Standing Out With a Video Resume

The standard job search typically involves a resume and cover letter.  With the high unemployment during this extended recession, however, it is more important than ever to try to have an edge over the competition.  One way to enhance (not replace) your qualifications on paper is to create a video for prospective employers to view.  Not only does it give you a chance to highlight certain qualifications in a way that goes beyond paper, but it’s also an opportunity to show a little personality.

Here are some tips on creating a solid video resume:

1. Know your Audience.  It goes without saying that you should define what you are looking for job-wise.  It may be a narrowly defined field, such as an insurance claims specialist, or it may be more general, such as a factory worker.  In either case, it is important to understand who your potential employers are, and what specifically they are looking for.  Demonstrating your knowledge of your audience’s needs and how you can fulfill them will go a long way towards creating a positive impression.
2. Look the part.  It should be obvious that a clean, well-groomed look is important, but it should also match the profession you are aiming for.   For example, a graphic designer for the web may be able to get away with an edgier look than an accountant.  Displaying some tattoos may be acceptable in some creative fields, but they are taboo in traditional fields.  If you are going to stand out with your appearance, make sure it is in a positive way that enhances your pitch.
3. Introduction.  Briefly state your name, and give your audience a brief summary about what you are about to say.  For example, “my name is John Smith, and I’m excited to introduce myself, and to share how I can help your company maximize promotional events dollars!”
4. Lead with the pain.  Following from number 1, identify at least one or two main areas that are pain points for your potential employers.  For example, a company needs a meeting planner who understands issues with vendors and is an expert negotiator.  The company wants to know that they are receiving the maximum return on investment on the hundreds of thousands of dollars they may be spending on promotional events.
5. Show how you are the cure.  You don’t want to recite what’s on your resume, but having identified the main pain points of your audience, you now have an opportunity to demonstrate why you are uniquely qualified to cure that pain.  For example, as a meeting planner you might highlight some specific experience and discuss examples that illustrate how you have maximized the events budget.  Results speak for themselves!
6. Sum it up with something catchy.  You have your audience’s attention, you’ve demonstrated your savvy, and now it’s time to close the deal.  Up to this point, it’s been all about the audience, but now you can really use your creativity to generate interest.  You might use something from current events or something that’s unique to the industry, but a timely message that nicely summarizes your story can help seal the deal.   And finally…
7. Call to action. Every sales pitch needs a call to action.  You’ve piqued your audience’s interest, hopefully gotten them excited, and now you need them to take action.   Of course, the action you would like them to take is to contact you for an interview, so you might say something like, “Now that I’ve gotten your attention, I would love to meet with you to discuss in more details how I can help your company grow.  I can be reached at (415) 693-2289 or at john.smith@gmail.com.  I can’t wait to hear from you!”

What the New JOBS Act Means for Startups and Investors

The Jumpstart Our Business Startups (JOBS) Act that was signed by President Obama last month ushers in a new era for small and growing businesses seeking to raise capital through a novel process called “crowdfunding” that will now allow business to more easily raise capital without excess red tape.  It also opens up access to potentially lucrative investment opportunities for “non-accredited” investors, traditionally shut out of venture capital markets by SEC regulations.  In short, the JOBS Act may significantly lower barriers to entry for would-be entrepreneurs and investors, changing the way America does business.

The JOBS Act is a set of amendments to the Securities Act of 1933, and the Securities Exchange Act of 1934.  Along with the establishment of the SEC, these laws were put into effect during the Great Depression as a set of safeguards to protect investors from fraud and mismanagement, and they have remained in force ever since.  These laws require securities issuers to provide investors with extensive financial records subject to review by the SEC, as well as a level of transparency and disclosure of certain risks.   In addition, these laws also require investors to meet stringent eligibility requirements, including minimum income levels in order to become “accredited” to invest.

Although the Securities Exchange Act rules are meant to protect consumers from moral hazard, they don’t always work (Enron, WorldCom), and the effect has been to keep all but institutional investors and the wealthiest people out of the market.  For example, startups are typically cash poor and find it all but impossible to afford the pricey legal and accounting costs of complying with SEC securities regulations, such as audited financials and PPM preparation.  More importantly, only a small portion of the population is eligible to purchase securities, so there are many more opportunities than investors.  Between the inherent riskiness of investing in any new venture and a huge number of entrepreneurs competing for limited funds, investors are extremely picky.  These issues make it challenging to even get investors to listen to an entrepreneur’s pitch, and inevitably leave the vast majority of startups unfunded.

On the investor’s side of the equation is the fact that by definition, individuals making less than $200k per year or with a net worth less than $1 million have until now been ineligible to purchase a new venture’s securities.  Aside from participating in institutional investments such as mutual and hedge funds, this left the average person completely out of the securities market.  The thinking behind this rule is that wealthy individuals are more sophisticated than the average person, and will either perform or pay someone to perform the due diligence necessary to ensure that their investments are as safe as possible.  Furthermore, it is assumed that wealthy individuals know how to diversify their investment portfolios to mitigate risks.  In other words, the wealthy were considered savvier than the average person.

The JOBS Act also streamlines reporting and disclosure for equity crowd funding, which allows access to a wider audience and greater flexibility in equity offerings.  For example, a company trying to raise capital could offer equity in the company through a funding portal where any investor could participate – say for as little as $10.  If the startup is seeking $100k or less, the streamlined regulations call for the entrepreneur’s tax returns for the year prior, and a financial statement certified accurate by the CEO.  For companies raising between $100k and $500k, the financial statement must be reviewed by an independent public accountant, and for $500k – $1 million, the financials must be audited.

Another major breakthrough achieved by the JOBS Act is an additional set of exemptions from the SEC 404(b) reporting regulation.  In addition to the existing exemption from the stringent audited reporting rules for companies with less than $75MM in assets, the JOBS Act extends the 2 year 404(b) reporting exemption for IPO reporting to 5 years, provided revenue and capitalization values fall within specified limits.  Although there are still reporting rules the company must follow, this new law streamlines the costly reporting process at the company’s most critical growth stage, saving the firm considerable time and money.

Overall, the JOBS Act opens up new venture investment to everyone.  It has limits and safeguards to protect investors, and it creates a viable new option for more would-be startups to actually raise seed capital.  Only time can tell how well the safeguards will work, or whether the new law will stimulate desperately needed growth in this economy.  One thing is certain – the law will change the way new ventures and angel investments work.