2009 – So far so good!
Q1 2009 is done and dusted. Despite the misgivings and the general economic environment we had a good Q1, posting an increase in sales over Q1 ’08 of just over 50%. As we account in GBP the weaker pound helped (we get more pounds for the same amount of dollars) but the story of the quarter is basically one of continued growth.
In terms of marketing and conferences we had a busy February attending the DIA EDM conference (which as always is a very good conference for us) and the Qumas User Conference – always a lot of fun! So in many ways it's just more of the same. Whilst the conferences do generate new leads for us we are also benefiting from having been in the market for so long – PleaseReview was launched in January 2005. We have started getting opportunities from existing users moving companies and introducing PleaseReview to their new companies. This is wonderful as they come with their own in-built references.
We are continually examining our marketing mix for efficiency and, for example we have adjusted our Google Adword mix as we found that certain generic key words were costing a considerable amount of cash (ie generating lots of clicks) but not generating any ‘stickiness’ on the website. We are also experimenting with other on-line advertising. Dilbert.com is a site that almost all of us view for our morning ‘fix’ and therefore it seemed sensible :~)
On the product front, are busy working on version 4 and, theoretically, we went code complete on 31st March. What we actually mean by that is we went code complete for the major ‘high risk’ stuff and are continuing development of peripheral enhancements whilst the main testing is started. Obviously at this stage there is a certain amount of bug fixing ongoing but, we are sufficiently advanced that, we can be confident of releasing v4 at the end of June as planned. What will be released is still open to debate as the scope of the peripheral enhancements we are able to include is wide open and will depend on the level of bug fixing required. There is a fine balance between enhancements, testing and documentation to ensure that we maximise our development team’s time whilst delivering full tested and documented software to the quality our clients expect.
One of the key aspects of v4 is a re-worked look & feel. We wanted to maintain the pedigree whilst at the same time addressing some of the user interface issues and the slightly dated look we were beginning to acquire. We did consider briefly commissioning UI consultants but soon discounted that idea for an internal led approach. One of the reasons I wasn’t keen on the consultant led approach wasn’t so much the cash (although conserving cash is always a good thing) but the fact that when I was invited to participate in the Beta trial of a software product last year, the user interface was, in my opinion, over complex and not at all intuitive. UI design is definitely an art form. Not only is some of it a matter for personal preference but it's amazing how little effects can make big differences. What is also amazing and somewhat frustrating is how much time UI design can suck out of the team.
One of the books all those involved in UI input have read is Don't Make Me Think!: A Common Sense Approach to Web Usability
by Steve Krug. The title says it all really and that has been our aim. There is no ‘right’ way to do something. The key is simplicity and consistency. It will be interesting to get the feedback when we let the new UI loose on our users.
This quarter, I’ve picked up on a couple of interesting articles related to IT start-ups and company building.
The first article is “The Web Startup Surgeons” by Micah Elliott. This was picked up by a member of the team and circulated for comment. I think we are all agreed that the thinking behind the article is correct – there are a lot of hats which need to be filled. However, we (I and the team here) don’t really agree with the combinations Micah put forward and could spot an obvious gap. Admittedly, it does depend on where a company is in the cycle but as soon as it starts generating revenue, a financial person is mandatory. Someone needs to look after the cash, issue invoices, and generally chase clients for payment – not all clients pay on time! Some even lose invoices! Shock horror!
Also, I think lumping marketing together with customer support is less than ideal. The primary purpose of a commercial business must be to get and keep customers. The term ‘customer support’ implies the existence of customers. So how do you get them? You do not simply publish a ‘better mousetrap’. Sales and marketing is a critical part of the business. The bottom line is that multiple hats must be worn but the key is to have a good team of people whose combined strengths not only form a winning team but also address the critical three elements of any business, namely Sales and marketing, building and delivering the product, and the finances.
This brings me onto the next article which is entitled “Words of advice for hard times”.
The subject of the article is Ben Goss is the co-founder and chief executive of Distribution Technology, which is apparently "a fast-growing developer of financial advice software for financial institutions" and his second start-up. The interesting bit is at the bottom of the article with the subtitle “A veteran reveals his do's and don'ts for software entrepreneurs”. The dos and don’t are:
*Do your research. Understand the market and understand your customer's needs. Know how you are going to make some money.
*Do try to fund as much as you can yourself - particularly at this time. Go as far as you can on your own means, but if you think you are going to need capital, get it before you really need it - you will receive a much better price.
*Do locate where you can benefit from talent and facilities - clustering is very important.
*Don't be tempted to make money any which way - avoid being distracted by revenue opportunities that take you off course.
*Don't hire just anybody. It is a big temptation when you need people, but do not lower the bar on recruitment. If you are serious about expanding a business, you must seek out the right talent.
I have to agree whole heartedly with 4 of his 5 points. The only one I’d change is the location point which I’d adjust to place the emphasis on locating somewhere you can benefit from your connections. For example, we are based in the South West of the UK and everyone in the UK office has worked together or for the same company at some stage in the past. We are all either ex-colleagues or connections of ex-colleagues. When we set-up the Malaysian office we were able to benefit from my connections in Malaysia to source legal advice and premises. Once we had our team leader we were able to benefit from his connections to recruit.
However, the key bit of advice Ben gives is his last point. It is fundamental - don’t hire just anybody! At CDC (my previous start up) we went through a period of rapid expansion and there was considerable pressure to get ‘bums on seats’. This led to hiring mistakes and, as I have mentioned in earlier posts, they cost time, money and emotional stress. A chain is only as strong as its weakest link. Better not to hire than have a weak link.
