Loretta Markevics of Sēd Communications: Five Things You Need To Create A Highly Successful Startup

An Interview With Paul Moss

Brand differentiation has and will always lead to both short and long-term brand consideration and conversion. Defaulting to the startup playbook of the same tactics and messaging approach everyone uses to launch their brands, leads to a templated brand in already crowded categories. Don’t be afraid to stand out. It will pay dividends.

Startups have such a glamorous reputation. Companies like Facebook, Instagram, Youtube, Uber, and Airbnb once started as scrappy startups with huge dreams and huge obstacles.

Yet we of course know that most startups don’t end up as success stories. What does a founder or a founding team need to know to create a highly successful startup?

In this series, called “Five Things You Need To Create A Highly Successful Startup” we are talking to experienced and successful founders and business leaders who can share stories from their experience about what it takes to create a highly successful startup.

I had the pleasure of interviewing Loretta Markevics, Founder of Sēd Communications.

Loretta Markevics is a powerful strategic leader who inspires brand-led cultural movements and brand transformation. She has close to twenty years of global communications experience as an Executive heading agencies including McCann, Grey, Porter Novelli and DeVries Global. She has launched, relaunched and built some of the most well-known and respected brands in the world including Hewlett Packard, Verizon, Samsung, Gillette, Guinness, and McDonald’s as well as beauty brands like Pantene, Aussie, Wella Haircare, Sephora, Secret, Olay and SK-II, to name a few. In 2020 Markevics launched Startup-focused Sēd Communications to apply global-brand learnings to the potential-packed startup world, positioning new businesses for hypergrowth.

During her career, Loretta’s work has been recognized with two Cannes Lions, Jay Chiat awards for strategy, multiple campaign wins from PR Week and Sabre Awards in addition to being recognized as a next generation communication leader by being named as one of PR Week’s “40 under 40”. In her spare time, Loretta volunteers for non-profits focused on promoting women in marketing and PR and mentors budding female entrepreneurs.

Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?

“I grew up just outside of New York City, and always dreamed of being a “big executive.” As a kid, my favorite movie was Baby Boom, where Dianne Keaton plays a corporate executive who starts her own company. That was my dream. I was raised by a single mom with few resources, and hard work and hustle were our family values. I was always working hard and plotting my future.

I received a full scholarship to Fairfield University, where I studied Communications and Writing with the dream of going into journalism. I did not have any connections in the industry, did not have the luxury of unpaid internships and had to make money, so when I graduated I took a temp receptionist job at a big advertising agency. I found my calling there.

I worked my way out of the receptionist chair within six months, and quickly rose through the ranks at large advertising and communications agencies like Bates, McCann and Grey. I was drawn to strategic work, and eventually also oversaw creative teams. My last role before starting Sēd, was a Chief Strategy and Creative Officer role. I had a lot of challenges to overcome, so I am proud of where I am. I like to think Diane Keaton would be too!”

What was the “Aha Moment” that led to the idea for your current company? Can you share that story with us?

“My aha moment happened during the pandemic. I was working as the Chief Strategy and Creative Officer at a global marketing communications agency. The pandemic had hit all of our client verticals pretty hard — namely, travel, fast-casual restaurants, and beauty. We were counseling our clients through unprecedented times, working to maintain their brands and their business. We had recommendations that we felt strongly about. We were working to present strategies that could help brands meaningfully contribute to consumers’ lives during this period. Many companies were paralyzed by their bottom lines and were unwilling to take risks.

Disappointingly, in the face of a crisis many legacy brands felt it was safer to do nothing, than to risk a misstep.

Meanwhile, I saw startup brands coming in to save the day. Video conferencing brands, delivery services, tele-health services, and so many others either got moving or pivoted to do what they could to help fill the void. Even Christian Siriano was sewing masks. I was inspired by the fearlessness of these brands and saw so much of my belief system reflected in these scrappy and bold companies.

I knew I wanted to start an agency someday and the pandemic expedited that timeline. It also answered a question that had been a real barrier for me — “What type of clients would I want to support?” Startups were the answer.

For a while, I had been observing signs of an impending startup rush. My theory was that the pandemic could trigger an explosion of startup activity. I validated my instincts through national research and all the signs were there. As counterintuitive as it may have seemed, the pandemic proved an optimal time to be in branding, advertising and PR for the startup world.

So we jumped into action.”

Was there somebody in your life who inspired or helped you to start your journey with your business? Can you share a story with us?

