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🛑 Ep 10 Diversity and Inclusion after show with Irma and Cesar

🛑 Ep 10 Diversity and Inclusion after show with Irma and Cesar

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Which on it kind of like comes difficult? It comes a comes naturally.

Yeah. Yeah.

0:10

Okay. Yeah.

0:13

That little like 30 or 10 second pause

0:20

this year. Just

0:22

Irma Cesar thank you for being on Silicon Valley successes as a lot of fun. And we learned a lot of great information. But you know, what do you wish you had time to say on this show that we just didn't have time to cover.

0:36

Irma, would you like to go first?

0:38

Sure. So

speaking of cultural intelligence, and talking about what makes you successful, as a leader, it's important to know your audience, it's important to know who are your clients, and with that, you can understand them better, and you'll can empathize with them. And not only that, but also just think on their shows, right? Like, what do they want? What What can I offer that they will like, and that will be very, very useful for your business.

1:16

Sure. No, yeah, I was thinking of a quote. And it was like, your, your network determines your net worth. So we've heard about this. And since you're talking about audience, and this is your network, you know, part of the work that I'm doing is to help build that network, you know, so you can, who is it that you're going to work with, because you can't work with everyone? So, you know, at the end, you asked about one piece of parting thought and I said, focusing well, focusing on serving those people that that you can work with, I think is is going to be key and of course you're going to find them first in order to find them you have to understand what is it that you're going to offer them and who is it that's going to resonate with you with your with the work that you're doing with

🛑Ep 10 4/4 Diversity and Inclusion in a Startup, Incorporating new practices in the Team

0:00

And Irma, can you tell us a little bit about when you have a new client? What kind of the onboarding processes, what does that look like, when you're first meeting them, and the steps you take?

0:10

Sure. So, you know, if we talk about small business, for instance,

sometimes usually the leadership or someone from the CEO, or someone from operations comes to, to me, and, and with this

request of, I want to have more diverse, you know, for members, for instance, or I want to have more diverse network to reach more clients. And so first of all, is just to assess where they are, what they need, and what they want. And that's done through exams, or

data analysis is a lot of a lot of analyzing what they're doing, and how they're how they're working, you know, if we talk about recruiting, go directly to their employees with, you know, I know that it doesn't apply when you have three employees, but if you have, you know, more than 10 or 20 years, you start talking about, okay, where do we reach where our future employees, and then it's just start thinking about it, or how do you promote people and again, thinking about that employees, but then if you want to think about your board members, and if you want to say, you know, have a very diversified group that will help you, then you need to start working on where to reach those people to like, where to find them, and how to integrate them, and then how to make them work effectively. Because if they have with very different backgrounds, if you don't work with them

in a in a, you know, in a cohesive way, it can backfire. You

1:54

really so by adding more diversity, there's been instances that you've seen where it actually backed fired, and there was less communication, less ideas being exchanged. Exactly what happens in a situation like that, then

2:07

what you need to know for her, and

2:13

it's, it's true, I mean, it's, um, when you start thinking about diversity, you need to have quarterly intelligence, that's why they call it so it's called to communicate effectively how to work effectively, regardless where where you're coming from, or what is your background, or whether you like, or not, like just being more impartial and focus on on the work on the results and that everybody wants the same thing, despite what are you coming from?

2:41

Is there a way for an individual to kind of train themselves to become more aware of the situation around them? Is that part of I mean, I'm guessing that would be part of sales training, as well as marketing is kind of read by language and know that this scenario, would you How would you coach somewhere in that either? Yeah,

3:02

I think that it start for self awareness. And then from there, everything is possible, but you need to be aware of where you are, who you are, and then and then what you want, and how you present to everybody to the rest of the world, right. And as a leader, or someone that is just, you know, leading a group company, you need to think even farther away, you know, not only about yourself, and what you present and what you, you know, show to your company, but also what do you want from your employees? And how do you need them?