So as we move into Q2 I’m pleased to say that sales are continuing at a steady pace and there is great interest in version 4. It going to be an exciting quarter.
In terms of marketing and conferences we had a busy February attending the DIA EDM conference (which as always is a very good conference for us) and the Qumas User Conference – always a lot of fun! So in many ways it's just more of the same. Whilst the conferences do generate new leads for us we are also benefiting from having been in the market for so long – PleaseReview was launched in January 2005. We have started getting opportunities from existing users moving companies and introducing PleaseReview to their new companies. This is wonderful as they come with their own in-built references.
We are continually examining our marketing mix for efficiency and, for example we have adjusted our Google Adword mix as we found that certain generic key words were costing a considerable amount of cash (ie generating lots of clicks) but not generating any ‘stickiness’ on the website. We are also experimenting with other on-line advertising. Dilbert.com is a site that almost all of us view for our morning ‘fix’ and therefore it seemed sensible :~)
On the product front, are busy working on version 4 and, theoretically, we went code complete on 31st March. What we actually mean by that is we went code complete for the major ‘high risk’ stuff and are continuing development of peripheral enhancements whilst the main testing is started. Obviously at this stage there is a certain amount of bug fixing ongoing but, we are sufficiently advanced that, we can be confident of releasing v4 at the end of June as planned. What will be released is still open to debate as the scope of the peripheral enhancements we are able to include is wide open and will depend on the level of bug fixing required. There is a fine balance between enhancements, testing and documentation to ensure that we maximise our development team’s time whilst delivering full tested and documented software to the quality our clients expect.
One of the key aspects of v4 is a re-worked look & feel. We wanted to maintain the pedigree whilst at the same time addressing some of the user interface issues and the slightly dated look we were beginning to acquire. We did consider briefly commissioning UI consultants but soon discounted that idea for an internal led approach. One of the reasons I wasn’t keen on the consultant led approach wasn’t so much the cash (although conserving cash is always a good thing) but the fact that when I was invited to participate in the Beta trial of a software product last year, the user interface was, in my opinion, over complex and not at all intuitive. UI design is definitely an art form. Not only is some of it a matter for personal preference but it's amazing how little effects can make big differences. What is also amazing and somewhat frustrating is how much time UI design can suck out of the team.
One of the books all those involved in UI input have read is Don't Make Me Think!: A Common Sense Approach to Web Usability
by Steve Krug. The title says it all really and that has been our aim. There is no ‘right’ way to do something. The key is simplicity and consistency. It will be interesting to get the feedback when we let the new UI loose on our users.This quarter, I’ve picked up on a couple of interesting articles related to IT start-ups and company building.
The first article is “The Web Startup Surgeons” by Micah Elliott. This was picked up by a member of the team and circulated for comment. I think we are all agreed that the thinking behind the article is correct – there are a lot of hats which need to be filled. However, we (I and the team here) don’t really agree with the combinations Micah put forward and could spot an obvious gap. Admittedly, it does depend on where a company is in the cycle but as soon as it starts generating revenue, a financial person is mandatory. Someone needs to look after the cash, issue invoices, and generally chase clients for payment – not all clients pay on time! Some even lose invoices! Shock horror!
Also, I think lumping marketing together with customer support is less than ideal. The primary purpose of a commercial business must be to get and keep customers. The term ‘customer support’ implies the existence of customers. So how do you get them? You do not simply publish a ‘better mousetrap’. Sales and marketing is a critical part of the business. The bottom line is that multiple hats must be worn but the key is to have a good team of people whose combined strengths not only form a winning team but also address the critical three elements of any business, namely Sales and marketing, building and delivering the product, and the finances.
This brings me onto the next article which is entitled “Words of advice for hard times”.
The subject of the article is Ben Goss is the co-founder and chief executive of Distribution Technology, which is apparently "a fast-growing developer of financial advice software for financial institutions" and his second start-up. The interesting bit is at the bottom of the article with the subtitle “A veteran reveals his do's and don'ts for software entrepreneurs”. The dos and don’t are:
*Do your research. Understand the market and understand your customer's needs. Know how you are going to make some money.
*Do try to fund as much as you can yourself - particularly at this time. Go as far as you can on your own means, but if you think you are going to need capital, get it before you really need it - you will receive a much better price.
*Do locate where you can benefit from talent and facilities - clustering is very important.
*Don't be tempted to make money any which way - avoid being distracted by revenue opportunities that take you off course.
*Don't hire just anybody. It is a big temptation when you need people, but do not lower the bar on recruitment. If you are serious about expanding a business, you must seek out the right talent.
I have to agree whole heartedly with 4 of his 5 points. The only one I’d change is the location point which I’d adjust to place the emphasis on locating somewhere you can benefit from your connections. For example, we are based in the South West of the UK and everyone in the UK office has worked together or for the same company at some stage in the past. We are all either ex-colleagues or connections of ex-colleagues. When we set-up the Malaysian office we were able to benefit from my connections in Malaysia to source legal advice and premises. Once we had our team leader we were able to benefit from his connections to recruit.
However, the key bit of advice Ben gives is his last point. It is fundamental - don’t hire just anybody! At CDC (my previous start up) we went through a period of rapid expansion and there was considerable pressure to get ‘bums on seats’. This led to hiring mistakes and, as I have mentioned in earlier posts, they cost time, money and emotional stress. A chain is only as strong as its weakest link. Better not to hire than have a weak link.
So as we move into Q2 I’m pleased to say that sales are continuing at a steady pace and there is great interest in version 4. It going to be an exciting quarter.
posted by David Cornwell, PleaseTech Ltd at 2:37 PM
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