How to turn business cards into your high-powered contacts

It helps a lot to have a point of contact at a firm. An insider can coach you through the interview process and gives tips on who you'll be interviewing with. They can also put a good word in for you to HR. When you are in the "maybe" pool, having a contact more often than not can make you get the offer. It goes without saying that the odds tip in your favor when you have a contact.

We've had posts on how to collect business cards at networking events and informational sessions. Remember to have a casual conversation and try to get to know each analyst or MD beyond work. If given the chance, talk about where you grew up, where you like going on vacations, what music you listen to, any interesting books you read lately. MDs don't forget it students that have shared interests.

To illustrate, a politics student at an East Coast university talked with an alum, an MD at a bulge bracket firm, about recent elections. The student had worked on the Obama campaign, while the alum had worked on a campaign one summer as an undergrad. The alum mentioned a fundraising event for a candidate, and invited the student to attend even before the student had followed up. The student attended, had built a strong connection with the alum, and got to learn about the alum's job and the industry as a whole. This was the student's "way into" banking.

What should you take away from this?

At informational sessions on campus or at networking sessions, there are always a huddle of students around each analyst or MD. Do have your questions prepared, and also listen in on what they are saying to other students. If the MD and analyst are alums, they are bound to talk about what it was like being an undergrad -- what clubs, teams, classes they were a part of -- and you can strike up a more personal, enjoyable conversation based on the alum's interests.

Maintain professional presence and talk as if you would to a professor you know well. By striking the right balance between professional drive and being personable, you stand a greater shot of landing your dream job.

A non-target success story

This is a guest post by an investment banker at a bulge bracket firm. He attended a non-target school in the mid-west, where no firms come to recruit. Here's his story on how he took a spot at a prestigious firm away from a target school kid.

Hope 2010 is going well for everyone. My first week of the new decade has been packed and hectic at work. It looks like I'll be in the office this weekend--such is the life of a banker!

I started at my bank in June 2008. My journey here was a long one, and I'd like to share my tips and tricks into the industry.

I grew up in the mid-west and decided to attend a public university near home. I had no clue what investment banking was at that time. And it isn't something on the radar where I went to school. There were no info sessions and as far as I know few, if any, who went into banking. That means I didn't have a network base to tap into to learn more about it.

It wasn't until I took a class my junior fall on Investments that I seriously thought about finance. My professor was a trader at a hedge fund for the past 15 years and quit in 2005 before disaster hit. I did well in that course and was ambitious enough to believe I could do it as a career.

I went to my professor's office hours and did my due diligence on trading as a career. I asked him the hard questions - why he had left and if he regretted doing trading. It sounded like a great way to apply my finance knowledge, and make a killing for a few years.

I asked my professor for any contacts he had, for anyone who wouldn't mind my getting in touch. I started reading the Economist, Deal Breaker, and industry classics (Liar's Poker, Barbarians at the Gate), so that I really knew what was going on in the markets.

I got on the phone with traders at hedge funds in Chicago. Because I came from a non-target, the trader did not expect me to have ANY idea what trading was, much less what was going on the markets. He asked me what I thought would happen with a couple indices in the next year and in the next five years. I didn't know what the indices were (one was a credit derivatives index), but I responded by explaining the market dislocation for agency securities. The trader held the same exact view--he was impressed, and put in me in touch with recruiting at the firm.

I was lucky to know how to respond to that answer -- it was my big break. I ended up doing an internship in Chicago that summer, learning anything and everything about the markets. I rotated through three product trading desks, and got high reviews.

I went in an hour earlier than anyone else and left an hour later than everyone--I worked my ass off! I joined professional industry groups and other networking groups for traders. I went to at least one event every weekend to meet others in the industry. My advice is to be vocal and talk to as many people as you can at these events--I am not an extremely extroverted person but realized I needed to find other people to learn the ins and outs of different firms and positions. By the end of the summer, I'd been to around 20 networking events and had met around 130 people, a couple of which became my good friends.

As I went into senior year, I had a full time offer in hand from the hedge fund. I enjoyed and did well in trading. But given that I was a "late comer" to finance, there was a lot in finance I knew nothing about -- banking, asset management, prime brokerage, and even financial consulting.

I updated my contacts on how I was doing throughout the summer and at the end of my internship, asked if they would be up for meeting for lunch on a weekend or for coffee during the week. I ended up meeting 15 people, and they agreed to forward my resume and cover letter to the right people. I was open to pretty much any position, and played up the projects I worked on at the hedge fund. The people meeting with me knew that I could handle really quantitative work and also work with clients on the sales sides. They sent my resumes to a variety of positions -- these firms included boutique banks, a risk management firm, event-driven hedge funds, and bulge bracket firms. I cast a really wide net, because at the very least it would be a networking opportunity for me.

