Posted Under: Entrepreneurship, Our Heroes

Daniel Kraus is our next guest in the “Our Heroes” series.  After 20 years working as a sales and marketing professional the corporate world became too political for Daniel and he wanted out.  He chose to launch Leading Results Inc where he could work directly with his clients and help companies stop wasting money on marketing.  Stay with us to uncover how Daniel made it big…

DD: Who are you and what kind of corporate job were you at?

DK: My name is Daniel Kraus. I have been a sales and marketing professional for 20 years, almost exclusively with high tech companies and always in the B2B space. I had tried my hand at starting up a couple of consultancies in the early 2000’s after being laid off from Alliare when it was acquired by Macromedia, but I really could not make a good go of it.  I spent from 2003 to 2009 working for SAP (the BIG German software company) helping them bring a product for small business to market in the US.  I was running the reseller channel for them for the US and my resellers were small businesses that were selling to other small businesses.  I enjoyed it at first because I got to work with the resellers and the customers, but the longer I did the job, the more political it became and the less time I spent with my customers.

DD: What made you leave the job? When did you realize that you wanted to be an entrepreneur & why?

DK: I saw the opportunity to really help these resellers grow their business through effective sales and marketing.  I saw them wasting their money to try and generate business and really having no approach to do so.  I was introduced to Duct Tape Marketing as a systematic way for small businesses to do their marketing and it all really crystallized for me then – I saw a way to help these companies increase their business in a predictable, methodical manner.  That is where I came up with my goal and focus, which was to help companies stop wasting money on marketing.   When SAP was getting ready to do another round of layoffs, I put myself in a position to be laid off – saving a couple of other people’s jobs in the process and getting myself the seed money to start up with the exit package.

DD: How did you prepare yourself for the employee to entrepreneur transition?

DK: My biggest challenge in starting up was really finding the time to do it all – working on the business (building a web site, setting up bank accounts, credit cards, logos, stationary, cards, literature) and working in the business – actually delivering stuff for the clients that were paying me (and it is still a challenge!).  A friend once said to me that you can run a really successful business and only work half days – just pick the 12 hours you prefer.  He was so right.  But in the end, it is my effort and sweat equity that is going into my brand and business.

DD: What are your tips for employees who want to be entrepreneurs but are hung up on something?

DK: 1) Be passionate about what you are going into business for (not the tactical skill, but passionate about the results or satisfaction your clients or customers will have).

2) Details matter – everything matters – getting your colors right, consistency, spelling, your phone message, your internet connection, etc, etc.  Do not underestimate how much support you got from a corporate IT department or back office staff.  You think you know it all, but you don’t.

3) Have a good support system – my wife was brought into what I was doing.  I had friends who had started other businesses that guided me. I have a great accountant and lawyer.

4) Get your network as big as you can BEFORE you leave the cubicles, and then keep expanding.  I had over 300 contacts on LinkedIn before I left – I now have over 600.  Use those contacts to help you find your first customers and to extend your support network.

5) Make sure you are selling something people will buy (not just what they need).  My first business failed because while I was selling a service that a lot of people needed, no one would pay for it – there was no clear buyer or authority that would write a check or purchase order for the service.

6) Never stop learning and improving – Eisenhower said a plan is worthless but planning is essential.  My business changes every 3 to 5 months as I get better at understanding how to talk to my clients and learn new skills (like all social media) to help them.

7) Pay other people to do the things that don’t add value to your clients and take away from your ability to improve your business or deliver.  I use a payroll service even though I am only 1 employee.  I use graphic people for things I could probably figure out myself, but at $100 per project, they are cheaper than my billing rate.

DD: How are you now? Are you still in the same business, and how do you feel?

DK: I started the business in July of last year.  I have been cash flow positive since day 30 and have never looked back.  I am bringing on my first employee this quarter.  3 of my original clients are still with me, 3 have moved on and I have 5 new ones, 3 of which came from referrals from the first group. I still don’t have enough time to do everything I want to, but it gets easier each month.  Creating everything the first time is hard, but you get to re-use some of it, so it gets easier every time.

DD: Thank you Daniel, for sharing your story with me. It is so interesting to hear about entrepreneurs who have a passion for improving the businesses of others. It really is all about helping others while at the same time helping yourself. Good luck with your business!

DK: Thank you Devesh, for having an interest in my story and for believing in entrepreneurs like me who just want to make a difference. I wish you the best of luck in all you do, and again thank you for supporting all the entrepreneurs out there.

DD: So people, this was Daniel Kraus, marketing professional who took his skills and knowledge and made them into his own business of helping others successfully market their products and services. Remember one of his top tips: “Never stop learning and improving”. Well said.

Success to all!!