3:37

Yeah, not everybody's comfortable doing that, right? So, I mentioned earlier about the multi cultural piece when we were chatting about that English is not necessarily the first language of a lot of people, right? I think some 45% of Silicon Valley founders are immigrants, right? Really, I don't know names. And it's a pretty high stat, but not everybody's comfortable in presenting, if you can, you have to be here. You have to present the clients, you have to sell yourself off you have right you have to pitch to audiences and panels are you going to do that? So that's part of the work that that I do. And I'm sure there's other aspects of that with helping folks with slang Your English is not their first language

4:14

and vice versa. And then when Americans go to other places, other countries still, they need to be aware of that. The other countries, they need to be aware hot light, like the essential part of the other culture, like, you know, what is what is expected? What is mass and mass, no, call you with people and work so you can work effectively. That's one thing myself, I've had a lot of experience with meeting Americans here and take them to China, are they in America? They go, I had a Japanese friend growing up or something. So I understand all of Asia, like, Oh, God. Now

4:51

don't get too close to me during any means,

4:54

right? Oh, you raise a good point. Because even just the word Asian American, I mean, but it really doesn't exist because I'm part Filipino. But when you talk about Asian American, there's like 20 different groups comprise Asian American.

5:09

Oh, and by the way, I'm half Japanese. Yeah,

5:11

there you go. So, yeah, there was a survey done of like, 190 countries, and only 10% of them were indigenous. So what does that mean? That means 90% of the world is multicultural. Wow.

5:22

Yeah. So tell me, how did you guys decide to take this path for your careers? What led you in this direction to be this coach be this advice?

5:34

Well, you got too excited

5:37

what he was saying. Just made me think about it. And it's, um, it's, it's through all my, my previous experience, basically, I'm also multi quarter or half Japanese half Mexican. And I have been working in Europe and in the US and Mexico. So, you know, working with, with many quarters, it stays something with you and I, I have been a minority in many places, you know, minority of gender minority of race either. When I was living in Mexico, I was a minority invited because I was covered. Yeah, and then minority of my educational background, because I'm an engineer. So it's, you know, I'm

6:20

going to hear

6:23

so. So when I when, you know, throughout my experiences, I noticed that I didn't have the same opportunities I noticed as everybody else, or the same voice or the same frequency nation as everybody else. It's not that I wanted, you know, special thing. It's just like, let's be, you know, impartial and be equal and fair for everybody. So, it led me to start noticing these patterns. And eventually, you know, there is a whole bunch of people studying and working on this, luckily, on diversity and inclusion. And it got me very excited because it got me to that my core and, and how I can help because I have been there. So,

leaders and organizations need need these tools. And because everybody has the same intention, right, the good intention, but sometimes we're not aware. So, I want to be the tool that enabler for for making people succeed. succeed.

7:24

Cesar, did you have a similar experience?

7:27

Yeah. So, you know, similar, yeah, like to be the catalyst for somebody else in terms of helping them to raise their awareness, because that's, you mentioned that earlier, that's really where it starts, right? So there are some tools out there, like the jewelry window that we look at,

7:40

what's the window,

7:42

oh, it's basically in from two scientists, that they, they share the name Joe and Harry and they put the jar window and it's basically helps you identify, you know, your blind spots,

that again, it's kind of tough to identify a blind spot if you're not aware of it. So it's all about raising awareness from there, and then and then really just, you know, working with folks to see, you know, what's going on with them, you know, where are there, you know, limitations in terms of the cultural intelligence. So, they call that the CQ, the cultural intelligence, how can you How can you raise that with your communication, when you're communicating with employees or with customers? It's a really have to factor in a lot, there's a lot of things that you have to take into consideration and be aware of your assumptions. Because, you know, what happens when you assume that

8:31

Exactly, so,

8:35

we

8:36

did on that. So,

8:39

yeah, so, it's, and I've been guilty of that myself, right. And so, you know, going going into another country, and even though I have experienced from different countries, and I've worked in different countries, and then training and coaching around different parts of the world, I'll still make mistakes, because I assumed that Oh, there's just like, back in San Fran. And people do it this way. Okay. For some little things, even a slight The, the respect for timing, its contribution, you know, different people, different cultures view different things with respect to time. With respect to relationships,

9:18

how many? What percentage? I'm just throwing this out there of deals or opportunities do you think businesses Miss because they don't understand the culture that they're trying to work with? Super question is a super question.

9:33

I don't, I don't think that there is a right answer there. But there is a lot of miss opportunities. And you see everyday, you know, even even in not, you know, not even saying in organizations and, you know, enjoy the day interactions because you are some one thing and, and it's really not, you may be miss a good friend, or maybe it's a good food or movie or something. So, it applies to everything.

