Coming Out of Stealth

I’ve been asked many times by many companies about the best strategy for coming out of stealth mode. There is no one-size-fits-all approach to coming out of stealth, but there is some general guidance that paves the way. Today, we’ll primarily discuss real-world examples, things I’ve seen done well either as an advisor, employee or customer. 

Number one? Actually have a timeline. You want to have a real, definitive timeline for when and how you plan to come out of stealth. Maybe it’s tied to a conference — many companies align with major industry events whether that be Re:Invent, VMWorld, OKTANE or other.  Even Twitter debuted its technology this way, at SXSW way back in 2007.  Of course, don’t just pick the biggest name event you can think of. Make sure the event and the style in which you’ll be able to launch are a logical fit for your company, technology and value proposition.  The focus of course is to get as much audience as possible. In the absence of an event, think about a timeline that is logical and one you can realistically achieve. Imagine the scenario of ten times the number of people you would expect to reach out to you to hear more about your product or buy it. If you are going to open the doors of your “storefront,” how are you going to handle the crowds?   

Make sure the event and the style in which you’ll be able to launch are a logical fit for your company, technology and value proposition. 

Building an effective timeline requires the founders and early team members to take a set of steps. You’ll want to spend time with early customers to develop impactful testimonials. Be thoughtful about this, and ensure the subject matter is timely. It is impossible to come out of stealth with a bang if you’re missing a good set of customer stories. They’re essential for both short and long-term credibility, and the best marketing tool you have as an early-stage startup. Remember that while coming out of stealth is a big deal for you, it’s likely not for anyone else. It’s up to you to show them why it’s a big deal, and to convey that you’ll need great customer references that clearly demonstrate your company’s value. I spoke in an earlier post about working with early customers. This is one sign of a great relationship being established and the customer being aligned with your goals. 

Companies coming out of stealth should also spend time and money planting as many seeds as possible to create a sense of buzz. You may not be able to discuss the specifics of your technology, but customers can speak to a high level about how it is valuable to them without giving away the entire farm. They can talk about how excited they are to work with you, why they work with you and what the experience is like, all without going into too much depth about the core technology or product itself. Another way to achieve this same effect is through thought leadership and industry events. As a founder, you can speak at events directly related to the space in which you’re an expert, thereby demonstrating an understanding of the industry that goes far beyond your own startup. 

You’ll also want to ensure you’re doing all of this at the right time, and when it comes to this step there’s no better gauge than your customers. Reach out to them as a pre-marketing motion, look for their sentiment and use it as a signal to guide your timeline. A lot of companies decide not to go public at specific times because the internal or external conditions simply aren’t right. Many of the same conditions can apply for companies coming out of stealth, too. Pre-marketing is required to get the right feedback. 

In the final months leading up to launch, spend time and effort on acquiring new customers. As you’re coming out of stealth, your sales cycle should be kicking in big time. Yes it is still under wraps but by the time they can talk about a deployment, you will be well out of stealth anyway. 

Beyond your customer base, create champions early on. These can be early investors, advisors, anyone involved in some other way, shape or form who has a stake in your success. The ability to build up a roster of advocates who can represent your company and technology in multiple communities and industries is critical. 

Finally, make a major investment in external communications, PR, messaging and branding. Create a sharp, concise set of external messaging that clearly define what you are and, even more importantly, what you’re not. You don’t want public comparisons to companies that are nothing like yours, it can take years to undo that kind of branding damage.

Spend time and money out of your fundraising rounds here, and don’t try to go it alone. There are specific agencies that work with companies on everything from branding and logo design, to product messages and vision statements, to in-person engagements with key media outlets. This is a difficult world to navigate that requires supreme expertise. DO NOT try to do this yourself. The results are often disastrous.   If I can recommend one firm - and I don’t normally - it is the team at Emotive Brand. Tracy Lloyd and Joanne Schull are amongst the best in the business. They have helped many companies come out of stealth and have a playbook that I was lucky enough to see in action.

Spend time and money out of your fundraising rounds here, and don’t try to go it alone. 

Remember that when speaking with the media, you want to make yourself as valuable a resource as possible. This means having a well-developed ability to discuss myriad topics that might be related to your industry, but ultimately go beyond the direct problem you are trying to solve. 

But the most important part of coming out of stealth? Celebrate success. From a team and culture standpoint, this is critical. Amplify your message internally with the same care and effort that you do externally. There are no bigger champions than your own employees, this is a huge milestone for them, for you and for the company so bask in it a bit and make sure you recognize the hard work everyone else did to make the moment possible. The hard work really begins now — so take a moment to enjoy the accomplishment.