Start-Up Resources -
[Cached Version]
Published on: 9/10/2009
Last Visited: 9/10/2009
Kellogg turned the problem around on a dime by getting the bank a payroll report within McMinn's deadline of 48 hours.
On the heels of that success, McMinn charged Kellogg with a series of similarly daunting tasks that a start-up's CEO typically handles, from assembling a benefits package (in just 30 days) to hiring Covad's first office manager.
...
"All the things that you suddenly bump into and haven't even thought of, Linda knows how to do," says McMinn, who last October retained Kellogg to help start another new venture, Certive Corp.
...
"All the things that you suddenly bump into and haven't even thought of, Linda knows how to do," says McMinn, who last October retained Kellogg to help start another new venture, Certive Corp.
...
Kellogg, says McMinn, offers "a seamless turnkey solution."
...
Kellogg prefers to sign on with start-ups just out of the gate, "before they've made any mistakes."
A 48-year-old dynamo, Kellogg is a pioneer in the burgeoning market of start-ups for start-ups.
Her San Jose-based Start-up Resources Inc. has so far worked with 45 Silicon Valley technology companies, enabling their founders to concentrate on building their businesses while she tackles the back office -- everything from handling early-stage accounting and tax matters to finding office space and ordering water for the employee lunchroom.
...
Linda Kellogg prefers to sign on with start-ups just out of the gate, "before they've made any mistakes," she explains.
"It's more fun for me to go in and do the whole setup.
Also, that way Kellogg can take charge of the entire start-up process and work unimpeded by someone else's accountant or real estate broker.
Kellogg deploys her own stable of dedicated consultants in accounting, taxes, information services, and human resources, as well as 25 vendor partners.
Add to that her high-level VC and other Valley ties -- including her husband, Harry W. Kellogg, vice-chairman at Silicon Valley Bank -- and Kellogg has "an incredible network of contacts," comments client Ford Goodman, president of Certive.
Her engagement typically spans four to eight weeks, and her fees begin at around $12,000 for a basic starter package that includes 10 hours of her own time.
At the higher end Kellogg serves what she calls "monster start-ups" -- companies that have more than $15 million in first-round venture money and "want everything done now.
Such intensive assignments consume as much as 400 hours of her team's time and can cost clients up to $30,000.
For that sum Kellogg delivers a complete setup, which includes finding office space and furniture, installing information systems, and compiling an employee handbook and a benefits plan.
With 16 of her 45 start-up clients, Kellogg has received equity instead of fees, or a mix of fees and equity -- an increasingly popular arrangement with many service companies these days.
It's an option that not only saves Kellogg's client companies up-front dollars but also buys them her long-term loyalty.
For example, client Biztro, with 75 employees crammed into the 6,500-square-foot space that they moved into last April, has clearly outgrown the initial start-up phase that is Kellogg's chosen bailiwick.
...
But because Kellogg has an equity stake in the business, Madan says, "I know I can call on her for anything," including leads for financing sources and access to Kellogg's other contacts.
...
Kellogg, says Madan, not only saved Biztro some three weeks in assembling a competitive HR package but crafted the plan with a mind toward the company's projected fast growth.
...
Kellogg has also proved herself to be a shrewd negotiator in the Valley's tight-as-tight-can-be real estate market.
She has good working relationships with major local real estate brokers, and because of her husband's high rank at Silicon Valley Bank, she boasts, "I can get a letter of credit in an hour.
Client Ford Goodman credits Kellogg with helping him beat out six other start-ups competing for Certive's 41,600-square-foot office space in Redwood City.
Although Kellogg's clients typically count their savings in hours rather than dollars, she's ever mindful that start-ups must spend their early cash wisely.
For example, there's her client Affinia Inc., a Web consultancy.
...
Kellogg's solution?
She rummaged around for used whiteboards and beat-up desk chairs, and even scrimped on paper clips.
"I bought one box instead of three," she says.
With demand for Kellogg's services mounting, many of her Silicon Valley colleagues are pressuring her to expand her business into a nationwide franchise.
But she fears that expansion might dilute her hallmark personal service.
"I don't want to become a commodity," she says.
...
Whereas Kellogg deploys a hands-on consulting model, Jensen has crafted a point-and-click approach.
...
Once a start-up grows to 35 employees, though, it's time to bring the accounting in-house, according to Start-up Resources founder Linda Kellogg.