I didn't waste any time and started preparing for informational interviews. This means knowing the news, brushing up on my finance knowledge, and asking my contacts for advice on what I should do to prepare. I knew I would face very technical questions off the cuff--and that I would need to answer them without fail to even have a shot. I went to Chicago two times once school started, and also went on my own to New York for a day. This was all on my own time and with my own money.

I got used to talking with senior people during interviews, and was very familiar with my resume. I only had one major finance experience and had to really sell myself based on that. I also highlighted my persistence and discipline in wanting to work on Wall Street. When it came to the real interviews, I had my story down cold. I wasn't nervous and knew how to make an argument in response to any question.

In the end, I interviewed at 8 places and had 3 offers--one at a hedge fund, one at a boutique, and another at a bulge bracket. I decided that starting in New York and at a large, name-brand firm would do the most for me career-wise. I love trading, but again was also excited at the opportunity of doing banking.

So that's how I got to where I am today.

How to break in from a non-target, for those with gaps in pedigree and GPA

Bulge bracket firms and other ibanks tend to recruit at a sample of target schools.

That means that you can spend 100 hours on your resume, cover letter, and interview preparation and be rejected after a 30 second scan of your application. All because you don't go to a target school.

If you:

• don't go to Harvard or Wharton or another top school
• don't have a 3.5+ GPA
• don't have prior finance/consulting experiences, and
• don't have connections to the industry

you can still break into finance and consulting.

1. Attend every information session you can and make a positive impression.

If banks and consultancies don't come to your school, go to your friends' schools and nearby schools where they do recruit. Sessions are usually packed so go early, try to speak with anyone at the firm who is free -- and keep the conversation casual. If you build up that rapport with them, they often ask for your name. At that point, introduce yourself more formally and ask what the application process is for you.

They will tell you to apply online or whatever, but that is bullshit -- honestly, the firm rarely chooses people who only apply via the website (there are easily over 20,000 applications). What should you do?

2. Get to know the analysts and firm representatives and get the real scoop on how you can get in.

Analysts are responsible for reviewing resumes. They are also the youngest people at the firm and the easiest to relate to -- which means you should take the initiative to talk and hit it off with them.

Be persistent but not annoying. Talk to everyone you can, be aggressive in having a few talking points and good questions (not those "what is a typical day like?" questions). If you stick around and show your commitment, and have interesting things to say, it's likely that more than one person will recall your name and they are more likely to give you a shot when they review resumes.

Collect business cards and follow up -- I maybe get one or two students, if that, email me questions and call me to talk more about the position. The worst case scenario is that he or she doesn't email you back. But it's the analysts' responsibility to talk to interested students from info sessions, and they hand out business cards so that students can follow up. So do it.

Even then, it takes well-thought out questions and a certain type of initiative -- while being likable -- for me to push for someone to get an interview.

3. Once you have a network, set up informational interviews and coffee chats.

There is only so much you can do over the phone or via email to get yourself seriously considered.

After a phone conversation or two with an analyst/associate/vp or MD, raise the possibility of getting coffee and talking more about the firm.

At that point, if they are up for it, set a date and meet in person at the office or somewhere nearby. Afterwards, if the banker/consultant is impressed, he may introduce you to more people at the firm. That's a GREAT sign that you'll get at least an interview. If you're likable, and the bankers / consultants think you'd be a fun person to work with, they'd take you over the typical target kid.

We had 8 interns in one industry group last summer -- 2 interns were hired from non-target schools, and had this plan of attack to get an offer.

They had a low 3.0 GPA, but made up for it with outside of school involvement. They also were the most aggressive in networking, setting up informational sessions, and following through in talking to the contacts they made to be successful in the recruiting process.

In the following post, we'll have a guest writer -- a non-target graduate who will give his inside tips on how he became a banker at a bulge bracket in New York.

How to crush the resume and cover letter

You need to nail the cover letter and resume to even have a shot of becoming a trader/banker/consultant/what have you.

Many aspirants try to "stand out" from the competition by getting creative and informal. I've seen this happen before -- let me tell you, 99.9% of the time they stand out for the wrong reasons.

Here are some humorous examples:

• Applying to a management consulting firm, a junior at a non-target school sent a PowerPoint deck -- each slide telling a different section of his resume. It was 20 pages -- or, in other words, 19 pages too long.
• Applying to a bulge bracket firm, one applicant applied for a sales & trading internship. His cover letter was filled with a list of trading ideas.
• At another bulge bracket firm, an applicant for a full time investment banking position talked about he worked 2 days non-stop on a group project at school--he used this experience as a qualification for the job. (even though this may have been true, the cover letter is not a space to talk about long hours of an IBD analyst)

Finally, here is what a cover letter should do:

COVER LETTER

A cover letter is meant to highlight your strengths and steer the recruiter to rally for you. A cover letter is compelling when it tells a marketable story -- it should pitch why a firm should hire you. At the same time, it shouldn't be pretentious and boastful -- one of the worst things is if you come off as a tremendous tool. Recruiters can sense that and won't think twice about not offering you the interview or job, regardless of how stellar you think you are.

