Posts Tagged ‘new business’
Twitter is poised to close a $US50 million funding round that values the microblogging startup at a staggering $US1 billion, according to TechCrunch and AllThingsD. Since closing its last venture round in February, the startup’s value has grown fourfold.
Grown, that is, in the eyes of Silicon Valley’s venture capitalists, slaves to the technology fashions for which Twitter is the leading model: real-time, micro, iPhone friendly and acquisition bait for Google. Twitter might say it’s in this for the long haul—someone is spreading word the company has $US30 million, or most of its last funding round, sitting in a bank account—but the company has proven far more adept at finessing moneyed suitors than in groping for reliable revenue streams.
Twitter’s trend hopping founders, whose project management company began their blogging company, which led to their podcasting company, which began Twitter, seem more likely to seize on the easy exit of the former rather than the long grind of the latter.
Especially when, as these charts of their past investment rounds show, they’re so very good at jacking up their price:
Company: Corkage
Website: www.corkage.ie
Founders: Stephen Dillon
Age: 33
Based: Dublin
Staff Numbers: 4
Date started: June 2009
Tell us what your business does?
www.corkage.ie is a supplier of wines for weddings primarily but also for any special occasion or function. We also provide information about the whole topic of corkage, food and wine matching etc.
Where did the idea for your business come from?
The idea came about after several requests from friends and family for advice on wedding wine. I have been interested and involved in the wine industry for years. Many of the people who conatcted me were not happy with the price and quality of wines being offered to them by hotels, venues etc. They were looking for better quality and more choice and were smart enough to realise that by organising your own wine you can save a small fortune and give your guests better wine.
Have you always wanted to run your own business?
Yes. In addition to corkage I also own an off licence and previously an internet cafe.
What planning did you do before you started up?
I did a lot of research on what hotels were charging for corkage and requested copies of wine lists. As I am already in the trade I had a good idea of what they were paying for the wines on the list. The difference convinced me that there was an opportunity to give people an alternative choice.
How did you raise the money?
Luckily the website did not require much investment. I found a great web developper who got the site up and running very quickly (www.complex.ie). Much of the required infrastructure for the business was already in place from the off licence. Raising money for the off licence is another story!
What challenges have you faced how have you overcome them?
The economic downturn was obviously a major challenge. The whole wine industry in Ireland is under massive pressure at the moment. The government raising VAT last year just as the UK government dropped their rate sent lots of people shopping up north particularily for big purchases like 200 bottles of wine!. This also created an oppoprtunity as we were able to buy lots of liquidated and bin end stock from hard pressed suppliers in the south. This meant we could find great ‘clearence’ lots for our customers. On one occasion we sourced a wine that normally sold for €20 per bottle for well under €10.,
How have you promoted your business?
Most promotion has been done through google adwords, although this can be expensive you do get pretty instant results once you use the right keywords. I have also linked up with a number of wedding websites again this reaches the target market.
What has your growth been like?
Growth has been steady, we started by supplying wine to people we knew, slowly word started spreading and enquiries and visits to the site are growing every week. We also offer free delivery and a sale or return service this has definately helped sales.
What’s the impact on your home life been like?
There has been no major impact on home life as I have been doing long hours in the off licence already. I have enjoyed updating the blog and checking the number of hits on the site. Compared to retail web based business is a dream!
Accounting is by far, one of most important aspects of starting and operating a business. It’s so easy to get caught up in the start up glamorous tasks of designing a business card or choosing a business name, yet without a solid understanding of the numbers you will not survive.
The streets of entrepreneurship are littered with former business owners who ignored the financial side of business only to discover too late they were operating at a loss not a profit. Without a firm grasp of your margins and cash flow, you can price yourself right out of the market.
Over 28% of businesses declaring bankruptcy cite problems with the financial structure of the company as the main cause of failure, according to a Small Business Administration study, “Financial Difficulties of Small Businesses and Reasons for Their Failure.” Take the responsibility of entrepreneurship by learning the basics of accounting.
Hiring an Accountant
Unless you are a numbers wiz or have a degree in accounting, you will need to employee the services of a professional to set up your accounting system. To get a grasp on your small business accounting and financials, should you hire a bookkeeper or an accountant?
Each start up situation is unique but generally most start ups can begin with bookkeeper. A bookkeeper’s services make sense for average start-ups with no plans on building an empire. The bookkeeper will help you start off with a good record keeping system, handle financial transactions, and produce financial statements.
Hiring an accountant makes sense for growing companies, businesses with more complex business structures (such as limited liability companies) and when you add additional employees to your company.
Initially, you may start your business part-time or at home to keep expenses low. The cost of an accountant on a monthly basis can be too much for a one-person business. Either prepare the books yourself or have a bookkeeper involved in the process. Use the accountant for your year-end tax planning.
When you do plan to hire an accountant or bookkeeper, remember to find one you can trust and build a solid relationship with because you need their advice and guidance in steering your business now and in the future.
