Starting a new business is daunting. Laying the foundations that will enable your company to grow, from securing funding to developing a network of event partners and customers, provides numerous hurdles which can seem impossible to overcome.
Whether it's a bricks and mortar business, a consultancy or a new tech product, all companies must be prepared to take risks when starting out – and YPlan was certainly no exception. When my co-founder Viktoras and I decided to quit our jobs (at Goldman Sachs and Summit Partners respectively) we knew we would need a solid business case to insulate us against potential pitfalls.
During an intense six-month process of brain-storming, we constructed concept after concept, building over 50 solutions to everyday problems before finally settling on YPlan: idea 51. In San Francisco we were stuck with a familiar scenario: you want to do something that evening, but don't know where to look for inspiration or buy tickets. YPlan is our solution to that problem.
Once we knew we had a strong user case that was familiar to a wide audience, we went about establishing an in-depth knowledge of our target demographic. As a two-sided marketplace, with our consumers on the one hand and venues on the other, it was important for us to get to know the event partners really well. Before we launched in London we spent months getting to know the concert halls, galleries, restaurants and bars, as well as running trials with friends in order to make sure that the options offered were as comprehensive and personalised as possible. In choosing London we also made sure that we had selected a location where there was a high density of events. As we expand internationally we've continued to focus on tapping into the behaviour and habits of each city to make sure we really connect with our customers.
When it came to New York, we drew on our experience in London to make sure that we tried and tested the model from every angle. We took time to consider various different alternatives before deciding on it as our second location. We heavily researched its social cultures, establishing a local team that knew the city well. We made sure that we understood the challenges that the new operation would face in a new market. We knew that New Yorkers shared the same spontaneous streak as Londoners, and having been downloaded onto 15% of the UK capital's iPhones, we felt we were ready to make the move across the pond.
Whilst it's important to be thorough when carrying out initial research, it's also important to move quickly. By far one of our greatest achievements was securing $12m worth of Series A funding – from General Catalyst Partners (investors in Kayak and Airbnb), Wellington Partners (investors in Hailo and Spotify) and Octopus Investments (investors in SwiftKey and Graze.com), A-Grade and American Express amongst others.
It's a significant amount and is more than Twitter, Dropbox and Soundcloud achieved combined when they were at a similar stage in their development. Investors were confident of our business and they believe in the two-sided market place that we've built. The strength of our team also really shines through in everything we do, I think that made an important difference. We knew that we'd need to roll out our product into as many markets as possible as quickly as possible to really maximise the opportunity. Three months afterwards, we launched in New York at a star studded event headlined by Pharrell Williams (a contact who we were introduced to by these same investors) who has since joined the company as a special advisor. We've just launched in San Francisco and have ambitious expansion plans across North America over the next few months.
The third rule that has governed our approach throughout our expansion is to make sure that, no matter where we are, we continue to hire the best. Maintaining the right company culture is crucial and everyone needs to be fully committed to what we do. Startups tend to flourish quickly in the early stages because the core team is so involved with every aspect of the project – they know it's inner most workings and can adapt quickly to new challenges. That's something I'm keen to hold on to as we grow. Viktoras and I interview everyone that joins the team; it's time consuming, but the rewards are certainly worth it. Aside from your product, the company is only as good as the people who work for it, so making sure you invest in your team is vital.
Now that we're one year old, and with 500,000 downloads globally already under our belt, I'm excited to see what the rest of 2014 brings. We've come a long way in the last year but I know we still have more to do and you can be sure that the same values that have shaped our growth so far will continue to govern how we operate.
So our advice to any new startup is: research each new market as if it's your first, don't be afraid to move quickly, making the most of your momentum, and make sure that you bring in the best and do everything you can to make sure they want to stay.
• Rytis Vitkauskas is the co-founder of Yplan.
