Startups
5 Ways For Startups To Succeed Making Acquisitions
After catching up with Marcus Lim of Oneflare it has become very apparent that startups need to take a leaf out of their book and become bolder. To demonstrate that boldness, Oneflare has just completed its second acquisition of an Australian company called WOMO, after acquiring Renovate Forum last year. WOMO is Australia’s largest online review website and has over 422,000 reviews. Given that both Oneflare and WOMO target the local services market, this is a great match. To see a startup making these bold moves is very impressive and shows that they understand the power of cash flow and scaling quickly.
Australia is very lucky as we have been the market leader for these types of marketplace businesses and have had success stories such as Carsales, Envato / ThemeForest, Seek and 99 designs.
Oneflare is another startup to join the online marketplace niche, and they connect customers and service providers together that span across over 250 categories. They then send that request out to all the businesses that are relevant to that category. A customer can then hire a person to complete that service based on price and reputation. Their vision is to be the most trusted source for local services, and they do this by checking details about their service providers such as ABN, insurances and licensing. In order to be successful at local services online, Oneflare realised that trust was much more important to their clients than the price – WOMO really helps complete this circle of trust nicely.
Their vision is to be the most trusted source for local services, and they do this by checking details about their service providers such as ABN, insurances and licensing. In order to be successful at local services online, Oneflare realised that trust was much more important to their clients than the price – WOMO really helps complete this circle of trust nicely.
Their revenue model for an online marketplace is unique and rather than charging for a successful job, they charge based on a monthly subscription that gives the service provider a specified number of leads. Charging by the job can be tricky because people can go outside of the platform to avoid paying service fee’s.
A lot of startups overlook acquisitions because they don’t have the capital, and it’s an area of unknown to them because they have never acquired a business before.
Marcus is going to share with us 5 ways for startups to succeed with acquisitions.
1. Find your target
Once you have decided that you want to look at an acquisition Marcus says that the best thing to do is pick up the phone to some founders of potential businesses that you’re interested in and see where they stand. A lot of success with this comes down to whether the founders of these prospective companies are motivated to sell.
When you’re looking for targeted companies to acquire, consider things like market fit, a big user base, strong traction, immediate income accretion with a positive EBITDA (the business makes a profit), unique content and a strong business model that’s been around for a few years.
Also, look at what opportunities might exist if you acquire your target. Is there something that the target company you are looking at doesn’t do so well, where you can add value? In Marcus’s case, when they acquired Renovate Forum, the previous owner was not that tech savvy, so they had an instant opportunity to use their expertise in page optimisation, to adjust the position of the ads on the page, so that good content was not being deprioritised over ads. Googles algorithms picked up this change, and they began to see an increase of 30% in traffic.
The other tip to remember when you are talking with a target company for acquisition is that founders are typically emotionally attached to their company; it’s like their baby. In order for them to be comfortable to sell it to you, you need to show them that their business will have a good home with you, you will help grow their baby, take care of their baby and both businesses will be a perfect match.
Finally, make sure the target company aligns with the vision of your startup and don’t give up too quickly when looking for the ideal acquisition. Marcus had looked at 3 or 4 before he decided which one to go for.
2. Think about how you are going to fund your acquisitions
Oneflare have raised $1.5 million to date and have a strong cash flow position because they bill monthly and annually in advance. This excess cash has allowed them to save up and look for strategic acquisitions. The beauty of a strong cash flow is that they haven’t had to raise a lot of cash and thus been able to retain more equity amongst the founders.
Trying to raise money from private equity and venture capital to fund acquisitions is really difficult to do. The reason for this is because it’s very hard to know how much the acquisition is going to cost.
3. Scale is important
In order to scale quickly, Marcus said that acquisitions were the quickest way for them to do that. There were incumbents coming into their space, and the local service marketplace was very hot. By being able to make two acquisitions, they could build traction and users a lot quicker. With your startup, think about what your plan is and whether just building users in your niche is enough or whether and acquisition into a similar niche could be of value to you.
