Mixed blessings

Firstly, looks like another good month. Not done detailed numbers but cash flow looks to be just a little behind what we were doing last month. But there are more new members and expect this to continue increase too. So everything is running to plan.

I noticed the pound has taken another bit of a pounding today. I won’t speculate on the exact reasons for the drop, but obviously the current longer term downward trend has come about because of the crappy economy.

Thought I’d write a quick note on how I’ve been affected by all this.

Good:
1. Like most of the companies who operate in a similar “internet dating” space as I do, business has actually increased, and continues to do so.
2. I see even more opportunities for the future as unstable companies either go to the ground, or are forced to merge with others opening space in the market
3. US Dollar income becoming more valuable relative to UK income

Not so good:
1. A lot of my direct costs are in US dollars. Overheads that were once cheap are not anything like as cost effective as they were, and will only get even more expensive.
2. Raising finance. Any business can do with cash to get it going (spent wisely). Banks turned me down for no other reason than they were tightening their belts. Even with cash flow and evidence of growth.

The balance for me though is definitely with this being favourable for me. Not actually being able to raise finance from banks led me to investors, who for obvious reasons currently want more equity than normal. After exploring this route for a while I actually came to the conclusion that I don’t want to give anything away. I want 100% of my business, even if this means having less cash now and slower growth. Having even met a few investors who were literally taking the piss with what they wanted in return, I am more determined than ever to keep this to myself!

Things are not as simple as they would have been if I was in the same position 12 months ago. But I am still right now in looking to expand my development team, increase my marketing spend, and hopefully soon recruit talent that can take over a lot of what I do day-to-day. It is for that reason that I will spend the next couple of days with accountants and bookkeepers trying to work out precisely how and when I can make this happen.

I am in an industry in which just staying afloat right now is not good enough. I need to be growing while the rest of the world continues to crumble to the ground!

On that note I shall get back on to the accounts, before these are my famous last words!