Asda to adopt four-day week amid worker revolts

In a bid to improve employee satisfaction, the Big Four supermarket will hop on board the four-day week trend.

Asda has announced it will trial a four-day working week for some employees later this year in a bid to quell growing manager dissatisfaction.

The supermarket chain has faced growing dissent from employees, as rounds of cost-cutting has led to waves of resignations and planned strike action.

Recognising how the four-day week can boost workforce morale, Asda’s efforts appear to be a last-ditch effort to retain talent amid heightened staff turnover.

Managers plan walkout

Asda has experienced persistent staff turmoil since it was purchased by the billionaire Issa brothers in 2020. Manager complaints about poor working conditions have even led to walkouts.

Strike action was scheduled to take place at Asda Gosport, the firm’s Portsmouth superstore, from Monday 15 to Thursday 18 January.

However GMB, the union for Asda workers, confirmed last week that the action would be pushed back to this coming Friday 19 January following talks with the employer.

Nicola Nixon, GMB Regional Organiser said: “We are being very clear though that if sufficient progress hasn’t taken place in the meantime and Asda haven’t used this week wisely, our members will be out on strike beginning next Friday.

“Our members are bang up for this struggle. We will only delay this strike for so long.”

‘Toxic’ work culture

Much of the criticism is being levelled at Asda’s £2.1 billion dividends, which it awarded to shareholders in 2023, despite the rising cost of living contributing to an annual profit loss.

Union members have also complained about ill treatment at the hands of management. They describe wage errors which have apparently led to a ‘toxic’ work culture.

Asda has responded to the accusations from senior staff members by introducing a variety of flexible work options including a four-day week.

In a presentation given to employees in December, the company said they were making a “case for change” to stop talented store managers leaving their jobs, reports The Sunday Telegraph.

Four-day week: the new workplace detox?

In light of rising inflation, tensions have soared at UK workplaces. Big-name employers such as Transport for London (TfL) and Amazon have also faced strike action as workers campaign for higher wages to compensate for more expensive living costs.

Employee benefits such as the four-day week, where staff work reduced hours but receive the same wage, have become a crutch for employers seeking to placate team members in pay disputes.

Last year, an employee survey conducted by Startups found that 61% of those in favour of a four-day working week think it would ensure a better work-life balance.

Studies also suggest that shorter workweeks can actually lead to productivity gains, making it a profitable policy for businesses.

The trend isn’t fading this year, as a recent Startups survey found that 12% of UK businesses plan to adopt a four-day working week in 2024.


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

AI customer service chatbots: everything you need to know

Customer service is crucial for business success. We’ll show you how to leverage the power of chatbots to supercharge business growth.

Chatbots are a game-changer when it comes to customer service. As artificial intelligence (AI) evolves, chatbots have become smarter and now offer a time-efficient alternative to the tedious and repetitive tasks often given to your service representatives. The wins are plenty – cost-efficiency, more engaged employees, satisfied customers, and streamlined customer service expertise.

According to Juniper Research, companies that utilise AI chatbots have seen an 80% increase in customer satisfaction. For businesses looking to scale and enhance their customer retention, this guide is essential.

Benefits of chatbots

Chatbots analyse text for keywords and phrases related to common customer roadblocks and then provide self-service solutions to a customer’s question(s). This translates into lower operational costs, higher customer retention, and lower employee burnout. Here are the key benefits of utilising AI customer service:

  • Reduced case volumes: with the help of chatbots, businesses are able to free customer service representatives from dealing with simple and repetitive issues, and have them focus on unusual or complex problems instead.
  • Seamless integrations: chatbots seamlessly integrate with your Customer Relationship Management (CRM) system, ensuring that your customers don’t have to rehash the details when transitioning from bot to human interaction. Plus, with the power to look up data instantaneously, chatbots add a personalised touch to customer interactions, which can help foster customer loyalty.
  • Task automation: Chatbots can provide answers and take charge of follow-ups. This could be scheduling a meeting or sending a follow-up email to your client to retrieve feedback on their customer experience. This not only maintains a consistent customer experience but also helps your team surface unfulfilled customer needs.
  • Multi-channel support: websites, social media, and messaging apps – chatbots can easily integrate into any of your digital channels, ready to help out customers however they choose to interact with your business. This coordination makes for more effective communication with your customers and you never miss a client query or complaint.
  • 24/7 availability: in a world that never sleeps, customer support needs to be readily available Chatbots ensure round-the-clock support. This is particularly useful when your customers reside in different time zones or face urgent product or service emergencies.

