Do Venture Capital Funded Companies Give A Crap About Customer Service?

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Do Venture Capital Funded Companies Give A Crap About Customer Service?

I saw a tweet yesterday that got me thinking about companies funded with venture capital.

Jason Fried, co-founder of 37signals, suggests that companies funded with venture capital have to spend money from day one.

You have two companies, one that’s bootstrapped, one that is self-funded, and one that’s got venture capital money in the bank. The primary difference is this, on day one, a bootstrap company has to make money. On day one, a funded company has to spend money. They have money in the bank to spend. That’s their first task is to spend. To hire, to get a great beautiful office, to do all that stuff. That’s what they have to do, they have to spend money.

I agree with Jason’s thoughts here.  Companies that concentrate on raising venture capital more than anything else have their priorities out of whack.

But what about customer service?  Does a bootstrapped company care more about providing excellent customer service and a great customer experience, because they NEED those customers to survive?  Without the customers, they’d go out of business because they wouldn’t make any money.

One could argue that companies funded with venture capital don’t have to worry so much about customer service or providing great customer experiences because they don’t rely on customers to make money.  They get money from investors.  Investors are the ones these types of companies concentrate most on pleasing.

What do you think?  Do venture capital funded companies care more about pleasing their investors then their customers?  Are bootstrapped companies more likely to provide an excellent customer experience?

I’d love to get your opinion in the comments below!

Photo credit: isforinsects

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  • http://www.mac-live.com Shane Mac

    At Gist, the customer is first. We listen, react and talk to every single customer no matter how long it takes. Without them, we are nothing.

    Sure, we have investors, but they leave us to decide what we should and shouldn't do regarding these types of issues as I would suspect any good investor would.

    With that said, I see how one could easily worry about an investor to the point that they forget about everything else which would not be ideal in any scenario.

    -Shane Mac

  • http://www.BeyondThePedway.com Tim Jahn

    Glad to hear that the customer is first for you guys, Shane. I like what you said there – “Without them, we are nothing.” That's very true for most businesses.

    Are you guys solely funded or do you generate revenue on your own now? I'm curious if you were always so focused on customers, regardless of your financial roots.

    Thanks for commenting!

  • http://restlesslikeme.com Norcross

    If it's simply a strive for VC capital, then I doubt they care much about anything else. That being said, the bills need to get paid and good customer service costs money to depending on what product / service you are providing.

  • http://twitter.com/startupstella Stella Fayman

    As a company that just got seed funding, I can tell you that our priorities at TransFS have not shifted a bit: the customer always comes first.

    Our customer is our main evangelist, our main marketer, our cheerleader. Especially with companies providing service and hoping for growth, maintaining a happy and referring customer is the key to growth.

  • http://www.BeyondThePedway.com Tim Jahn

    I think you summed it up perfectly, Stella: “Our customer is our main evangelist, our main marketer, our cheerleader.”

    No matter where your funding comes from, I think that's so important to keep in mind. Glad to hear you guys are!

    Thanks for the comment. :)

  • http://www.BeyondThePedway.com Tim Jahn

    Thanks for the comment, Andrew.

    I think that good customer service can sometimes be more expensive, but other times I think it's all about the small things. For example, you might not need to provide every other customer with free shipping randomly, ala Zappos.

    But you can still be very personal in all communication with customers, give them a reward or freebie every once in a awhile, and generally make them feel wanted and loved. Basically, do everything Comcast doesn't. ;)

    Do you think some companies compromise customer service to get the bills paid easier?

  • http://restlesslikeme.com Norcross

    I think a lot comes from who the founders are, and what they are all about. A lot of tech folks aren't 'people' oriented by nature, so a lot of what we consider good customer service doesn't come naturally to them, if at all. They just wanna code. I think bringing someone in who can handle that makes a big difference.

  • http://restlesslikeme.com Norcross

    If it’s simply a strive for VC capital, then I doubt they care much about anything else. That being said, the bills need to get paid and good customer service costs money to depending on what product / service you are providing.

  • http://www.BeyondThePedway.com Tim Jahn

    That's a great point I hadn't thought of. I think you're spot on – bringing in somebody with more “people skills” might make a world of a difference.

  • http://twitter.com/startupstella Stella Fayman

    As a company that just got seed funding, I can tell you that our priorities at TransFS have not shifted a bit: the customer always comes first.