10:00

Yeah, so when the mode of communication Sorry, I also also the mode of communication as well. So, right valuable, you're talking some with somebody in person by phone by email, it's the email that gets you in trouble, especially because of that lack of the body language and the things in front of the communication goals, right. So if you're a leader of a startup if you're working on that

10:20

it's another thing to think about an interesting

10:23

so I want to highlight what you said about that spot, the blind spot

10:28

so real quick and then we start wrapping up but go on,

10:31

well, then the blind spot and also how your brain works with quick responses like with your first you know, intention and response and then you know, like once you digest you can really understand and then come up with better solutions so it's better to take a few minutes before responding sometimes.

10:50

Great. Caesar How can people get in touch with you

10:53

will resonate is the business and so the website is resume. now.org.

10:58

Interesting. Irma

11:00

said this the bridge that come it's my business and you can learn more about what we do and and how we can help help.

11:09

Okay, so visit the website Zee Bridge, the bridge to contact exactly or my email your mom at the sea bridge. com. That's great. And I want to thank everyone for tuning in to this week's episode of Silicon Valley successes our guests next week. You'll be very impressed. There'll be a surprise for you. But with that being said, Caesar Irma. What is one thing you'd like to to give advice or wish someone had given you told you a year ago or two years ago or when you started?

11:41

Wow, focus,

11:45

believe in you. And the percent aren't

11:48

great. That's great advice. Thank you guys for coming on the show today. Thank you and I look forward and for everyone at home. Stay tuned for the after show as well. You catch that on our YouTube channel.

12:00

Thank you. From all of us at Silicon Valley successes. We hope you found the information presented today useful in your path to success. For further information on accessing the resources in Silicon Valley. You may visit us on the web at Silicon Valley successes. com on Facebook and YouTube. Thank you. And remember we want to help you in your journey to become the next success.

🛑Diversity and Inclusion in a Startup, Taking on a new client Ep 10 3/4

0:00

And before before the show, Cesar we had a chance to talk you'd mentioned that you have a sales accelerator program with marketing. Could you talk a little bit about that, and the diversity and what people can get out of that program?

0:14

Sure. It's the, it's called the accelerate program. You know, so I know, we chatted about some of the work I'm doing, helping, you know, minorities and, and or minority business owners, I should say, and multicultural business owners and so on. Because that's my, that's what I am. I want to focus on that. So the accelerate program really helps folks accelerate their sales. Because when you're a startup, in a small business, you're wearing multiple hats, and therefore you're not focusing. And when you don't focus, you know, what happens, and it's all over the map. And so the program essentially helps folks to go from, you know, connecting, finding and connecting with their ideal target clients, which there's a number of services that do that, you know, that you've, you've heard about, I'm sure a lot of people receive information from lead setting and appointment setting services. Okay, so that's part of Part A, Part B is looking good now that you have this ideal target clients to identify them, even connected with them predominantly through LinkedIn is the work that that I'm doing interest what do you do with it now? So then why also helpful in terms of the presentations and looking at the sales process and tools that are people are using to maximize their closing ratios and the deal flow, but

1:24

can you go back said closing ratios key, talk a little bit about that terminology, just case no one knows.

1:30

Sure. So our closing ratio is just purely the fact that you know, out of how many people you've been able to present to how many of those actually turned into a particular deal or turn into a client, a long term client, and there can be many reasons why. So the idea is to raise that up into increase that and there's many sides of how to do that. So that's part of the accelerate program, we're helping a company with that aspect of it, plus some other social media works, it just, you know, posting videos relevant to the company and that sort of thing. So that's why it's an accelerator program.

2:02

So the videos that are posted the the sales training, is it tailored for different ethnic groups, or because I'm guessing a social media post here in the US probably wouldn't have the same effect as the social media posts in China,

2:17

correct? Absolutely. Right. So it's, it's geared here, mostly in the US because most people are here, they're trying to tap into the market here. And what's interesting is that in the US, it's people are very accepting of risk. So it's a very high risk tolerant society, right? So and so people are willing to try things, they're more prone to adopt

different types of tools. And so this is what people come here but still, your messaging is done here, right? And so you're targeting ideal clients based on industries based on profiles. These are different things that we look at when we're we're working on a day to day basis, trying to outreach to are to do outreach to particular client groups interested

🛑Diversity and Inclusion in a Startup, When should you pay attention Ep 10 1/4

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Welcome to Silicon Valley successes, we interview experts and entrepreneurs to give the world access to the knowledge and experience that is here in Silicon Valley. Our mission is to create opportunities for those who seek them and help you to become the next Silicon Valley success.

