Two Parts of the Startup 3.0 Act That Will Help Small Business

This morning, I will be part of a panel discussion to educate congressional staffers on the merits of the Startup 3.0 Act (H.R. 714/ S. 310) that was introduced in both the House and Senate this February. Startup 3.0 has many provisions that will help small businesses. The panel is being hosted by the House Small Business IT Caucus and includes:

  • Doug Humphrey, Serial Entrepreneur
  • Raj Khera, CEO, MailerMailer (me)
  • Morris Panner, CEO, DICOM Grid.com
  • David Pauken, CEO, Convoke Systems
  • Cynthia Traeger, Director, Founder Institute of DC
  • Lamar Whitman of CompTIA as Moderator

My fellow panelists will go into their own experience as business owners and focus on different parts of the proposed legislation. I am focusing on two of the areas: 1) the elimination of country quotas for H1-B visas so that we can bring more skilled workers to build new products and 2) the ability to offset R&D expenses against payroll tax liability via a tax credit. Both of these provisions in Startup 3.0 will help small businesses get the talent and retain more cash to develop innovative products.

The hearing is at 11:00 a.m. today in the House Rayburn Office Building and is open to the public. Below is my testimony:


House Small Business IT Caucus – Congressional Panel on Startup 3.0

Raj Khera
June 28, 2013

House Small Business Committee Hearing Room, Rayburn Bldg

Good morning everyone, my name is Raj Khera. I’m the CEO of a marketing software company called MailerMailer, located in Rockville, Maryland. This is my third business – like several of my colleagues on this panel, I’ve built and sold other technology companies before and have experienced first hand the challenges that Americans face when building a business.

I was excited about several of the provisions in the Startup 3.0 Bill because they will really help spur innovation and remove some of the obstacles that entrepreneurs face. The really strong job growth in our economy comes from companies with products and services in high-demand sectors.

Many of you may know that there is a severe shortage of qualified engineering talent in the United States.  We have to find the talent somewhere or we can’t grow. A few years ago, I needed to hire an engineer with a unique skill set. After looking for a while in the US, I finally found someone who lived in England. It was April and the quota for all H1-B visas had been filled. Lucky for me, his person wasn’t from a country whose quota limits fill up so fast that you have to enter a lottery just to see if your candidate can even come here. I still had to wait until October before the next fiscal year’s quotas were opened up before I could bring over my new employee. That was extremely frustrating. It delayed the build out and deployment of our new product line. The Startup 3.0 bill removes country quotas so employers like me can get the talent we need to build the products that help grow our GDP. There are thousands of companies just like mine and in the same situation.

Another one of the provisions of this bill is a tax credit of up to $250,000 of R&D expenses against payroll tax liability. I’ve used previous R&D tax credits that were available against income and they have helped my company build new products that have been very successful in the marketplace. The Startup 3.0 proposed tax credits against payroll tax liability are unique because most startups don’t have income, but almost everyone has payroll. This provision will help startups keep more cash on hand to build new products.

I strongly recommend that you help to get this bill passed because it is going to enable small businesses to create more American jobs and provide incentives for more investment into American startups. Thank you.


Update: pictures from the event… well attended by congressional staffers with lots of good questions.

House Small Business IT Caucus

Raj Khera - presenting to congressional staffers

New Book – The IT Marketing Crash Course: How to Get Clients for Your Technology Business

I just released a new book, The IT Marketing Crash Course: How to Get Clients for Your Technology Business. If you provide any type of technology consulting services, this book will show you how to get more leads and close more sales. It’s filled with tips from technology company owners and executives who are generating hundreds of new, qualified leads.

IT Marketing Crash Course

It is available on Amazon in Kindle and print formats.  At the time of this writing, the book was ranked #1 on Amazon in 3 business categories and #16 overall for all business books on Kindle.

The 138-page book includes strategies, checklists, examples and action plans that lead to new customers. It is filled with stories from technology business owners and executives who describe how they are generating hundreds of qualified leads through clever marketing tactics. Topics include:

  • The best non-sales questions that lead to more sales
  • Honing your marketing message so it resonates with prospects
  • Pricing strategies that make it easy for clients to buy your services
  • The most powerful ways to build and leverage your network
  • What to put in your emails, blogs and website to hook new clients

Some sales strategies only talk about going after the lowest hanging fruit – the people who are ready to buy and are just trying to pick a vendor. But that leaves out a much larger block of the market – people  who could be your customers, but just need a little nurturing… so as you get them to be sales-ready, they think of you first.

Learn what you need to know and do to get prospects to find you, like you and buy from you.

You will grow your business.

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Managing Too Many Ideas

Got an idea for a new product or business? At least 100 others have the exact same idea as you. Success boils down to execution. And execution can be very hard when you have too many ideas.

To really make an impact, you need to manage your ideas so that the ones that stand the best chance of success will bubble up to the top. Here are some tips on managing your time if you have too many ideas:too many ideas

  1. Get a voice recorder. Your cell phone probably already has this feature. It allows you to take verbal notes on the fly so you can capture your many ideas wherever you are.
  2. Elaborate on the details. If you have an idea for a new product, get into the nitty gritty. Draw how it will work, how people will interact with it and other details. Include size, color and other specs. The details require you to really think through every aspect of what you would build. I can recall many times when I dropped an idea after seeing that the implementation details were so complex that it wasn’t worth pursuing.
  3. Ask who needs to be involved to make your idea become reality. Rarely can your idea be executed without the help of others. You may need someone to make your product, create the  look, invest capital, acquire customers. Find out who you need to talk to. Start by identifying their role. Then, get onto LinkedIn, Twitter or other platform to get in touch.
  4. Determine the market size. The biggest mistake small business owners make when building new products and offering services is to target a market that doesn’t exist. If there aren’t enough buyers for what you will sell, don’t waste your time. The best way to find out is to identify a handful of prospects and talk to them about your idea. If they get excited, dig deeper on the specific features they want to see and how they would expect it to work. There is nothing better to build a product than an actual customer guiding you on what they would spend money on.
  5. Decide if the idea fits with your values. Your initial reaction might be “sure it does!” The reality is that not all ideas you have will be in harmony with your comfort level. When pushed, which of these ideas are more in line with who you are and what you believe in.
  6. Prioritize your idea list. Too many ideas for features, known as feature creep, has caused me numerous delays in getting products out of the door. There’s always one more bell or whistle that you want to put in. Resist the urge to do it or you’ll never meet your release deadlines. The most important thing you can do is to say “here’s the list of things we identified to be the most important based on customer feedback and this is all that will go into the next version.” If your idea is based on current trends, ask yourself whether the trend will still be in place when you launch and what kind of adjustments you need to account for as trends change.
  7. Put lower value ideas on the back burner. You don’t have to abandon your ideas. Put some on the back burner for review in 6 to 12 months. Things might have changed by then and there may be more reason to execute an old idea.

Face it: not every idea you come up with will be fantastic. And if you try to pursue every single idea that pops in your head, you will never get any one of them done. As you logically trim your ideas down to the ones that make the most business sense, you increase your chances of executing on the right idea at the right time.