Business podcast SmallBizPod was the first business podcast available on iTunes. Aimed at small business entrepreneurs, the podcast’s founder Alex Bellinger launched the first of SmallBizPod’s series of networking events, SmallBizPod Thrive, last week in London, with events in Bristol, Birmingham and Manchester to follow.

Speakers included Julie Meyer, co-founder of Internet entrepreneur network First Tuesday and also a ‘dragon’ on BBC’s Online Dragon’s Den.

Getting started

Also speaking was Mitesh Soma, founder of Chemist Direct, the successful online chemist. Soma outlined how he promoted Chemist Direct using cost-effective Internet marketing.

“We used some pay-per-click and optimised our website as much as possible,” he told delegates. “Referrals and good write-ups were most effective at generating awareness. A lot of dotcoms that went bust spent a lot of money on advertising, but we didn’t want to do that. We used low-cost approaches, such as link building and supplier referral.”

Soma’s site is backed by Atomico Ventures, the venture capital (VC) firm established by the co-founders of Internet phone company Skype, which he believes has helped him further develop Chemist Direct.

“They could help out a lot with their expertise, but it is difficult to get funding nowadays,” he said. “To get funding you need to have a clear proposal, a good team and a good track record helps. VCs can be more selective now.”

Leading by example

Meyer, herself the founder and CEO of VC firm Ariadne Capital, agreed that it VCs were becoming more selective. Meyer also said that when investing in technology, it is often wise for VCs to leave the technology people in charge rather than parachute in “business people”.

“Look at Bill Gates at Microsoft, Scott McNealy at Sun Microsystems, Steve Jobs at Apple, they’re all technology entrepreneurs who have driven their companies on to greatness,” she said.

“We look at the quality of the enterprise, track record, what has the entrepreneur brought to life, have they got that spark or magic, and what’s their leadership ability?” Meyer concluded. “We separate the ‘tourists’ from those that seriously want to create companies. All throughout history capital has followed the idea. The money finds the idea; it always does and always has.”