Year: 2012

4 golden rules for naming your new start-up business

Naming a business is not as simple as you might think, says Richard Edwards. Here’s what he learned…
Written by The Startups Team
Published on 22 November 2012

What’s in a name? When it comes to your business, everything. Once it just went on a letterhead, business card and on a name plaque outside your business – end of story.

Now the name you choose when you start up is your shop window to customers around the world which will determine the extent to which you can be found online and build your name online.

Nearly one year ago I started thinking about the name for my start up PR and marketing business.

What I thought would be a straightforward process turned out to be a something  much more complicated than I imagined.

As anyone else who has done it will tell you, what you originally want to call your business and the name you end up with will likely be two completely different things.

So how did I go about it? And what should you be thinking about when you go about choosing a name? Here are the four steps I went through which I think every entrepreneur should think about.

1. Think hard about the type of name you want

When it comes down to it there are only a few categories of company name. First comes the “surname and surname” or place name approach, second are the made up names (Accenture for one) and then you have the more evocative names from everyday objects (Orange or Apple).

The type of name you will choose will reflect the type of business you are. Safe traditional brands or those wanting to convey that impression like to lean on the heritage of surnames or place names while challenger brands such as Virgin go for bolder names which draw on the meaning of the word chosen.

Think about the names of businesses typically you will be competing with and think about how your customers would feel about using your potential name to decide which type of brand you want and from there you can build your shortlist of names.

2. The Companies House check

The next stop for the naming process should be the Companies House web service where you check whether the names you have chosen for your company are already taken or not.

This step of the process will likely whittle quite a few potential names away. Companies House also has a useful list of restricted name types which you should check.

3. Check the domain name is available 

Once you have this short list of names you need to check that you can get a website which is more or less in line with the company name.

This step of the process can be pretty tricky. For UK companies trading largely in the UK it is still the case that a www.companyname.co.uk URL is what your customers will expect to see. Prioritise this.

You will also want to defensively register variants of the name. Type in ‘domain name availability’ into your search engine and you will find a range of sites which where you can do this.

4. Search online for your shortlist of names

The last check you need to carry out is to make sure that when you type search terms for your business like “Charlie Custard” “Greeting Cards” that none of your competitors appear (in the UK and internationally), no dodgy brands or links come up – you’d be surprised what does – and there are no products or services belonging to other people which have the name you have chosen.

Once you have gone through these four steps, you’re pretty much ready to go ahead and choose your final name.

Sense check this with potential customers and friends to get a feeling as to whether the name is too off-the-wall to use but remember not everyone will love it.

As soon as you have decided, remember the domain name is as important as the company name so get these registered as quickly as possible.

Richard Edwards is managing director of Native Consultancy, a PR and marketing agency for growth businesses, www.nativeconsultancy.co.uk.

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Entrepreneurs admit to putting off decision making for fear of failure

Barclays launches nationwide seminars to boost business confidence
Written by The Startups Team
Published on 22 November 2012

Business owners admit that fear of failure may be inhibiting the growth of their business, according to new research from Barclays Bank.

Despite 48% of respondents acknowledging that fear of failure could hamper company growth, 57% admitted to putting off making an important decision for a day or more for fear of making the wrong call.

The study, which looked at the habits of over 1,000 business owners uncovered that damaging profits or loss was the most feared potential consequence of making the wrong decision, with 46% of participants citing it as their biggest fear.

The research revealed that turning down a customer or client was deemed the most frightening among decision makers, closely followed by taking on external finance in order to grow.

Barclays Bank is aiming to inspire confidence among business owners with their free UK seminars, taking place across 10 UK locations on November 20 and 22.

Run in partnership with Startups, the seminars are set to provide comprehensive cashflow management and sales tips from Innocent Drinks co-founder Adam Balon and successful local entrepreneurs.

Sue Hayes, managing director of Barclays Business Banking commented: “At the time of making important business decisions it’s only natural to be scared of getting it wrong. 

“It can feel like you are taking a big risk – whether that is decisions about staff, products, finance or even your marketing strategy.

“Despite the tough external environment, there are many opportunities to be seized upon and the ability to make important decisions is vital to the growth of all businesses and the overall UK economy.”

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Funding for Lending Scheme explained

So what is the Funding for Lending Scheme? We look at the initiative launched by HM Treasury and the Bank of England to get banks lending
Written by The Startups Team
Published on 22 November 2012

Announced in July 2012 and officially launched in August by the Bank of England and HM Treasury, the Funding for Lending Scheme is a large-scale attempt to boost lending from banks and building societies if you’re ready to fund your business.

The scheme provides cheap loans to banks, which they in turn can use to increase the number of loans and mortgages that they offer to businesses and individuals.

The purpose of the Funding for Lending Scheme

In the current economic climate, banks have been accused of becoming increasingly risk averse and the stock of lending to non-financial companies has decreased by 17% in the past four years as a result.

Inter-bank lending – the money loaned from one bank to another – is also down, not least because of continued turbulence in the Eurozone.

To counteract the trend HM Treasury and The Bank of England have attempted to provide banks and building societies with a lending incentive through the FLS.

It is hoped that by providing banks and building societies with ready cash, they will be able to increase the volume of loans and mortgages to businesses and individuals, while cutting the costs.

With more loans available at cheaper rates, the scheme hopes to attract businesses that would otherwise be put off by high-rate loans, while encouraging banks to lend to companies that they otherwise wouldn’t have dealt with.

The Funding for Lending offer to banks and building societies

For 18 months following the official opening of the scheme on August 1 2012, banks and building societies can apply to borrow from the Bank of England at discount rates.

The loans to the banks and building societies last for up to four years and are offered in return for assets such as business or mortgage loans, in a transaction known as a collateral swap.

There is no upper limit to how much the financial institutions can borrow from the Bank of England, but it is dependent on how much they have loaned out to the UK non-financial sector in the past and how much they continue to offer.

For every £1 of borrowed money lent out, banks are able to access an extra £1 reduced-rate loan from the scheme.

Banks can initially borrow up to 5% of their current lending total, followed by the additional £1 for every £1 lent thereafter.

5% of existing loans to non-financial institutions has been valued at £80bn, thus making this the estimated sum of lending that the Bank of England can offer.

What this means for small businesses is that the doors to institutions are very much open – and bank managers are likely to be more receptive to plans to start-up or invest in the growth of an early stage company.

The incentive to lend to businesses via Funding for Lending

To prevent financial institutions from simply holding on to the discounted cash, the FLS aims to incentivise banks and building societies to provide loans to individuals and companies.

Financial institutions that increase or maintain their lending between June 30 2012 and the end of 2013 will be charged 2.5% per year on the amount borrowed.

However, banks that decrease their lending in this period will be charged an extra 0.25% for every 1% fall in lending, up to a maximum fee of 1.5% of the original loan.

Which banks and other lenders are signed up to the Funding for Lending Scheme?

To date 30 financial institutions have signed up to FLS, of which banks include Barclays, Lloyds Banking Group, Royal Bank of Scotland (RBS) Group, Santander, Virgin Money, Metro Bank and Tesco Bank.

After participating in the scheme from the earliest possible date of August 1, RBS launched a £2.5bn fund specifically aimed at supporting small and medium-sized enterprises.

The scheme, which is claimed to be among the most affordable funding offered to small and medium enterprises from RBS for “some time”, offers 1% interest rate discounts for loans under five years.

By abolishing arrangement fees, RBS is also able to offer small and medium-sized businesses an average saving of £4,500 on the standard loan. Similarly, Lloyds is committed to supporting small and medium businesses by cutting interest rates by 1%.

RBS and Lloyds have each indicated that they have generated around £1bn of extra lending to businesses, offering interest rate reductions of up to 1.7%.

Barclays promises to pass on the whole benefit derived from FLS to customers. The bank has launched Cashback for Business as part of its FLS deal, offering 2% cashback on loans for small businesses that access finance via the scheme.

Despite these efforts, the scheme is yet to produce an overall positive impact on the cost of small business loans, with rates on new bank loans under £1m rising from an average 3.76% between April and June 2012 (Q2) to 3.85% between July and September (Q3).

Nonetheless, with the 30 banks and building societies currently involved representing around 80% of lending in the UK economy, FLS has the potential to unlock £66bn worth of loans so far, while other financial institutions still have time to sign up.

The response to the Funding for Lending Scheme

As with most government schemes, FLS has met with a varied response from critics. While some are confident that the scheme will give banks the boost they need to increase lending, others point out that there is no legislation to insist that banks use their borrowed cash to lend to higher risk customers.

This has led to fears that the same people and businesses will be left struggling. The scheme has ultimately left the lending decision to banks; four years after receiving the loan from the Bank of England, the collateral originally passed over (in the form of loans and other assets) will be given back to the original banks and building societies.

This ensures that the risk of the investment remains the responsibility of the bank, in an effort to prevent financial institutions from slipping back into the nonchalant lending habits of the years prior to the recession.

Nonetheless, it is hoped that with more cash available to them, banks will be able to lend to small and medium-sized companies with genuine potential.

