Sunday Times February 27, 2005
 
How I Made It: Jack Donaghy, managing director of Webtrade
Accountancy nous beat dotcom crash
 
 
INGENUITY is a crucial part of any entrepreneur’s marketing strategy, particularly when budgets are tight. In a bid to generate business for his fledgling company, Jack Donaghy roped in his younger brother Patrick to keep a Webtrade golf umbrella opened during the blistering sunshine throughout the Irish Open seven years ago.
 
This slightly sadistic strategy paid off as Donaghy, now 34, quickly began garnering clients for his web development company. He had qualified as a chartered accountant while working at KPMG and then had two years with the Barlo Group before setting out on his own.
 
“I was always going to do something on my own but it was just a question of what,” said Donaghy. The internet was taking off at the time and it caught my eye. I started looking at people selling online and ultimately that is what we specialise in, but at the time, people didn’t know how or where you could get a website or how to get started.”
 
Before leaving Barlo Group, Donaghy identified one potential client who needed a website. He found a web developer and set up shop in a badly lit, rented office, with a dining-room table borrowed from his mother-in-law. He soon found that his professional background helped gain the trust of potential customers.
 
From having to explain the difference between websites and e-mail to customers seven years ago, Donaghy now has more than 300 clients that between them generate €100m annually through sites and systems designed for them by Webtrade. He employs 16 full-time staff and retains contractors as needed.
 
Donaghy’s accountancy background also ensured he stayed cautious throughout the dotcom boom and built up the business slowly. “While we weren’t up at the high levels during the peak years, we were growing steadily throughout without any big spikes or troughs.”
 
Largely due to this strategy, Webtrade has been profitable since its inception. “We had a small bank overdraft facility and that saw us through whenever we needed it but we were self-financing from day one,” he said.
 
He is particularly proud of the advances his firm has made in technology and web applications. Webtrade’s core product is LiveEdit, a content management system which is being developed into a series of tailored products, such as LiveEdit Hotel.
 
“A hotel can create all their pages using the system and then add or delete pages, content and photos. More importantly, they can also add availability as the product is hooked up to a central reservations system.
 
“We also have an online marketing arm with search engine capability so it is almost a self-fulfilling prophecy. We direct traffic through to the hotels and get a percentage of sales made through the bookings engine.”
 
Donaghy recently spoke at a Nova UCD student enterprise seminar and says he was eager to pass on six core pieces of advice. Primary among these was the importance of keeping control of your shareholding. “Don’t sell out too soon. I own 100% of Webtrade,” he said. “I could have sold it over the years but I’m glad I didn’t.”
 
He also highlighted the importance of setting boundaries and objectives, planning strategy, thinking through every decision and showing decisive leadership qualities. Donaghy’s piece of advice was to know when to relax.
 
“Be sure you get everything done in the time you have. You could work all the hours God sends but problems still wait for Monday. It is important to know how to switch off.”
 
Kathy Foley

To view the article on the Sunday Times website click here