    Our customer is our main evangelist, our main marketer, our cheerleader. Especially with companies providing service and hoping for growth, maintaining a happy and referring customer is the key to growth.

  • http://twitter.com/startupstella Stella Fayman

    As a company that just got seed funding, I can tell you that our priorities at TransFS have not shifted a bit: the customer always comes first.

    Our customer is our main evangelist, our main marketer, our cheerleader. Especially with companies providing service and hoping for growth, maintaining a happy and referring customer is the key to growth.

  • http://www.BeyondThePedway.com Tim Jahn

    I think you summed it up perfectly, Stella: “Our customer is our main evangelist, our main marketer, our cheerleader.”

    No matter where your funding comes from, I think that’s so important to keep in mind. Glad to hear you guys are!

    Thanks for the comment. :)

  • http://www.BeyondThePedway.com Tim Jahn

    I think you summed it up perfectly, Stella: “Our customer is our main evangelist, our main marketer, our cheerleader.”

    No matter where your funding comes from, I think that's so important to keep in mind. Glad to hear you guys are!

    Thanks for the comment. :)

  • http://www.BeyondThePedway.com Tim Jahn

    Thanks for the comment, Andrew.

    I think that good customer service can sometimes be more expensive, but other times I think it’s all about the small things. For example, you might not need to provide every other customer with free shipping randomly, ala Zappos.

    But you can still be very personal in all communication with customers, give them a reward or freebie every once in a awhile, and generally make them feel wanted and loved. Basically, do everything Comcast doesn’t. ;)

    Do you think some companies compromise customer service to get the bills paid easier?

  • http://www.BeyondThePedway.com Tim Jahn

    Thanks for the comment, Andrew.

    I think that good customer service can sometimes be more expensive, but other times I think it's all about the small things. For example, you might not need to provide every other customer with free shipping randomly, ala Zappos.

    But you can still be very personal in all communication with customers, give them a reward or freebie every once in a awhile, and generally make them feel wanted and loved. Basically, do everything Comcast doesn't. ;)

    Do you think some companies compromise customer service to get the bills paid easier?

  • http://restlesslikeme.com Norcross

    I think a lot comes from who the founders are, and what they are all about. A lot of tech folks aren’t ‘people’ oriented by nature, so a lot of what we consider good customer service doesn’t come naturally to them, if at all. They just wanna code. I think bringing someone in who can handle that makes a big difference.

  • http://restlesslikeme.com Norcross

    I think a lot comes from who the founders are, and what they are all about. A lot of tech folks aren't 'people' oriented by nature, so a lot of what we consider good customer service doesn't come naturally to them, if at all. They just wanna code. I think bringing someone in who can handle that makes a big difference.

  • http://www.BeyondThePedway.com Tim Jahn

    That’s a great point I hadn’t thought of. I think you’re spot on – bringing in somebody with more “people skills” might make a world of a difference.

  • http://www.BeyondThePedway.com Tim Jahn

    That's a great point I hadn't thought of. I think you're spot on – bringing in somebody with more “people skills” might make a world of a difference.

  • http://www.beyondthepedway.com/how-jun-loayzas-laser-like-focus-could-lead-to-a-multi-million-dollar-exit How Jun Loayza’s Laser-Like Focus Could Lead To A Multi-Million Dollar Exit | Beyond the Pedway | Video interviews to discover what drives creative entrepreneurs!

    [...] It was difficult for us to find a business model with that because I think at the time, agencies hadn’t yet caught up to the fact that, hey maybe we could sponsor bloggers or maybe we can do this.  So we actually came out around the same time as Klout and Klout is actually doing really well now because they were able to find VC funding. [...]

  • Denistakin

    INTER-CHRISTIAN YOUTH ORGANISATION

    MINISTRIES

    MT. ELGON DISTRICT

    KAPTAMA DIVISION

    1.