The overall effect of the scheme is yet to be seen, but if the sign-up rate is anything to go by, the scheme has the potential to make a big difference to small business lending levels.

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Flubit: Bertie Stephens

Demand-driven marketplace
Written by The Startups Team
Published on 22 November 2012

Name: Bertie Stephens
Age: 26
Company: Flubit
Staff numbers: 35
Company description: Demand-driven marketplace
Tell us what your business does: Flubit is a demand-driven marketplace: customers tell us the product they want and the website offering the best price they could find. We create a better offer for them on that exact product.

Where did the idea for your business come from?
I was an enthusiastic early adopter of the first wave of flash sale sites and group buying sites and all the rest. However, like many, I got fed up with being spammed and pushed to buy products I didn’t want. 70% off is a great discount, but it’s just noise unless it’s on something you want. It made me determined to build a service that did the opposite: create a better offer on the product you want, when you’re ready to buy.

How did you know there was a market for it?
Initially, I tried to make a group buying platform – people nominated the products they wanted, and we grouped them up and took the groups to merchants for a discount. What that attempt taught me was that people liked being in control, were patient, made purchase decisions on their own – not group – terms, and that merchants were willing to offer discounts in order to win sales even when the ‘group’ only had one member. From those findings we found the market, and customers who wanted to buy from us.

What were you doing before starting up?
Before I started Flubit, I was running a successful video production company I started after spending three years as Neville Longbottom’s double on the Harry Potter films. But most of the time I spent wondering how to do things a little differently – that pondering turned into something a lot bigger: the successful platform we have today.

Have you always wanted to run your own business?
Not consciously at all, but for some reason I’ve always found myself being my own boss, whether as a freelancer or a business owner. I enjoy the freedom to do things differently.

How did you raise the money?
The seed round was destiny. I shared an orange juice with a stranger on the set of an advert for Coke. We got to talking about the Flubit concept. He asked me how much money I’d need to make it go, and I said £5,000 to do a test. He said £50,000 seemed too small, but that he could certainly provide it. Language barriers are sometimes good things.

What challenges have you faced and how have you overcome them?
Our first platform attempt had many shortcomings (among other things, it wasn’t interesting to consumers, wasn’t seen as a viable channel by merchants, couldn’t be scaled…). The key thing was to learn – not go back to the drawing board, but see what lessons we could take. They were: internet shoppers are patient; they shop for themselves, not for the group; and merchants will offer lower prices to win even single sales. Those lessons have formed the basis of our new, effective platform.

Describe your business model and how you make money:
We are a demand-driven marketplace: customers tell us the product they want and the website with the best price they could find. We create a better offer for them on that exact product. The offers are fulfilled by our integrated merchants, and we make money by taking a micro-commission on every sale.

What was your first big breakthrough?
A half pint of orange juice.

What advice would you give to budding entrepreneurs?
I’m still a budding entrepreneur, and advising yourself is a dangerous game. But the one thing I’ve learned is that trying to do the ridiculous isn’t impossible – it’s just incredibly hard.

Where do you want to be in five years’ time?
Creating better offers for people on the products they want, at the moment they are ready to buy.

Website: www.flubit.com

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6 easy ways to credit check your customers

Are you in control of who you give credit terms to? Read this quick guide to help you combat late payments from customers
Written by The Startups Team
Published on 22 November 2012

Our independent reviews are funded in part by affiliate commissions, at no extra cost to our readers.

Whether lending for 30, 60 or even 90 days, your cashflow can suffer greatly when customers are late to pay.

This lack of cashflow can impact on other areas of your business and slow your trading down dramatically.

In fact, research from 2016 showed that the UK’s small businesses were owed a staggering £255bn in late payments with many experiencing cashflow problems as a result.

As receiving payments on time is so important for business success, how can you help to ensure your debtors are good for their payments and what are the best methods for keeping on top of your payment agreements? Read on to find out…

1. Credit checks

Are they likely to be able to pay? There are a number of ways to test how likely a customer is to pay their invoices on time.

Most methods require a little time, but, depending on the importance of the potential customer, could help to ensure your cashflow runs smoothly.

For instance, if a small business is owned by a sole owner, it is likely that their personal credit rating is reflective of their professional credit rating – an accepted credit rating would usually be 75 or higher.

Credit reports can be purchased from any of the three main credit reporting agencies (Experian, Equifax or TransUnion).

2. Bank references

Asking your potential customer for a bank reference can also give you a basic opinion on how risky the bank thinks your potential customer is.

Although you should not base your decision entirely on this, it can provide a great start for assessing risk.

3. Supplier references

Who better to ask about a customer’s credit than the people who currently deal with the customer?

This is probably one of the more useful methods of credit checks where you ask the customer’s suppliers how good the customer is at paying on time.

One of the issues which can arise is that your potential customer will only ask a happy supplier to provide a reference. It is also possible that the customer has a good relationship with only one of their suppliers.

Always ask for multiple supplier references to achieve a more-rounded view.

4. Credit checking agency

Although a relatively high expense compared to other methods, hiring a professional credit checking agency will give you the best assessment of the risk if you were to offer credit to a customer.

This method may be best held back for larger customers, where you stand to lose far more if they don’t pay on time.

5. ‘Pro-forma’ approach

Using a pro-forma approach can help build trust between you and the customer. By asking for immediate payment of the invoice for the first few transactions, you can gain evidence that will support whether the customer is strong enough to pay once given credit.

This works well for building trust with any recent start-ups you may encounter as they may not necessarily have other proof of their credit rating strength.

6. Published accounts

If your customer has published their accounts, take a look! Websites such as Companies House and Creditsafe offer published accounts as well as Duedil and Endole.

By applying some simple accountancy formula to the information given from the sites, you can judge how likely the customer is to pay on time if given credit.

Many formulas such as the gearing ratio, current ratio and acid test ratio will help inform you about the cash-flow strength of the business in question – your accountant will be familiar with these formulas and should be able to help.

Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews.

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5 steps to trademark your logo

The essential five-step guide to protecting your logo design with a trademark.
legal counsel law solicitors
Written by The Startups Team
Published on 22 November 2012

Trademarking your logo will ensure the ultimate security for your brand’s individuality. Protect against third-party imitation by following this step-by-step guide.

1. Decide what you want to trademark

Firstly, think about what it is you want to protect. You can trademark your logo, a combination of words, images, phrases, shapes or corporate colours under protection law.

In fact, any unique symbol or design that distinguishes your business is eligible for trademarking with the UK Intellectual Property Office.

You cannot simply register a word featuring in the dictionary word, or words, that are generally used to describe the service you are offering. You must make sure your trademark is distinctive, and not merely descriptive of the product or service that you offer.

2. Avoid infringing someone else’s trademark.

Trademark infringement may require legal action, even if accidental. To avoid this, before you decide to trademark your logo, you need to make sure the mark has not been recorded by another company.

There are three types of valid trademark in the UK, and all need to be searched.

3. Use an attorney, or trademark your logo yourself online

If your mark is distinctive and you have checked the trademark registers to ensure there is no chance of infringement, then you are ready to proceed with trademarking your logo.

It is possible to trademark your logo yourself online, however, the legalities of trademarking can be intricate. If you begin to trademark your logo and later encounter an issue, it may cost you more time and money in the long run, than if you had received advice along the way.

If you choose to use a trademark attorney in the UK, make sure they are listed by the trade body at the Institute of Trade Mark Attorneys

4. File your application to trademark your logo

Once you’re ready to fill out your application, the next step is to decide how wide geographically you want to protect your logo. There are two options: a UK trademark or a community trademark (which will protect you in all 27 companies of the EU). The two differ greatly in terms of cost and the length of the process.

Read more about the class of trademark you want for your logo

5. Finalise

After your application has been processed – an estimated four to five months for a UK mark or nine to twelve months for a community mark – your logo will be fully protected as your intellectual property. You can then use your logo design secure in the knowledge that you are protected should a third party decide to imitate it.

Want to apply for a trademark? Read our full guide on how to register a trademark in the UK to learn more.

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StartUp Loans scheme receives 2,000 applications from young entrepreneurs

Business minded 18-24 year olds are urged to sign up to the £82.5m scheme
Written by The Startups Team
Published on 22 November 2012

Start-Up Loans Company’s £10m pilot scheme is underway, with applications from 2,000 young business minds already received.

Launched at MADE festival, the pilot scheme pre-empts the £82.5m government-backed initiative, which promises loans over the next three years to support people aged 18-24 to start a business.

Celebrating the first recipients of the funding at Church House, Westminster on October 3, former BBC Dragon and Chairman James Caan announced a further £50m worth of support from corporates including eBay, PayPal and Metro Bank.

In support of the scheme, which offers individual loans of up to £2,500, national enterprise campaign, StartUp Britain is launching a month-long bus tour, designed to inspire young people to sign up.

Carrying a team of business experts, mentors, authors and entrepreneurs, the bus will travel to 40 colleges and universities across the UK, offering students the chance to apply to the scheme from the vehicle.