4. Understand whether you are going to acquire assets of a business or the business itself
In Oneflares case, they had made an acquisition last year of the Renovate Forum, and they brought the user base, the site and the traction, not the actual business itself. When you’re making these types of decisions, you need to look at whether the talent of the company is something that you’re interested in. One thing that is popular in the USA right now is acqui-hiring, which is the process of acquiring a company for its talent rather than assets or user base. If you were keen on the talent of a company, then you would probably be more likely to buy the whole company, not just the assets. If you have an acquisition in mind where the product is specialised, then you would want to try and keep the founders on as employees for as long as you can.
If you have an acquisition in mind where the product is specialised, then you would want to try and keep the founders on as employees for as long as you can.
“When you buy an asset you are not exposed to any outstanding liabilities of the old business, and you are also not responsible for the staff and their employment contracts”
5. Understand the process of negotiation and get good at it
When a company is for sale, the first thing you do is read through the information memorandum (investment summary, financials) and decide how much the business is worth to you. From here it’s time to get the boxing gloves on and go round for round in negotiating the final price. Ideally at this stage you hope there is no competitive tension (the opposite of Let’s Pop’s sale story) and that you’re the only bidder.
It’s always best to start at a price that is a value buy for you, and then the seller will usually come back with a higher price, and eventually you will probably meet in the middle. If the founders of the business are throwing out crazy numbers, then you need to come equipped with examples of similar types of acquisitions that have already been publicised. Your ability to present similar cases, in a simple form, will help you get the price you want. Oneflare used examples like when Yelp brought Qype and when Zomato brought Urbanspoon as Qype and Urbanspoon are both online review directories that are competitors to WOMO
Your ability to present similar cases, in a simple form, will help you get the price you want. Oneflare used examples like when Yelp brought Qype and when Zomato brought Urbanspoon as Qype and Urbanspoon are both online review directories that are competitors to WOMO
Once you reach the agreed price, you then sign a term sheet (a non-binding, indicative offer) where you need to work out payment terms. The payment terms Oneflare agreed on were two payments (industry standard), one payment up front and a second payment in 6 months from the acquisition. Out of these two payments, the first payment would usually be a lot larger than the second one
For Marcus, the due diligence took 4 weeks and they were really clever and used a checklist from when they were raising funds and had due diligence done on their company, as well as adding a few extra things.
After completing due diligence, it’s time to sign a SPA (Sales Purchase Agreement) which outlines the earn-out period, the payment terms and the final purchase price. As part of the SPA, there’s a warranty section that says that all the information they have given to you is correct, and they don’t have any outstanding liabilities. If later on something wasn’t disclosed then part or all of the second payment could be used to cover that liability. The only time this gets dangerous is if the loss from the liability is greater than the second payment you owe the founders. Once the SPA is signed, then it’s time to transfer the money for the sale.
If your startup has not made acquisitions before then, you need someone who has done this process. For Marcus, he hired a Commercial Director (Howard Leibman) who had a lot of experience, so he could guide them through the different stages.
Some books that helped Marcus with his startup journey were “How Google Works,” and “Good to Great”.
If you would like to know more about any of Marcus’s businesses, then you can visit Oneflare, WOMO or Renovateforum to find out more
Startups
I Paid People Out of My Personal Account and Called It Being Lean
I paid the first people out of my own account.
Not as a strategy. As a delay. Somebody did the work. I opened the banking app I already lived in. I hit send. I told myself I would “put it on the books later.” Later was a pile of screenshots and a month I could not reconstruct.
Venmo is not payroll. A personal debit card is not payroll. Remembering that you paid them is not payroll.
It feels intimate when the team is two people and a contractor who also likes you. It feels stupid the first time you need a form, a tax document, or a straight answer about what the company actually spent on labor.
The week I ran out of charm
Somebody asked for a record of what they had been paid.
I had the messages. I had the amounts in my head, which is to say I had a story. I did not have a clean list with dates and the right boxes ticked. I spent an evening playing archaeologist in my own life so I could look like I had been running a company.
That evening is the whole argument. You can be decent to people and still run their money like a favor. Favors do not survive January.
I have watched founders stay in that phase through a second hire. By then the mess has a personality. You are “the person who pays late but means well.” That is not a culture. That is a leak.
What I point people at
When the work is real and the people are not you, I send them to Gusto.
I am not collecting logos. I needed a place that runs pay, the tax part I do not want to improvise, and a record I can hand someone without digging through texts. That is the job.
