Where does the money come from that private equity (venture capital, growth equity and buyout) firms invest?  It might indirectly come from you.  Key constituents include the likes of government employees, employees of large corporations, trade organizations (e.g. teachers) and wealthy families.

Wealthy Families / Foundations

The original investors in venture capital firms were wealthy families.  The Phipps family was behind Bessemer.  The Rockefeller family was behind Venrock.  These wealthy families often invest out of vehicles like family offices or foundations.  From those roots, many wealthy families have played impactful roles in backing some of the best names in private equity.  As the asset class has became more known and attractive, the sources of capital grew to include more institutional sources.  But, behind every institution are regular people.

Endowments

One of the most aggressive investors in venture capital has historically been school endowments.  When you make that annual class gift to your college, if you designate it for the endowment, some of your gift just might be put into various venture capital and buyout firms.  Typically, universities are charged to protect your endowment gift, so they invest it, and use the returns generated from the investment to fund various school initiatives.  Major universities like Harvard, Yale, Stanford, MIT, etc. have been big proponents of investing some of that endowment principal into private equity firms.

Pension Funds

Another prominent investor in venture capital has been corporate and public pension plans.  Pension plans (of the defined contribution variety) are just another type of retirement plan used by state governments, labor/trade unions, and large corporations.  As you work at a company or state government and thereby accrue pension benefits, the company or organization funds a pension account based on actuarial models tied to its potential pension payout obligations.  A portion of these funds are often allocated to the private equity asset class.  Major states investing in this asset class include New York, New Jersey, California, Oregon, etc.  Major corporations like AT&T, General Motors, etc. have also been active investors.

Fund of Funds

Many foundations, endowments, and pension funds lack the capacity or resources to evaluate and monitor different private equity firms.  Hence, the fund of funds industry has sprung up to pool capital from these sources into funds and then invest on their behalf.  Unlike the other sources of capital, fund of funds have to raise their capital from third party sources, just like the firms that they invest in.

So, if you follow the money through, your child’s college financial aid package or your pension plan – might be tied to a couple engineers working on some project in Silicon Valley or tied to the big buyout you read about in the Wall Street Journal.

 

 

This is a different perspective on household finances.  We always look at how much we make per hour, year, project, etc.  But do you know how much profit you're making per hour?

Hourly Wage

From the day anyone starts working, we're quickly educated on the concept of an hourly wage. Whether we start at minimum wage or otherwise, we're conditioned to the idea of compensation being denominated in the time interval of hours.  Even as many folks transition to being paid on a salaried basis, it's not hard to calculate what you effectively make per hour. For example, if Bob's after-tax bi-weekly paycheck is $1,500 and Bob works 50 hours per week, then he makes $15.00 per hour.  This example presumes Bob has no other sources of income other than his paycheck.

Spending per Hour

The household metric that is often missing from the equation is the flipside: spending per hour. The most simple way to calculate this number is to take all of your expenses for a given period (say a month), mortgage/rent, credit card charges, car payments, ATM withdrawals, utilities, insurance, interest payments, tuition, healthcare, charitable giving, etc. and do the basic math to denominate that spending on an hourly basis presuming the same spending hours as working hours.  To use the same example, if Bob spends $3,000 per month and has the same 50 spending hours per week, then a little basic math says Bob spends $13.85 per hour.

Profit per Hour

That takes us to the most important metric: profit per hour.  Bob makes $15.00 per hour and spends $13.85 per hour which means he makes $1.15 per hour in profit.  The reason I prefer the hourly denomination of profit more than a month or year is that it's more practical for all of those little spending decisions we make every day.  Congratulations to Bob for being profitable!  Just knowing your hourly profit metric is an achievement in and of itself.  But, let's go on to a couple second order ideas for those interested.

First, you can say that spending hours and working hours are not the same in reality.  If Bob spent $13.85 every hour of every day (24 x 7), he would end up spending $10,000 per month instead of $3,000.  So, the key to making the math work is to limit your spending hours per week to the same as your working hours per week.  If you work 50 hours per week, pick the 50 hours per week where spending is allowed and fix them.  It might be 5 specific hours on each weekday and 12.5 hours on Saturday and Sunday.  Once that is selected, the question is how much can you spend per hour in those spending hours.