Caan urges all young entrepreneurs to sign up to the start-up boosting initiative: “Start-Up Loans Company aims to stimulate entrepreneurship across England and highlight starting a business as a viable career option for young people.

“I know from personal experience both how exciting and challenging it is to start a business but with the mentoring advice we provide and the corporate support we have from Regus and PayPal we can make a huge difference to these new businesses. “I encourage everyone aged 18-24 to apply and see where their business idea can take them.”

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Cloud.IQ: James Critchley

Written by The Startups Team
Published on 22 November 2012

Name: James Critchley
Age: 37
Company: Cloud.IQ
Staff numbers: 20
Company description: Cloud-based marketing apps

Tell us what your business does:
We offer cloud-based marketing apps. These apps help organisations give their customers a ‘joined up’ experience across their web, mobile, email and social media – what’s called ‘multi-channel’ marketing.

Where did the idea for your business come from?
I’d seen first-hand the value that effective multi-channel strategies created for large enterprises and knew smaller organisations needed to be doing the same stuff. However traditional solutions for things like cart recovery, website call-back and email or SMS campaigns were well out of their reach due to their cost and complexity. My idea was to take these issues away by using cloud technology and simple apps – opening up the ‘big boys marketing toys’ to all. The result is happier customers and more sales or donations.

How did you know there was a market for it?
Personal experience suggested there would be a market. I dealt with many companies in my personal life that seemed unable to communicate with me in the way and at the time that I wanted. I spoke to some of them to find out if they wanted to improve this, assuming it could be done cheaply and quickly and, surprise, surprise, they did. There was a massive gap in the market for a multi-channel marketing solution that wouldn’t cost the earth but could make a world of difference to mid-market organisations.

What were you doing before starting up?
I was involved in another company offering enterprise multi-channel services to brands, governments and charities. I did a short spell at one of the big advertising companies and before that skiing and snowboard holidays!

Have you always wanted to run your own business?
Yes, I always have run my own businesses from day one albeit with a brief attempt at employment . I’ve enjoyed learning from people in established companies, but I prefer our way of working.

How did you raise the money
Hard yards and the good fortune to meet backers who shared our insight and drive. We were lucky enough to receive £2m from Bridges Community Ventures, whose founding chair is Sir Ronnie Cohen. Bridges needed to know we had proven technology and an idea with the potential to open up a whole new market. But they were also very interested in how our product could help charities, government departments and smaller businesses. That is a major focus of ours, making us a social business in many ways.

What challenges have you faced and how have you overcome them?
Getting organisations to believe that we really can do what we promise, and at a price point that’s far lower than they’re used to has been a challenge. Many of them have been over-sold complex technological solutions, so we need to almost detox their thinking. Because the concepts of cloud computing and apps are now becoming part of everyone’s lives, via things like smartphones and SmartTVs – things are getting easier. The old issues of recruiting and retaining great staff also remain, but we share a lot about the grand vision for the company and that helps people buy in to us.

How much do you charge?
Customers pick what they want and only pay for what they use. Our apps range from 20 pounds to a few hundred pounds a month.

What was your first big breakthrough?
Customers signing up and adopting our apps. I still get excited when a customer signs up online. It’s a complete validation of our business model.

What advice would you give to budding entrepreneurs?
Don’t feel you always need to invent something new from scratch. Often, tweaking something that already exists and making it simpler or better is a fast route to success. Until around 1800, shoes were made without differentiation for the left or right foot, it took a bright spark to realise that there could be a better design than the one that had lasted centuries.

Where do you want to be in five years’ time?
Our goal after year one is to have hundreds of organisations using our apps and telling us and their peers how much they’ve improved the way they market their businesses. Beyond that, our ambition is to add more apps to the offering and expand into more countries around the world.

Website: www.cloud-iq.com

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NET-A-PORTER: Natalie Massenet

Discover what inspired founder Natalie Massenet – and how she brought fashion retail’s premier site to market
Written by The Startups Team
Published on 22 November 2012

In 2010 Natalie Massenet sold NET-A-PORTER in a deal valued at £350m to Swiss luxury brands group Richemont. But her start-up story started 11 years earlier. In 1999 Natalie was shopping onlineto buy a pair of Chloé designer jeans she had seen in a fashion magazine. She couldn’t find anywhere that stocked them. She remembers her confusion: “I blindly assumed [the retailer] existed because of how brilliantly companies like Amazon were revolutionising service.” But she was wrong: there was no way to buy the designer label’s products online and get them delivered; you had to set foot in a shop. And that’s when it hit her: “I thought, for a luxury brand, what better way to give the best service to clients than actually linking the browsing of a fashion magazine to the ability to shop at the click of a mouse and delivering to their door. That was the eureka moment.” Natalie’s idea was simple: merge the magazine and the shop to enable women to purchase luxury goods and designer products online with ease, and – crucially – deliver them quickly and reliably. NET-A-PORTER was born.

Getting the funding

Natalie began work on her site the same year, and used her existing contacts in the fashion world, including designer Anya Hindmarch and Jimmy Choo founder Tamara Mellon as a starting point. An initial backing of £830,000 came from friends, family and angel investor Carmen Busquets. Carmen was early to recognise the digital opportunity for luxury goods and, in 1998, began building a private portfolio of online companies. “I was very lucky that I had amazing people around me from the very first day, who were able to advise me, and to contribute towards the business. It started really from a desire that it should exist.” Fundraising in the middle of the bursting dotcom bubble was not easy. Add to this the spectacular crash of fashion retailer boo.com in May 2000 – they had burnt through over £125m of venture capital from luxury goods manufacturers (including one of the largest luxury brands LVMH) – and you would have said Natalie was, at best, foolhardy to start her online business at this time. “They had an idea and a business plan,” recalls Carmen Busquets in an interview with the The Sunday Telegraph. “I invested £250,000 and afterwards I invested another £250,000. I knew the project would take at least £12m to £16m but I kept reinvesting because I really believed.” In a separate interview with the Financial Mail, she recalls reading Natalie’s business plan for NET-A-PORTER in the Caribbean on Christmas day in 1999. “Natalie was having a hard time. I phoned her up and said: ‘Don’t worry. I’ll put the rest in. I am willing to go all the way.’ I knew people would buy from a picture. Now nobody can tell me that online doesn’t work.” Although Natalie was successful in getting her initial backers on board, in an interview she remembers many people being unimpressed with her idea. “There were a lot of unimaginative private-equity people who said that women would never shop online. I think about those people a lot. I’m sure their wives are having NET-A-PORTER bags delivered to their homes every day.” But her idea was to prove harder to put into practice than expected: historically, luxury goods websites have been very slow to populate the internet. In 2004 Gucci’s then director of e-commerce said: “[Gucci is] still unsure whether Ready to Wear will be available as an e-commerce offering. But we live and learn and will test it eventually.” Back in 2000, when the majority of online customers surfed using slow dial-up connections, the number of luxury companies willing to take the digital plunge was even fewer. So it was a brave decision for a journalist with no entrepreneurial background to attempt to launch a website selling luxury clothing – especially as nobody was even sure whether the target demographic were internet users.

The designers get on board

Natalie’s fashion contacts were helpful in establishing the initial list of designers that were to be available on the site – Anya Hindmarch and Tamara Mellon were again among the first to agree to be involved. However it was backer Carmen who was to be one of the biggest helps in getting initial suppliers on board. Carmen ran a boutique in Caracas called Cabus. Part of what made Cabus special was the way Carmen would attend the catwalk shows in Europe, take photographs of the fashions and send the images to her best clients, who could then pre-order items through her shop. It also meant that when Carmen personally vouched for NET-A-PORTER’s creditworthiness to designers with whom she had long-standing relationships, they listened and agreed to be involved. But it would take years to convince other designers that this could work. Natalie was very emotional when they finally managed to sign some big names, telling Business Week: “One season we met with Marc Jacobs, Michael Kors and Chloé, and they all said yes. I remember bursting into tears when the team from Marc Jacobs said they’d sell through us,” Natalie says. Marc Jacobs went live on the site in 2002.

Going live

Even in the face of the sceptics, Natalie knew she had enough support from colleagues and designers to proceed. She chose the name, NET-A-PORTER – a pun on prêt-à-porter, the French for ‘ready to wear’. After flicking through a fashion dictionary for inspiration, she initially wanted to call it ‘what’s new pussycat?’ but was dissuaded by friends who said it might attract the wrong sort of traffic. Work began on the development of the site, eventually going live on 10 June 2000 – six months after Natalie had originally planned. During this time, she worked on getting her proposition as sleek and perfect as possible: her clientele would expect the best, so the site needed to perform. However, the launch was not as smooth as Natalie would have liked. “We had all this inventory just hanging there in our studio, becoming less and less valuable. We’d been sitting there compiling a list of what still needed to be done, and this poor IT guy who had been working without sleep for a month just put the website live without talking to us and went to bed,” she remembers. The business was based in a small artist’s studio in Chelsea, London, with three members of staff. The rooms were stacked with stock and black packaging boxes, they had the capacity to deliver 1,000 orders a year. But any preliminary teething problems soon dissipated. Initial publicity for the site came through Natalie’s contacts and through her investors’ networks, which created some strategic PR in the retail, business and fashion press including American Vogue who declared the website the “chicest new boutique in the world”. They had reached their audience, and the first few sales came in. “What was exciting was when an order came in and nobody around the room could say, ‘Oh yeah, that’s my aunt. It was, like, ‘Oh my God, it’s someone we don’t know.'” This exclusive extract is taken from the  the ‘NET-A-PORTER’ chapter, in How They Started Digital: How 25 Good Ideas Became Spectacular Digital Businesses, published by Crimson Publishing. To read the full chapter and find out more about Natalie Massenet’s start-up story, as well as the inspirational inside stories of 24 other top digital businesses (including Groupon, Etsy, Match.com, ASOS, TripAdvisor and Wonga), pick up your copy of How They Started Digital, available on Amazon now.