From the firm's point of view, a cover letter is used to gauge:

1. how articulate the candidate is -- some candidates are outstanding academically, but what if you can't talk or present yourself well?

2. how polished and crisp the candidate is -- if you have typos and can't be concise, do you think the firm would entrust you with work they will show to clients?

3. the candidate's true interest in the job and the firm -- especially in later rounds, recruiters will refer back to the cover letter to make those tough decisions on who really researched the firm and is the best fit in their corporate culture

That being said, what should a cover letter have to be successful?

An excellent cover letter accomplishes three things, all within the space of one page:

1. Why are you excited about working at Firm X?

2. Why are you set on being a banker/consultant/trader/etc?

3. Why should Firm X hire you?

Though this seems like an easy task, most applicants give generic, trite, and overused answers. Successful applicants have done the research--speaking with people at their desired firms and reading up on the industry--to write a personal and memorable cover letter.

Which brings me to my next point: exceptional cover letters, by themselves, do not mean that you will land a job. Cover letters need to go hand in hand with a strong resume. Without a strong resume, it's difficult to write a strong cover letter.

RESUME

The resume, like the cover letter, should tell a compelling story on why the firm should you. Recruiters often spend 30 seconds to a minute looking at your resume--what is the message and takeaways you want to get across?

• High quantitative ability -- especially for liberal arts majors
• Strong sales / interpersonal skills -- which matter a lot more as you become more senior and take on more client responsibilities
• Past achievement in a team setting -- working in a professional firm is not like writing an essay in the library alone for class; be prepared to show how you thrived and led a team in the past
• Leadership and engagement on campus -- active and involved student leaders tend to do well in a professional setting, taking charge of projects and capitalizing on opportunities
• Record of strong results in whatever you have done -- to land a job at a selective firm, you need to convey that you've driven and successful

The more of these you have, the better.

Some more technical details on the resume:

• Don't pack on everything you've done: pick and choose the most important experiences that highlight your strengths
• Include your GPA. And many bulge bracket firms will also request to see your SAT / ACT scores, or GMAT. Without these, firms will often throw out your application.
• Focus on results, not the process. No one cares if you spent your days doing data entry, compiling a PIB, answering sales calls. How did your efforts lead to actual contributions? That is what recruiters are interested in knowing.

Questions on summer recruiting, deciding between offers, and more

Here are some questions from our readers:

1. I am in a 3 year program instead of a regular 4 year program due to credit exemptions from AP course. Does this disadvantage me according to IBs?

It's a disadvantage in terms of not having as much time for internship, extracurricular, and other life experiences to speak to. But if you already have a strong resume, it shouldn't be a problem. We know of many students who landed a position at JPMorgan, Goldman, and Morgan after 3 years of study.

2. Due to a rough start, I have a relatively low gpa (3 - 3.5) but it is on an upward trend and I am sure that I will be able to reach above 3.5 by the end of my degree (previous academic achievement in high school and before shows this). Should I apply for a summer position now? Or wait till my final year to apply for a FT posiiton.

Maximize your chances of getting into banking - apply for the summer and full time positions. Going through summer recruiting is good practice for FT recruiting -- you get to know alums and recruiters who will serve as resources. You also get the opportunity to learn about any weaknesses or areas of improvement -- ask your interviewers for feedback on what you could've done better. That will help you with the end goal of landing a full time job.

3. I interned at a bulge bracket after my sophomore summer and have a return offer this summer. I'd like to try another bank next summer, but I'm concerned that I would burn the bridge with the bank I worked at last summer. Do you think this is an issue? I don't want to go to another firm and then risk having no FT offers.

We were also in this situation before. We can say that at one BB, after turning down the junior summer offer to return, you can keep in touch and reiterate your interest in full-time opportunities. If you stay in contact with them, you have a high chance of going through accelerated full-time recruiting. Banks always interview more applicants at the end of the summer.

It's highly unlikely that you would receive zero full time offers if you've landed summer positions at two bulge brackets. Especially since the market is looking to be no worse than what it's been the past year, if you were able to land selective summer positions two years in a row, you have great credentials for full time recruiting. As an aside, we know former summer analysts who didn't receive a FT offer from GS/MS and still landed positions at other bulge brackets/boutiques.