To determine how much you can spend in those spending hours, you have to determine how much you have already spent just by existing.  Take all of your fixed costs.  All those costs that you bear whether you ever take your cash or credit card out of your wallet.  This could be things like car payments, rent/mortgage, insurance, tuition, etc.  Let's say for a moment that of Bob's $13.85 per hour of spending, $10.00 per hour is fixed.  That means in those 50 spending hours per week, Bob can spend $3.85 per hour and still maintain his profit margin of $1.15 per hour.  Now all of Bob's discretionary spending decisions can be benchmarked against that $3.85 in hourly discretionary spend that he knows he is allowed.  That's a useful metric whether Bob is looking to get that bagel sandwich for breakfast or that fancy steak for dinner.

After a recent blog about resume tips, I realized there's so much more I could have included and this addendum will cover more areas but there's always more!

More things to Avoid

Before we get to writing content, let's start with more things to avoid when writing your resume.

• Microsoft templates, skip them.  Make your resume pop.  Lose the built-in template everyone else has and come up with something unique.
• Stretching the truth.  You can be called on your bluff. Write what you know instead.
• Attempting One Size Fits All.  Whenever you try to develop a one-size-fits-all resume to send to all employers and recruiters, you almost always end up with something that will end up in the recycle bin.  Recruiters and Employers want you to write a resume specifically for us. We expect you to clearly show how and why you fit the position in a specific organization.
• Going on Too Long or Cutting Things Too Short.  Despite what you may read or hear, there are no rules governing the length of your resume. The one page or two page rule does not exist.  Understand my frame of reference, I deal mainly with Technical Professionals and Executives.  We need details.  The point here is, don't cut your resume short just to keep it under two pages.  Give us all the details necessary while balancing length versus readability.  You don't want to write a novel either.  This also goes back to the point above with writing customized resumes for every job you apply for. 

Quantify Achievements

I can spot bull excrement at 100 yards, just like the rest of the intelligent world.  Statements with quantifiable achievements aren't just easier to read, they make for stronger points.  

For example: Instead of this:I am a talented and popular writer dedicated to writing good documents fast.

Try this:Wrote upwards of eight articles per day and can attract an audience of over 30,000 unique visitors.

Which of these sounds like the better deal to you? Showcase what you can bring to your prospective company.

Keep It Simple

Expect your resume to be skimmed.  Make it as easy as possible for us to see why you are so special.  We tend to read lists and skip over paragraphs. So, when it comes down to a choice between the two, keep the most important information in a bulleted list.  You can scan a list much quicker than a paragraph, this way we will take away more raw information from your neatly listed resume, helping you stand out. 

Keep this in perspective.  Too often I find resumes that are basically a bulleted resume.  Everything is in bullets.  Including boring details that read like job responsibilities.  I don't care about that!  I want to know what make you different, list your accomplishments, not your responsibilities. 

Something else to keep in mind and this goes back to writing a customized resume for every job... you must have pertinent information on the first page of your resume.  You must catch the readers eye with the first page if you have multiple pages.  Otherwise, all the great details will not be read if your initial page is full of fluff.

It's like watching the news and they say red wine is good for your heart and suddenly you switch to a red wine diet.  Common sense rules apply here too!

Include key terms

Increasingly, resumes are entered into systems that scan them for key terms applicable to the job. This is especially true of resumes submitted in soft copy, whether to a recruiting site or directly to a prospective employer. These systems weed out any that don't contain the right trigger words. Employers don't mind if this costs them a few good candidates, since they still have more than they can talk to, but it doesn't have to affect you. Make sure the key terms are in your resume somewhere - and that they're spelled right, especially if they're technojargon or product names that a spell-checker can't check

When you send Perito Eleven your resume, it's read by recruiters, not machines.  It's more important for us to able to see key terms on a skim.  Believe it or not, I actually prefer to work with candidates that will pick up the phone and call!  Let me know you exist so we can get down to business!

