Andrew Valentine founded Streetcar, the pay-as-you-go car hire service, with university friend Brett Akker. The pair have more than 40,000 customers and offer 1,000 cars in 750 locations.
We always wanted to run a company together; we just didn’t know what it would be. We took a very structured approach to our search, meeting several times a week to look at overseas businesses that we thought would work here. When we found a car club in the US, we immediately recognised that it presented a real opportunity.
Getting the funding was our biggest challenge. I spoke to more than 70 potential investors before I found funding for the idea. Every single one of them said it was a wonderful idea, but to come back as soon as it was working. We also used a Government scheme which underwrites loans to growing businesses.
More than 95 per cent of Streetcar members have recommended the service to a friend and half our new members are introduced through word-of-mouth recommendation.
By the end of 2012 we’re aiming to have 250,000 members. Currently, we’re seeing record numbers join up as the credit crunch gets people to examine their household expenditure. We also want to expand to other cities but for the minute we’re focusing on London. It’s the best market for this service anywhere in the world.
The easiest type of company to run is one that you’d use yourself. As soon as you can put yourself in the shoes of a potential customer, you know you can make it work.
Andrew Valentine’s 5 top tips for starting a business
1. Do masses of market research to ensure you really understand your customers.
2. Raise at least twice as much money as you think you’ll need.
3. Prepare and constantly maintain a really professional-looking business plan. Think of it as your company’s CV.
4. Let the government help – it can provide grants, loans and advice.
5. Make sure your partner (wife, husband etc) buys into the project.
Back to top