The local design community was all a-twitter last month after word got out that Moo Print Ltd., the quirky London-based print-on-demand stationery firm, was planning to open its first U.S. office this spring in Rhode Island. (READ MORE) The company expects to hire about 10 people by the end of the year.
Brian Murphy, Moo’s vice president of operations, talked with Providence Business News recently about the company’s niche, why he chose Rhode Island, and what advice he has for the Providence metropolitan area as it tries to grow its information technology and digital media sectors.
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PBN: For the uninitiated, could you give the basics on what you do at Moo? How does it work?
MURPHY: Moo is a sort of online stationer which sells business cards and other printed products such as postcards, greeting cards, and stickers. The business cards come in two sizes – a traditional 84mm x 55mm (about 3 3/8″ x 2 1/8″) card and a slim card we call “MiniCards,” which are 28mm x 70mm (about 1″ x 2 3/4″). All of Moo’s products are printed digitally using variable print technology, which means every card in the set can have a different image on the front. Moo’s customers can upload their own pictures and designs for the products they make, use content from sites like Flickr, Facebook or iStockphoto, or choose from a library of artwork on the site created by professional designers.
We launched the site moo.com in September 2006 and have since shipped millions of cards to more than 170 countries.
Making products is as simple as choosing your images or designs, adding text and paying for your order. Moo produces the products in London within a few days and mails it to you anywhere in the world. Soon, we’ll open a second dispatch and service center in Rhode Island which will greatly improve delivery times to our largest market – the U.S. and Canada.
PBN: In the midst of a global recession, it seems like it might be a tough time to be in the business of making funky stationery, particularly as a startup. How is your business holding up? Are you concerned about the months ahead?
MURPHY: Like all businesses, we’re concerned about the economy and how it might affect our business down the road. Fortunately, our growth was strong in 2008 and has exceeded expectations thus far in 2009. We suspect that our core products – business cards and MiniCards – are somewhat countercyclical, in that they are used by individuals and small businesses as a tool to network and market themselves for jobs. The price point is relatively low at about $20 for a basic set, and with their high quality and personalized designs, they help you stand out from the pack. A lot of our customers use product images or examples of their work on the cards to tell a story about themselves or their business.
In spite of our encouraging sales performance, however, we will be preserving cash and managing headcount very carefully until things start to rebound – like any other business. Our goal is to be cash flow positive by year-end.
PBN: What made you decide to move to East Providence? Did you consider Providence?
MURPHY: When we started to think about sites for a U.S. operation, we focused on the San Francisco or Boston areas as top candidates. We liked San Francisco because we spend a lot of time there meeting with partners like Flickr, and it’s a natural choice for an Internet-based business. After giving it a lot of consideration, we instead opted for the Boston area because it offers the same sort of labor talent and print industry resources, but it’s closer to London and in many ways an easier place for us to do business. Once we had our minds set on the area, we found ourselves drawn to Providence because of its smart, talented work force, vibrant design community and wonderful culture – great places to eat, live and relax. As you say, Moo is a bit funky and feels right at home here.
It’s also a great hub location for postal shipping and for working with suppliers in nearby southern New England cities such as Boston, Worcester and New Bedford.
We worked remotely with a great local real estate firm, MG Commercial, to find a space within Providence city limits, but found it difficult to get the right fit in a short time and from a distance. In the end, we opted for a short-term lease with the option to extend in East Providence, which gives us the flexibility to really research the market and find a perfect longer-term home. We’d love to be in the city eventually, but East Providence is a fine place to do business and close enough for now.
PBN: There’s a lot of talk about how IT and digital media could be a big economic engine for the Providence area. As an outsider and a businessman, what’s your take on that? Does this seem like a place that could attract more companies like yours?
MURPHY: Certainly, Providence has the ingredients that bring together the sort of talent that could start and grow great Internet businesses. You have got a strong technical and design pool coming out of local universities like Brown and RISD, but traditionally those folks tend to head to places like New York and San Francisco following graduation. I think the key is to get those folks and others from around the country to come to Providence once they have had those big city experiences and would like to make a career in a more “livable” city like Providence. Moo is a bit more motivated than pure Internet startups to come to a place like this because we sell physical products. Many companies like us start in major urban centers, but soon relocate to smaller metros to get away from the high costs and congestion.
The bottom line is that smart IT/media folks want to work and live in a cool place with other talented people. Providence has that, but could do a bit more to be welcoming to emerging businesses. One thing I have noticed in looking for space is that there is no obvious neighborhood for a startup to set up shop. There are little pockets here and there, but none has developed a critical mass like SoMa (South of Market) or Emeryville in the San Francisco Bay Area. I think an area like the Jewelry District could be perfect, but it will take the right kind of investment and planning. I could be wrong, but I got the impression that local property owners were more interested in medical, educational or government tenants than businesses. I’d love to see some programs and incentives to further stimulate redevelopment aimed at small IT/media businesses. The rest of the cultural fixtures – the cafés, the restaurants, the eclectic retail – will naturally follow.
PBN: What’s your timeline for setting up shop here, hiring employees and shipping products?
MURPHY: We’re on the ground now and will begin setting up shop, ordering material and interviewing candidates next week. Target date to ship the first order out of Rhode Island is sometime before the end of April. •
I agree Paul!
Great good things are planned for Providence!
http://www.designprov.com
More soon!