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One in three small firms not prepared for imminent PAYE changes

Study finds 36% of small businesses unaware of upcoming Real Time Information changes
Written by The Startups Team
Published on 22 November 2012

Many small firms are unprepared for imminent changes to the PAYE system, with only 64% aware of the changes that the introduction of the Real Time Information (RTI) system will bring, according to new research published today. The study of 1,100 small businesses across the UK, conducted by business software firm Sage UK, also reported uneasiness about the changes from many small firms, with nearly half feeling that the changes will increase rather than lessen their administrative burden and only one in ten recognising any potential positive impact RTI might have. RTI, due to be introduced in April 2013, will require employers to start providing information about employee PAYE, National Insurance and student loan information to HMRC at the point of payment each month rather than at the end of the year. The changes represent one of the most fundamental shifts in small business reporting and payroll requirements since 1944. Neilson Watts, Associate Product Manager at Sage, commented: “Although we have seen increased awareness for RTI over the last year, it is still concerning that so many businesses are unaware of the changes and the implementation this will have to their firm.  RTI will impact all businesses, regardless of their size, and with its introduction firms will benefit by streamlining processes, relieving the much dreaded nightmare of Payroll Year End and relieving the increased administrative burden for payroll at this time of year.  We urge that firms act now to not only understand exactly how it will impact their businesses but to adequately prepare for the changes coming into play.” For more information on RTI visit http://www.hmrc.gov.uk/rti/index.htm

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Anytime Fitness offers franchise model to UK entrepreneurs

‘Fastest-growing’ US fitness chain announces nationwide search for franchisees
Written by The Startups Team
Published on 22 November 2012

US fitness chain Anytime Fitness has announced its intention to capitalise on Olympic fever by offering its business model to potential franchisees across the UK. Founded in 2002, Anytime Fitness now claims to have almost 1.5 million members in 2000 clubs spanning countries including the US, Canada and New Zealand. It was recently named the ‘Fastest Growing Fitness Chain in the World’ by health club trade association IHRSA and was also ranked number 1 in the fitness club category of the Entrepreneurs 500. Anytime Fitness claims that the steady revenue provided by annual membership fees is a more reliable source of income compared to other franchised businesses, and they also claim that the flat rate model of monthly franchise royalties is cheaper compared to a percentage of income model. The company estimates that startup costs for potential franchisees are around £150,000 – £250,000, with a full return on investment expected within 3 years. Karl Dietrich, Sales and Marketing Director at Anytime Fitness UK, said: “At this time of austerity and limited investment opportunities, Anytime Fitness offers a high level return in a recession resilient industry, with great potential for growth and expansion. Additionally, with only 12% of the population currently using a health and fitness facility there is still a huge market to access. Our community based culture means you will not only own a high yielding business, but you will be helping people in the community to get active and lead healthier lives.” To contact Anytime Fitness about becoming a franchisee call 0800 033 7773 or visit www.anytimefitness.co.uk

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Entrepreneurs invited to pitch to buyers for John Lewis

StartUp Britain’s PitchUp! Scheme offers unprecedented access to national retailer
Written by The Startups Team
Published on 22 November 2012

StartUp Britain has launched a new scheme to help fledgling UK start-ups get their products in front of one of Britain’s largest retailers. PitchUp! was unveiled last month as a sister scheme to StartUp High Street – an initiative offering empty retail space to UK start-ups at low cost – and has now opened for applications. Shortlisted applicants will be given individual feedback on their online application, including advice on their product, as well as their pitching technique. Those successfully selected by John Lewis will be offered unique access to a panel of their key buyers at a private event on 23 October. Unveiling the scheme last month, StartUp Britain co-founder Emma Jones said: “We’re seeing record numbers of people setting up businesses, and this new wave of entrepreneurs are starting out small and online. “This initiative offers them a chance to test out new markets, as well as get their products in front of big names like John Lewis.” To apply for the scheme, visit the PitchUp! page on StartUp Britain’s website

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Grants for small businesses – and how to apply

From direct cash to discounts on essential goods, we cover the different types of business grants and schemes available to entrepreneurs.
Written by The Startups Team
Published on 22 November 2012

Whether you’re a small business owner or an aspiring entrepreneur who plans to start a business, a cash injection is never a bad thing.

Especially in these tough times, with the current permacrisis, increasing rates of inflation, and the ‘survival mode’ small businesses are having to struggle through today. A business grant could be the thing that kick-starts or revives your business – by helping you purchase the tools and equipment you need to reach new heights, or simply as the crucial backing to achieve your business goals.

In spite of everything, there are still countless schemes out there to apply for right now, if you know where to look. In this article, we’re going to give you an overview of the grants that could work for your business, and what you can do to potentially get your hands on them.

13th September 2023 Update: Government commits £1 billion to support 100,000 small businesses

In a significant move to bolster small businesses across the United Kingdom, the UK government has allocated £1 billion through its Start Up Loans scheme.

The government website also notes that successful applicants will receive free support and guidance to help write their business plans, and up to 12 months of free mentoring.

To apply for a government-backed Start Up Loan of £500 to £25,000 to start or grow your business, click here.

In this guide:

What is a small business grant?

A small business grant is essentially a non-repayable amount of money that is afforded to entrepreneurs and small business owners by the government, a company, a philanthropist or publicly-funded scheme.

The cash awards vary greatly in pricing (from hundreds, to thousands) and are different to business loans in the sense that you often won’t have to pay back any interest, give away equity, go through as many checks or pay it back at all – though most business loans are still subject to tax. These are all big reasons why grants are revered as a fantastic option for start-ups.

With this money you can invest in education, materials, employees, training or equipment – all things you need to ensure your systems are operating at their best capacity.

Grants are typically awarded to encourage promising talents and give them the opportunity to pursue entrepreneurship, help new innovative programs become more widely known, fund worthy environmental or otherwise purpose-driven projects and stimulate the economy.

What types of grants are available?

The government’s ‘business finance support finder’ directory lists over 300 direct grant agencies to help you find the right scheme for your start-up.

Direct grants

A direct grant, as discussed above, is a cash award usually given to a business to support an initiative – repayment-free – so long as the funds are used for the intended purposes and in the time period required. There will also likely be regulations involved and agreements set in terms of how you can spend the grant money.

You can find all the direct grants by specific type that we talk about here if you read on, or in the table of contents section.

Resource and training grants

A good example of a useful resource and training grant would be Innovate UK, which provides a ‘voucher’ of £5,000 for you to use to enlist the help of an expert in a particular field for your business.

And as for resources, instead of directly providing you with more income, many come in the form of reliefs and help you save on the income you already make. These include:

For resources that aren’t resource and training grants (but are still valuable for gaining knowledge and info) there are a series of expert business support networks and initiatives – that share knowledge with beginner entrepreneurs – and regional support helplines where you can receive free, personalised advice over the phone.

England’s helpline is also accessible via email, web chat, Twitter, Facebook and Youtube.

Soft Loans

While not a grant, a soft loan is a special type of finance for entrepreneurs where the terms and conditions of repayment are more lenient than under normal circumstances. So, for example, the interest rates may be less, there may be no interest to pay at all, or repayment terms could be set for a longer period.

Soft loans aren’t actually classed as grant schemes (these you will need to pay back), but they are often government-backed and can offer an alternative form of support.

Hundreds of organisations offer soft loans and guarantees, like the government-backed Start Up Loans Company for example, who offer new business loans of up to £25,000 with a 12-month repayment holiday and business mentoring.

As of December 2022, The Start Up Loans Company has lent a total of £800m via 90,000 loans.

Not sure whether a grant is the best option for you? Don’t forget to look at our comparison of six popular sources of business finance!

Grants schemes for specific entrepreneurs

There is always the need for more specific, type-based grants, to ensure diversity, and so that everyone has an equal chance of accessing support. A few examples of these include:

Business grants for women

  • ‘Women in Innovation’ Awards 2023/2024: Innovate UK is offering 10 women up to £50,000 this year.
  • The Cartier Women’s Initiative: an international grant scheme that offers 21 successful applicants across the world access to workshops, networking events and of course, funding an average of £24,000 for semi finalists and £80,000 for the remaining 7 winners.
  • Female Founder Office Hours: are you in tech? Play Fair Capital has an initiative twice a year offering mentoring, investing and collaboration for entrepreneurs.

