FLOAT was set up by Colin Hewitt in 2012 when he realised there was a better solution to managing cash flow after running a digital agency. The cash flow software has received £1.5 million in funding which Hewitt plans to spend on hiring staff for the firm’s new office in Australia.
Name: Colin Hewitt
Age: 41
Position: Founder
WHAT IS THE BUSINESS CALLED?
Float
WHERE IS IT BASED?
Edinburgh
WHY DID YOU SET UP THE BUSINESS?
I WAS running a digital agency and building software apps and websites. I found customers didn’t have the resources to make an idea go from app to prototype and it became a frustration to us as a team. The biggest problem we had in the business was cash flow – we did it on a spreadsheet and it was hard and tedious. We made something that will work. I ran the agency for 10 years and I started Float in 2012 so it has almost been the same amount of time.
I didn’t always want to run my own business but when I was looking at careers after university someone told me that if I want to do everything I have to set up my own company. It was appealing to me. The work culture is a really important side of Float.
HOW DOES IT WORK?
THERE are three key elements: knowing invoices and bills, looking at everything on bank statements to make sure nothing unexpected is on there and projection – predicting what’s not on the invoice or bills. We create budgets and projects and bring it all together for the upcoming months.
People are saying it helped their business and has given them clarity saying they used to do it on a spreadsheet and couldn’t run a business without it.
It gives them a sense of control as it is accurate and up to date – a spreadsheet could be wrong. It takes a tedious piece of work and makes it quicker.
WHAT IS YOUR TARGET MARKET?
IT was very general when we set up and we aimed it at all businesses but it’s really hard to do cash flow for all businesses as they are diverse. They have different problems – start-ups have larger amounts of cash over a different amount of time, for example. Agencies are month to month. We take it one step at a time. We used to be limited by companies but now so many companies are using the product that it’s a big chunk of the market.
HOW IS IT DIFFERENT FROM COMPETING BUSINESSES?
IT has become more competitive in the last few years. Our relentless focus on solving problems for customers in as simple a way as possible is the biggest difference. Competitors have a broad offering but we keep it focused – we’re offering a scalpel, not a swiss army knife.
IS SCOTLAND A GOOD PLACE FOR THIS TYPE OF BUSINESS?
ABSOLUTELY. Edinburgh was a fantastic hub for us – we got so much in the early days from the Informatics Centre at Edinburgh University. The talent coming out of Scottish universities is fantastic. The quality of life in Scotland is really appealing. I love being able to live and work here.
WHAT DO YOU ENJOY MOST ABOUT RUNNING THE BUSINESS?
I LOVE solving problems for customers and hearing feedback when we get it right. It’s amazing to walk into a team coming up with solutions. It’s really rewarding.
WHAT IS THE BIGGEST CHALLENGE IN RUNNING THE BUSINESS?
THE amount of time it takes to hire the right people – we are relentless in making sure people come in and have our values. It takes a huge amount of time to do interviews.
WHERE DO YOU HOPE THE BUSINESS WILL BE IN 10 YEARS’ TIME?
IN multiple countries. Australia is the first stop but we would love to go further. We’ve got customers in Canada and the US but no base there yet. It’s a global problem we would like to solve for small businesses around the world. We’re going to use the £1.5m in funding to hire staff in Australia and the UK in customer roles. We are filling up the whole business. We’re increasing speed in the product team too.
There are so many businesses that fail – around 82% [according to a US Bank study] and cash flow is the main reason. Even when people are running a successful business they say cash flow is what keeps them awake at night. We want to help by supporting businesses.
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