Xro - xero

[Harvey Specter]

One thing that does concern me with Xero is they are targeting 1m customers (initially). Intuit has less than 6m across their whole suite (I think I read this weekend).

Therefore Xero is looking to capture huge market share or it is hoping to attract a lot of new business from those using Excel/shoebox.

[Toasty]

One thing that does concern me with Xero is they are targeting 1m customers (initially). Intuit has less than 6m across their whole suite (I think I read this weekend).

Therefore Xero is looking to capture huge market share or it is hoping to attract a lot of new business from those using Excel/shoebox.

One of the key things that was mentioned a while ago was that quite a large percentage of Xero customers were new to accounting software. So exactly that Excel/showbox style client. There are figures somewhere but I am not sure where.

[Casino]

What is the definition of a SME? I dont think there is an accepted one. I had a look (google) a while ago and found one NZ govt site used 5 or less staff to define SME. One Canadian site used a weird test such that billion dollar companies qualified as a SME but smaller business did not.

Xero has defined it as one with less than 1,000 transactions. I also think with their Australian plans, they have an upper limit of staff which will also be an effective limit.

If you are bigger, use something else. Xero has never said they apply to everyone and the fact they use another product is evidence of this.

I would go by number of employees: 0-50, maybe 100.

2$ shop, lot of transactions --> small business
cafe, lot of transactions --> small business
trade me shop, lot of transactions --> small business
SirPrize's t-shirt business, lot of transactions --> small business
app selling store, lot of transactions --> small business
etc

[Casino]

One of the key things that was mentioned a while ago was that quite a large percentage of Xero customers were new to accounting software. So exactly that Excel/showbox style client. There are figures somewhere but I am not sure where.

this is the most realistic market for Xero, I would say. To go after those, you have to compete on price. But Xero says they are about value and wants to target the segment between QBO/MYOB and Netsuite: http://blog.xero.com/2012/07/the-apportunity/

But that space is becoming very narrow now with QBO opening its API and Netsuite looking below.

[Harvey Specter]

cafe, lot of transactions --> small business

I know for this at least, and probably some of the others that they only have "2" sales per day. There is the overnight credit card settlement and then the daily cash banking. So that leaves over 900 expense transactions per month.

I would go by number of employees: 0-50, maybe 100.

Is staff the right metric, what about turn over, assets value? I dont know the answer.

[SirPrize]

SirPrize's t-shirt business, lot of transactions --> small business

That is hilarious. Thank you for including me. LOL

[Casino]

I know for this at least, and probably some of the others that they only have "2" sales per day. There is the overnight credit card settlement and then the daily cash banking. So that leaves over 900 expense transactions per month.

Is staff the right metric, what about turn over, assets value? I dont know the answer.

Another good way could be to define it by how much a business can/has to spend on accounting: 0-$3000 pa

[Casino]

That is hilarious. Thank you for including me. LOL

I was actually going to ask you for a custom job. Could you print me a t-shirt with Joseph Kennedy on it? How much would it cost?

[SirPrize]

I would go by number of employees: 0-50, maybe 100.

2$ shop, lot of transactions --> small business
cafe, lot of transactions --> small business
trade me shop, lot of transactions --> small business
SirPrize's t-shirt business, lot of transactions --> small business
app selling store, lot of transactions --> small business
etc

In New Zealand, a SME has 19 or fewer employees.

ref: http://en.wikipedia.org/wiki/Small_a...um_enterprises

[SirPrize]

I was actually going to ask you for a custom job. Could you print me a t-shirt with Joseph Kennedy on it? How much would it cost?

Not interested.