0:22

The topic of today's show is one that's been constantly in the news and it's one that if a company faces and is able to overcome, it's been proven that they have advantages over their competition. The topic we're going to be talking about today is diversity and inclusion in the workplace. My name is Sean Flynn. I've lived and worked in Silicon Valley for quite some time working with Angel groups, incubators, accelerators, startups at all levels. So with that, I'd like to introduce our guests season. Irma Cesar, could you please give a brief introduction of who you are and what you're doing? Sure. So I'm Cesar Viana Teague, founder of resonate in San Francisco. And I typically work with multicultural business owners, small business owners who are challenged with finding clients and then figuring out how to present the client so they can secure funding or they can secure more projects with them. Interested in Irma. You please introduce yourself. Yes,

1:18

yes, thank you for having us. I'm very excited to discuss diversity and inclusion. My name is Dr. Matt and I'm the founder of super rich and we do diversity and inclusion at its core.

I'm originally from Mexico, but I have been living in the US for 12 years. And most recently in the in the Bay Area for three years where I've been working with companies, startups, mainly and social entrepreneurs to build their culture and and to develop and integrate their initiatives related to diversity and inclusion

1:58

interested so going to start off I guess the big question is why is diversity and inclusion important Cesar?

2:08

Well, I think since I'm focused on multicultural I am a multicultural person rampart, Asian part American part

Venezuelan and so I think the having those different perspectives is, is key. So when you have diversity, I think that you're going to be able to get different feedback from people, different perspectives, that's going to add value. And research has shown that there are statistics out there that shows that it proves that having different perspectives and different coming from different environments, different cultural makeup is going to add value to any conversation and community.

2:50

So a company a startup, when should they start thinking about this, when they're, you know, a team of two people, five people, 20 people wait till they raised their a round B round, when when should this actually kind of influence their thought process?

3:07

Well, it can start as early as you want. As soon as soon as they have ready for more creative creativity and innovation, they can start thinking about the gathering diverse thoughts and perspective that will help them with their business as sister said, it's very important to, to create these or enable this space where you can gather the information and, and when we talk about diversity, it could be diversity of thoughts in any in any way. So, you know, racially if we talk about multicultural, but also gender also, you know, where you were raised? What, what you studied, or where you work, everything matters in terms of when you bring to the table for your business.

3:58

Okay, then question was that I just have four or five person team and we all met each other in college, university, we just graduated, we're all engineers, we decided to build a product, Is there much diversity there? And

where should where should they try to outreach to to get more input more outside views to that group? Any ideas on that?

4:24

But I can all right. Yes, absolutely. I mean, as, as I said, and the diversity of thoughts come from anywhere. So if you start with your friends, you know, thinking about something, just expand your horizons, look out there, what it's missing, where are you getting your product or your service? What What do you need to know like, say, if you are based in the US and you are trying to reach you know, the Indian population,

4:56

his followers of this show,

4:58

I really just wanted to that out there. So, you know, it will be great if you know about the quarter and it will be great if you if someone from your team is either from there even better, or if you know about what they like how they think and how you could reach them better?

5:17

And would that just be reading a book on on that country or a history book or how much knowledge what I need for that area to consider myself Well, well,

5:30

well knowledgeable that well, culture group

5:33

as as almost everything it comes with experience. And that's from the books I mean, the book can teach you the maybe a little bit about the language a little bit about what they do what they like, but it's really interacting with each other. When we learn the most, you know, I've been seeing a lot of

value added to a company when it it really expand their their perspective with with different cultures and people and their culture samples with very successful companies. Like for instance, you know, if we talk about CEOs, the CEO of Google, Sundar Pichai, he is from India or if we talk about Elon Musk on several companies he's from South Africa or the the the former CEO of PepsiCo. She's a woman she's Her name is ingenuity. And she's from India as well. So you can see how their perspective have enabled that company and you guys cascades down. What about early stage companies, early stage startups? Do you find that maybe there's less minorities that are starting startups and Silicon Valley or they have challenges when they're here verse? How is that ecosystem

6:54

was? I would say that, you know, it's a good question. I think that just a backup for second, I don't think you start a company by saying, okay, I want to create a multicultural or diverse company, yes, doesn't quite work that way. Right. Essentially, you're looking at expertise. And the folks on your team may come from different countries that would provide and bring to the table the expertise you need, whether they're from the Philippines where they are great in the call centers, whether you're from India, right, with a technology that they have in the advanced skills that they have, which is why there's a lot of folks who come here. But the bottom line is, everybody comes here to Silicon Valley, because of the fact that this is where the money is that right, they come here. And so some of the work that I'm doing and my work, for example, currently, I'm working at a startup and based in San Francisco that's in a co working space called galvanized not well known.