Edit Ruthlessly

Keep everything important both on the first page and up high. Don't give us a chance to skip your most important selling points.  Take a very hard line on clutter.  If there's anything that detracts from exactly why you'd be perfect for the job, remove it. 

Are you on Twitter? Thirty-two million other folks are, but most of them aren't using it to search for work. A recent poll revealed that only 8% of respondents have used Twitter to help with a job search. Don't let this valuable medium go unmined as you look for your next opportunity. Dan Schawbel, author of "Me 2.0: Build a Powerful Brand to Achieve Career Success," has tips to help you use Twitter to raise your professional profile and fast-forward your job search.

Create your personal brand

Instead of just jumping in, Schawbel says, "Before using any social network, create a single, unified social-media strategy, so that your brand remains consistent throughout each network that you join, including Twitter." He recommends using the same professional picture/avatar and user name, a consistent bio, and a personal brand statement that explains what you do and who your audience is.

Tweak your Twitter homepage

Take advantage of all of Twitter's tools to make sure your Twitter homepage looks professional. Says Schawbel, "Just like your other social network profiles, your Twitter profile should be completely filled out. This includes your full name, location, a biography, and -- the single most important element -- a single link to a site of your choosing. I recommend directing people to a blog, your LinkedIn profile, or a site that you feel best represents you. If you really want to take your brand to the next level, then a custom Twitter background, which you can make using twitterimage.com or twitterbacks.com, is required."

Build your audience

Don't think you know anyone on Twitter? Think again. "A percentage of your friends, family, and previous coworkers are already on Twitter," he reveals. "You can easily import contacts from most Web-mail programs or find people using Twitter's search engine and invite your network onto Twitter with an email invitation. Then, use Twitter search to locate people in your industry, follow them, and interact with them through a series of tweets and 'retweets' over time."

Start tweeting

Not sure what to tweet about? Tweet what you know, says Schawbel. "The more you tweet about what you know, the more you'll become the go-to person on that topic in the Twitterverse. The key to building an audience is to remain interesting to your current followers so that they retweet your messages and more people discover and follow you. And, again, by constantly following more people, namely the influencers in your industry, and pushing out relevant tweets, your audience will grow rapidly."

Not sure what to tweet about?

Tweet what you know, says Schawbel. "The more you tweet about what you know, the more you'll become the go-to person on that topic in the Twitterverse. The key to building an audience is to remain interesting to your current followers so that they retweet your messages and more people discover and follow you. And, again, by constantly following more people, namely the influencers in your industry, and pushing out relevant tweets, your audience will grow rapidly."

Let folks know you're looking

There are a few ways to alert followers that you're in the market for a new job. "First, revise your Twitter profile to call attention to the type of job you're looking for. Second, customize your Twitter background and add in text that talks about where you're headed in your career. Finally, you can send a tweet after you've built your follower count, which states your expertise and the type of job you're looking for," he advises. To get a job you may have to help others find them, too.

There are a few ways to alert followers that you're in the market for a new job. "First, revise your Twitter profile to call attention to the type of job you're looking for. Second, customize your Twitter background and add in text that talks about where you're headed in your career. Finally, you can send a tweet after you've built your follower count, which states your expertise and the type of job you're looking for," he advises. To get a job you may have to help others find them, too.

Adds Boston-based Schawbel, "If you discover a job lead on Twitter and it's not related to what you want to do, passing it on is an effective way to network."

Searching for a job is not always easy, no matter what state the economy.  When you're on the hunt, your best weapons are your resume and network but this blog is about your resume. This document must emphasize the best of your experience, education, and skills.  Don't let your effort go to waste by having these glaring red flags on your resume.

Fancy Fonts, Glitter, Images, etc

In an effort to make your resume stand out, you may find that it gets thrown out or deleted.  Less extreme attempts such as including image files or using non-traditional symbols or fonts should also be avoided.  While it may be a nice break for a recruiter reading through hundreds of Times New Roman documents, you run the risk of the fonts or images not loading properly.  In fact this happens quite often, and your resume will most likely be deleted or tossed in the shredder.