    KAPTAMA LOCATION

    DENNIS: +254727 527045

    Account No. 0300194086122

    E-mail: denistaskin@yahoo.com

    Pastor martin- +254729721546

    ü PROMOTING SPIRITUAL MATTERS

    ü PROMOTING LIVING STANDARDS OF YOUTH

    AND COMMUNITY AS WHOLE

    ü ENHANCE GENDER EQUALITY, PROMOTING

    UNITY AMONG YOUTHS

    PROPOSAL

    OFFICE-MT.ELGON DISTRICT-KENYA

    NTER-CHRISTIAN YOUTH ORGANIZATION

    INTRODUCTION

    We as youths decide to come together and form a group so as to fight many problems encountering youths as per individual hence promoting spiritual matters and living standard. Improving economical status enhancing social life, maximum intervention, which could improve togetherness, mutual understanding of the youth and community as whole through co-operation.

    BACKGROUND.

    The group is situated at Kaptama division covering youth from Kaboram, Kamenjo, chesito Kaboywo, and chemoge and kaptama areas.

    The group started the year 2004 with 15 members & later on increased to fifty youth, thereafter we decided to register the group using the above name and later opened an account at Kapsokwony. Account No. 0300194086122

    OBJECTIVES OF THE GROUP.

    I. To help youth grow spiritually

    II. To help youth to be self driven people

    III. To help youth to discover their talents and utilize them maximally

    IV. To avoid the monotony of idleness in youth

    V. To help youth fulfill their visions

    VI. Help youth support themselves financially

    GROUP ACTIVITIES.

    * Evangelization
    * Giving Hope to infected and affected by H.I.V & AIDS
    * Discouragingly F.G.M (Female genital mutilisation)
    * Encouraging people to learn to eradicate illiteracy.
    * Encouraging Mary Go Round
    * Discouraging Abortion
    * Proper disposal of garbage
    * Proper drainage of water
    * Encouraging Male to be circumcised in hospital

    JUSTIFICATION

    Our fellow youth are not involved in Advantages activities hence selling involved in poor Moral standards drunkenness and drug abuse.

    STRATEGIES OF THE GROUP/FUNDS

    § N.G.OS

    § Government

    § Well-wishers

    § Ministry of youth

    § Donors

    § Harambee

    EXPECTED OUT PUT.

    § We shall have sources of income

    § We will develop awareness against HIV/AIDS

    § The community will spearhead awareness against F.G.M

    § Job obtain created

    § Improve hygiene

    § Social Political economic development

    § Good living standards

    § Poverty eradication among the youth in the community

    RESOURCES

    From-skilled and unskilled Individuals

    MANAGEMENT

    EXECUTIVE

    (1) Chairperson-Dennis Taskin

    (2) Secretary-Godwin Sinjir

    (3) Treasury-Martin Saekwo.

    It was 2004 during youth rally at Moi Kaptama Mt. Elgon lunch time

    It was 2005youth conference at Chesinende villege

    7. FAITH STATEMENT

    It is our belief that all people have sinned and come short of the glory of God. Salvation is by grace through faith and is obtained by renouncing sins and inviting Jesus Christ to be Lord and Saviour. When Jesus Christ comes back and sits upon the throne of I Us glory, He will separate sinners into everlasting punishment (fire) and righteous into eternal life. Christians should live holy and righteous lives pleasing to God. Baptism by total immersion into water. Holy spirit baptism evidenced by speaking in other tongues; Divine healing of the soul, spirit and body. Recognition and operations of all gifts of the Holy Spirit and five fold ascension ministries,

    1. All have sinned and come short of the Glory of God. Rom. 3:23

    2. Receive Jesus Christ as Lord and Saviour after repenting and deeply renouncing sins…Rev. 3:20, Acts 3:19, Rom. 10:9-13.

    3. Salvation is by grace through faith… Eph. 2:8

    4. Living Holy and righteous lives pleasing to God..1Pet. 1:15-16.

    5. Water baptism (immersion)…Math, 28:19, Mark 1:9-10, Rom 6:4.

    6. Holy Spirit baptism Mark 16:17, Acts 1:18.

    7. Holy communion to be partaken by Christians-Ma. 26:26-30, Mark 14:22-25, Luke 22:19-20, 1 Cor. 11:23-26, 1 Cor. 10:16.

    8. Washing of feet as commanded by Jesus Christ as a sign of ser­vant hood… John 13:4- 7.

    9. Sanctity of marriage as originally ordained of God… Mark 10:5

    10. Recognize the work and operations of all gifts of the Holy Spirit and ascension ministries for perfecting of the saints for me work of ministry and for edifying the body of Christ. Eph 4:11-13, 1 Cor. 12:1-31.