7:44

We talked about a little bit about the startup that you're you're sure,

7:47

yeah, so it's in the CO working space based there. And because your question was spot on, I think within galvanize of five for building, you have Google launch, you have IBM, they have a school on the third floor, that's, you know, that I think they just bought hacker one. And so there's just I mean, I'm hearing every day Norwegian, German, Russian, Indian, I mean, I'm hearing all kinds of languages and the teams within the building and the synergies are great. And I think there's something to be said there for that. Now, the company that I'm helping specifically it's called meeting pulse. And what is meeting Polsky meaningful was actually founded here at a hackathon four years ago, which is amazing. So they, they founded the company at a hackathon over a weekend. And they received like, you know, a week later, $50,000 in funding, because they want one of the prizes, but it was really great. And so the founders originally from Russia, and grew up in the East Coast, I think, came when he was 11 and grow up and then and so what they're doing is they're doing a platform and some tools for audience engagement audience meaning internally for employees and externally at events. And so you use your mobile phone, you can use an iPad, and and so this is what they're doing to expand and essentially increase communication and collaboration between the teams. Okay. And one of the aspects that they just released is this translation feature. And so if you're right, you're the CEO of the company, or you're the leader of a team, and you typically most teams are working virtually now. Yeah, no secret there

is the the communication barriers are increase. It's a lot harder. Yeah, right, to get this collaboration, because of the time zones and the languages. So now, if you're leading a team, and you want to have a team meeting, and somebody isn't quite comfortable in the English language, well, you're probably not going to speak up as much as anybody else may dominated, right. So the particular application which a lot of startups are using is that people can send in their questions in their language and it translates it immediately into English so that the person who's moderating the questions can see this and respond

🛑Diversity and Inclusion in a Startup, Language or Culture, which is the biggest Challenge Ep 10 2/4

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How big of Do you think language plays a part in, in, in the diversity of Okay, let me let me step back, actually, what do you think's more important, the language or the culture barriers to overcome that

0:16

comes together? I think that it's a, it goes in pair. As Cesar said, The language is a big factor, especially in the workplace, but so is the quarter so as, as a leader so thoughtfully there, you need to think about alternatives to to make it easier or more equitable for everybody in one of these applications that he's

detailing it's it's a big example of how organizations can be more useful or more resourceful for everybody.

0:55

So there wasn't that language barrier. How many more resources do you think history would be able to access, I would guess it'd be easier to outsource to overseas teams, it'd be easier to hire people globally, as that was mentioned, have team meetings, get your product into new markets, it sounds like your product would have many applications. It says,

1:15

Yeah, it has, it has a lot of applications. And of course, part of it is also if you are going to come to Silicon Valley and you're going to try to raise money here, typically, that needs to be done in English. And so part of the work is also polishing up the presentations and, you know, the pitch decks and doing that sort of thing, which there are a lot of people who are very good at creating that the content, yeah,

1:38

the delivery is another matter. So, you have to be you have to be able to do both, right? It's worse if you're working on that. Are there any cultures that you'd say might have more difficulty speaking out and presenting to investors or

1:54

speaking up in a in a meeting or how does that work exactly, if there is someone that more shy or more reserved cultural background

2:04

but they are research on that topic and some some researchers or people segment segment that the countries you know, kind of like in general, one country could be more introverted and in general, another country can be more extroverted or they embrace for instance, trees or they embraced sometimes,

you know, innovation and some others are followers, but other researchers have found that that is not really key, that termination for a startup or for someone to succeed, you know, if you kind of generalize the country because, you know, everybody's different and everybody has different perspectives and in opportunities, honestly.

Landlords and Overseas Startups pt 4 of 4 Ep 8

0:00

So can a tenant in negotiation ever ask, say, Hey, we don't have money, we want to give you equity in our company. Does that come up a lot

0:08

that came up in the early 90s when I was working for prologue just and some other, you know, counselor

0:13

told me a story there.