“My husband started his creative consultancy almost ten years ago. I’ve watched him on his journey and learned a lot about the challenges and the gratification that comes with creating your own agency. Last year, when I shared that I had decided to take the same path, he said, “It’s your turn now. Go for it. I know you’ll kill it.” I incorporated a month later and Sēd was a reality. Sometimes just having one person say, “Go for it! You can do it,” is all you need.

At that time, I wasn’t thinking about the challenges. In fact, challenge is what drove me harder. If starting a business during Covid wasn’t enough, I decided to launch my company while living as a nomad and traveling across the country. I wanted to visit startup cities and breathe their air; live in the proverbial shoes of my potential customer. I also knew I needed a change of scenery and creative inspiration for my agency concept. We rented out our house in Connecticut and hit the road for an entire year in June of 2020.

I say that I launched my company from the front seat of a very packed SUV. We left New York City, and in Philly, I was working on the agency’s focus. By the time we got to Charleston, I was naming the agency Sēd. In Miami, I had a logo and a website. When I pulled out of New Orleans, I had put together my first pitch, and by the time I was in Austin, I had landed my first three clients. All in the first three months.

My husband has been my inspiration to start my business and my co-pilot metaphorically and literally, on the roads of the Southern U.S.”

What do you think makes your company stand out? Can you share a story?

“I believe what makes our agency, Sēd, different is our exclusive focus on startups. We are a startup agency, servicing startups. Talk about understanding your client’s perspective!

Typically, large or mid-size agencies do not take on startup clients because they don’t have big enough budgets, and they need to cover costs over and above salary. Our model, as a virtual agency with flexible staffing, scales for budgets of all sizes without compromising the extraordinary level of talent to service the business. We create precision teams of professionals who swing in and out of the client’s business as needed. Because of each team’s specific experience suited to the client or project, they can problem-solve efficiently and effectively.

We don’t treat well-funded startup clients differently from our self-funded startups. They each get the best. They each get our brand of bold thinking every single day.

We also commit to never launching more than five brands at the same time. Startups have one time to get it right, so we want to give them the attention they need and deserve from our most senior leaders at the time of their launch.”

How have you used your success to bring goodness to the world?

“As a woman in the world of advertising and communications, it isn’t always easy to make it to the C-Suite and especially in a creative capacity where most creative leaders are men. I give back through mentoring. I volunteer my time to projects like 30 Minute Mentors, I mentor alumni from my university, and I have worked with The Grace Institute to help young women to find their unique path to success without compromising their point of view to get there.”

You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?

“First would have to be honesty. I tell it like it is. No one likes to be pandered to, especially clients. They want you to tell them what you think. That is why they hired you.

One of my healthcare clients could always tell if I was withholding my candid feedback. She would turn to me in meetings and say, “Loretta, you have that face like you have something to say,” and I did. She could always rely on me to tell her what I thought, and we had a great relationship because I could also rely on her to listen with an open mind. Be honest and respectful with one another. You are all on the same team and want the same thing…success.

Honesty helps you solve problems faster. Honesty helps you succeed faster.

The second trait needs to be empathy.

This one was a bit harder for me, and I worked on nurturing this skill for some time. I am a native New Yorker, so we tend to be tough. I have thick skin — further calloused by coming up in the advertising world which is fiercely competitive and brutally honest. My honesty, which is a trait that drove much of my success in an industry that valued it, could also, at times, underestimate the sensitivity needed to build a cohesive team. You don’t have to be tough to be a leader. I wish I had softened my edges a bit sooner. Developing greater empathy has enabled me to be more effective as a leader.

A third trait that’s been instrumental to my success is optimism. I believe any problem is solvable with information and inspiration as your most potent weapons. I have an endless well of inspiration and support to draw from. Optimism doesn’t have to be innocent or childlike. I see it as pragmatic positivity — grounded in reality but always shooting for the sky. If you want to do something great, you have to believe something great can happen.”

Often leaders are asked to share the best advice they received. But let’s reverse the question. Can you share a story about advice you’ve received that you now wish you never followed?

“A woman I worked with shared the book “Nice Girls Don’t Get the Corner Office.” I read it when I was 22. There was a part I remember that instructed you not to bring cookies or candy into the office, not to smile too much, and suggested trying to fit into the boys club. My ambition was always to lead a company and get that corner office, so at first, I mistakenly tried to follow some of these rules.

