to employers if they had flexible work options, according to @FlexJobs.

Michael Prynor, founder and CEO of popular task management software Trello has found an effective way to manage remote workers that startups can employ in their own business. It all starts with the interview process, he explains in a CBNC interview. He and his team screen applicants via video conference to make sure they can effectively communicate without being face-to-face. It’s also a test to find out more about their work environment and set them up for long-term success.

“If we decide to hire someone then we go through this process of asking, ‘Do you have an office with a door that closes? If you don’t and you live in a studio, then you have to go find a coworking space if you take this job,” he says.

Trello’s requirements for remote success:

Good wifi: This one isn’t a surprise since an Internet connection is required for even the most basic office work these days.
Access to work resources. Workers need to be able to “log into [their machine as a local administrator” and also have access to a standard VPN for privacy.
Working headset. Bad, static-laden connections are a big no-no, so workers need to have a reliable headset.
An office with a door. To cut down on distractions Trello asks employees to work in an office with a door.
Prioritizing responsibilities. Just like at regular offices, employees can’t expect to take care of household chores, care for children or pets during working hours.
Over communicate. This piece of advice could apply to any worker. Employees should make sure stick to scheduled hours and communicate if/when problems arise.
Be reachable. Employees should be able to reach remote workers via phone and other work channels.

Beat Buhlmann, general manager for note-taking app Evernote, uses a similar approach for remote workers, he explained in a podcast interview with Lisette Sutherland. That’s not all either, he explains. His team also interview employees via video and outline expectations as well as responsibilities to ensure staff understand the job requirements beforehand.

“It is important to establish communication rules in a joint team-code-conduct manner that includes teams and their wishes directly in the creation,” he says in a publicly shared guide that includes advice from some of tech’s biggest players. “When do we use chats? Why do we write emails? At what point do we pick up the phone? These answers should be a joint effort and one that is reflective of the team’s efforts versus that of one person.”

Laying the financial groundwork

Creating a so-called paper trail is critical for remote workers as well, especially since most companies don’t have one in place. Two out of five companies with remote work policies don’t have formal paperwork that outlines expectations, according to a report by Workopolis.

Enter: Workable. The remote-focused company created a series of templates that both small and large businesses can use to help their company operate as effectively as possible. Another template can be found online at Workplace Analytics that specifies everything — from pay to hours of operation– startups can utilize for their own workplace policies.

Meanwhile, for Patty Azzarello, the best thing a startup can do to help streamline remote policies already in place is designate specific work-at-home days of the week to optimize office togetherness. The entrepreneur and business advisors to companies, like Adobe and Hewlett Packard, has spent years crafting work-from-home policies that, well, actually work and shared her advice in Fast Company.

“Require pre-approval for specific work-at-home days versus people having the expectation that they can just send an email on any given day saying ‘I’m working at home today,’” she shares.

At the end of the day there are great reasons for companies to embrace remote workers, but in order for it to be effective companies need to make sure they have policies in place that will allow them to be successful and help their employees thrive.

Ex-500 Startups partner Elizabeth Yin on breaking into the U.S., finding investors and more

Elizabeth Yin has spent years mentoring, managing and meeting with top entrepreneurs from across the globe. Her personal rolodex includes contact details for innovators at today’s biggest companies and since graduating from Stanford University and MIT in the early 2000s she’s helped founders raise millions in venture capital.

Some of her most notable accomplishments include cofounding B2B advertising platform LaunchBit — that was later acquired for an undisclosed amount — joining Google as one of its marketing managers, overseeing 500 Startups’ accelerator program and most recently starting her own pre-seed fund called Hustle Fund.

What are some of the biggest business lessons she’s learned throughout her career? Entrepreneurs should focus on the facts during investment meetings, understand networking is crucial for success and make smart hiring decisions.

Why Canadian entrepreneurs should stay home

For years, Canadian entrepreneurs were told that to grow their company or find investment they had to relocate to the U.S., and in particular Silicon Valley. That’s not technically true anymore says Yin, who credits Canada’s ever-growing reputation on the global stage for the change.