0:15

No, I just know that they that that's been a discussion, it's not something that they would always do. Okay. But potentially that came up quite a bit. Yeah.

0:26

Is that happened now that are you said back in well.com time. But

0:30

yeah, I think landlords a little more cautious because they you know, they could have been burned in the past with a lot of that. And they may have new guidelines to that that's not really their core business. So they should just be doing what they're supposed to be doing. And not not investing necessarily in their tenants business. But I know that some do.

0:49

So search, some you got to understand are some that are smaller landlords, they may take a risk big land or the institutional guys I have multiple tenants in your office building, that probably is not going to happen.

0:59

Right. Okay. Interested? So some of our viewers are overseas and countries such as China and Korea all over the world, how's it different for them? When they come to Silicon Valley? What questions should they be asking? I mean, they don't have a US credit history, they may not have a credit history at all, depending on where they're from, how does how did they go about finding a location?

1:21

Well, they partner up with folks like us, who can help us help identify where they would like to be. And this is after we find out you know more about them and more details about them. But, you know,

1:34

I have a group I'm working with right now. And it's just investigation as you go day by day, you know, because sometimes you're dealing with them on a whole different time frame, you know, like, I'm, I'm having conference calls at nine o'clock at night. Yeah. Which is like, their, their morning or Yeah, so you just try to accommodate and figure out what they're looking for. And when they're here, ask them as many questions as you possibly can on on, you know, how are you? How are you established already? Are you a California Corporation? Have you incorporated yet? What's the process that you're going about right now, in terms of how you're going to finance this operation? And

2:16

so if I'm a company from will say, Ukraine from unit city from mats area, who is a guest earlier and I come to Silicon Valley from day one, I found a location How long does it take from when I when I decide to location, or when I connect with you to start looking for a location to sign a lease to be able to move in? Can this be done in a month? Or is it a lot longer, lot shorter?

2:44

Yeah, I don't think a month will do it, in my opinion, depending on how ready their company is overseas. Because I work with a lot of companies overseas, that are just not aware of what the due diligence requirement from a landlord tenant are in a landlord. A lot of landlords, you know, sincerely coming from overseas, that level of trust is not as strong as a local company.

3:04

And it takes them time because they're traveling back and forth. And when they're here, they're seeing things, but then they go back, and then they're reporting their directors. And then maybe those folks need to come out and see the property. And there's, there's a lot of back and forth, back and forth, that initially can happen in the first two to three months of helping this client even identify space. So you'd recommend an overseas founder, one, one of the people on his team to come to Silicon Valley, meet a broker, build that relationship on maybe trip one

3:32

trip to come see a few locations, Chip number three, kind of make the decision and then trip for I mean, that's, that's normal. That's normal.

3:43

Yeah, and I would say anywhere from two to six months. But I, you know, it depends how large of a company you're dealing with to. And sometimes you can find a space immediately if it's, you know,

3:52

maybe it was a smaller space, and you've got a growing company, 10 employees, 20 employees, we've got plenty of options may not do take too long, you get into some bigger size requirements. And then, you know, you want to give yourself a longer window, do anyone from overseas come here with completely off the wall expectations, you know, I want this office, I'll pay this much you go, I'm sorry. That's, that's the price of a chair it Do you ever come across that

4:19

I do. I mean, like, it's not way off. But it's more like, you know, the send somebody else that's not really and real estate or tenant space acquisition environment, they may send somebody from marketing or something, and they may not know what the landlord expecting or how to work with a broker. So there's a lot of back and forth, and we try to help them prepare by telling them that we need access, or the landlord needs to look at your financials and your business plan and that sort of thing. And so they have to be ready to provide that kind of material

4:52

is there any like vocabulary, these, you know, price per square foot or things like that, that if they know before meeting, you could say they have a lot of time?