Key considerations when implementing chatbots

While there are numerous benefits to integrating chatbots and your customer service setup, there are some key factors you’ll need to consider to ensure your chatbot is cost-efficient and safe.

  • Initial investment and ROI: integrating a chatbot comes with its set of upfront costs, and your business must weigh these against the expected return on investment (ROI). While building custom chatbots may seem appealing, it’s crucial to recognize the potential pitfalls. Without prior experience and understanding, home-grown chatbots can quickly become mismanaged, disorganised, and expensive. For those new to chatbot implementation, opting for pre-built solutions can provide an efficient and cost-effective entry point.
  • Data security and privacy: You’ll need to confirm that your chatbot complies with regulations such as GDPR and any other industry or location-specific privacy laws. Practices like user identity authentication, intent-level authorization, channel authorization, end-to-end encryption, and intent-level privacy will help you safeguard privacy and safety standards.
  • Human oversight and intervention: while chatbots can handle routine queries and tasks, there are scenarios where human intervention is a must – after all, in complex issues, employing emotional intelligence is necessary. Ensure that there is always a mechanism in place for a human to take over a conversation when necessary to keep your customers satisfied.
Did you know?

According to Outgrow, it is predicted that businesses will soon have a chatbot and use the GPT-3 technologies from OpenAI to assist customers more effectively.

What’s next for chatbots?

As AI technology evolves, here are some exciting trends and predictions for where chatbots are headed.

More human-like interactions

Thanks to Natural Language Processing (NLP) and machine learning, chatbots are more context-aware and can better understand interactions and identify what a customer needs. This makes it difficult to differentiate between a bot and a human customer services representative. While this might sound like it came out of a sci-fi novel, this is great news for businesses. Your customers will feel their query was properly answered and understood, all while having a personalised, data-driven interaction.

Industry-specific customisation

With the launch of the GPT store and the ease with which chatbots can now be created with native data, businesses can build bots that fit the specific needs of their company. Through tailored solutions for sectors such as ecommerce, healthcare, and hospitality, chatbots will now possess domain-specific expertise. This will give users a refined and personalised experience.

Did someone say *more* fintech?

Financial institutions are embracing the integration of payment options within chatbots. Using APIs, these bots facilitate seamless payment processes by sending secure payment requests and providing links for transactions.

Melting into your CRM systems

Chatbots will be better equipped to synchronise with your CRM system, leveraging user data to offer a personalised customer service experience. This will help enhance your customer interactions by making it easier and faster to find solutions to queries.

Overwhelmed by the number of AI chatbots on the internet? We’ve hand-picked a few to help you find the correct one for your business.

  • Tidio – best for small to medium-sized businesses
  • Freshchat – best for multi-channel customer engagement
  • Zoho SalesIQ – best for customisation options
  • Drift – best for real-time conversations with website visitors
  • Conversica – best for automated customer follow-ups

Conclusion

When properly implemented, chatbots can bring huge advantages to businesses looking to improve their customer service. From keeping customers happier by resolving common queries and streamlining communications to saving money by avoiding the need to hire more customer service reps, chatbots are a key tool for customer service success.

Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

What is Customer Lifetime Value and what do you actually need to know?

Customer Lifetime Value is the crystal ball that indicates how healthy your long-term financial forecast is looking. We explain its benefits and how to calculate it.

Every business wants to know the secret formula to sustainable financial growth. In reality, it’s not complex. The magic ingredient is nurturing and maintaining customer retention so that you can boost their customer lifetime value (CLV).

This metric looks at the total revenue your brand can expect to make from a single customer to identify hiccups in your sales funnel, blockers, or customer churn. CLV may initially seem daunting, but the pay-off can be huge. This guide will walk you through everything you need to know.

What is CLV?

Customer Lifetime Value (CLV) measures the total revenue a business can reasonably expect from a single customer account throughout their entire relationship with the company. The longer a customer continues to make purchases and engage with your business, the greater their lifetime value becomes.

It’s a highly valuable metric to calculate as it can guide strategic decision-making, helping businesses allocate resources more effectively, prioritise different customer segments, and tailor marketing campaigns to boost customer loyalty.

There are two ways to model CLV: historical and predictive.