So if you are set on wanting to work at another bulge bracket for the summer (which is always a good thing for undergrads -- beyond the technical knowledge you get to expand your network), there is some risk but tremendous upside from having an added experience under your belt. In the worst case scenario you will have to go through FT recruiting, but it's worth it if you want to find a firm that is a better fit for you (assuming you are not challenged / not satisfied with your current offer).

Good luck!

Other finance internship/externship opporutnities

Here are some other opportunities you undergraduates should definitely take advantage of if you want to break into banking.

UBS EXTERNSHIPS

UBS has a "Discovery Days" program for those completing their sophomore years. The deadline is usually around early February. The program is about 3 days, and let's you see the different divisions of an investment bank (from the trading floor in Stamford, CT to Investment Banking networking on Park Ave in Manhattan). This program is a feeder into the UBS summer analyst program and the full-time hiring.

UBS also has a one-day "Freshman Frenzy" program for those currently in their freshman year. It's a nice exposure program -- mostly for networking. UBS also has a Summer President's Program, and having contacts and participating in the Freshman program will give you a huge leg up later on.

BARCLAYS

Lehman used to have a spring break trading internship to attract more diverse candidates at the firm.

Barclays has since started other programs encouraging a more diverse pool of candidates.

This includes the newly launched IBD and Capital Markets "BOOT CAMP" - a look at the firm aimed at juniors.

Barclays also has a sophomore rotational program, which allows interns to see IBD, IMD, and Capital Markets.

Spring Term Internships at Bulge Brackets

Deadlines for summer internships and other internships are right around the corner.

We've been getting requests to write about non-summer internships at bulge bracket banks. Our resume reviewers have been through the recruiting process for several of the bank programs. This is the first post about internships you'd be interested in! As always, let us know if you want to hear about the recruiting process and experience of a particular internship.

GOLDMAN SACHS SPRING SECURITIES PROGRAM

One of the most selective and popular ones is the Goldman Spring Securities program during spring break. This one was launched about 4-5 years ago. There are about three rounds of the program - depending on when spring breaks falls for each school. Each round has about 8 to 12 interns, for a total of 24 to 36 participants. In the past (2007-8), students came from Harvard, Princeton, Yale, Stanford, Brown, MIT, UChicago, Columbia, Dartmouth, NYU, and Cornell.

HOW TO APPLY

GS specifically recruits at the above schools. After one round of on-campus interviews at the above schools, they made offers.

If you don't go to the above schools, you can still apply online via their website. Before anyone asks, we didn't know of people who got into the program without the one round of on-campus interviews. So if you don't go to the above schools, I'd suggest getting in touch with a recruiting contact who can field questions about applying for the program.

The interview was not incredibly technical in nature. It was most, if not all, fit. Of course the interview questions will vary depending on one's background, but on the whole, our impression was that this program is seen as a way of attracting high-achievers before junior recruiting. More than 75% didn't have prior finance experience.

HOW TO DO WELL

This advice applies to securities internships in general:

1. Ask LOTS of questions. As you can only learn so much in one week, it's most important to be interested in all things finance - ask insightful questions!
2. Read the WSJ, NYTimes business, DealBook, and other resources. A lot of doing #1 well is by following current events - and asking intelligent questions when you're doing desk rotations.
3. Jot down questions and thoughts after each day's sessions and prepare questions for your next day's rotations. Have something substantive to say at each moment throughout the day - it will make you stand out.
4. Be friendly to the other interns. You don't have to be best friends, but it doesn't help to make enemies either (no matter how stiff the competition is). Each intern rotates through the same desks in a different order - and it's ideal to have a sense of what to expect if you can compare thoughts and experiences with others prior to your turn on a specific desk. Also, there isn't a quota on the number of returnees to the bank for the summer, so you and others can both do well by being strategic. Also, there is an end-of-week team project. The teams that did presented well had good team-players; those with big egos did not receive a return offer.

WHAT YOU CAN GET OUT OF THE PROGRAM

• Usually 1-2 interns were asked to go back for the summer after their sophomore year to a certain desk. These interns hit it off really well with a certain desk and were placed on that desk for most / all of the summer. This goes to show that fitting in with the culture is a huge deciding factor in converting the spring internship to a summer offer.
• A few interns received summer offers for the summer following junior year. These students generally had a good grasp of finance and fit in well with the securities team, but still had a few developmental areas (learning more finance, taking accounting, etc.)
• Most interns received a guaranteed final round interview for a junior summer internship. This is an accelerated interview prior to the traditional recruiting schedule. These interns really had to get up-to-speed on general finance knowledge.
• Regardless of the outcome, the spring internship is a great opportunity to make connections with senior people. We know of interns who received an accelerated interview -- they kept in touch with VPs and MDs, who helped them prep for the final round and vouched for them with HR. Those who used their connections ultimately landed the offer.