5:04

Well, you know, a lot of time we're educating them on the on these buzzwords like ti was, you know, tenant improvement. And sometimes we just say, you know, we're kind of tip looking for, and they don't the tenant improvement. And that's important because one client of mine wanted a lab within their

5:22

part of their r&d operation. So then I was asking them about the kind of power that they might be, you know, power needs that they might have. And he he wasn't so sure about that. So that's pretty critical. Because if you're going to do a lot have a lab component, you may need 200 to 400 amps of power in your space. So it's important because then now he'll go back and ask the key questions that he needs to be able to do you ever give potential tenants a list of questions and you

5:49

say, answer all these before the next time we talk? Yeah, yeah, definitely. Yeah. What up? What advice would you give a founder out there that hasn't found any office space yet that's still working at home on when they first talked to landlords or what they should be thinking of other than what we've already talked about. So far, we've talked about location of your employees, we've talked about transportation, we've talked about lease options. We've talked about talking to brokers who can make introductions, and this is all amazing. what's what's border to know.

6:21

Another thing that I like to do is recommend a good business attorney. Oh, because, as you know, we're here to help with this least process from start to finish. But when you get into the business points of the lease agreement on what you've negotiated in terms, there's also the boilerplate language within the Leafs and if you're if you know, foreign company company here, you're not really familiar with a lot of leafs language, okay, highly advise that they use business attorneys to review this documentation because we're not attorneys, you know, we help negotiate these deals, but to protect them, that's just an important part. Do you have a business attorney Do you need a reference to a good local real estate attorney Have you see a when that because they didn't have an attorney got in some hot water later on,

7:07

not too much hot water, that

7:09

never really hot water, but it's just something that they, you know, it's not easy language for them to review on their own. Yeah. Okay. And so they should have a second pair of eyes to take a look at that and what their needs are.

7:20

And Carlos, what advice would you give to a founder

7:24

before you met them, you know, any information you wish to pass on to someone,

7:30

as far as leases are concerned, most epic both seem to think about their distributed strategic location where they want to be and if it fits their needs. I mean, that's the bottom line. I mean,

7:42

I think that they allow them made think that they need a certain thing, but a lot of times, it's better for them to be in a shared environment, or maybe find somebody that has a complimentary type of business with them, that they can go in together, there might provide some synergy to them, and you can make those kind of introductions as well.

8:00

That's great. And married before time runs out. Yes, please talk about how people can contact you and a little brief overview of yourself for more time.

8:08

Sure. So again, Mary blazer. I'm with Newmark Knight Frank and folks can reach me at my email which is m blazer at n g. k. f.com

8:19

we have our company website WWW dot NGK f.com as well.

8:24

Carlos Carlos Toronto Kwan, one number 415-608-8409 and we have dedicated 10 representation agents in my firm.

8:34

That's great. So Mary Carlos, I want to thank you guys for taking the time coming here on Silicon Valley successes and people at home. For further information, please visit our website. Silicon Valley successes comm check us out on YouTube, Facebook, and all the other social media and we hope that you got a lot out of this. And in the future we're going to have more guests from investment bankers, bookkeepers, we have some amazing founders coming up with in the next few episodes. So we look forward to your future attendance. And thank you again for taking the time to to watch.

9:11

Thank you. From all of us at Silicon Valley successes. We hope you found the information presented today useful in your path to success. For further information on accessing the resources in Silicon Valley. You may visit us on the web at Silicon Valley successes. com on Facebook and YouTube. Thank you. And remember, we want to help you in your journey to become the next success.

Office Space Options and Startups Pt 3 of 4 Ep 8

0:00

as so. So back to the startups themselves, when you interview them? How do you know that they're financially qualified or fit for that for that landlord? Is it they're about to raise their next round of funding, they have money in the bank, or they're talking to investors kind of what stages Could they be at for them to actually have a serious conversation? And do you turn any companies down?

0:25

Typically, I tell my clients that these landlords are looking for a profit machine, a balance sheet and income statement for the last three months, usually for the last two years, but they don't have two years worth of that kind of information. But whatever they can provide. So they're angel investing who their backers are okay, if some big name backers, or an angel that would have VCs, that helps a lot, right. And also, if they have money in the bank, so that they can show they've got so much cash in a bank account that they can support landlord just want to make sure they're going to pay their rent or whatever obligation of service that they have. Because you know, a lot of startups to burn through cash, they've got a high burn rate. So the landlords just want to make sure that because they're investing in that company, when you think about it, yeah, it's, you know, it's money that they're generating every month. And so they want to make sure they're going to pay their bills. And then there's personal guarantees that are often asked for, okay, from startups.