    11. Divine healing of the body, soul and spirit… 1 Thes. 5:23.

    12. Everlasting punishment for sinners and life eternal for the righteous…Math 25:31-46.

    13. Casting out devils in the name of Jesus Christ… Mark 16:17.

    Chairperson Dennis Taskin

    It was 25th December 2006 during Christmas celebration

    8. STATEMENT OF VISION

    The great commission by me Lord Jesus Christ is our mandate. We be­lieve and trust that God will use His church, to accomplish His purposes on earth.

    Evangelistic church of the Lord Jesus Christ is to be:-

    1. A fellowship whose worship brings Gods power into the church and extends that power through the lives of believers.

    2. A body of believers directed by the Spirit of God and that baptismal the Holy Spirit is both personal blessing and is an endowment of power to witness and service in fulfillment of the Great Commission.

    3. A fellowship that has love and concern for people who are hurt and lonely. These people are reached through evangelism and churches planted in strategic locations where these people are. Home for disadvantaged such as orphanage, disabled and the aged will be built as God provides funds.

    4. The church that targets the community and is concerned with the physical, spiritual and material needs of the people. As God provides funds, the church intends to build hospitals, schools, colleges and complex conference centre for hosting national and international meetings.

    5. A church that will operate income generating projects that will enable the Gospel to be preached.

    6. A church that is committed to the authority of Holy Scriptures, the Bible for faith, and direction.

    7. A body of believers who hunger and thirst for the Kingdom of God, and His righteousness who will in turn transform to Christ likeness. Christ centeredness and sensitive to the needs of the church and other people.

    8. A church that focuses on the local congregation where the pastor takes care and leads all members to exercise spiritual gifts, ministries and talents.

    STATEMENT OF MISSION To preach the Gospel to the unreached in Kenya and to the whole world as accomplished by our Lord and Saviour Jesus Christ… Math 28:18-20. To accomplish this mission, the church through believers will:-

    1. Preach full gospel of Jesus Christ (God’s word) in the power of Holy Spirit through evangelistic crusades and missions.

    2. Raise leaders with ministerial gifts to carry out missionary work. This will involve training and equipping leaders for mission work.

    3. Disciple Christians to reach the world with the gospel of Jesus Christ.

    4. Emphasize on Biblical stewardship, church growth, church plant­ing, family enrichment, servant leadership for reaching out in mis­sions.

    5. Preach the Gospel of the Kingdom of God in harmony with be­lievers from other churches and servants of God with different ministries and gifts, as long as they preach and contact themselves according to true Gospel of our Lord and Saviour Jesus Christ.

    6. Use all available resources such as cinemas, install radio and television stations to proclaim the Gospel of Jesus Christ to many nations in the world.

    10. CHALLENGES

    Evangelistic Church of the Lord Jesus Christ is facing great and complex challenges which include many upcoming churches and fast changing world behavior. Wrong religious doctrinal beliefs such as self righteous­ness, false salvation, witch Crafts, anti Christs, devil worship, cults, tribal beliefs, ancestral doctrines, generational curses, demonic beliefs and poverty are some of the church growth barriers and challenges. We have however taken an honest look at our challenges and face them without fear by the grace of God. It is our believe and acceptance that Evangelistic Church of the Lord Jesus Christ has a unique position for growth. We see the church as a divine work of the Holy Spirit, Jesus Christ being the head and vital vessel called to usher in spiritual and physical healing of the perishing world. Through guidance and power of Holy Spirit, the Church is to grow, reach far and many churches will be planted in Kenya and beyond to meet the needs of people of all levels and races in life.

    10. FACTORS THAT CONTRIBUTE TO CHURCH GROWTH

    This is a fast growing church with a vision. Through God’s favour and grace the church has not only grown at Kaptama but other local churches have been planted. Factors which have significantly contributed to growth are as follows:-

    1. Faithfulness and steadfast to our call to reach the world with gospel of Jesus Christ.

    2. Our believe that our Lord and Saviour Jesus Christ is the master plan­ner and builder of His church.

    3. Dependence upon the Holy Spirit.

    4. Obedience to the word of God.

    5. Evangelism which include house to house and open air meetings.

    6. Home fellowship mid-week meetings at various locations-(cell groups)

    7. Transparency and accountability to church members and other people.

    8. Desire to retain powerful praise and worship.

    9. Prayer- Encouragement to members of the church to observe personal and communal prayers.

    10. Conducting meetings such as Revivals, Seminars, Conferences, Con­ventions, for all groups. Youth, women and men groups have their time to hold their own meetings.

