What's it like to work in... an online business?

During the late 1990s,it seemed that everyone knew someone who had left their comfortable, secure job to take a punt on an online start-up. The attractions were obvious: the excitement of being part of a fast-growing business and the chance to work with dynamic, typically young, professionals for phenomenal rewards ñ at least on paper.

The risks came into sharp relief when suddenly investors pulled their cash as questions arose over the real value and sustainability of these businesses.

Hard lessons were learnt during the crash and since then internet companies have been forced to grow up - fast. Think Amazon, Lastminute.com, and Google, for just some of the companies that have succeeded.

Today, only online businesses that can demonstrate sound planning, strong business acumen and stringent finances have survived. But working for an online company still has its differences to that of an established bricks and mortar company.

Rates of growth are quicker, meaning business is conducted at a swifter pace and decisions must be made faster. Unless you’re dynamic and willing to take a risk then working for an online business may not be for you.

‘It’s the fact that you’re growing at such a rate that makes the difference,’ says Jon Kamaluddin, finance director of online clothing retailer Asos, which is currently growing at around 80% annually.

Until Kamaluddin, 34, joined Asos his career was with traditional retail businesses but there came a point where he wanted more of a challenge.

‘I was looking for something that was early stage, in retail, and with a lot of growth potential,’ he explains.

In terms of differences, he says: ‘The speed of change is challenging as decisions need to be made quicker. And data and analysis need to be [digested] faster but with no compromise in quality. The pressure is greater.’

Zoë Tibell, finance director of baby products marketing group Bounty, supports this belief. ‘There’s an acceptance of constant change, which is different to the offline world.’

Despite the swifter pace of life, in terms of the daily working environment, Tibell says the office atmosphere tends to be much more relaxed, while lively and creative.

Depending on the size of an online business, financial rewards vary. Don’t expect the typical benefits package you receive with a more established company.

‘With any small company there’s no benefits package like with a bluechip, so you have to weigh up those things,’ says Roland Seddon, regional director for senior finance at Hays.

‘If it’s a more established company however, then they won’t be given equity but rather a bonus. It’s usually FDs that will be given an equity package. So it depends on the date of evolution and the size of the finance department whether you get more rewards,’ adds Seddon.

If an online company sounds up your street then it is advisable to do some research, attend conferences on venture capital and get experience in the sector in which you want to work.

‘Core skills are still the same. If you join a small company then the need to be more entrepreneurial in mindset would help. Small companies have to think and act by the seat of their pants,’ says Seddon.

Irrespective of a more visibly relaxed work atmosphere and perhaps more flexibility in working hours, don’t be fooled into thinking that the job will be all about fun.

Clive Davis, director of Robert Half International, warns that the environment is hard-working, often with long hours given that the internet is always ‘on’.

However, once involved, people rarely want to go back to an ‘offline’ business, says Davis.

‘It’s a sector people want to stay involved in. People don’t rush to get away from it. And if you have experience then there’s demand for you,’ says Davis.

Sales pace hots up

Considering the speed of growth of online sales in recent years, internet companies are set to become increasingly prevalent.

The value of online sales by UK businesses rose to £130.4bn in 2006, an increase of 29.1% on the 2005 figure of £101bn, according to estimates from the latest annual e-commerce survey published by the Office for National Statistics.

In 2005 the post and telecommunications sector had the largest proportion of businesses selling over the internet (23%). But, the wholesale, retail, catering and travel sector reported the highest value of sales online at £49bn, representing £47 of every £100 sold over the internet in 2005.

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