This week ISB chats to Julie O’Donohue, founder of Next Address, a platform that offers a more affordable way of buying and selling property. As well as being designed to save customers time and money, Next Address has a strong philanthropic focus, donating six per cent of net profits to charities, which are rotated every six months and selected by users on the site.
ISB: When and how did the idea for Next Address come about?
JOD: In August 2014 I was walking my dog, Tilly, at night and started to reflect on a friend’s recent real estate experience, as well as my own. We had both experienced a pretty poor level of service and I thought there must be a better way to use technology to streamline the process. I felt home buyers and sellers needed an alternative model for buying and selling their homes. The industry was lacking a modern and cost-effective platform with effective communications channels that maximised lower-cost marketing through social media.
Cost is also a huge issue, as Australia is one of the most expensive countries in which to advertise and sell your home. I believed smart technology would enable us to significantly reduce those costs.
Within half an hour of arriving home from walking Tilly, I registered Next Address.
ISB: How did you go about turning the idea into a viable business?
JOD: I submitted my idea to a digital competition and won access to an online version of an incubator program, and for the next 12 months I researched and explored the property sector. I collated every bit of information I could about the real estate industry, including, the amount of houses sold each year, how many registered agents there are and the commissions/profits being made. I then started to explore how to implement Next Address on the market, who my potential customers were, why they needed Next Address and how I could monetise the concept.
ISB In what ways did your previous roles help you in running the business?
JOD: Having worked as a real estate agent for a couple of years, I was very familiar with the process of buying and selling a home. I was able to see the industry from many angles as I’ve been on both sides of the fence, as an agent and then as a buyer and seller myself.
Prior to that I owned and operated a 55-bed guest house in the Yarra Valley for 12 years, which gave me the experience of running my own business including managing staff relationships, operations, customer acquisition and marketing. These experiences have greatly assisted me in establishing and running Next Address.
ISB: What was the biggest challenge you faced with Next Address, and how did you overcome it?
JOD: Entering an already established market that hasn’t changed in many years is a big challenge in itself, and we’re still trying to break these barriers. Getting the attention of customers, building relationships with real estate agents and partnering with like-minded people who see a need for change in the sector is what we’re focusing on now.
And of course, finding financial support to take the idea to the next level and test all the opportunities. We have recently partnered with Birchal – that, in a nutshell, allows anyone to invest in a business on their list through crowdfunding– has opened a lot of doors and opportunities for us.
ISB: Philanthropy is a core value for Next Address: how you balance that philanthropic angle with the need to make money as a business?
JOD: Philanthropy drives our beliefs and values at Next Address and we have walked away from potential financial contributors who have wanted us to remove this objective. Giving back is an important part of our business and that’s why we’re so passionate about equity crowdfunding and the role it plays in helping businesses like Next Address to grow. Having worked in the not-for-profit sector I know that you can still run a successful business and give back. In fact, I think it drives me that bit more to ensure Next Address is a success.
ISB: And, finally, what advice would you pass on to others with an idea they’d like to turn into a business?
JOD: There are five things that I believe are important when turning your idea into reality:
- Do your research and become an expert in the field.
- Believe in yourself.
- Don’t be afraid to ask for advice from mentors and people outside your family.
- Don’t listen to the “Negative Nancy or Nigel’ in your own head.
- Just give it a go. It’s better to look back knowing that you gave your dream your all, rather than forever regretting not trying.