You can check out the business grants available specifically to women in our guide to grants and resources for female entrepreneurs.

Read more: Support groups and resources for female entrepreneurs

Business grants for young people

  • The Prince’s Trust: One of the most well known trusts for young people, offering mentoring, support and funding to entrepreneurs aged between 18 and 30.
  • UnLtd: Supporting young social entrepreneurs
  • Shell LiveWIRE: Providing finance for young entrepreneurs tackling the world’s energy and resource crises.

Business grants for social entrepreneurs

Big Issue Invest – (the investment arm of the Big Issue) – offer soft loans from £50,000 to £1m to socially-driven entrepreneurs, and ‘participation loans’, where repayment is linked to the future performance of the enterprise.

Business grants for unemployed entrepreneurs

Be The Boss: If you’re unemployed following service with the armed forces, you might be eligible for this scheme by the Royal British Legion.

Business grants for people of colour

Grants for LGBTQIA+ people

The Global Fund For Women supports female and trans-led initiatives with a main focus on businesses who are helping to advance human rights in their communities.

Grant schemes by authority

Government grants

The main government organisations which offer grants to small businesses are:

UK businesses can find a comprehensive list of grants available using the government’s ‘business finance support finder’ tool, which allows you to select specific funding options and search for grants by your business location, size, and type of business activity.

Local authority business grants

Local authorities, agencies and organisations can also offer capital to your startup as they aim to support and encourage enterprise in their local areas.

Set up by The Department for Business, Energy and Industrial Strategy, Local Enterprise Partnerships (LEPs) are a prime example of this in action: they’re voluntary partnerships between local authorities and the businesses in their region, with funds delegated from central government.

There are currently 38 LEPs at work across England with the goal of fuelling growth and enterprise at a local level, including in Liverpool, London, Sheffield, and Cumbria.

Check out this map to find out where England’s LEPs are.

Region-specific business grants

If you’re operating a business in Scotland, Wales or Northern Ireland, you might want to narrow down your search to grants offered specifically to businesses in those countries.

Business grants in Northern Ireland

Information about the Department for the Economy (Northern Ireland) can be found here but also have their own official website where they often offer grants.

There are a variety of grants on offer to Northern Irish businesses, including TechStart’s Proof of Concept Grant for pre-launch start-ups, and Invest NI grants for slightly older companies – which range from the Propel Programme to the R&D grant.

Enterprise Ireland is the Government agency in Ireland responsible for supporting Irish businesses in the manufacturing and internationally traded services.

A range of grant support can be found here, where you can search for grants by your stage of business development. You can also visit NI Direct’s business support page for more.

Business grants in Scotland

Depending on where in Scotland you’re based, you may be able to apply for grants offered by Scottish Enterprise, Highlands and Islands Enterprise, your local council and more.

Scottish Development International are also an option as they aim to help more businesses from around the world do business in or with Scotland.

Search the government’s funding options in Scotland here, or check out our list of the business grants available in Scotland.

Business grants in Wales

From the tourism investment support scheme, which supports tourism businesses, to the Ultrafast Connectivity Voucher Scheme launched in 2017, which aims to improve business’ broadband connections, there are a range of grants available to Welsh businesses.

The Welsh government offers a guide to financial help and grants on its site, with Business Wales and Wales Economic Resilience Fund two of its main support services for entrepreneurs looking to raise funding.

Try searching Business Wales’ finance locator to find one that’s right for you, or get an overview of the options available in our guide to business grants in Wales.

How to apply for a business grant

Each grant will have a different application process, with different entry criteria and requirements to fulfil and different processes to follow. But, as with most potential business opportunities, the reward is worth the effort.

First, you’ll have to do some in-depth research and find the grant that best fits your business before you start sending applications. You don’t want to apply for a scheme you’re simply not suited to or eligible for because that may prove a waste of time. For example, there’s no point applying for an age-limited grant such as The Princes Trust, if you are over 30 as you would be outside of the required age range.

Once you’ve found a grant you think your small business is eligible for, you can begin the process of trying to obtain it.

For your best shot during the application process, make sure you have:

  • A thorough, up to date business plan – download a free business plan template here.
  • A clear work plan, including a breakdown of what you plan to use the money for.
  • A good account of your company’s business history – this will convince the awarding body that you are going to behave responsibly with the funding – using quality accounting software for your small business will make this task a lot easier.
  • An outline of how the awarding organisation will be meeting their objectives by awarding you the money.

Top tips for applying for a business grant

There are a few things you can do to shoot past the competition and give yourself the best possible chance of winning your chosen grant, especially if you’re determined and organised as you manage all the different elements, stakeholder connections and timelines (a good project management software will be useful to you here). Here are our top tips:

  1. Apply as soon as possible: the very best time to apply for a grant is when it first opens. Make sure you’re continually keeping an eye on the space so you know when a relevant grant is upcoming.
  2. Make a personal contact at the awarding body before you apply: if there are any problems or your grant application doesn’t seem to be progressing, it’ll be good to have someone to call who knows you and can possibly give you some personalised advice.
  3. Consider appointing a grant consultant: a grant consultant can help you to track down the grants best suited to you, saving you hours of research, and will also have a better chance of communicating with the organisation and keeping tabs on your application’s process. While they can be very helpful in some cases, there are some awarding bodies that don’t accept applications submitted through consultancies so take this advice on a case-by-case basis.
  4. Pay close attention to the grant’s objectives: if an awarding body wants to fund innovative solutions to the technological skills gap in the UK, for example, highlight and emphasise how your business is doing this (only if it actually is, of course). Be clear on the benefits your business will bring to the area of the grant’s attention, and explain that you need the money to fulfil these specific objectives.
  5. Don’t be untruthful: if you need to bend the facts about your business to fit with the grant’s criteria, it’s not the right grant for you.

How long does it take to get a business grant?

While there is no set guideline to how long an application can take as every grant process is different, the general rule of thumb is that the more localised the awarding body is to you, the faster you’re likely to get a result.

Applications to your local authority or a Local Enterprise Partnership, for example, could be resolved as quickly as a matter of weeks, or even days.

National organisations however are more bureaucratic and could spend months coming to a decision. Similarly, European bodies can take many months to process your application.

Grant eligibility

With so many grants on offer, you will need to dedicate time to finding the best one for you.

There are no businesses or industry sectors that are excluded from applying for financial assistance. But often grant schemes will determine which businesses are a good fit for their money based on a strict set of eligibility criteria, and you should use these to narrow down your options.

Such criteria usually include:

  • The business’ purpose: the industry you’re operating in (or plan to operate in), the problem you’re tackling, and the impact you want your business to have.
  • Where you’re located: separate regions across the UK have their own awarding bodies/schemes which focus solely on companies in their designated area. UK business owners will still have the opportunity to apply for EU-based grants via ‘Horizon Europe’, which has a budget of €95.5 billion and will run until 2027.
  • The size of your business: certain schemes are restricted to businesses which employ less than 250 staff, while others are stricter and only deal with firms that have fewer than say 50, 20 or 10 employees.
  • How long you’ve been in operation: be sure to save yourself some time by making sure you fit all of a grant’s eligibility criteria in this area before applying.

Is it worth obtaining a small business grant?

In our current climate, with the ‘survival mode’ small businesses are having to struggle through today, it’s been tough for businesses to make ends meet, let alone focus on growth and to be optimistic about finances. This makes the potential of obtaining a small business grant more important than ever before however, as it has the potential to bring a boost to your business.

For best results, you’ll need to dedicate time to researching the most fitting schemes, and prepare yourself for the application process.

Patience and perseverance is key, but the rewards are worth the effort!

Note: The information in this article is correct as of September 2023. If you have any more information about any of these grants or want us to include any we may have missed this year, please don’t hesitate to let us know. We want to keep this list as comprehensive and useful as possible!

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First PopUp Britain shop opens in London

Shared pop-up space for start-ups part of new scheme to revitalise Britain’s high streets
Written by The Startups Team
Published on 22 November 2012

The first ‘PopUp Britain’ store opened for business this week, as part of a new scheme enabling promising start-ups to inhabit empty high street shops.

The store, part of StartUp Britain’s

This pilot store will stay open for three months, during which time six start-ups will inhabit the premises for two weeks at a time.

Emma Jones, co-founder of StartUp Britain, said the initiative is “win-win-win”, giving start-ups an unprecedented, cost-effective platform for their business, helping landlords make some money from empty properties, and helping to attract more people to Britain’s high streets. Prior to this week’s launch, the Richmond property had been empty for over a year.

Jones told Startups: “The plan is to spend these three months really getting the model right here in Richmond. We want to get it right for the tenants now, making sure they generate sales and pick up retail skills, and create a successful template that we can potentially roll out nationwide.”

The rent is being “crowdfunded” between the six different businesses, with each paying £135 for two weeks’ occupancy. “For one business, that would not be affordable,” said Jones.

