The Munich-based startup Parcellab optimizes communication between customers and online retailers. Founded in 2014, the company has grown significantly in recent years. Many stores are seeing that they generate more revenue thanks to the improved shopping experience. We wanted to know how the three founders, Julian Krenge, Tobias Buxhoidt, and Anton Eder, are handling this growth, what Parcellab is currently focusing on, and how its international expansion is progressing. Anton Eder, founder and COO, answered our questions.
Munich Startup: With the last Financing round in September 2019 You announced further growth. What changes have occurred for you and your company organization?
Anton Eder, Parcellab: That's true, we've grown very quickly indeed. Since the last financing round alone, we've recruited 20 new employees who have since strengthened our team. We now have 65 employees, and we plan to double that number by the end of the year. This is partly because we're driving forward our expansion and want to expand into other locations, such as the UK and France.
Rapid growth is both a tremendous opportunity and a challenge. Especially when companies grow quickly, it requires careful planning and support. We have therefore adapted our organizational structures to the new company size and restructured processes in almost all areas, including management. A team this large can no longer be managed in the usual startup manner. Therefore, we will be adding a management level with experienced managers to the team structure.
“When companies grow quickly, it needs to be well planned and supported.”
Munich Startup: What is your advice for other startups that are growing quickly?
Anton Eder: It's essential for us to involve all our staff in the process and inform them promptly about changes. Especially in startups, employees are deeply integrated into the company. This is a great thing and is one of the things that makes working in a startup so special. Therefore, each of us wants and should be able to participate in the positive changes and not feel like just a cog in the machine of a run-of-the-mill company.
It's also important to adapt organizational structures to the size of the workforce early on and to think in advance about what a new, suitable structure should look like. Once the employees are in place, it's too late for plans.
It's best to build an HR team early on that can effectively manage growth. This includes professionalizing onboarding and staff development, as well as establishing and maintaining the corporate culture within the team.
How does Parcellab approach recruiting?
Munich Startup: Speaking of onboarding: How do you approach recruiting? How and where do you find suitable new employees?
Anton Eder: To recruit new team members, we employ both traditional and less conventional methods. First, we believe that good employees attract good employees. Therefore, we create a referral program that encourages the existing team to recommend new employees. In parallel, we conduct traditional recruiting through our website, trade fairs, and job portals and platforms such as LinkedIn and Indeed.
An applicant management system also pays off in the selection process, as it helps to ensure the best possible recruitment experience for all parties.
Munich Startup: You work with 450 international trading companies in 38 countries and 25 languages. What tips do you have for founders who want to enter foreign markets?
Anton Eder: Market development begins with market analysis. Therefore, we first took a close look at the market and the competitors. We then sought out local experts who were familiar with the subject matter and market structures. Together with these specialists, we initially worked from Germany to build a team of experts in the target country.
This has proven to be very effective for us, but it also required a great deal of commitment from the founders and the management team, as they spend a lot of time in the target country, especially at the beginning of the expansion.
Parcellab tips for internationalization
Munich Startup: How important were support programs like the German Accelerator or Plug & Play for successful company expansion?
Anton Eder: Very important! Funding programs such as Plug&Play help to open up new markets, acquire new customers and adapt the product to specific markets.
If established companies support the initiative, this ideally provides additional momentum and reach. At best, this also increases brand awareness and opens up new opportunities for collaboration.
Munich Startup: And where do you see yourself in five years?
Anton Eder (laughs): Then we expanded our market leadership and took over world domination!
Seriously: Of course, we want to continually develop and expand our market leadership in Germany to Europe and North America. In doing so, we always keep our customers in mind to continue offering them perfect service. Because customer loyalty is our top priority, now and in the future.
“Brexit has no negative impact on our business activities”
Munich Startup: We have one more question: You've had an office in London since the end of 2018. Will this change in the future?
Brexit is an international drama, but it won't stop us from further expanding our office in London. After all, the UK is the most important market for online shopping in Europe and the second most important market for us Germans.
As we have our own office in London from which we manage our UK activities, Brexit will not have a negative impact on our business activities.
Also the GDPR (the General Data Protection Regulation, Editor's note:) places no restrictions on us, as the data remains in England. We don't ship physical goods; instead, we offer a software solution for perfect communication during the shipping process between retailers and customers.
