'UrbanYou' has raised one million dollars of funding in a record two week period as the Australian start-up goes national. Is their success a marriage made in heaven or the result of solid down-to-earth business sense?
UrbanYou, the brainchild of Noga Edelstein and Elke Keeley, is growing by exponential leaps and bounds from beginning with just $15,000 in 2014 to earning over $3 million in revenue since its launch. It is now part of the springboard accelerator programme and has just raised one million dollars from its two key investors and is launching across the nation.
What are the secret ingredients of such a successful marriage?
Successful business relationships share some common attributes with marriage. Good communication is vital and that includes selling your ideas to potential investors; "It's important to use really business-appropriate language and focus on metrics," according to Edelstein.
Both the head and the heart have to be involved in a successful business just as in a good relationship. You can’t only rely on an emotional sales pitch.
Another vital ingredient of a satisfactory marriage is the concept of give and take. Justin Lipman, one of the key investors in UrbanYou puts it this way, "The key to success for an on-demand marketplace is to maintain both liquidity and service quality as the business scales".
In other words, both your customers and investors need to be getting quality returns. Don’t restrict your focus to ‘what’s in it for me’.
How does your business stack up on the communication and give and take fronts?
Are you in bed with the right business partners?
In essence both your business and potential investors need to share some common goals. This is especially true around your strategic vision. In UrbanYou’s case investors ‘Microequities Venture Capital’ were wooed and won by the start-up’s strategic plan and focus on customer service.
Edelstein’s take on it is a little more earthy: "It's really important to choose the right partners, think of your investors like a marriage, you are going to be working closely with them."
And even the best marriages may need some help with communication. When you need to clarify your position in the marketplace and sell your concepts to investors why not talk to us.
We can help you make your business work like a marriage made in heaven.