    11. Preaching holiness and righteousness as God’s standard requirement for His people.

    12. Emphasis on bringing up Sunday school children to fear and honour God.

    13. Bring up a strong Youth Ministry that has a vision to reach the world with Gospel of Jesus Christ.

    14. Humble and good administrative leadership.

    15. Training to equip leaders for growth.

    Factors mentioned will continue to contribute to church growth physi­cally, spiritually, and emotionally.

    Open air meeting crusade Kaptama market

    Team of choir members plus praise and worship 2007

    PROJECT: EVANGELIZATION:-OUTREACH TEAM

    Budget Estimated

    PRESCRIPTION

    QUANTITY

    COST PER UN IT

    TOTAL

    Mixer Amplifier

    One, 14 Jacks

    65,000

    65,000

    Keyboard

    1 PSR 2100

    60,000

    60,000

    Speakers

    4

    80,000

    80,000

    Mikes/stands

    6

    30,000

    30,000

    Cables

    6,500

    6,500

    Generator

    HONDA

    39,240

    39,240

    Video camera

    1

    32,000

    32,000

    Colour T.V

    21

    25,000

    25,000

    Video Decker

    45,000

    45,000

    Total

    451,400

    451,400

    Desktop/Printer

    1

    22,500

    22,500

    Colour copiers (scanner)

    1

    6,200

    6,200

    Flash discs

    2

    1,240

    1,240

    Photocopier machine

    1

    35,000

    35,000

    Rent

    1ROOM

    24,000

    24,000

    D rowers

    1

    10,000

    10,000

    Cyber cafe

    1

    18,320

    18,320

    Office bearers

    15%

    150,000

    Maintenance & Repair

    35%

    350,000

    WORK PLAN GRAND TOTAL

    1,000,000

    To implement Our Projects of Evangelization we will take duration of one year. There will be executive committee to oversee and run the organization. The total project cost will be one million only (1,000,000).

    PROJECT: THE YOUTH HIV/AIDS AWARENESS

    Through;

    1. Seminars

    2. Workshops, Video shows and drama

    BUDGET

    (1) seminar

    description/frequency (4) times

    COST per time

    TOTAL IN KSH

    • Teachers 2 (hired)

    1,000 x 2

    8,000

    • Venue (hall)

    150,000

    600,000

    • Other expenses

    -Transport

    10,000

    40,000

    -Food

    70,000

    280,000

    (1) workshops video shows

    18,000

    72,000

    and dramas

    GRAND TOTAL

    250,000

    1,000,000

    Dennis and his wife lily

    Youths during practice 2008 at the church

    PROJECT: PAULTRY FARMING

    We as an organization will construct a house for the rearing of poultry

    MATERIALS

    QUALITY

    UN IT COST

    TOTAL

    Iron sheets

    30 iron sheets

    @500

    1,500

    Wire mesh

    @3,200

    31,000

    Timber

    35 frames

    @150

    5,250

    Nails

    15kgs

    @140

    2,100

    Cement

    8 cement

    @750

    6,000

    Sand

    2 Trailers

    @2,000

    4,000

    Broilers

    100

    @250

    25,000

    Layers

    50

    @300

    1,500

    Turkey

    10

    @400

    4,000

    Ducks

    20

    @250

    5,000

    Doves

    20

    @100

    2,000

    FEEDING

    Chic Marsh

    (2×12) sacks

    @2,000

    48,000

    Layers marsh

    (3 x 12) sacks

    @2,000

    72,000

    Broilers Marsh

    (3×12) sacks

    @2,000

    72,000

    Drugs

    250,000

    Land/Plot

    Double full plot

    @100,000

    200,000

    Fencing using wire mesh

    72,000

    Posts

    60 posts

    @60

    3,600

    Mbao for partitioning

    120

    @126

    45,360

    Labour

    60,000

    60,000

    Transport

    40,000

    40,000

    Other Emergencies

    49,690

    49,690

    GRAND TOTAL

    1,000,000