Elevator Pitch is a regular feature on Lifehacker where we profile startups and new companies and pick their brains for entrepreneurial advice. This week, we're talking with co-founder Greg Taylor from Clipp.
In 128 words or less, explain your business idea.
Clipp is an iOS and Android app that allows customers to pay their bar tab directly through their smartphone. With Clipp, the need to hand over a credit card to set up a tab is eliminated as the app is synchronised directly to the venue's Point of Sale System. Users receive real-time updates to track their spend and when they're ready to leave the venue, simply close the tab through the app and leave without having to queue up at the bar to settle the tab. A receipt is emailed straight away which is ideal for corporate expense tracking.
What strategies are you using to grow and finance your idea?
We recently closed a funding round of $1.5 million in November, led by KIS Capital Partners. We are heavily focused on venue acquisition presently both direct and indirectly through our channel partners.
What's the biggest challenge facing your business?
Behavioural change fpr both supply (venues) and demand (consumers). We effectively have two sets of customers therefore a very different communication piece between them. Giving each side a reason to change is critical, however the 'stickiness' of the product creates both commercial and efficiency benefits to venues and consumers.
How do your differentiate your business from your competitors?
Clipp is leading the way when it comes to how Aussies settle their bar tabs. We have a wide range of venues from some of Australia's most notable small bars, including Bulletin Place and Lobo Plantation to groups such as Urban Purveyor (The Argyle, The Bavarian Bier Cafe) to one of the biggest groups in Australia including the ALH (Woolworths pubs) who have 350+ venues in the group.
Acceptance is key: the more venues, the more customers. Customers then help drive your supply side.
Clipp has a number benefits for both venues and users that makes us unique:
- No cards or licences behind the bar — set up a tab in 10 seconds on your smartphone.
- Clipp lets users control their spend as they're able to see exactly how much they've spent, thank to real-time updates.
- Leave like you own the place. Clipp is the Uber for bar tabs — users simply close their tab when they're ready to leave, eliminating the need for queuing up at the bar.
- Split payments: One tab can be shared across multiple phones. No more "who's got the card?".
- Receipts are emailed straight to the user's inbox making expenses reporting seamless for corporates.
What one phone, tablet or PC application could you not live without?
Business-wise: Base, our CRM system. It allows me to get an overview of every process of business from sales prospects, deals closed and the activity levels of our sales team.
Personally: I'm a bit of an aviation nerd, so for me it's FlightRadar24 – the new features they introduce constantly impress me. Recently they added a real 3D view from the cockpit which is pretty cool to see what it looks like from the pointy end coming into land.
What's the best piece of business advice you've ever received?
One of our investors, who I constantly seek out for advice, once said to me: "Show me the money, not the title". It's so true, surround yourself with the best people and most importantly people who are better than you at the role.
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