ADP will tell you they are the grown-up in the room. Paychex will say they have been doing this since before you were born. Rippling will show you a dashboard that runs the whole company. QuickBooks Payroll will say you should keep it next to the books. Justworks will talk benefits. Use the one you will actually open on a Thursday. I start at Gusto because I have seen too many “lean” shops that were just unstructured.
The LLC does not do this for you. A legal name with no payroll is still you, personally, paying people out of the grocery pile.
What got quieter
I stopped apologizing in the payment note.
The run happens. The person gets paid. The form exists. You can still be human on Slack. You do not have to perform humanity in the transfer memo.
The books only work if labor is in them. I have seen operators get religious about invoices and still treat contractors like a private hobby. Same company. Two different fantasies.
You will also see the number. What people actually cost. That number is allowed to sting. It is better than a vibe that you are “keeping it light.”
Do less than the HR course
One payroll. The people you already pay. The next cycle on the calendar.
Do not build a benefits cathedral and a handbook novel the same week you still owe someone from last month. Get this week clean. The handbook can wait.
If they are a contractor, treat them like a contractor on paper. If they are an employee, stop pretending the difference is a feeling. The feeling is how you get a surprise.
If a payroll company is reading this
Gusto is on the page. You know why.
Write about the founder who is still hitting send from a personal app and calling it culture. I will read that. A pricing table with “payroll for small business” in line one, I will not.
If it is still coming out of your pocket
I know that send button. It is fast. It is also how you stay amateur at the part that can hurt people.
Open Gusto. Put in the next person you already owe. Run it once. The work was already a company. I was the part that kept paying it like a friend with a debit card.
Startups
Why Corporate Structure Matters for Scaling Startups
Josh Seidenfeld on Building Corporate Structures for Growth
Josh Seidenfeld, Partner and Chair of Northern California at a leading global law firm, DLA Piper, examines how corporate structure influences a company’s ability to raise capital, expand internationally, and pursue strategic transactions. This article explores the key considerations involved in designing a structure that can accommodate future financing rounds, cross-border operations, and evolving business needs. By addressing these issues early, companies can create a scalable framework that supports growth, enhances operational efficiency, and positions the business for long-term success.
Introduction
In a company’s early years, founders tend to be focused on building a product, getting customers, and fundraising. At this phase, corporate structure can become a neglected factor, seen only as a legal compliance issue. However, structure is more than a formality; it shapes almost every major milestone in a company’s life cycle, from raising venture capital and entering new markets to making acquisitions and planning an IPO.
Decisions made in the very early stages of formation can either fuel an organisation’s growth or create structural challenges. A structure that might be fine at the seed stage can become a source of friction as you embark on financing rounds, international expansion efforts, or strategic transactions.
Owing to this relationship between structure and scale, investors, strategic partners, and potential acquirers often evaluate whether a company is designed to attract capital efficiently, to handle risk properly, and to grow without the need for aggressive restructuring in critical moments. The highest-performing growth companies, hence, tend to consider corporate structure as a strategic asset for the long term, not a sporadic administrative decision.
Building Blocks for Investment Readiness
Investors look beyond a company’s product, market opportunity, or financial performance. They analyze whether the company is structurally ready to raise capital and support future growth.
One of the first aspects that investors are going to evaluate is the capitalization metric table. A reliable and well-managed cap table provides visibility into ownership, equity grants, and dilution. It also illustrates that the company has the discipline that sophisticated investors expect. Transactions can be slowed down and unnecessary problems created by incomplete records or outstanding equity issues.
Governance is equally important. Investors want to be certain that the decision-making power, shareholder rights, and reporting processes are clear. Effective governance frameworks can assist companies in better managing growth and reducing operational and legal risk.
Companies that predict these investor expectations and build compliance in advance are often better placed to efficiently raise capital as they scale. Investment readiness is not only about raising the next round of funding; it’s about building a structure that can support growth through the whole lifecycle of the company.
Strong Legal Structures for International Expansion
As companies grow beyond their home markets, corporate structure becomes increasingly important. The structure of subsidiaries and the location of key assets can have significant consequences for regulatory compliance, tax efficiency, and long-term growth.
Businesses have to consider more than an entry point into the market when thinking about the right jurisdictional and subsidiary model. They also have to consider local tax systems, contractual agreements, employment law, data privacy, and industry regulations. Strategic decisions at an early stage of structuring on these critical points can help avoid unforeseen tax repercussions, simplify compliance procedures, and eliminate potential legal or contractual conflicts.
