Case
An ambitious 20 y.o. entrepreneur launches a technological startup @jobboo_es, seeking to merge the needs of the clients and professionals in various services: electricians, dry-cleaning staff, drivers, nurses, etc.
He brought over managers and marketing consultants from the U.K. and the United States, and it cost him a pretty penny. They launched a Website that drew 12,000 visitors and 16% conversion in just one month!
Mission
Scale the startup to other European countries.
Challenge
The owner of the project thought the team where everyone is performing the assigned functions would be enough. He saw no point in assigning the general director who would organize all operations and processes and control their performance.
Solution
We participated in the project from the start: we organized the legal structure, handled the funding, licensing and preparation of the legal and statutory framework applicable to the service providers and the clients.
Seeing the gap in the organizational structure, we would try, time and again, to convince the owners they should delegate the use of the team management functions or hire an experienced CEO or managers.
Result
The owners of Jobboo did not adopt our recommendations. Consequently, we had no involvement in financial and tax planning, nor in administrative management.
Ultimately, the project lasted for only nine months before ceasing operations. The failure was caused by operational issues – complexities in accounting processes, incorrectly calculated VAT, and daily administrative challenges -all of which could have been managed effectively had Laduchi Consult been involved.
Nevertheless, the startup concept was so interesting and promising that we believe the team will certainly return to the market in the future and turn the experience they have gained into their own advantage.