Starting a new business is daunting. Whether it’s securing funding or developing a network of event partners and customers, there are numerous hurdles that, at times, seem impossible to overcome.
New companies must be prepared to take risks when starting out, and YPlan was no exception. When my co-founder Viktoras and I decided to quit our jobs (at Goldman Sachs and Summit Partners respectively) we knew we’d need a solid business case to insulate us against potential pitfalls.
During an intense six months, we constructed concept after concept and built more than fifty solutions to everyday problems before finally settling on YPlan as idea fifty one. While we were in San Francisco we were struck by 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.
Study the local culture
Once we knew a large number of people faced this same dilemma 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. We launched the app in London first. Before we launched we spent months getting to know the concert halls, galleries, restaurants and bars, as well as running trials with friends so that the options offered were as comprehensive and personalised as possible. In choosing London, we also made sure we’d selected a location where there was a density of events. As we expand internationally we have 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 we tried and tested the model from every angle. We took time to consider various alternatives before deciding on the Big Apple 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 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.
Make your move quickly
While 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 – 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 and as quickly as possible to 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 adviser. We’ve just launched in San Francisco and have ambitious expansion plans across North America over the next few months.
Focus on recruitment
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 – 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 its inner most workings and can adapt quickly to new challenges. That’s something I’m keen to keep hold on to as we grow. Viktoras and I interview everyone that joins the team – it’s time consuming, but the rewards make it worthwhile. 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 global downloads under our belt, I’m excited to see what this year continues to bring. We’ve come a long way in the last year, but I know we still have more to achieve. The values that have shaped our growth so far will continue to govern how we operate.
Read more...
• Build a social media strategy to benefit your small business
• How to create a successful website that keeps customers returning
• Apprenticeship schemes: the benefits for a small business - video
Sign up to become a member of the Guardian Small Business Network here for more advice, insight and best practice direct to your inbox.