The scheme has already received “invaluable” support from local retailers and StartUp Britain sponsors. This has included: a tailor-made, two-week shop insurance policy from AXA; six laptops from Dell; accounting software from Intuit; furniture and fittings from Dwell; online payments support from PayPal; and two weeks’ free billboard space from JC Decaux.

Retail experience

The initial six start-ups trading in the pilot store are: Bertie & Jack, which sells original artwork; Vulpine, a cycling apparel retailer; jewellery company Maria Allen Jewellery; Elephant Branded, a social enterprise selling bags and accessories; sock retailer Morrow’s Outfitters; and clothing company Tier One.

While the start-ups believe the unusually hot weather this week has had a negative effect on footfall, (after a bumper day’s trading on Monday, following the press launch) all six have already covered their initial outlay on rent for the two-week period.

Speaking today, on the fifth day of trading, Maria Allen, founder of Maria Allen Jewellery, said: “It’s been quite quiet but I’ve had sales each day so I’m happy with how it’s going. It’s really good to be able to meet all the customers and I’ve got lots of useful feedback that I may not have gotten if they were just browsing my website. Normally I just sell online so it’s really good to be able to talk to customers. I can also see which items are the most popular.”

Gemma Saggers, of Elephant Branded, agreed that it has been a positive experience so far. “We’d recommend it to other start-ups to gauge a feel of whether your product is right for the high street, because a product might be great online but that doesn’t mean it needs its own shop.”

Philip Morrow, MD of Morrow’s outfitters, who started his business from home 10 months ago, added: “Usually I’d be processing emails, working from home or planning for the future, which I can do here. At the same time we’ve got the opportunities of people walking in and browsing. I broke even within the first two hours, so everything I sell from now until the end is clear profit.”

To apply to be part of StartUp High Street, visit: http://www.startupbritain.org/highstreet/

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De Bouverie: Harriot Pleydell-Bouverie

Online hub of jewellery talent
Written by The Startups Team
Published on 22 November 2012

Name: Harriot Pleydell-Bouverie
Age: 27
Company: De Bouverie
Staff numbers: Two
Company description: Online hub of jewellery talent
Tell us what your business does: De Bouverie is an online fine jewellery community that promotes independent designers.

The site helps emerging gold and silversmiths build a presence online to compete with the larger brands and internet marketplaces. As a united community under De Bouverie, the site is able to leverage on the increasing demand for internet shopping and the rising interest in individuality and boutique brands.

Unlike other jewellery brands we aren’t interested in mass production or ‘fashion’ jewellery, nor are we targeting handmade crafts and lower quality goods. We curate highly skilled artisans, who are interviewed and accessed prior to membership.

Where did the idea for your business come from?
De Bouverie sprung from the desire to find high quality, different jewellery that was made by real people. I hated (and still hate) mass production and would search and dig to find the little independents that made the products I wanted much better than their high street chain counterparts.

I knew that there were designers out there, but they were virtually impossible to find and track down. Even when I did find pieces I liked, I never knew if they were trustworthy and real or whether they were ripping me off and the ring I had just bought was in fact going to turn my finger black in 2 days…

I craved somewhere where I could access high quality and luxury designer goods without the fear that I might end up with a bronze piece of scrap metal, sold to me as 9ct gold.

How did you know there was a market for it?
Friends, colleagues and city professionals always commented on the jewellery I found, and I realised that there was a demand for the pieces, if only the designers were more accessible.

City workers are renowned for not having enough time, so I started to develop the concept of a community they could access that was easy, trustworthy and reliable.

Unlike our competition, we do not focus on handmade crafts, or mass production. However, unlike a gallery, we are hoping to incorporate a larger number of designers and create a community where the designers stand alone as individuals, but with the support of the umbrella brand. We are not a marketplace, we curate designers. However, we are more open and accessible than independent galleries.

What were you doing before starting up?
Before De Bouverie I worked in the city, doing emerging market research for a headhunting firm – quite the change from a creative business. However, prior to that I had attended Kingston Art College to study fine art, so I had both the creative and business aspects already imbedded in me.

When it came to actually resigning from my 9-5 secure, stable income I nearly crashed and burned. I think it took me about three weeks of walking up and down past my manager’s desk pretending to collect something from the printer. It’s terrifying making that first leap, but I was already most of the way through the development of the company, and I knew that it was what I wanted to do.

Looking back I can’t understand why it was so hard, because I couldn’t be happier. But change is always difficult. All I can say, is if you are ready and sure it’s what you want, then go for it – even if it takes three weeks of effectively pacing up and down the office.

Have you always wanted to run your own business?
Since the day I was born I’ve wanted to run my own business. My poor father put up with me selling African jewellery, chocolate and even cigarettes in school. I even managed the tuck shop momentarily – although I think I was ‘fired’ for eating too many sweets.

The structure of the educational system and of corporate companies never suited me. Partly because I like to think I am always right, and partly because I just work slightly differently. I will do A, B and C to get to D quite happily – which generally isn’t allowed in larger companies, I really struggled with the bureaucracy. I am happier when I am able to get involved in every aspect, and make real strategic differences.

It’s difficult, and has its ups and downs, but all my friends comment on how much better I am now that I am doing something I love and believe in, even if it means working all day, every day, forever.

What planning did you do before you started up?
I spent nearly a year building the company: eight months while still working and the final few putting together the last preparations. I wrote a business plan and researched everything from designers, to shows, to other companies.

Although I can’t say that I did ‘proper’ competitor research, I knew that what I was doing was different because I just couldn’t find it around. If it existed, it wasn’t big enough and therefore I thought I could do it better.

One company did launch mid my planning, but that gave me a boost. It showed me there was a market out there and that I could do it.

How did you raise the money?
The company was founded through my personal finances. I have been incredibly lucky to be able to do it on such a tight budget.

I am just starting to research fundraising now. You have to be watertight with everything you do and it is well worth seeking professional advice. Once you are rejected, its hard to get back in front of the same people.

How did you find suppliers?
I found my designers through blood, sweat and tears – quite literally. Although once I had a few, referrals and recommendations took me a long way as well. Speaking to friends, family and other entrepreneurs helps to find contacts and reliable suppliers. Social networks also help to amass recommendations.

What challenges have you faced and how have you overcome them?
My biggest challenge at the moment is to increase my customer base with a very tight budget. But, with all the challenges I have faced to date, the solution is normally the same: patience, perseverance and determination. It just means I work longer, harder hours as I contact every marketing, PR and advertising contact that I can think of to help the business develop.

It’s like bashing your head against a brick wall: sometimes it gives you a headache, and other days a few stones fall out. I promise that eventually you will go through (normally to be met by another brick wall… but still, you’re through one wall!)

Where is your business based?
I worked at home for all the development stage of the business and the first six months of trading. I love it. I found it easy and manageable and I was able to be flexible with my hours. Unfortunately, this often meant that I worked until 3am, but still got up at 6:30am!

Eventually I ran aground and started to struggle with the lack of social contact. I now work in an office building where there are loads of start-up companies across all genres. It’s amazing for contacts, and the social side of working. I just rent a desk, but have the ability to grow here, which is great. It’s also in Mayfair, which helps my business from a location and postcode perspective.

How have you promoted your business?
I have promoted myself through a variety of forms. We have catalogues and flyers, we have sponsored relevant events, and have collaborated with large corporates to help reach our target market. I did a large launch event, and worked hard on social media to create a buzz.

We are now working on our PR and marketing contacts. I find that personalised calls from the founder have a great effect, and editors are very happy to talk briefly, even if it’s to point you in the right direction. The personal approach makes you more interesting rather than being just another PR person.

How much do you charge?
De Bouverie buys some wholesale products, but also works on a sale-or-return and commission basis. We tend to try and work on all three levels with all of our designers, to spread the balance evenly. For us, the focus is sales.

What about staff – how many do you have?
I don’t have any staff as yet, although I have worked with a few interns. It is difficult to manage new employees when it is your baby. One of my steepest learning curves was delegation, but it gets easier.

What would you say the greatest difficulty has been in starting up?
Starting up is easy… well not easy, but the adrenaline rush and determination dominate. It is when this adrenaline runs out that it gets hard. My biggest fall came after the Christmas push. January was very slow and difficult, and it took a while to get going again.

What was your first big breakthrough?
I think I had a few: the first designer to sign my contract, or even finding my first designer who was interested was a great start. My first sale was another memorable moment, but I think for me I haven’t actually hit the biggest breakthrough yet. I am on the cusp of some exciting developments, which would certainly stand out if I pull them off.

What would you do differently?
Hindsight is an amazing and very frustrating thing. There are certainly areas that I could have saved money on, and I wasted a brilliant opportunity for press and marketing because I didn’t think I was ready. I was wrong. I was very ready and I could have done with the extra publicity.

What advice would you give to budding entrepreneurs?
If you ask a question, really listen to the answer. Always take on board people’s advice, whether you agree or not, and listen to them. Absorb as much information as you can: it’s priceless and it’s free. So many people ask questions, but rarely listen to the answers.