A more informed piece of guidance should have been that there were no rules. That you should be yourself. That if you work to be an intelligent and inspirational leader, the right people will follow you, even if you’re a “nice girl” supplying endless mini chocolate bars in your office — which I currently do happily. What I realized was that fitting in was the opposite of what good leaders did. Standing out in my bold, quirky, and yes, female uniqueness was where I found my strength.”

Can you tell us a story about the hard times that you faced when you first started your journey?

“In starting Sēd Communications I’ve been fortunate to learn a few hard lessons quickly, and fortunate to make adjustments even faster. I am still adjusting every day.

1. No one cares as much as you do, so manage your expectations and let people surprise you. I am lucky to have a team now that will go above and beyond, but that can’t always be the case. However, if you take care of your people financially, let them know how much you appreciate them, and inspire them, they will overdeliver for you.
2. Self-promotion is hard, but necessary. No one can find out about your business if you aren’t promoting it. Invest in thought leadership opportunities, put yourself out there on social platforms, and create a commentary relevant to your industry.
3. Don’t try to boil the ocean. Multitasking is fine but too much for too long leads to multi-meltdowns. Take one thing at a time and ask for help. You will get everything done.
4. Find an outlet — A friend, mentor, or respected colleague who you can gain perspective from when things get tough. Everyone knows how hard starting a company is, that’s why not everyone does it. They will understand if you need someone to turn to for advice or support.
5. When you create goals and don’t reach them, it is okay to mourn the goal and move on. Set another goal and keep going.”

Where did you get the drive to continue even though things were so hard? What strategies or techniques did you use to help overcome those challenges?

“Drive has to come from within. Even as a child, I’d stay with a problem as long as it took to find a solution. That being said, the embers of self-motivation do need a bellows. I have never been shy about reaching out to friends, family, and colleagues (old and new) to get their perspectives, inspiration and assistance when needed.

I’m also a ravenous consumer of business literature. I’m inspired by every book I read. It could be a word, a phrase, or a case study that helps me solve a current problem. Go to the book store or a library, pick up a book, read a chapter, and see what happens. There’s benefit in the books, and in leaving the office for a few minutes. If you are stuck solving a problem , or at an emotional impasse, stewing under fluorescent lights won’t surface a breakthrough solution.”

The journey of an entrepreneur is never easy, and is filled with challenges, failures, setbacks, as well as joys, thrills and celebrations. Can you share a few ideas or stories from your experience about how to successfully ride the emotional highs & lows of being a founder”?

“Ride the highs and lows with both eyes open. You learn from every high and every low equally but certainly celebrate every high. 50% of businesses fail in the first five years, so whatever your achievements, even in year one, celebrate and commemorate them and reflect on why you started. I was interviewed by someone who said that businesses are started for one of 4 reasons: Money, the greater good, passion for the space, or spotlight. My driver is passion, so when I’m down, I constantly remind myself of how lucky I am to be doing something I love. So throw yourself an anniversary party for every year you are in business. Celebrating the highs provides resilience to weather the lows. “

Let’s imagine that a young founder comes to you and asks for your advice about whether venture capital or bootstrapping is best for them? What would you advise them? Can you kindly share a few things a founder should look at to determine if fundraising or bootstrapping is the right choice?

“It is so personal. If you bootstrap, make sure you have a network you can tap into for guidance as you won’t necessarily be able to hire or PAY the experts you need. I’ve seen both approaches work well. If you are fiercely independent, I would say bootstrap. If you want a better chance of success, faster, and don’t care about giving up some control, then try for funding. I believe certain personalities can do one better than the other.”

Ok super. Here is the main question of our interview. Many startups are not successful, and some are very successful. From your experience or perspective, what are the main factors that distinguish successful startups from unsuccessful ones? What are your “Five Things You Need To Create A Highly Successful Startup”? If you can, please share a story or an example for each.

“My expertise is in marketing communications, and the advice I would give to startup brands is within that context.

1) Differentiation.

I decided to focus on supporting startups with my marketing communications agency because they are bold, and open to taking risks and trying new things. The number of startups in the world is increasing quickly. It is to be expected that with the large number of startups being launched each year, that saturation in virtually every category either has or will be reached in the not-so-distant future. The need to tell a story that makes your brand stand out has never been more imperative. Even if your product is similar to one already launched, you can differentiate through how you look, talk, and behave. Brand differentiation has and will always lead to both short and long-term brand consideration and conversion. Defaulting to the startup playbook of the same tactics and messaging approach everyone uses to launch their brands, leads to a templated brand in already crowded categories. Don’t be afraid to stand out. It will pay dividends.