Listing Your References

Listing your references on the resume is a definite no-no, yet I see it all the time. References should always appear on a separate page, and should only be produced when asked for.  Besides do your references want to be called by random potential employers without warning?  Wouldn't you rather tell your references that someone really important is calling today, have a moment to tell them about the job, and remind them how awesome you are?

Another oddity that won't go away is the line - "References Available Upon Request."  It's understood that you will, so save some space and your potential employer's time. 

It's Written in Full Sentences

We receive dozens if not hundreds of applications -- help us out!  Your resume should be short and sweet and strategically bulleted (more on this on another blog).  You aren't writing a novel, you are trying to catch a skimming employer's eye and prove you are worth a second look -- and an interview.

There Are No Numbers

One of the worst things you can do on a resume is to be vague.  Don't just list your accomplishments in a general way -- have the quantitative data to back it up.  If you exceeded a goal, by how much did you exceed it?  If you created and distributed company performance reports, how many did you do?  Adding numbers concretizes your accomplishments and paints a better picture of what you actually did. Also, make sure you are answering the "how" question.  If you completed five projects this year instead of the expected four, how did you do it?

It Includes the Words "Duties" or "Responsibilities"

When you are writing your current or former job description, focus on your accomplishments, not what you had to do.  As an alternative to "duties" or "responsibilities," flip your tasks into achievements.  For example, instead of being "responsible for the sales team," consider "directed the sales team to beat their repeat client objective by 10%" - numbers define and help paint a picture!

It Lists an Objective

For the most part, objectives sound insincere and, worse, can limit your options.  Let your cover letter do the talking when it comes to why you want that particular job.  Remember, each cover letter and resume should be individually tailored to a specific job -- not just a specific field.  Taking an interest in the specifics of the job makes you look professional and focused and not like you are mass-emailing anyone who might hire you.  Desperation is no more attractive to an employer than it is to a date.

It Contains Spelling or Grammatical Errors

We all know to avoid this one.  It makes you look sloppy and negates the part of your resume that proudly describes you as "detail-oriented."  The best things you can do for a resume is send it to a professional resume service or a professional editor.  If you are a student, your career center likely offers free resume counseling or at least free information to help you fine tune your CV before sending it out.  At the very least, have a friend look it over and check for basic language errors -- spell check just doesn't cut it.

It Lists an Unprofessional Email Address

In a world where email is free, and most of us have multiple addresses, make the effort to have a professional email address.  Keep it simple -- using your name is best. Just make sure you leave the spankme@naughtymail.com for personal use.  Don't use your current work email unless you are self-employed! 

It Includes a Picture

The ONLY time this is appropriate is if you are applying to be a model or an actor, and in both cases, a separate portfolio is preferable.  Including a self-portrait could exclude you for not being serious and may make you appear unprofessional.  Let your skills and experience speak for you.

It Is Too Personal

Resumes should demonstrate how professional you are -- that means the anecdote about the time you met Aerosmith backstage is not appropriate.  That being said, let your personality come through in your resume by including volunteer experience or a (very) short section about your interests.

Social Networking

Most of us live in cyberspace and if you can easily be Googled make darn sure that whatever we find is appropriate.  This is a common sense rule and shouldn't need further explanation. If it does, time to grow up!

The Bottom Line When times are tough, getting a job is a stressful undertaking. Don't sell yourself short. Instead, make sure your resume is the best example of you as a potential employee and before you know it, you'll be employed once again.  

Many mid-late career job seekers may have heard this before - I'm sorry but you're "overqualified." In a tight job market many professionals often consider openings that are less lucrative and less prestigious than their last job. Sometimes employers are glad to hire seasoned workers at a bargain, but more often they dismiss the candidate as "overqualified."

What's behind the overqualified label is an employer's fear that if you're hired, you'll be searching for a better job before you learn where the restrooms are. But if you really want the job, there are ways of countering the perception that you're too good for it.

