UNDER THE RADAR: Andrew Tobin, t2
WHAT REALLY impresses business clients who are new to website development company, t2, is not so much its undeniable technical expertise – but the fact that it was named one of Ireland’s top three SMEs at the National Enterprise Awards last year.
“The majority of our clients are SMEs themselves,” says managing director Andrew Tobin (32), “so while we may not always speak the same language in technical terms at the start, we generally have a lot in common in terms of our priorities and how we operate.”
Another thing that’s different about t2 is that it’s not based in Dublin, it’s based in Carlow. In fact, it was the only non-Dublin-based business to be shortlisted for Web Development Company of the Year at the 2009 ICT Awards.
“We see the fact that we’re outside Dublin as another real plus,” observes Tobin. “In my experience, some of the bigger Dublin firms are completely out of touch with the financial challenges being faced by smaller businesses. They’re just not realistic.
“We always take the view, for instance, that if a website isn’t designed, built and marketed to deliver a tangible return on investment in as short a time as possible, then it’s a complete waste of time – instead of a significant competitive advantage.”
t2 was set up in 2004 by Andrew Tobin and his wife, Jane, both of whom had worked with business process automation company, SoftCo, in Leopardstown . . . in Dublin.
“My background is in software development and Jane’s is in design, so our skills are mobile. What started us thinking about moving out of Dublin was the fact that house prices there were so crazy. We found we could buy in Carlow for half the price – and start a business more cheaply here as well.” They were right. It was a good decision, in lifestyle and in business terms – t2 added software development and IT support to website design, and has since doubled its turnover year-on-year to the 2008 figure of just under €1 million. At the same time, its workforce of two has grown to 10.
But even so, Tobin concedes, the recession has taken its toll.
“In summer 2008 we realised that the number of larger projects in the pipeline was drying up, despite the fact that we were sending out roughly the same number of quotes.
“So we looked at where we were making money and decided to do more of it. We reviewed our pricing. We did more back-to-basics market research. And we benchmarked ourselves against companies in Dublin, Galway and Belfast, which taught us a lot. By September we were back on track and we drove things on from there.”
Ironically, having moved out of Dublin in 2004, Tobin now admits that the future of t2 may lie back on the mean streets of the capital once again.
“Yes, it is ironic,” he admits. “But we feel well positioned to grow at the moment, and so we’ve been looking at some Dublin companies with a view to a merger or an acquisition. Ideally we’re thinking of a company similar in size, with a comparable turnover and staffing levels.”
Does he favour a merger or an acquisition? “We’re open to both,” Tobin replies. “We’re conscious of the fact that there’s very little organic growth around at the moment. That means the MA route is really the only one open to us if we’re serious about growing the business. And it would open up the Dublin market to us far more quickly.”
And the timing? “It’s excellent. We’re looking in particular at companies in the IT support sector, which we believe will lead on to other cross-selling opportunities.”
On the record
Name:Andrew Tobin
Company: t2
www.t2.ie
Job:Co-founder and managing director
Age: 32
Background: Graduated from Wexford Institute of Technology in 1999 with a B.Sc in Applied Computing. Joined SoftCo in Dublin the same year. Set up t2 with his wife Jane in 2004, and has since doubled turnover year-on-year. Shortlisted for the Shell Livewire entrepreneur awards in 2006 and 2007. Named one of Ireland's top three SMEs at National Enterprise Awards in 2008. Only non-Dublin company to be shortlisted for Web Development Company of the Year at 2009 ICT Awards.
Challenges: "Broadly speaking the challenges for us are the same as for other companies: cash flow, contracting markets, price sensitivity . . . But we're also looking at a merger or an acquisition with a Dublin company, and finding the right company presents its own challenges."
Inspired By: "I'm regularly inspired by all sorts of things. Most recently, I'd say an excellent book by management consultant, Blaise Brosnan, called You Are The Limiting Factor. It's a very practical book that tells managers: the buck stops with you . . ."
Most Important Thing Learned So Far: "It's as easy to be positive as it is to be negative, but being positive is far more productive. In general, I'd say I'm a positive person – at least when I don't have the radio on!"