You can always start the business for less money than you think, so always push yourself as low as possible – it leaves you more for later! Looking bac,k I could have cut my costs far more dramatically if I had understood more. So always be sure about where every penny is going.

Everyone you know will be useful to your business, in ways you might not be able to imagine. Never abuse them, but never forget they are there either.

Where do you want to be in five years’ time? Do you have an exit plan?
In five years I plan to be the leading online website and community for high quality, unique and bespoke jewellery made by trained silver and goldsmiths.

I also intend to have a central shop or showroom, where the designers can base their stock, and to be looking at, if not already involved in, going international.

I have various exit strategies, depending on the growth and interest in the site. I think it’s too early to say which way it would go, but either selling or floating the company are both options. Exit strategies are important, but I find that having a few options is best. Things change in small businesses very quickly, so being flexible and open to ideas is essential.

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Financial planning for first-time business owners

Top tips to help you stay on top of your finances when you’re starting out
Written by The Startups Team
Published on 22 November 2012

Owning your own business is a dream come true for most entrepreneurs – so once you have it, you’re going to do everything in your power to create and maintain a successful, growing business.

However, business owners often put a lot of their own cash into their new companies, so it is important not to lose sight of how running a business affects your own financial position. Often, entrepreneurs are focused on setting up their business and ensuring all the relevant systems are in place, but can forget to plan for their own financial goals. They are too busy writing a business plan to think about their own personal financial plan.

Financial planning is crucial. You may well have bags of common sense and knowledge, but the excitement and busy schedule that a new business requires can inevitably mean that financial planning drops down the list of priorities. Keeping on top of your finances and being aware of your options is imperative to your business’ survival.

A financial adviser is a great option for entrepreneurs and business owners, if only to make sure you get off on the right financial foot and clear the way for future success. They can also assist in forming a succession plan and ensuring your business enables you to meet your personal dreams and ambitions.

The crucial thing to remember when your business is off the ground is not to spend too much too soon. Of course, you’ll want to celebrate your success, but try to hold off from spending too much for as long as possible. Around 90% of entrepreneurs’ businesses go bust because of bankruptcy. This is why it is crucial to plan your cashflow as meticulously as possible. A good financial plan will clearly outline how much you can afford to invest and pay yourself. When planning, it’s a good idea to overestimate overheads and underestimate income.

To help cashflow, it is crucial to invoice customers as soon as possible, run credit checks on customers and invest time into negotiating the best deals possible with suppliers.

As well as considering corporation tax, you will also need to look at your personal tax liabilities and how you can reduce these by taking advantage of tax-planning opportunities, particularly in the area of pension planning.

Another crucial element to the financial planning process is risk management. If your business is small, you may depend on a few key people for the operation of the company. This means that key person insurance may be important to plan for the unknown.

It’s also imperative to ensure you have enough personal protection in place for the eventuality that you may not be able to work. Putting together an insurance and protection plan may not seem like a top priority in the very early stages of your business – but it’s definitely better to be safe than sorry.

When first setting up a business, it is important to come to an agreement with all shareholders regarding the terms of the shareholder agreement. This will specify a method of valuing the company. It will also set out the terms of buying and selling shares in the event of illness or retirement.

You should apply the same financial planning priorities for your employees too, putting in place pension plans and group health insurance plans. In general, it will be in your own interest to provide a competitive benefits scheme.

When it comes to setting up a business – there are many angles that need covering. Whether you hire someone to do every job or outsource some tasks – this is something that needs a lot of consideration and forethought.

Financial planning for both you and your business is a long-term task that involves regular review. As your goals and financial situation changes over time, the strategies for managing your income and outgoings will always need to be re-evaluated in order to remain in tune with changes within the business and the economic climate.

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How to improve your website’s Google ranking

Is your website ranking high on organic search results? If not, read this beginner’s guide to the art of search engine optimisation (SEO)
Written by The Startups Team
Published on 22 November 2012

Search engine optimisation (SEO), the process of optimising your website to rank more highly in relevant web searches, is a complex marketing strategy. With Google constantly changing the rules and algorithms it uses to rank one website over another, it is important to get the SEO basics right so your own business website can succeed.

SEO incorporates techniques that make your website and content within it more desirable to Google and other search engines – and therefore relevant to the searches that people are performing on a daily basis.

Here are some of the key steps to getting SEO right:

1. Establish your goals

People have a tendency to run into SEO without actually thinking about what they want to achieve. With no goals in place, how will you know what is working?

Some good key performance indicators (KPIs) could be: … Volume of traffic to the website. … The number of pages of your website being indexed by Google. … Position your site appears on the search engine results page. … Number of enquiries/sales being driven via natural search (ie the main search results, rather than paid-for ‘sponsored links’, which are displayed along the right hand side and at the top of the search results on Google).

2. Install Google Analytics

No doubt some of the people reading this are thinking “well, obviously…” but for those new to online it’s far from obvious, so this is for those of you who are new:

Google Analytics is a free and very powerful tool to track how people find your website and what they do when they’re there. Without a tool like this you will never understand how your website performs or how to improve it.

There are many other paid-for analytics tools available, each offering similar statistics to the next, however each platform offers varying levels of detail.

Whether it be a paid-for tool or Google’s free analytics tool, this data is priceless for understanding whether your SEO strategy is achieving the desired results.

3. Identify what you want people to do when they arrive at the site and then track it

So now you have analytics on your website, you need to track the actions or events you want to take place when people visit the website. That might be making a purchase, signing up, downloading a brochure or filling in an enquiry form.

Whatever it might be, you need to know when it happens – but more importantly why it happened. If biscuitsrus.com starts receiving orders for handmade chocolate bourbons (stay with me here) then fantastic, but without knowing how those customers found the website or how they interacted with it, how can we make decisions on where to market ourselves? How do we know who our audience is or what they really want?

4. Page titles for search engine optimisation

Every page on your website should have a unique page title – if you don’t tell Google what the page is about it will guess – and that’s rarely good. If your website is about chocolate biscuits, make sure everyone knows with a homepage title like:

“Chocolate Biscuits, Milk Chocolate Biscuits and more from BiscuitsRus.com”

I’m not saying that’s a perfectly optimised title, but it’s way more descriptive and useful than “Home” or “Website”, both for Google and for your visitors.

Do you have a section all about chocolate HobNobs? Make sure the page has a title relating to it: “Chocolate Hobnob news, facts & reviews from BiscutsRus.com”

5. URLs that a human can read

Let’s say our hypothetical website that’s obsessed with biscuits does indeed have a page just for HobNobs – what should the URL be? Let’s take a look:

http://www.biscuitsrus.com/?p=984

The above address is the kind of thing you might get when creating a page in an un-configured Content Management System (CRM), such as WordPress or Joomla. As a human, I have no idea what the page might be about just by looking at the URL and neither do search engines.

So what if we use URL Rewrites to turn that into something understandable?

http://www.biscuitsrus.com/biscuits2

I can probably guess that page is about biscuits, but we can still do better…

http://www.biscuitsrus.com/chocolate-hobnobs

Perfect!

In another scenario, if the content of this page is purely about reviews then we might be even more specific: http://www.biscuitsrus.com/chocolate-hobnob-reviews

However, if we’re likely to be publishing many reviews for different types of biscuits then including the word ‘reviews’ in the folder structure would be more logical: http://www.biscuitsrus.com/reviews/chocoloate-hobnob

Both search engines and humans are left in little doubt as to what the content of that page is about, and from an SEO point of view we’ll reap the benefits of this with better listings in the search results than we may have otherwise.

6. On page content

The more relevant content you have on your site, the more reason Google has to index your pages for keywords relevant to your business. It is a fine balance between optimising content for Google and optimising for humans. You don’t want to write content based on cramming in keywords (you can actually be penalised for this) and you want to make sure that each page of content is reflective of the page subject.

Think of it as separate landing pages per search someone does on Google. If I search for ‘Chocolate Hobnob’, I want to be taken to a page which includes content on ‘Chocolate Hobnobs’ not a page on general chocolate biscuits. The more specific each page can be to the keyword, the higher the relevance of that page to the keyword.

It isn’t always this simple though, especially if you have thousands of products which would require thousands of new pages.

7. Start link building

A full and in-depth discussion on link building is outside the scope of this article but to put it in a nutshell:

When a website links to another it’s seen as a vote of confidence – that site A believes site B is interesting and a valuable resource. The more ‘votes’ you have the more important the search engines will believe you are. The more respected the site linking to you is, the more valuable their vote.

However be cautious: there are many different ways of running a link building strategy and some can be more damaging than anything else.

White hat – This is a term used for SEO techniques which clearly follow Google’s rules.

Black hat – This refers to techniques which try to bend or break Google’s rules.

There are many black hat link building strategies out there which can initially show results, however in the long term Google will crack down on you and penalise your website for following such strategies. You are therefore advised to adhere to white hat techniques, especially when building links.

