We’re at a point in one of our businesses where we need to expand infrastructure further than the available cash/flow can take us. It’s quite a character building place to be. For a few months we need to turn heads to development again (whilst maintaining sales activity) so we can have more products available to offer the current site traffic.
Recently we were paid for a large project and have available cash to ‘almost’ put the resources (staff) in place we need. It’s a stretch, but doable and we will retain our shareholding if we do it this way. The tradeoff is time. Adding the resource from our avaiable cashflow, will allow us to carry the person for about 6x months, after which time the cashflow should easily support the added expense.
On the other hand, we’ve had opportunity to sell an equity share in the business for considerably more than we need. This is also tempting, as we could do more, and immediately. At this point we’ll tackle the expansion in cash and see how it goes.
So when should you take investment?
That’s the question on my mind at the mo. For example, let’s say the business was worth $2,000,000 (at best guess) based on a 10x multiplier over revenue. Someone offers you 100k for 5% – do you take it? Should you? or….
Here’s an article about myself and Sarah (my wife) featured in the local newspaper. It gives a good picture of who we are and what we’re doing… Worth a read.
> Here’s the article: The Press Article
Reviewed by: www.easycfm.com
Reviewer: Pablo Varando
Product Rating: 5 out of 5 Stars!
You know… I am more and more amazed by this product everyday…
I have tried and reviewed this product in two ways…
(1) Via installation on my local machine (this went very smooth) and
(2) Using the online system that is provided monthly for those not wanting to host this application themselves! (no setup on my end to get it started, they will get it up for you)
I gotta say that I have mentioned before that this product gets better and better and I find myself saying that yet once again.
As a full time developer who also works side projects quite a bit; this product allows me to clearly keep track of my side work and to accurately bill my clients. Let’s say that my clients prefer that I use this product to others since it allows them to see what they are getting billed for and how long each task/project I develop takes. (Time IS money after all) Its a win-win situation for both you and your clients. Plus it’s become a selling point for new clients… after they hear they can see everything, they almost always hire me on the spot!
If you have yet to use ProWorkFlow… I gotta say go get a free trial on their site… give it a try and you too will see why I love this application, it rocks! Get it today!
Published in: www.scoop.co.nz
Blue Chip Customer Celebrates Successful Launch of ProActive Software
ProActive Software announces the successful delivery of a job tracking management solution for UDC Finance (a subsidiary of the ANZ National Banking Group).
“This is a great endorsement of our ProWorkflow product, particularly the reliability and the flexibility of our technology” said Julian Stone, Director ProActive Software. “We set out three years ago to build the best online workflow management system built on the best technology platforms available, this sale shows we are well on the way.”
“ProActive have lived up to their name,” said Leigh Tod, Head of Customer Support Centre for UDC Finance. “Their efforts in working closely with us from the start have produced a solution that accurately matches our needs and will deliver the anticipated benefits. Although we are separate businesses, their approach to development and delivery has been, and continues to be, one of collaboration and partnership.
Website: www.computerworld.co.nz
Written By: Brian Dooley, Computerworld
Rural Christchurch is home and office to Julian and Sarah Stone, while business partner Alan Barlow works in Auckland. Together they run an international company
Visit ProActive Software’s website and it looks like you are dealing with a successful mid-sized US company. You would hardly suspect that this is a Kiwi operation involving four people, headquartered in the rural outskirts of Christchurch in a small residence with seven chickens, a turkey, two horses a dog and a cat. Yet the company is successfully taking their ProWorkflow product to the international market, and getting major wins both locally and internationally.
“It’s a number-eight wire solution,” says director Julian Stone. “The key to looking large is to focus on the top 20 competitors and ignore the rest. We then advertise where they advertise — but only where it reaches major customers.” This saves a lot of money, as well as ensuring that ProWorkflow is always mentioned in the same context as the major players.
But ProActive has more than one string to its bow. It also uses a highly professional, interactive website that is hosted in California. With California’s massive bandwidth availability, this helps the site to operate efficiently at all times as well as providing a US presence.
