The GLOBAL-ROAM Business Model
What are we in business for?
We're a software company that develops and delivers "shrink-wrapped", "off-the-shelf" software products that have broad applicability across participants in, and observers of, the competitive energy market.
Most importantly, we wish to be a sustainable business - which means we're focused on opportunities where we think there's a reasonable chance of us maintaining sustainable competitive advantage (say, over a 10-year horizon).
Secondly, we are pursuing a business model that means our business is scalable, without a commensurate increase in costs.
What this means is that there are opportunities we choose to focus on, and opportunities we decline:
| We Seek | We Avoid |
|
We seek opportunities to which we can apply
our talent in making complex things understandable
to many people. All products are promoted, sold and delivered via the internet, meaning that 1) we can scale the business without a similar growth in marketing and sales resourcing - and that 2) we can expand our geographical focus. All products are licensed annually, with the licence fee providing for data service, usage, upgrades and support. Product ideas are selected such that, after initial investment (sometimes considerable) they will prove relatively stable over time. Following from this, products are priced such that we recover our investment over multiple clients and multiple years. |
We don't do IT contracting, or consulting
on the energy market as the revenue is
dependent on hours worked. We also try not to choose products that will have limited applicability (i.e. we'd rather have 100 clients than 10 clients - even if the total revenue received was the same). We have no aspirations to be a "one-stop-shop". We have consciously chosen not to compete against incumbent service providers in some areas as it just would not be sustainable. |
Like many product-development companies (software, and others), our development has required the injection of start-up capital. Perhaps unlike many start-up, product development companies(?), we have (to date) adopted the approach of "drip feeding" the company with the capital required for ongoing investment.
This has offered a number of advantages, including the following:
1) Discipline
This has compelled us to seek feedback very rapidly (from the market) with respect to new product development ideas.
This feedback has been very beneficial to us (essential, really) in helping us to focus out ongoing product development efforts.
2) Control
Taking this approach has meant that we have avoided the need to raise capital from 3rd parties.
Whilst this may be necessary at some stage in the future (we've no firm view on this), we have appreciated the current opportunity to have control of the company's direction resting with its employees.
3) Rewards
Having such a large percentage of the company owned by employees of the company has also meant a close alignment of the aspirations and expectations of our employees/shareholders.
Amongst other things, this has meant that everyone has a shared interest in the deferred gratification our business model requires.
If you would like further information, we'd suggest both of the following:
(a) We've put a page together that summarises how our share registry has changed over time.
(b) In April 2009, we also began (sporadically) blogging about what happens "behind the scenes" within the company. Our commentary, when we have the time to post, should provide you more details about what our company is like (warts and all). Of course, we'd welcome your positive contributions to our blog.