“Before you’d have to trek down to Silicon Valley for one to two months to network, but now VCs are coming up here … take advantage of that to get to know them and network at events.” Elizabeth Yin, cofounder of @hustlefund

“Here’s the dirty secret about staying in Canada,” she explains. “VC schedules are really busy with back-to-back meetings in the Valley. It’s really hard to get a meeting with them there, but when they’re up here their schedule is a lot more open. They’re here to learn about the ecosystem, mingle with startups at places, like the DMZ, and open to spending more time just talking.”

And, that’s not all. The high cost of living in Silicon Valley can be a detriment to bootstrapped startups. Why? Because they’re forced to spend most of their money on day-to-day living costs. A recent report by CNBC backs up this claim. It found startups in the San Francisco area are having a hard time recruiting tech talent because of high living costs.

“The cost of living — compared to San Francisco — is better here [in Canada] … you have access to grants that U.S. citizens don’t have and because more VCs are starting to come up here there’s more potential to network without having to spend money.”

Ask employees the right questions

Regardless of product or company, every founder needs a team of dedicated employees. Of course, onboarding new employees can be one of the most stressful, yet rewarding responsibilities for an entrepreneur.

Unfortunately, that also means hiring new employees can easily go wrong and cost entrepreneurs a lot of time and money. In an industry where startups are expected to scale as fast as possible, one bad egg can set a founder back years. For example, Zappos CEO Tony Hsieh estimates bad hires have cost him approximately $100 million.

“Your first couple of hires solidify your company culture, which sets the tone for the rest of your company,” explains Yin in her blog. “And most entrepreneurs tend to look at candidates purely based on skill. But looking at a person based on just one axis is a huge fallacy.”

Hiring the best people means analyzing their personality. For instance, like how they’ll operate under stressful situations or go above what’s expected.

“The people with the best skills for the job can be your worst performers if the environment isn’t a good fit for them.” Elizabeth Yin, cofounder of @hustlefund

A Harvard University paper found that even highly sought after employees who engage in harmful behaviour can hurt a business’s long-term prospects. Bad hires, it states, lower productivity, negatively impact employee morale, and can cost up to $12,000 due to employee turnover.

What entrepreneurs should know to survive in tech

Passing the investor smell test

While at 500 Startups, Yin worked with a variety of tech startups. One thing she noticed during that time was that investors all too often would fund companies that looked great on paper or spoke a certain way. However, those characteristics didn’t necessarily correlate with success. What did matter in the end was execution. This is why at the Hustle Fund, Yin does most of her early investment conversations via email. It helps her focus on a startup’s figures, success and more.

“When I’m doing due diligence I’ll ask a lot about execution and timeline. I want to understand what the velocity of this startup is. Is there some signal these companies are doing something worthwhile and moving fast enough?” So far, Hustle Fund’s innovative process has produced interesting results. In 2017 47 per cent of its portfolio companies had at least one female founder.

She also looks at how fast a startup is scaling. “Are you doing customer development in three days, three months or three years?” Yin adds. “Every business is different. If it’s taking you longer to reach certain metrics than others in the same industry that looks bad.”

“I’ll ask questions about unit economics. Do I think, based on how you’re approaching your business, that the cost to acquire a customer is going to be less than what they’re worth in the end?” Elizabeth Yin, cofounder of @hustlefund

At the end of the day not finding investment isn’t a sign to quit. “If you read TechCrunch it looks like everyone is getting funded, but it’s just not true,” she says. “The good news for [Canadians] is it’s easier to bootstrap here because your costs are lower and you can survive longer to acquire customers and reach a profit without running out of capital.”

Interested in learning more? Check out Robert Gold, host of BusinessCast, interview Michael Gord, the founder of MLG Blockchain about how he grew his business, the power of bitcoin and how he’s changing the tech industry.

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