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Mullin on his Net startup
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August 28, 2000: 5:35 p.m. ET
ClubFixit CEO discusses his company's future in an online chat
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NEW YORK (CNNfn) - Sean Mullin quit his law firm job and started an Internet company earlier this year. Since then, his daily struggles and triumphs have been the subject of an ongoing series on CNNfn.com entitled "ClubFixit: Diary of a startup."
Mullin joined an online chat on August 24 to answer readers' questions about becoming an entrepreneur and how he plans to turn his budding Internet business into a successful company.
What follows is an edited transcript of an Internet chat featuring Sean Mullin, CEO of ClubFixit.
Chat moderator: Welcome, Sean Mullin, to the CNNfn chat room.
Sean Mullin: Hello.
Chat moderator: Sean, please tell us about your plan for a new, Internet-related startup.
Mullin: OK. ClubFixit is an upstart Internet company located in New York City. Our mission is to become the premier interactive marketplace for businesses and consumers within the repair and maintenance industry. We plan on accomplishing this mission by providing numerous technology-based business solutions to companies within our target market. Examples of companies within our target market would include plumbers, electricians, carpenters, general contractors and auto mechanics.
Question: Why would I use your company when all the Big Five consulting companies offer the same, Sean?
Mullin: Because the Big Five are flying at the 30,000 level. Our target market is small to mid-size companies and we, therefore, have the ability to provide highly customized and value-added services to our client base.
Chat moderator: How has the initial startup been going? Are you on schedule?
Mullin: I would say yes, we are on schedule. We have, of course, run into a few speed bumps along the way. However, we are happy with our progress and plan on launching our initial site within the next few weeks.
Chat moderator: What kinds of obstacles have you faced?
Mullin: I guess the most significant obstacles have come in the areas of securing initial financing without an actual business up and running. What we've done to counter this is to rely on our resourcefulness by leveraging our assets to go as far as possible with the limited capital we have.
Question: What's your company called, Sean?
Mullin: We are called ClubFixit.com.
Question: Sean, is it important for a service company to have a strong brand name? If yes, then how do you create a brand name for the service company?
Mullin: Although we are not specifically in the business of building brand names, we feel that having an online presence will undoubtedly assist our clients in all areas of their business development.
Question: How difficult is it to secure capital in this bear market?
Mullin: Fortunately for us, our company is less of a dot.com and more of a traditional business, in the sense that we have recurring revenue and a more traditional business model. Also, the particular market that we are entering is relatively untapped, and we feel this gives us an advantage when negotiating with investors.
Question: Sean, how long can a startup company continue to ignore profits to build up a customer base?
Mullin: Not long at all. That's why our business model focuses directly on the two key metrics that investors are hot on right now -- the first of those being cost of client acquisition, and the second of which is lifetime value of the client. We feel that business model bodes very well in both of these metrics.
Question: Why is your site still under construction?
Mullin: We have not finalized the rollout of our services to include when each service will be offered and the accompanying prices. However, we are on the verge of launching our initial site here very soon.
Question: Where do you foresee your company being three years from now?
Mullin: Ideally, we would be a major nationwide corporation.
Question: Sean, I just finished reading the most recent CNNfn article about your partnership in the Conxion incubator program. Many companies are turning towards managed Web hosting, and I would like to know how you see the partnership with Conxion accelerating the development phase of your business?
Mullin: Our partnership with Conxion will assist in our development by allowing us to cut costs initially and allocate that money into our areas of business development. We also feel that Conxion is a top-notch company that will provide us with a level of service to accomplish our milestones.
Question: Sean, you said that the market is relatively untapped with regard to your company. Do you mean to say there is no one else who is offering the same?
Mullin: From what we see, most of the Internet-related companies within our industry are acting as brokers between these small repair maintenance companies and their customers. ClubFixit, on the other hand, seeks not to be a broker, but to actually enable these small- to mid-size companies from a technology standpoint. By offering Web-based business solutions, we will allow our clients to streamline both front office and back office operations.
Question: How long does the incubator program last?
Mullin: It is a six-month program with no further obligation required and no equity. They want the opportunity to earn our business, and we want to speed our time to market.
Question: Do your clients want to be streamlined?
Mullin: I would say any business that wishes to increase their profit margins should be interested in streamlining their operations.
Question: In light of recent articles regarding the slowdown of the "new economy" in publications such as Business 2.0, what makes you think that ClubFixit can succeed when other dot.coms are failing?
Mullin: Our ability to sell value-added services to our client base in exchange for reasonable fees will gives us an edge over many dot.com companies that rely on revenue streams, such as advertising.
Question: Have you received any feedback from potential clients as to whether they would embrace this offer?
Mullin: We have completed a market demand study in one of our proposed launch cities -- Hoboken, N.J. -- and we're very pleased with the results, having found that none of the companies interviewed had even been offered the services we aim to provide.
Chat moderator: Thank you, Sean Mullin, for joining us today.
Mullin: Thank you very much. 
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ClubFixit
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