Re-read the job description

Just because you earned more and had more responsibility in the past doesn't mean you're overqualified for this job. If you meet or exceed every criterion, consider yourself highly qualified. On the other hand, if you don't meet all the requirements, you would be using a new technology you've never heard of, for example, you may actually be under-qualified.

Too many job seekers think, "If I can do this big thing, then surely I can do those smaller things." Maybe they can do them, but it will be a tougher sell.

Fine-tune your resume

A resume is not a document set in stone. You should always rewrite your resume to fit that particular job, and that may mean taking down the tone a notch and emphasizing exactly the skills needed in the new job. To tune your resume and cover letter, also consider the company culture and include relevant words, phrases, and technologies.

Don't lie about your history

It's true that some screeners go right to the salary in order to weed out the "too expensive" candidates. If you were an executive earning six figures, don't say you were a junior accountant earning $40K. Then again, unless you're filling out an online form that requires your salary history, a sin of omission just to get in the door is fine.

Experts recommend addressing salary in a cover letter or interview by giving a wide range of income you would consider, or by saying you assume the company will pay competitive salary for the job.

You want to steer the conversation to the tasks of the job and your history of longevity in other companies and away from dollar figures. If you can explain how previous lateral moves benefited you, that can diffuse their fear you'll be looking for a higher-paying job

Check your sense of entitlement at the door

Are you miffed at applying for a job "beneath" your abilities or ticked at defending a career that began when the interviewer was in diapers? Those attitudes won't do you any favors.
People read energy and attitude. One way to turn around your negative attitude and impress the interviewer at the same time, is to come prepared with incisive questions about the job duties and the company. Show you are in touch and engaged and understand their needs.

Clearly explain why the job will be good for you

"If you hire me now, I won't lose my house" may be true, but it won't impress an interviewer. Have good reasons why it would benefit you personally and professionally. If the position is in your area of passion, you can make the case that even though you had a management job, for example, you want to move away from management. If the job is a good career fit, the employer will be much more impressed.

Make circumstantial evidence work for you

Remember, the employer is looking for a good fit and that means cultural and personal fit in addition to hard skills. Do you have volunteer experience or community commitments that would interest a hiring manager at a "young, hip" company? Emphasize them.

Likewise, your network can speak volumes for your ability to fit in. But make sure those contacts are recent. Referrals from people who haven't seen you in 20 years could give the impression your most productive days are behind you.

What about the age issue?

Career coaches admit age discrimination exists, but it may not be as widespread as seasoned job seekers like to believe. An updated wardrobe, newer hairstyle, or current cultural references could hedge against ageism, or they could make you look silly. Experts agree that the best way to impress a hiring manager is showing how well you understand their immediate problem and how you're the solution. That's true for job seekers at any stage of their careers.

As we are all facing challenges of a tough economy many of us are feeling over worked, underpaid, and short staffed. Maybe you have already put your resume out (only) to be disappointed by little or no feedback. Working and living in a down economy is never fun. It's easy to get depressed and have negative feelings when you're tired from working long hours at decreased pay with limited resources and a reduced budget. You are not alone. Every time I turn on the television or read the newspaper there is talk of war, mortgage crisis, and layoffs. The conversations are heavy, often plagued with a story of a friend or loved one being laid off or having a hard time finding work. It's easy to be drawn into the negativity these days.

The good news is you are employed! Remember, the situation could be much worse. More than ever, forcing oneself into a positive state of mind with an optimistic view versus a pessimistic one is the key to surviving and appreciating how fortunate you are and how much worse things could be.

Some survival tips:

Stay focused on the positive!

Be thankful for your position, for your paycheck, the benefits, and the people. Embrace this work experience and it will provide you with the skills and experience you need to move on to a new more lucrative opportunity.

Dress it up; when you're feeling down put on something that you love, wear your hair differently, re-decorate your office or cubicle. If you do something to stimulate conversation, and personal interaction, you will start feeling more positive and increase your motivation and energy level.

Keep both feet planted, and don't check out of your current position. Long term, it could really affect how your colleagues view you and their perception if anyone were to inquire to them about your performance.