1:21

So with that personal guarantee, say, I'm the founder of the company, is it me and my whole team that's guaranteed Is it just me and the other co founders, the what's the guarantee on

1:30

it's usually a personal guarantee, it could be a person who is one of the corporate officers who would be willing to guarantee the least people are not always that inclined to want to do that, and put their own assets on the line. So sometimes they'll ask for a letter of credit, or an increased security deposit is another option, right. So, you know, they really want to just try to cover upfront costs, like commissions, tenant improvements, any sort of concessions that have been given to these startup companies,

2:00

tell me about the tenant improvements, exactly what that is. And before answering that, so on to make another statement. If you want more information on this or any other topics we've covered, please visit us at Silicon Valley successes. com was Silicon Valley successes, calm right back to you. So what's tenant improvements,

2:18

I'll turn it on purpose, really the the criteria and the preparation of the space for the tenant to operate in their own business operations. So it's a matter of, for example, putting up walls, putting up offices, conference rooms, it could be a kitchen at it could be something like that. So it really up to the specs and design of the tenant. And then that will be negotiated with the landlord who pays for what how much of free rent that they can get. And that's where this is where the brokerage come in. And you can negotiate that on behalf of the 10 and the landlord. So the broker

2:52

come in and you go to the broker, listen, I want one month free rent, or three months for your and what's common, and what areas can a broker negotiate for the landlord or the tenant?

3:03

Well, in a tight market where the rents are really high, and it's very competitive, landlords can call the shots if they don't want to give free rent. They don't have to give free rent in a softer market, I would say one month of free rent for every, you know, two years or two months free rent for a three to five year type term. But that would be really saying a corporation that right? I mean, just a start up what's a typical startup? least six months? A year? Two years? I would say about a year,

3:28

yes, about 12 months, okay.

3:30

And if, say, 11 months in the startup goes, you know, we're have to file for bankruptcy. Sorry, that personal gain T, I really have no money because I spent all the startup what happens that?

3:42

Well, we as brokers can help to market the space and try to get another tenant to backfill and take that obligation off of the tenant. Technically, they're still obligated until we can, you know, relate the space, we can tell the landlord landlord may have another tenant because they do a lot of marketing as well. Some of them, they may have someone that might want to just backfill that space. So it just really getting the word out and trying to help these people and and make it as painless as possible. Do landlords every go to tenants and go listen, I have someone else that wants to pay more than what you guys are currently paying. I'll give you some money. If you leave.

4:17

That's happened. It could happen. Yeah, a lot of times, what happens now is that, you know, the climate is very kind of like, unpredictable. So you have a lot of tenants that are either downsizing or they're expanding. And so they need new space, it may want to abandon the current space, so we can help sublease that space as well. And if they need to leave early, then we can help them something except space as well. So really determines a lot of our communication between us brokers and the tenants and allows Mike Phillips and as well, so how often should the tenant be talking to you every three, four months or monthly, I recommend it because I put a client in a space back in October, and by May of the following year, we were looking for new people, then they had signed a one year lease obligations. So every couple months is a good idea to be just on the chicken them. So you

5:06

say your broker is actually part of you, your team, almost like your lawyer, your accountant, bookkeeper, that one guy always they're looking for that next operator space for you?

5:15

Well, yeah, it's all about relationships. And you want to start early on having these relationships that hopefully build into longer future relationships and growth that you're helping them to achieve. Because I, you know, I've had a client that started small and about 1200 square feet, they, I then expanded them to, like 5000 square feet, and then they move to 15,000, now they're in 30,000, it's just a great success story. So you love when you can stay on that path with them and be in touch with them and, and help them in their growth, especially with

5:42

the amount of people that they're bringing on and their space needs to drastically change when they get to those levels of needing bigger space to brokers also make other introductions to maybe to investors or potential business partners or to brokers ever reach out to their personal network and say, Hey, I have this startup here. I'd like to introduce you to is that ever happened?

6:05

Yeah, that's a good that's a great question. Actually, for me, I do because I take an interest in the tenant, I take an interest in a company because I've learned a lot through the process of helping them qualify. And then in that process, I actually asked them, you guys need help with funding, when's your next event would you like to be close to another type of 10 our type of investors because we'll know who's in a building or who's nearby and so we I like to connect them and it makes sure that they're also successful nervous as hopefully we play a role in that because a stressful 10 that will be a successful future business and they might grow and we can help them there as well. And then the lender will also help out because they will know that the they want their tenant to be financially successful so they can, you know, grow and take care of their property.