For success on an international scale, corporations must also reconcile global management with operational autonomy on the ground. The parent corporation must keep central control, manage the governance process, and own vital resources, while maintaining functional flexibility for the subsidiaries to succeed within their environment. Corporations that align early organizational structures with their international vision from the outset will usually find scaling easier when the time comes.
Governance as a Foundation for Scalable Growth
Organizational growth leads to increased complexity in managing competing stakeholder needs. The decision-making process that worked well in the initial phase of a business may not be sustainable for a company as it adds more investors, employees, and partners. As the stakeholder map becomes more complex, a governance structure helps ensure an accountable growth process.
Structured governance, through boards, reporting systems, and decision-making frameworks, helps in mitigating risks in the organization. Clear role definitions help simplify decision-making and introduce the right level of oversight in strategic, operational, and financial decisions.
Effective governance is also directly responsible for establishing credibility. Stakeholders who are looking to invest or partner will have more faith in organizations that exhibit transparency and good decision-making skills. In the long run, systematic governance frameworks can prove to be an important competitive advantage for the organization.
Strategic Transactions Pave the Way for Long-Term Value
Most businesses, especially growing companies, consider strategic transactions such as mergers, acquisitions, joint ventures, and possible exits as critical junctures in their life cycle. However, the efficiency and effectiveness of such transactions often depend on the choices that a firm made years ago. Companies that think ahead of time tend to complete these transactions with minimal disruption and maximum leverage.
Consulting experts in advance can help recognize structural weaknesses that might impact future transactions. Problems connected with the governance of the business, ownership structure, organizational framework, or the state of corporate paperwork may not be a hindrance while the company is growing but can become an issue when conducting due diligence or negotiations.
At the same time, corporate structures should be developed for adaptability. Business priorities, market conditions, and growth strategies can vary over time, and organizational frameworks must be able to adjust accordingly. The most effective structures aim to help the company’s short-term growth objectives as well as its long-term strategic opportunities, providing the flexibility to pursue acquisitions, attract investment, enter new markets, or execute a successful exit. A forward-looking approach to structural planning lays the foundation for sustained growth and preserves strategic options for the future.
Conclusion
Corporate structure is far more than an administrative requirement. It is a strategic framework that determines a company’s ability to raise capital, expand into new markets, manage higher levels of complexity, and capitalize on future opportunities. Decisions made in the early stages can have a lasting effect on a company’s long-term growth, operating efficiency, and value creation.
Founders who think structurally about the bigger picture are better equipped to deal with the challenges and opportunities that growth brings. The purpose is not to add complexity for the sole purpose of complexity, but to create a framework that is scalable, adaptable, and aligned to the company’s strategic goals. Businesses that are already building the right foundation today are often better positioned to attract investment, support expansion, and engage in transformational transactions in the future.
Startups
Interior Design Ideas for a Boutique Store
Creating a welcoming atmosphere is crucial for any boutique store. Strong interior design can attract customers, spark interest, and encourage repeat visits. The shopping environment matters just as much as the products. A well-designed space reflects your brand and makes customers feel comfortable as they explore what you offer.
Imagine unique lighting that showcases the products and materials that convey quality. A thoughtful layout invites exploration. Effective interior design turns a standard shop into a memorable shopping experience.
Here are some interior design ideas for a boutique store.
Colour Schemes
Colours strongly influence a space’s mood. Warm colours like soft pink or muted orange can create a friendly feel, while cool colours like grey or light blue provide a calming effect. A consistent colour palette connects your products to the store’s vibe and reflects your brand’s personality.
Consider adding accent walls to draw attention. A bold colour behind key displays can enhance your products’ visual appeal. Accessories like cushions, rugs, and decor should complement your colour choices to create a harmonious and inviting space.
Commercial Interior Design
Commercial interior design is crucial for boutiques. It turns ordinary spaces into attractive environments that encourage engagement and reflect the brand’s identity. Designers focus on making spaces functional and visually appealing. They ensure every area serves a purpose and aligns with the brand vision.
Good design creates unique shopping experiences that customers remember long after they leave. It boosts a brand’s identity and is essential for attracting and keeping customers, making it an important investment for boutique owners.