8. Monitor and continue to optimise

SEO is a long-term strategy and it can take months for Google or any other search engine to recognise the changes. Even once they recognise the changes, the time it takes to have an impact on your ranking or pages which are displayed can be anywhere from a week to six months.

Once this starts to happen and you see results, it is important to monitor and review your analytics data to understand what results you are achieving. From here you can continue to optimise your strategies based on the KPIs set out at the start.

SEO isn’t about one strategy; it takes into account a variety of solutions which are now becoming more closely linked with social media and online PR. With Google moving the goal posts regularly and the complexities of SEO constantly increasing, it is crucial to be up to date on the latest market knowledge. This will help you to compile a successful strategy as well as foresee any impact of the changes in the market.

Tom Collinson is responsible for SEO services at Digital Clarity, a digital marketing agency specialising in search, social and website services to all types of businesses, from start-ups to multinational brands.

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Internwise: Rui Zamith and Nuno Dhiren

Job board for internships
Written by The Startups Team
Published on 22 November 2012

Name: Rui Zamith and Nuno Dhiren
Age: 28 and 32
Company: Internwise.co.uk
Staff numbers: 2
Company description: Job board for internships
Tell us what your business does:
Internwise.co.uk aims to connect UK companies with talented graduates looking for an internship programme – free of charge!

Where did the idea for your business come from?
Rui had difficulty getting an internship. Then it was just a matter of time to find the best way to approach the market and support others in a similar situation.

How did you know there was a market for it?
The websites we saw promoting internships for UK companies were very basic.

We thought a platform where: a) all graduates could find an internship programme, b) companies and graduates could communicate directly and c) candidates could upload their CV, write a profile and explain what they are looking for: would speed up the recruitment process and also eliminate middle-men agencies.

What were you doing before starting up?
We still have our full-time jobs. Rui is a communications manager and Nuno is a financial analyst.

Have you always wanted to run your own business?
Yes. We are online entrepreneurs and passionate about business.

We’re already looking forward to adding more projects to our portfolio!

How did you raise the money?
We funded the business through personal savings and family support, then invested our personal skills and experience in the business’ development.

What challenges have you faced and how have you overcome them?
It’s not easy to gain the trust of the companies we want to advertise with us.

In the beginning we called employers directly, inviting them to become our members and post internship vacancies. Since then, one of our main sources of new business has been word of mouth referrals.

We truly believe that, when a platform accomplishes the aim of why it was built, the rest is just a matter of delivering.

How much do you charge?
Zero – it is an 100% free service. However, we can deploy a newsletter to our candidate database (on behalf of a client) for £44.90.

What was your first big breakthrough?
We have a long list of early breakthroughs, including: earning the trust of companies, by posting their internship programmes; candidates applying for those internships and getting the roles; receiving positive feedback from companies about the strong CVs they received; candidates’ compliments on how Internwise.co.uk helped to kickstart their career; and big brands becoming our members, including Amazon, Hewlett Packard, HMV, Nike, Nokia, Network Rail and Gucci.

What advice would you give to budding entrepreneurs?
Deliver what you promise and make your customers happy. Build trusted relationship with your users or consumers. Once they are satisfied, they will refer you to others.

Growth takes time. Keep an eye on your cash. Control it tightly and build a cost effective structure.

Where do you want to be in five years’ time?
We want to have completed the transition to becoming full-time entrepreneurs, be building new online projects, making them grow, cross selling and making money.

Website: www.internwise.co.uk

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HSBC Merchant Services transforms smartphones into card payment terminals

New eMerit device helps sole traders process card payments anywhere
Written by The Startups Team
Published on 22 November 2012

HSBC Merchant Services has launched a new product to allow sole traders, freelancers and mobile merchants to take card payments anywhere.

The firm, which is one of the largest independent payment processors in the UK, has teamed up with eMerit Solutions Limited to produce the device, which allows entrepreneurs to complete card transactions using the internet connection on their smartphone.

The chip and pin device is expected to particularly appeal to merchants and retailers with a flexible working location, such as mobile hairdressers, taxi drivers, market stall traders and small businesses, such as cafes.

SagePay Mobile launched a similar product earlier this year and the latest offering from HSBC – which is fully secure and compliant with all major card schemes – will become universally available by the end of 2012.

Chris Davies, managing director of HSBC Merchant Services said: “The current economic climate has resulted in increased pressure on sole traders to retain loyal customers.

“By accepting credit, debit and gift card payments through smartphones and mobile devices, the eMerit device gives merchants the ability to process payments that will ultimately drive forward repeat business – quickly and easily.”

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5 advantages of working for a start-up

Startups reports from Silicon Milkroundabout on what start-ups have to offer new recruits
Written by The Startups Team
Published on 22 November 2012

Thousands of young web developers, software engineers and product managers traded the sunshine for start-ups last weekend at the third bi-annual Silicon Milkroundabout.

The event, which is the brainchild of Songkick founders Pete Smith, Michelle You and Ian Hogarth, brought together 100 of the UK’s best tech start-ups, to connect them to talent which may otherwise be snatched up by industry giants such as Amazon or Goldman Sachs.

The initiative aims to highlight the advantages of working for a start-up, following a dearth of applications for advertised vacancies for software developers. There were more than 800 vacancies up for grabs at this weekend’s event and, although start-ups may be unable to seduce new recruits with the same perks as large corporates, they have plenty else to offer.

Getting this message out to jobseekers was also the mission at NACUE’s Startup Career Launchpad, which took place earlier this month. The event brought together 150 students and graduates, and a host of speakers from the start-up scene, to highlight the benefits of working for a start-up.

At both events, the message was clear: this is not just a viable career path; there are distinct advantages to joining a fledgling, entrepreneurial firm. Here are five of them:

1. Development opportunities

Start-ups offer new recruits greater opportunities to get stuck in and innovate than more established businesses. As Joe Cohen, founder of Seatwave says: “I want people who take the ball, run with it, and get sh*t done.”

The start-up mentality encourages risk-taking, giving employees the freedom to prove themselves and grow – often much faster than in an environment structured by annual reviews.

“Start-ups are often smaller teams so you can have a lot more impact and there’s more responsibility you can grab, which isn’t the case in a large company,” Songkick’s Smith says.

2. A chance to shine

Not only does working intimately with a small team allow graduates to observe and learn from their colleagues, it also ensures that their own contribution is noticed and rewarded.

“Hiring is very hard so one of the things a start-up will do, almost automatically, is to look around the team and make a call as to whether anyone might want to take on a bit more responsibility or shift to a different role,” Smith adds. “You get to take on duties as and when they come, to expand your horizons professionally.”

3. Dynamic environment

There’s nothing like a new venture to create a dynamic, soulful working environment. By entering a young company at the early stages, new recruits get to help bring an idea to life, share the success of early triumphs and help the company achieve real, tangible growth. There is also likely to be minimal – if any – bureaucracy, leaving employees free to innovate.

“The best thing about working in a start-up is having the ability to make things happen,” says Raj Dey, founder of Enternships.

“There is a great sense of adventure working in a start-up,” explains Nico Perez, founder of Mixcloud. “Start-up life is a constant sense of excitement. You never know what’s going to happen in six months’ time.”

4. Choosing your team

Since we spend more time at work than anywhere else, it is crucial to have a great professional – and ideally personal – chemistry with your colleagues. This is integral to a successful working life, yet often not given the weight it should be.

In a large organisation, new recruits are unlikely to even meet most of the people they’ll spend their days with before they start, let alone go on to influence future hiring decisions. However, this is a key unique selling point start-ups can offer.

“If you’re part of a six or 10 person team, you’re going to get a say on who’s hired. You’re probably going to have power, at least to veto, if not to make a hire. That’s huge – that you get to choose who you sit next to, who you work with. You just don’t get that in any other job,” Smith says.

5. Entrepreneurial training

Not only do start-up personnel get to help bring their boss’s entrepreneurial idea to life, they get unrivalled business training to stand them in good stead if they want to start a venture of their own.

The founders of fast growth start-up Peppersmith, for example, previously worked at Innocent Drinks and, as some of the company’s earliest employees, held a variety of roles in their 13 years developing the business. Similarly, Ricardo Parro was the second developer through the door at Wonga, where he had “unparalleled” opportunities to build systems from the ground up. He has since co-founded a start-up of his own, Top Deals London.

“If you want to set up your own company one day it’s a great insight into the business side of running a start-up,” Smith says. “The whole thing just works really well for your career.”

Of course working in a start-up won’t be for everyone. Some people thrive working intensively with a small team, while others prefer the security of a large business and knowing what they’re going to be doing every day. That’s fine – the latter probably aren’t suited to the start-up environment anyway – but prospective employees shouldn’t be put off by assuming that start-up employment is unstable or risky.

Diana Proca, founder of Work in Startups, argues that start-ups are no longer a risky bet as, even if they fail, their networks will see you through to your next job.

“If you pick the right start-up it’s usually got a good runway – a couple of years, maybe three (that’s actually a really long time to work for one company),” Smith adds. “If you’re worried about the stability side of things, just think of it as a two or three year block in your career. That’s not going to hurt you at all.”

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