Part 1 : Starting Up

As a start-up, xrefer.com seems to have been successful in getting together a solid management team, adequate funding and content partners. To what do you attribute this success?
Getting started is about having an idea that captures the enthusiasm of people, whether they be potential staff, funders or content partners. But a great idea in isolation isn't sufficient. There has to be a workable business model. Everyone involved has to be convinced that the idea can translate into revenue. With xrefer it was easy to see how the concept could explode into a very successful business.

Flextech Interactive have a 25% share in xrefer. How is the relationship with FI - was their involvement a funding or strategic business development issue?
Their involvement is both a funding and strategic business development issue. They're a TV company, so they appreciate the value of quality content and advertising as a key revenue driver.

How easy was it to get the board and senior management together, especially given that some of them, like yourself, were already working for successful web enterprises? How are you going about recruiting the additional staff you need?
Getting the board and senior management team together was achieved mostly through networking. The majority of us have either worked together or know people in common. We have all worked in bigger corporations and liked the idea of doing something more entrepreneurial. The internet job market is getting increasingly difficult with many vacancies and few people to fill them. We hope to recruit through our link. There's no better advert for a company than the product itself.

You are working closely with established publishing companies like Penguin and Macmillan - have there been any old economy / new economy conflicts, and, if so, how are these overcome?
Fortunately we haven't come up against the old v new conflict. Publishers are pleased to see that we can provide them with a new revenue stream for their titles. We are not cannibalizing existing revenue, instead we are providing them with additional business.

What were the key problems you faced in the start-up process, and how were these solved?
One of the key problems we faced was to do with the timing of starting the business. Even though we raised our initial capital fairly quickly it was difficult to predict the exact date when all the papers would be signed. Most of us were in jobs that required several months notice. In the end we had to do some guessing and keep our fingers crossed. Office space was another potential headache given that property in London can be very expensive. We were lucky to find some very helpful property consultants who understood our budgets!

With hindsight, would you have done anything differently in the start-up period?
Our Sales Director would say that we should have employed our excellent office manager earlier. Jane was charged with getting our telephone communications and office furniture organized. It proved to be a very frustrating task.