Lighting Choices
Lighting is essential. It not only brightens the products but also creates the right atmosphere. Natural light makes a boutique feel open and airy, so try to add large windows or skylights if you can. For focused areas, use soft yet effective artificial lighting.
Track lighting can highlight specific displays, while pendant lights can add warmth and style. Ensure that the height and type of lighting match the store’s theme. Every corner should shine while remaining inviting.
Layout Dynamics
The store layout is key for customer flow and navigation. An open layout helps customers move easily from one section to another. Create distinct areas for different product types, giving each area its own character while maintaining a cohesive flow.
Include cozy seating or nooks where customers can relax. This encourages them to stay longer and creates a friendly environment. Well-placed mirrors can enlarge spaces and reflect light, improving the overall feel.
Unique Displays
Display methods are important. Instead of standard shelves, try creative options like vintage ladders, easels, or rustic crates to show off products. As you work with interior design services, they can help you add a charming touch and help your space stand out in retail.
Interactive displays invite customer participation, allowing them to connect with the products. You might have a section where customers can “try on” accessories. Engaging displays create memorable experiences that customers will associate with your boutique.
Textural Variety
Different textures can create different feelings. Combining materials like wood, metal, and soft fabrics adds depth and interest. For example, pairing shiny metal shelves with cozy knit blankets or large woven baskets creates a balanced and lively look.
Flooring also matters. Beautiful hardwood, elegant tile, or soft carpet affects both the appearance and the feel of your boutique. A warm, inviting floor encourages customers to enter and explore, enhancing the overall atmosphere.
Sustainable Choices
Sustainability is increasingly important in design. Choose eco-friendly, ethically sourced materials. This shows your commitment to the environment and aligns with many customers’ values today.
Using plants can bring life to the boutique, improve air quality, and create a refreshing atmosphere. They not only look good but also enhance your boutique’s character. Reclaimed wood and vintage furniture can add charm while reducing environmental harm.
Personal Touches
Adding personal touches through artwork or local crafts creates a unique shopping experience. Working with local artists brings a sense of community to the space and gives them exposure. These touches create authenticity and make your boutique memorable.
Telling a story through design elements helps customers connect emotionally with the space. Whether you showcase a special historical piece or share your brand’s journey through decor, these personal details leave a lasting impression.
Boutique interior design focuses on creating spaces that reflect a brand’s identity. It curates an environment that is visually appealing, functional, and welcoming. By thoughtfully choosing colours, lighting, layouts, displays, and personal elements, your boutique can become a favourite destination for shoppers.
Startups
I Kept the Books in My Head Until the Number Scared Me. That Is Not Bookkeeping.
I kept the books in my head longer than I should have.
Not because I am good with numbers. Because looking at the real one felt like opening a door I could still pretend was closed. A spreadsheet I did not trust. A bank login I checked when I felt brave. A memory of what that client “probably” paid. I called it being close enough.
Close enough is how you find out in March that last year was a different story than the one you told yourself in October.
A company that takes money and cannot say what it kept is not lean. It is guessing with better posture.
The story I used instead of a ledger
I told myself I would clean it up after the next busy stretch.
The busy stretch is the product. It does not end. So the books stayed in a fog I could narrate. Good month, I was a genius. Tight month, the market was weird. Neither version had to survive contact with a list of deposits.
The head is a kind accountant. It forgets the subscription you meant to cancel. It rounds the refund in your favor. It lets a late invoice stay “basically done.” By December you have a feeling and a tax envelope, and those two things do not speak the same language.
I have sat at a kitchen table with a year of the business in a personal feed, scrolling, trying to rebuild a company from memory. That is a stupid way to meet yourself. It is also more common than founders admit, because admitting it sounds like you were not serious. You were serious. You were also avoiding the page.
What I was actually avoiding
The books make the week honest.
You can feel busy and still be leaking. You can feel broke in a month that was fine. You can feel rich in a month that was just timing. Without a ledger, mood does the reporting. Mood is loyal to the identity you want. The ledger is loyal to the bank.
I delayed because a real system means you cannot hide. The dumb tool you forgot. The “I’ll invoice Monday” that became never. The transfer you made to yourself and mentally classified as nothing. The head will protect you from that. A column will not.
