Clixflix: 5-point someone
Edwards and Concessio found it hard to raise money, mainly because investors found it difficult to classify their business. Read on...india Updated: Nov 14, 2008 15:33 IST
Got the idea from
: The idea first took shape when Glenn Concessio moved from Bandra to Malad, where he was unable to find a place to rent DVDs from. It then matured after discussions that Concessio and Dale Edwards had with a friend who had rented movies from services such as Netflix.com, when was in the US. The friend served as an initial sounding board.
Starting doubts: Edwards and Concessio were middle-class Bandra boys - Edwards was an event manager; Concessio ran a recording studio, so they had to overcome the fear of not having a steady income. Despite all their research and preparation, they could not estimate how big the potential market was. They ventured into the unknown instinctively.
Money problems: They found it hard to raise money, mainly because investors found it difficult to classify their business. Was it a service or a retail venture? This continues to be a problem. As a result, they had to start out by investing their own money and taking a loan, using their homes as collateral. The loan terms did not give them the luxury of a moratorium.
Other obstacles: They initially intended the business to be purely online, because they believed that this would generate faster growth. It didn't. So they had to quickly change tack, by starting more brick-and-mortar stores, allowing customers to call in and send text message requests. Today, they believe this combination has helped them get more customers.
Outstanding personal qualities:
Observant: Concessio noticed the gap in the market. Appetite for risk. Self-belief.
Flexibility: they realised a purely online service was not bringing them customers at the rate they wanted, so they started more stores. Openness to suggestions: they actively sought the advice of their friend.