Set a goal; use this time to learn a new skill and take on a special project that will make you stand out.

Keep looking for new opportunities, but don't let it interfere with your current work responsibility. The key to a successful job search is timing and who you know. Don't be afraid to keep networking, but don't obsess over it.

Network: Rubbing elbows with folks within your industry will keep you on the radar and indirectly help in your job search. Your current employer may also benefit from the information you acquire, relationships, and participation. Plus, it gets you out of the office.

Understanding your frustrations is the first step to becoming in control of those things that contribute to your frustrations. Simply learning and determining what you can and cannot control can be very freeing.

If none of these tips help, the final key is to remember that you will not be stuck in this job forever.

I was reading a VC’s blog recently and I found it very interesting.  Basic stuff here and while it is a Football analogy, it applies to everything, especially the companies most of us work for.

A recent NY Times article featured Rex Ryan, rookie coach of the NY Jets-

“In Ryan’s first season as coach, he changed the Jets’ second-class existence through the sheer force of his bold and brash personality. He spoke loudly and often about the talent that surrounded him, until the players believed every word he said.”

and

“Ryan turned one of the N.F.L.’s most clandestine operations in into an open book. The Jets collapsed at the end of 2008 in part because of the tense atmosphere. Ryan changed that, changed a culture, changed the way people felt about coming to work.”

Companies are reflections of the people who lead them.  This also goes for football teams.  If you remember the Jets of last season, they do not compare to Jets I’ve watched in the playoffs.  The difference in the team is so visible. They play with a brash and bold style this year that was not on display with the previous leadership.

Great CEO’s inspire people to work with a bounce in their step and desire to do great work.   This is largely about people skills.  We all know people who have the special touch with people.  They make people laugh, smile, and feel good.  Those people make great CEO’s, leaders, and football coaches.

Great leaders need to have a plan, you need to be close to the product, you need to know where to lead people.  Here's another couple quotes from the Times article-

“Instead of operating from a tower like a dictator, Ryan walks the hallways, massaging egos, cooking up defensive plans.”

and

"Beneath it all, he’s super, super intelligent, like the guy in the movie ‘A Beautiful Mind.’ The things that come out of his mouth are not being shot from the hip. There’s a plan behind all of it.”

So there you have it. The recipe for a great leader is:

1) Knows how to connect to the team and make them feel good about their work

2) Someone who walks the halls and works on the product with the team

3) Has the intellect to make the right decisions

4) Has a plan

The Jet's lost yesterday but Rex Ryan has impressed in his rookie season.  He’s turned a good team to a great team with superb Leadership.

There was an article on one of the major job boards today titled “How to Craft a Candidate Rejection Letter or Email”, which has prompted our blog topic today.

Following up with candidates who have been rejected is essential, and it is a minor detail that separates poor recruiters from excellent ones. I guess sending a rejection letter or email is better than not providing a candidate with any follow up. I don’t believe we are so busy that we can’t take a couple of minutes to reach out to close the loop with those candidates who have been rejected, it’s a matter of providing quality service and prioritizing.

I would prefer not to send out rejection emails, but would do so over not doing anything to close the loop. Moreover, I would prefer to take a few minutes to circle back to the candidate by phone. A rejected candidate from one company might be a treasured candidate for another. You never know who the candidate knows or how dropping the ball with them could affect you long term. If they have had a poor experience it’s doubtful they would trust you with a referral.

My motto is to provide folks with a result be it directly or indirectly. Relationships are the key to our industry, to networking, and to building successful, long-term relationships. More times than not, the results we provide are in the form of career counseling, constructive feedback, resume proofing, and not in the form of an actual job offer.

The article I read today was correct about one thing, and that is not closing the loop with your candidates will damage your reputation and cost you respect. Pick up the phone, make a quick call, and save your reputation.

It only takes a few moments to debrief your candidate and to provide honest, but empathetic and constructive feedback. A few minutes of your time will go a long way in helping you to maintain your reputation, and provide the candidate with a pleasant experience.

We celebrate this day, honor, and reflect on his memory on this important day.