I also delayed because bookkeeping feels like a different profession. Something you hire when you are big enough. That sentence has kept a lot of operators blind through the exact years when a clean picture would have changed a decision. You do not wait to be big enough to know whether you are making money. That is how you stay small and confused at the same time.
There is a pride version of this too. You tell yourself you are close enough to the work that you do not need a report. You can feel the company. I thought that. What I could feel was heat. Heat is not a P&L.
The software I still send people to
When the money finally has a business account and you need to see it, I send people to QuickBooks.
Not because it is the only accounting tool on earth. Because it is the one most first-time operators can live in without turning the week into a second career. Invoices. Expenses. A picture of the month that is not a vibe. That is the name I put on the table.
Xero will tell you they are cleaner. FreshBooks will tell you they are built for people who invoice for a living. Wave will tell you free is enough. Bench and Pilot will tell you to stop touching it and hand the whole mess to them. Sometimes those pitches are right for a specific shop. This page is not a software bake-off. It is me saying I stopped using my memory as the general ledger.
You can spend a month watching setup videos and comparing dashboards like you are choosing a religion. The month is the expensive part. The software is a light switch. Flip it before the year gets away from you.
I did not become a bookkeeper the week I opened it. I became someone who could stop arguing with a feeling.
What changes when you can see the month
The number is either there or it is not.
That sounds cold. It is a relief. You can decide from a page instead of from a Sunday-night story. You invoice faster because the tool is sitting there waiting instead of living in a tab you are afraid of. You notice the expense that has been quietly renewing while you were performing being busy. You can answer a simple question from a lender, a partner, or yourself without digging through texts like a detective in your own life.
Getting the money right is not a personality trait. It is a habit with a place to live. I treated it like a talent I either had or did not. That was vanity. I have watched operators who are brilliant at sales and lost in their own cash. Those are different muscles. Pretending they are the same muscle is how you stay impressive and poor.
Seeing the month also kills a certain kind of conversation you have with yourself. The one where you are about to buy a tool, a course, a hire, because the last deposit felt like permission. Permission is not the same as margin. The ledger is the only adult in that room.
Keep the first version smaller than the course you have not taken
Connect the business account. Categorize the next thirty days. That is the whole first week.
Do not rebuild five years of history on a Saturday because a YouTube video made you feel behind. Shame is not a closeout method. If the history is a swamp, pick a start date and go forward. You can hire someone later to excavate. You cannot excavate and run the company and also punish yourself for not having done it in 2022.
The paperwork and the books belong to the same adult. Filing an LLC and then flying blind is how you get a legal name and no idea what the legal name made. I have seen the stack: company filed, money still in personal checking, books still in a head. Three stalls wearing a trench coat.
One operating account. One place the invoices live. The next thirty days recorded even if last year is a blur. That is enough to stop lying.
The part nobody puts on the sales page
You will miss a category. You will call something cost of goods that was just you eating. You will stare at a screen and feel dumb.
Good. Feeling dumb for an hour is cheaper than feeling confident for a year.
I wanted the software to make me look like I had always been this person. It did not. It showed me the months I had been narrating. That was the gift. Unpleasant. Useful.
If you hire a bookkeeper tomorrow, you still need a year that exists in a system they can enter. Handing someone a pile of screenshots and a vibe is how you pay for archaeology.
What belongs on this page and what does not
Accounting software for small business is a loud, expensive phrase. Software companies and bookkeeping firms watch entrepreneur sites that already name a category leader. That is why QuickBooks is on this page once, on purpose.
If you have a product, a bookkeeping service, or a founder story about finally seeing the number that would actually help someone still running the company from memory, I will read it. If the draft is a pricing grid with a keyword in the title, it does not go up.
The reader is trying to stop guessing. Help them or stay off the domain.
If you still think you know the number
I thought I did.
I was close on the good months and wrong on the ones that mattered. The head is loyal to the story. The ledger is loyal to the deposits.
I opened QuickBooks before I felt ready, the same way I have had to do the rest of the grown-up stack. The first month was sloppy. The second month was less sloppy. I did not become a different man. I became harder to fool.
Put the next thirty days in it. Let the month talk. You can hire help later. You cannot hire someone to undo a year you never recorded.
The business was already real. The books just stopped letting me narrate it.
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