If
you want to find Michael Tessler most days,
look on a plane. As head of Gaithersburg-based BroadSoft, Tessler
is spreading word of the
company’s VoIP application software throughout the world. Selling
its product to foreign customers saved the
company, which was launched in 1998, from the telecommunications
downfall a few years ago when
competitors were dropping out left and right.
The company went to Asia and Europe to sell its VoIP application
software, which allows
mobile carriers to offer VoIP calling features.
The strategy helped it land customers like Korea Telecom and Telefonica.
But it also
has a healthy list of U.S. customers such
as BellSouth and Verizon. Going abroad also recently helped the company
land at No. 99 on Deloitte & Touche’s
Technology Fast 500. With $60 million in
venture capital and 225 employees, BroadSoft grew revenue 2,171 percent
from 2001 to 2005.
Tessler’s leadership also got him noticed by Ernst & Young,
which named him a finalist in its Entrepreneur
of the Year competition this year. Tessler,
45, came to the U.S. in 1998 to launch BroadSoft
with Scott Hoffpauir after living in Montreal
most of his life. He recently spoke with
Bisnow on Business about the importance of buzz
and the challenge of hiring employees abroad.
Tania Anderson for Bisnow on Business: You know about buzz—you’ve been getting a lot of
it. Does it matter?
It helps us recruit the best people. People like
to work for companies that are moving quickly. It helps to have global
buzz in the countries where we’re trying to sell. Customers know
about us and people feel comfortable buying products
from companies that are garnering press.
How hard is it to run a telecom companies
these days?
We certainly have a challenge of growing an
operation and hiring people all around the world to work with our customers.
Our
challenge every day is to recruit and retain
the best talent. We’re
operating in 30 plus countries.
How many employees do you have abroad?
Lots. More than half. We have 50 people
in an R&D facility in Montreal, a dozen in Sydney and then we have a dozen
sales folks in Europe and a dozen in Asia. We
just opened a technical assistance center in Belfast. We have a joint
venture in Bangladesh.
How do you go about finding employees
in other countries?
You do local media and we’ve done quite a bit of that in Belfast.
You use local resources to recruit. You try to find some leadership to
run the operation. We have a senior management team that is accustomed
to managing teams across the world. We’re accustomed to dealing
with local cultures. What’s the best business lesson you’ve
learned in your career?
When you hit the nuclear winter, learn
how to drink. (Laughs.) Become well acquainted with
premium vodka. Based on our experience of starting
something in a bubble and living through the
tough times and coming out of that and having
a pretty good company, I would say the important
thing is to stay focused. A lot of people get
panicked and start losing focus.
How did you keep your focus?
When you’re in a tough market, it’s hard to focus because
you get hungry. When you’re growing, you sometimes have too many
all-appealing choices on the left and right and you have to be careful
not to distract yourself. We’ve tried hard to stay out of things
that would take us in directions we never wanted
to go.
What was the toughest period in your
career and what did you do to get through it?
The toughest period was taking this company
through the telecom meltdown. It was extremely difficult to sell anything.
If
you had a great product or a bad product, it
didn’t matter. Customers
weren’t buying anything. It was difficult to fund the company,
it was difficult to keep employees motivated.
It was hard to continue to generate some forward momentum. But we found
ways. For example, we
started to spend and create a set of opportunities
in Asia. We spent a tremendous amount of time face to face with customers
far away. As
the North American market returned, we were then
able to capitalize on that.
Did you ever think it would all fall
apart?
Oh, yeah. It was very close. A lot of really
good companies, employees, ideas and products
just vaporized after the bubble burst. Some of them were bad companies
with bad ideas and some
were really good ideas. They just couldn’t make it through the
cycle. Being a technologist by training, it’s always hard to see
someone’s invention go nowhere. It was tough for ourselves but
it was also difficult to watch other entrepreneurs
suffer.
Were you exposed to technology growing
up in Montreal?
Nope. I didn’t grow up with any technology. We had Saturday night
hockey.
How did you end up here?
When we started BroadSoft, Scott and I were
looking for a location. We did what we figured was the midway
point between his
home in Louisiana and my home in Montreal. It
also turned out at the time to be an area where we could recruit
good talent in a fairly healthy
telecom market. Customers were also here in the
region. One of our largest is XO Communications. It’s been a really good place to start and
grow a business.
EVENTS
Tech Council of Maryland’s High
Level Recruiting Panel, Nov. 14
730-930 AM, Bethesda Country Club. More
info.
Tech Council of Maryland’s “CIO and
CTO Live!” Awards, Nov. 15
530-900 PM, Bethesda Country Club. Honoring
the most influential IT leaders in the mid-Atlantic. More
info.
NVTC’s Annual Dinner, Nov. 16
500-915 PM,
McLean Hilton. Former Hewlett Packard chief now author Carly
Fiona tells
all.
Plus, the region’s most celebrated night of networking.
More
info.
NVTC’s Maximizing and Economizing
Legal Resources for a Growing Business, Nov. 21
730-930 AM, 2070
Chain Bridge Road, Vienna,
Va. More
info.
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