Smart50 rank: 27
Revenue: $3,146,211
Growth: 59.39%
Founders: Frank Grasso, 44
Head Office: South Australia
Employees: 18
Industry: Information technology
Website: www.e-channel.com.au
A tolerance for legumes helped Frank Grasso get through the early years of SEO marketing firm eChannel – and he says other entrepreneurs should develop this too.
“Learn to live on legumes in the first few years. They are cheap and full of protein, fibre and vitamins. Hold on to every dollar like it’s your last – until you have a clear direction and are cashflow positive.”
“Trying to ramp up, develop software and maintain cash-flow is very difficult for any start-up business. We were always running low on funds, or the odd occasion where there just was not enough funds to pay bills.”
But sweet relief came through a seed investment round, which gave the search engine marketing business the "cashflow to grow, and the freedom to burn cash" as it expanded.
And expand it has: eChannel Online says the industry is stabilising, it has largely avoided the patchy economic conditions felt elsewhere, and increasing its sales force over the past 12 months has been a winner.
eChannel Online has reported average annual revenue growth of 59.4% over the past three years to $3.146 million in 2010-11.
Looking ahead, Grasso says a grab for international market share is on the cards.
“In Australia, we are a well-oiled machine but we do need to start shifting our thinking and focus towards international market share. In 2011, export only accounted for less than 5% of revenue. In 2012 this number is to increase significantly. There is always room for improvement.”
