Internet enterprise

By Sara Newman, Editor, Prospects, April 2008.

With an e-business start-up you might never have to look at a graduate careers publication again.

With low start-up costs, no overheads, no staff, and your computer promoting your product 24 hours a day to a potentially worldwide market, an internet company could be your fast track to business success.

University of Southampton graduate Andy Fidler started his first internet company, findagap.com, three years ago. He began working by himself at his mum and dad’s house, before joining forces with fellow graduate Gordon Bennell.

They are now making a profitable return having expanded the business with four additional recruitment websites. Findagapjob.com, findastudentjop.com, findagraduatejob.com and findaskiresortjob.com are run from offices in London where Andy has taken on more sales and marketing staff.

‘You need to research and make sure your business model is going to make money with the resources you have, and ensure the demand is truly there,’ Andy says. ‘When you’re starting out you don’t realise how little money will stretch, and I didn’t.’

Seek advice

It pays to get advice from existing internet companies with similar business models, and know your competition. Andy also phoned his potential clients to make contacts.

‘I asked them for advice and whether they thought my business idea was good. I got a few key contacts who were growing in the industry and would also be very useful to promote me. In return, I would give them a good deal or help them out.’

Funding and support

There are opportunities for finance from organisations like The Prince’s Trust, but if like Andy, you don’t tick all the right boxes you will need to devise other ways of funding the venture such as part-time work and bank loans.

While working as a landscape gardener and selling advertising on his site, Andy also enlisted help from friends and family. ‘My worst trait is probably that I’m not very organised, but my best trait is probably getting people to work for free.’

Student Loan debt needn’t put you off either. A recent National Council for Graduate Entrepreneurship (NCGE) report states ‘students should be made aware that they would do well to start their own businesses quickly, because the self-employed only become liable to pay back debt once their business is in profit by more than £15,000.’

Guidance and information

Rosie Jones at the Centre for Enterprise and Innovation at University of Southampton says

‘Go for it. The start-up costs are low and it is something you can run from your machine. But it isn’t a way of making a fast buck. You also have to make sure it meets all the legal requirements and is registered.’

Your first stop for guidance, information and events concerning setting up a business could be your past or present university careers service. You will also find useful information here in the Self-employment Community Self-employment. Good free practical advice is also available from Business Link and you can post questions on Shell LiveWire.

Specialist information on internet start-ups is harder to find, but the same rules apply as any business start up. Books are out on how to run an eBay business and could be worth a look.

Forget becoming Sir Alan Sugar’s apprentice, be your own boss.

More tips from Andy

• Search engineering: ‘Search optimisation companies specialise in getting your site in top position; however, a lot of these companies don’t deliver on their promises. We actually got done over several times by companies, so be careful.’
• Footing the bill: ‘Outsourcing IT and PR on revenue partnership schemes is a good way to get what you want at no cost. The websites we recently had designed cost over £100,000 but because we did it on a revenue share basis we got it done for free.’
• Name your domain: ‘There are less domain names available than there are company names because people mass buy and sit on them, intending to sell them on. So before you register the company name, make sure the domain name is available.’