– 6, October 2008
If times are hard, the only way is up
After the European Commission added its weighty voice to the chorus of expert bodies who on Wednesday predicted the UK would experience a technical recession in the second half of 2008, many people may have decided to put their entrepreneurial ambitions on hold. For those who are still feeling brave, in this week's SME Focus a survivor of the dot.com crash provides advice on the dos and don'ts of getting started in a downturn. Jacqueline Doherty found that celebrity endorsement can work wonders, but those without A-list pals will be relieved that she also discovered a bit of humility does not go amiss.
Name:
Jacqueline Doherty
Age
37
What is your business called?
2Fluid Ltd.
Where is it based?
Glasgow and Barcelona. We are also aiming to have a London office open in 2009.
What does it produce, what services does it offer?
We are a digital marketing agency which provides business solutions covering everything from e-commerce to software within the digital arena. This can be anything from sms or text or all related technology via the internet and phone.
Who does it sell to?
We have a diverse range of clients and operate very much business to business. We work with small and large companies across every sector, public and private. Our clients include Tennents, ASDA, Ladbrokes, and Pearl and Dean.
What is its turnover?
Turnover was £1.5m last year and we are aiming to treble that for the year to come.
How many employees?
22
When was it formed?
2Fluid was formed in 2001
What were you doing before you took the plunge?
I studied textiles at the Glasgow School of Art. Straight from college, I was headhunted to join the interactive division of Caledonian Newspapers (now Newsquest Herald & Times), which was my first major career step and a foot in the door. I initially had ideas of setting up my own business straight away after leaving college at 23 - I had even bagged myself an office and computer to kick things off! I had also received a grant from the Princes Trust. My business didn't even have a name at that stage and I was still in the throes of getting it off the ground when I was approached by someone from The Herald totally out of the blue. I'm not sure if they had seen some early work but they asked to meet me. When they asked me to join I didn't hesitate - I also gave back the grant to the Princes Trust!
Although I still had the intention of running my own company and being my own boss, I kept getting involved in other people's companies! I did set up another company after I left Caledonian and my first client was Chris Gorman. He liked what I was doing so much that he asked me to join him, and again it was just another fantastic opportunity for me. So my first senior role was as co-founder and Creative Director for Scotland's first internet company, Reality Group. It was a massive learning curve and hugely chaotic but I loved it and learned a lot from it.
I believed that as much as I wanted to run my own company I knew that I would gain in-depth experience through working for other companies. Being headhunted at such a young age was a fantastic opportunity for me and then going into Reality Group I knew myself that it would be a better option than setting up on my own, at that age.
Why did you take the plunge and form 2Fluid?
My experience in the internet industry and a bit of courage basically allowed me to move on to set up 2Fluid, despite many people advising me against the move. Regardless of the situation at the time, I knew when setting up 2Fluid that my experience and passion in the sector would take me further, but I knew that the ride wouldn't be an easy one. I had been working on global branding online and offline communications for many well-known brands, banks and newspapers from a variety of industry sectors and I knew that I had the outline of a great company. 2Fluid is the business I always wanted to run, and I always had the ambition and drive to see it become a reality.
How did you raise the start-up funding?
Reality Group was sold to Great Universal Stores for £35m, so I decided to put my share of the profits directly into starting up my own business. So after a few false starts at getting there, in 2001 the company was born and it all really took off from there. We opened the Barcelona office two years later and now operate from Scotland and from Spain.
What was your biggest break?
Jim Kerr from Simple Minds was looking to invest in a new start-up business. This was around the dot.com bust era and he decided to invest in 2Fluid in exchange for a small equity stake in the company. To have Jim come on board was fantastic and it proved to be a real confidence booster for me when he invested in the company. I always believed in the business but to have someone else also have that faith was great - especially at what was a really risky time to be investing in any kind of internet company. The Simple Minds website to promote their 25th anniversary was one of the first things we did and we continue to work with them today.
What was your worst moment?
The first three years were definitely the worst because it was the dot.com bust period and there was no business around at all. There were times where you just wonder if you have done the right thing, but I knew that I had a good business idea and if we could just ride the storm we would be fine. It was also a case of knuckling down and working really hard and really long hours. I also learned to psyche myself up from acting like a creative director to being the managing director and owner of the company, which was a real challenge at the time. Every day at this stage was a challenge with new dilemmas popping up on a daily basis. The economy was at a difficult stage and I witnessed people's firms in the same sector fail. If anything, it only served to make me stronger and more determined to succeed.
What do you most enjoy about running the business?
I most enjoy the freedom it gives you. As the owner of the company it means having no-one to answer to. You stand and fall by any and all of the choices you make. All the responsibility that comes with running the business and being liable for it at the end of the day can be challenging but it is very liberating not having anyone to answer to - apart from clients, obviously!
What do you least enjoy?
I am and always will be the creative side of the business so sometimes the more mundane, day-to-day running of the business side of the company is not something I enjoy. I also hate it, that with the internet and technology things do not always run smoothly 100% of the time, which can be really frustrating. That is the pay-off when you are at the cutting edge of pioneering technology. We take risks with what we do but we also need to ensure that while we are working with this edgy technology we are still ensuring we give the clients robust working systems which are going to deliver a real return on investment for them.
What is your biggest bugbear?
Absolute number one pet hate is being charged for internet connections - especially in hotels. I travel extensively with the company and it's a real pain and hassle when I am simply trying to pick up e-mails and stay connected and have to pay for the privilege. It honestly drives me mad.
What are your ambitions for the firm?
Having the London office up and running by January 2009, and trebling turnover next year. I would also love to set up a new incubator unit within the company pioneering new technology. I also want to be continuing to deliver for our existing client base and attracting new clients and new business.
What are your five top priorities?
Top of my priorities is always the bottom line, second is ensuring we deliver to spec, on time and on budget. Another of our top priorities is keeping an eye on future trends/competitor analysis, always being on the lookout for good people to come and work for the company and bring their expertise to 2Fluid. Last but not least - having fun! If it ain't fun and you are not enjoying it, then why bother?
What could the Westminster or Scottish government do that would most help business?
They could supply wifi all around Scotland which would be great - especially if it was free - as it would allow people to be able to work anywhere.
What was the most valuable lesson you learned?
Humility is probably the best. It's a real do unto other people as you would yourself attitude. When you are starting up a business, and you are down on your luck there are people who help you and support you and you really remember those people and know who your friends are.
How do you relax?
I enjoy travelling, ski-ing, going to the gym, playing tennis and spending time with my two well-travelled dogs Hamish and Chanel.
