New Zealand’s small business start-ups will increasingly rely on the internet to grow. That’s the prediction from the co-owner of new multi-channel media publication Start-Up.
Founder Patrick MacFie, who founded the company StartUp Media, says while Start-Up began with the purpose of informing New Zealand’s ever-growing community of web based start-up businesses; the need to educate the wider small business community about the value of the web has provided an opportunity broader the focus of the business.
“Around 50 percent of small businesses use the web to promote their business companies but only a small percent of those have the ability to perform transactions from their website. So for many their website simply exists as an online ‘brochure’. This is something that needs to be addressed if our small businesses, especially exporters, are to achieve international recognition,” says Patrick.
Patrick says that moving more of your business online is simply about understanding the possibilities of thethe web offers.
“The web can help lower costs in areas such as organisational efficiencies and customer support. With the global credit crunch affecting the bottom line of many businesses there is an incentive is there to seek smarter, cheaper solutions, which the web can provide. For example, the overheads involved in running your business through the web are minimal when compared with a physical store,” he says.
The challenge for many start-ups is creating a sustainable business.
“Overseas investors always remark on New Zealand’s fantastic small business innovation; however the challenge is to turn this innovation into high quality businesses that can mix it in the international market,” says Patrick.
The success of this business model is typified by companies such as Ponoko.com. Ponoko allows people to design their own products online, then produces and ships their individual creations out to them or sells them on the Ponoko website.
Another example is Small Worlds, which produces virtual worlds (similar to Second Life) which people can customise and share with their friends. They are currently in talks with Disney Corporation.
The challenge for many start-ups is creating a business that is sustainable beyond the initial start-up period.
“Overseas investors always remark on New Zealand’s fantastic small business innovation; however the challenge is to turn this innovation into high quality businesses that can mix it in the international market,” says Patrick.
Start-Up is currently producing a TV reality documentary to screen on TV1. It follows an online business from its conception with ato its goal of goal to launching it in Silicon Valley in America. The purpose of the show, from Start-Up’s perspective, is to illustrate how purpose is to assist the company in becomingbecomes globally competitive, through connecting them with influential New Zealand business people, and at the same time show highlighting how other businesses how they toocan also can achieve success online.
Patrick offers five tips for those starting a new business venture online:
1. Identify a legitimate vacuum in the market. There is no point looking to go head to head with the likes of TradeMe unless your idea is truly revolutionary.
2. Aim to make your product grow organically through building a strong customer following. This is about achieving viral or word of mouth endorsement. People are likely to discuss something that meets a previously un-met need.
3. Validate. Validate everything about your business, especially the end product or service. Get your prospective customers involved from the development phase so that your first generation of actual customers receive a product that they can rave about.
4. Can you sell it? New Zealand has great ideas but lack in the ability to sell them. Many people and products are vying for attention online, so you need a strong sales strategy to make your product stand out.
5. Don’t be afraid to embrace social media. Your staff and customers will most likely already be engaging with blogs, RSS feeds and products reviews and ratings. Trying to ignore social media, as not relevant for your business\ is the biggest online marketing mistake you can make.
Start-UP produces a bi-monthly magazine and online resource for small businesses. They are also producing a reality documentary series, Start-Up TV which will air on TVNZ later this year. You can visit them at www.start-up.co.nz
I am 40, happily married, 2 wonderful Girls, 5 and 3. I own a media businesses in the Billboard market. I have won and lost in business in the past, have always picked my self up and learned from experiences. I tend to build long term relationships.
I believe money is an important aspect in business but comes after helping people to be better and make more impact in what ever area they are passionate about.
I am a business person who is passionate about Sales and has developed a sales SaaS software product in partnership with a couple of very smart technologists, a team of developers, marketers and designers in Wellington.
I can identify a market need, put together teams, deliver the vision, motivate them and grind out the path. I believe Wellington is one of the worlds best places to build software.
We have developed a CRM product with particular benefits for sales people called Salesworks.co.nz. The product is designed to make sales people’s lives easier, save them time and help them make more money and perform much better.
We plan to sign 3000 or more clients in NZ by 2013 and 15,000 or more businesses globally by 2015.
The product is as finished as you can get software and we are looking to launch late November, iron out pre launch problems over xmas and hit the ground running early 09.
We know we need as much effective support as we can get and we need to build networks that are mutually rewarding and deliver results that can be measured both ways.
Our main objectives are to develop effective networks and motivate users and groups to talk about the product and tell people how it helped them to win. I will attend and speak at any event that helps us to advance toward our goals.
Graham Bloxham at 11:12 am, Nov 7th 2008