Andrew Wilson is a Seattle-based serial entrepreneur and a principal at Lamonti LLC who has experienced the highs (and lows) of building several companies. He had some success with Strata8 Networks, a service provider that offered cellular services over licensed spectrum for the enterprise, only to eventually realize that there were fatal flaws within the organization. After Strata8 shut down, he started 4thwith, a company that develops social media programs for businesses that want to build closer relationships with their customers. As part of VOXUS's continuing series of interviews with local entrepreneurs, VCs and marketers, we asked him to share some lessons learned during the shutdown process for Strata8, and what we might expect to see from 4thwith going forward.

1) You recently shut down startup Strata8. To pull the plug is always a painful decision – do you have any lessons learned that you could share with other entrepreneurs?

The primary failure of Strata8 had to do with execution, and execution failure falls squarely on the team. Unfortunately the founders did not know each other very well so there was no existing mechanisms for conflict resolution and decision making. As the company grew, we quickly found employees (including founders) who were under-qualified. All the miss-steps that occurred were the direct result of this lack of executive execution. The founders were not alone in their poor execution. The investors and board also bear much of the weight. It was 3 months after initial funding before the board and investors came out to headquarters to meet the team, and the only communication mechanism was between the CEO and the Board. Overall, it was very disappointing. Lesson learned: know who you're climbing into bed with.

The secondary failure of Strata8 had to do with technology risk. We did not have the primary technology product until a year and half after initial funding. This product was manufactured by a third party who we did not have control over. We increased our burn as if the product was going to be ready 6 months after funding and we simply ran out of runway. Lesson learned: focus on the product until you have the product. Then you can build the operational components to sell and support it.

The third failure was market planning. The undelivered product's cost was double what was initially communicated and the market rate for services based on this product dropped significantly. Although this falls somewhat into the technology risk section, it also leads to poor target market selection and poor market needs analysis. Lesson learned: thoroughly understand the product cost, target market and market demand.

2) Your latest venture, 4thwith, is in a totally different market than Strata8. Tell us a little about it, and why you believe the social networking niche still has room for new players.

Everybody on the Internet is suddenly a Social Media consultant or expert. The problem with almost all of them is they tend to believe Social Media is a marketing cure all. Social Media is simply one tool in the marketer's tool kit. Yes, it is efficient marketing if executed properly and if executed as a component of a well thought out strategic marketing plan. As I speak with clients, they are interested in Social Media, but they are more interested in growing their brand, their sales pipeline and their revenues. Having one arrow in your quiver does not make you an accomplished archer. I've also noticed many of these Social Media consultants are trying to sell (pimp) rather than establish meaningful dialogue and hence a true relationship with their customer. There is still room for new players because the existing players aren't true marketers.

3) You are a huge proponent of business networking. Local to the Seattle area, what groups have you found the most useful for making connections?

Business networking is a delicate issue. Is getting a business card truly networking? Is grabbing a beer after work going to establish a relationship? I've been disappointed with most organized networking events. My networking philosophy is based on "pay it forward." Meaning, try to help out anyone and everyone you meet. Try to make them successful. In my experience this builds true relationships. Then utilize these relationships to meet new people. It's interesting to keep track of who appreciates a giving relationship and who simply wants to take. Probably the best Seattle groups are the investor groups such as the Keiretsu Forum. Investors are entrepreneurs, understand the value of relationships and know how to get things done. I refuse to attend the breakfast networking groups where all the legal, insurance and banking folks are trying to pimp their wares.

You can reach Andy at Andrew (at) Lamonti.com.

Tags: andrewwilson, strata8, lamonti, 4thwith