2) Cultural connection.

Today, consumers are looking for brands that have a reason for being that transcends the product. If you can’t answer the question “why does your brand exist in the world?” without referring to your product’s functionality, then you need to think deeply to get an answer fast.

Gen Z consumers have the highest bar when it comes to their expectations of companies and brands. They do not see your desire to sell a product and your willingness to contribute to culture in some way as mutually exclusive. Most consumers today want every brand to contribute positively in some way — from pet food to body shapers, no brand is exempt from this expectation. Start by finishing this sentence: I am (your brand/company) and I am for… What are you for in the world? What are you advocating? It doesn’t have to be political, environmental, or social justice driven; it just needs to serve humankind in some way beyond serving your bottom line.

3) Timing.

I used to think that funding or the founder’s pedigree were the reasons for most startups’ success, but now I believe it is timing. There are moments in time when your product is needed, and consumers and culture are ready for it. They are ready for the change you want to make. You must ensure you have enough evidence to demonstrate that now is that time. Do a little research and speak to people. Get some feedback. Do not let “when your product is ready” dictate when you will launch. Instead, make sure you launch at the right time for your product. Many brands that saw fantastic success during the pandemic happened to be ready for launch and threw their marketing budgets at capitalizing on the right cultural moment to fulfill an immediate need. They have forever changed consumer behavior as a result. Wait for your right time.

4) Iterate.

Testing, learning and iterating are critical. Try new things, new messages, new tactics, new target audiences, new tone. See what combination fits your brand and mirrors not only the original vision for launching, but the ethos of the company you want to create and that cultural contribution you want to be known for.

A recent startup wanted us to create an entire loyalty program for them because their competitor launched one, and they thought they needed one too. We tested it out before moving ahead and realized that a different tactic in the marketing mix was much more effective for their particular target and particular category. I promise if you test, you will learn and also save money.

5) Patience.

I wish there were more written about overnight failures than overnight successes. First of all, there are more of them, and I believe you can learn from failures just as much as you can from successes. Second, the unrealistic expectations inspired by these success stories can push many startups to constantly have a timer hanging over their heads, which can lead to impulsive decision making and rushing to market with subpar ideas or execution. Investors certainly want quick results, but that doesn’t mean everything has to be lightning fast. Efficiency is not the enemy of patience. They can and should co-exist.

One startup I worked with years ago was so focused on getting a specific bottle form out to current customers who were demanding it as soon as humanly possible that they ended up rushing the production. The bottle ended up with a flaw that made the experience so bad, customers didn’t care that the brand had given them what they asked for. Do it right and efficiently.”

What are the most common mistakes you have seen CEOs & founders make when they start a business? What can be done to avoid those errors?

“Navel-gazing is a problem. You may think your idea is excellent, but you MUST listen to the marketplace and to people who challenge you. There is a reason for it.”

Startup founders often work extremely long hours, and it’s easy to burn the candle at both ends. What would you recommend to founders about how to best take care of their physical and mental wellness when starting a company?

“Take a long walk every day and change your venue.”

You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 😊

“I’d love to see mandatory therapy in schools. Every child, no matter their age should have access to mental health services as part of their curriculum. There is no reason why some children should go without therapy because of healthcare coverage gaps or cost of co-pays. Healthy minds and souls without the burden of emotional or clinical challenges, make for stronger future leaders, inventors and dreamers. I can only imagine the number of kids and young adults whose dreams go unrealized because of inadequate access to mental healthcare.”

We are blessed that some very prominent names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch, and why? He or she might just see this if we tag them.

“I think I would have a great time with Bethenny Frankel. I would want our lunch to be as fun as it is informative. I would love to hear highlights from her journey over some Skinny Girl Margaritas and laughs. She is funny, successful and doesn’t take herself too seriously. What I most admire about her is not her business success, but how clear her personal brand is. She is unafraid to assert her beliefs and to stand behind them with action. She is also not all talk. She rolls up her sleeves during a crisis and she puts boots, including her own very fabulous boots, on the ground to help. “

How can our readers further follow your work online?

“I am a frequent poster on LinkedIn and our company sedcommunications.com will be launching a blog and podcast in the near future.”

This was very inspiring. Thank you so much for the time you spent with this. We wish you continued success and good health!