  • Historical: this looks exclusively at past data and makes a judgement on the value of customers based on previous transactions. You’ll be able to glean valuable insights into spending patterns, preferences, and loyalty.
  • Predictive: this approach uses machine learning to project the revenue a customer is likely to generate over their entire lifetime with the company. You can factor in variables like customer behaviour, market trends, and external factors to model this accurately.

Why does CLV matter?

CLV can provide the foundations of a roadmap towards customer loyalty and scalability. Here are four key reasons why it should be part of your business data:

  1. Boosting customer loyalty and reducing churn: by understanding the long-term value of each customer, businesses can tailor their engagement strategies to foster lasting relationships. Insights from CLV data enable companies to identify and address factors that contribute to customer churn.
  2. Improving strategic decision-making: the data helps identify specific customer segments that contribute the most revenue. This knowledge is invaluable for segmenting your audience based on the value they bring, allowing you to tailor marketing campaigns, encourage repeat purchases, and identify cross-selling and upselling opportunities for different customer segments.
  3. Shifting focus to long-term relationships: CLV encourages a shift in focus from short-term gains to long-term customer relationships. By concentrating efforts on retaining existing customers, businesses can reduce acquisition costs and cultivate a base of repeat customers. This shift will improve the value of each customer to the business over time, but it will also simplify financial planning by offering insights into future revenue streams and changes in customer behaviour.
  4. Gaining a competitive advantage: CLV helps businesses stay ahead of the competition by providing a deep understanding of customers. By identifying trends in customer data, businesses can proactively address changes and optimise strategies. For example, insights from CLV might be used to fine-tune customer support strategies or enhance loyalty programs to meet the evolving needs of customers.

Pros and cons of CLV

Pros and cons of CLV

✔️ Improved customer retention: CLV empowers businesses to focus on customer retention by understanding the long-term value of each customer. By tailoring strategies to enhance customer loyalty, businesses can reduce churn and cultivate lasting relationships, contributing to sustained success.

✔️ Drive repeat sales: by identifying customer segments with high CLV, companies can design targeted marketing campaigns and promotions that resonate with these customers, fostering a cycle of repeated purchases.

✔️ Encouraging higher-value sales: through personalised approaches, companies can identify opportunities for upselling and cross-selling, maximising the revenue potential of each customer.

✔️ Increased Profitability: As a comprehensive metric, CLV contributes to increased profitability. By optimising marketing spend, improving customer satisfaction, and focusing on high-value customer segments, businesses can ensure an efficient allocation of resources, ultimately boosting the bottom line.

Difficulty in measurement: one of the primary challenges associated with CLV is the difficulty in measurement. Calculating the lifetime value of a customer requires accurate data on various factors, including purchase history, customer behaviour, and retention rates. For businesses without robust data systems, measuring CLV can be a complex task.

❌ Misleading high-level results: while CLV provides a holistic view of customer value, high-level results can sometimes be misleading. A high overall CLV may mask issues within specific customer segments, locations, or demographics. It’s crucial for businesses to drill down into the data to ensure a comprehensive understanding of their customer base.

Measuring CLV

The overall formula to measure CLV is:

Customer Lifetime Value = Customer Value x Average Customer Lifespan

Here’s how to calculate each element:

Customer value

  1. Figure out the average purchase value of your products
  2. Calculate the average number of purchases per customer (also called purchase frequency rate)
  3. Multiply these two figures together to get the customer value. This makes it easy to find the customers who have the most impact on your revenue. We recommend implementing a CRM to confirm data accuracy.

Average customer lifespan

  1. Figure out the average number of years a customer stays active with your company.
  2. Divide this number by your total customer base to get the average. Ensure you’ve cleaned your data well to avoid having duplicate accounts in your data.

This gives you insight into how much longer you can expect customers to stick around, letting you implement preventive strategies to build customer relationships and reduce churn.

Tips to improve CLV

1. Optimise your onboarding process: make it easy for customers to navigate your website, find relevant information, and connect with your brand. Utilise customer data to personalise the onboarding experience, tailoring it to individual preferences and behaviours. A smooth onboarding process builds trust, establishes authority, and sets the foundation for long-term customer loyalty.

2. Collect customer feedback: feedback allows you to sense check your CLV calculation. Actively seek feedback on the onboarding experience through surveys, direct communication, or feedback forms. This will help you understand customer perspectives and identify areas for improvement.

3. Increase average order value: Boosting your average order value is a strategic move to increase CLV. When customers are about to check out, seize the opportunity to offer relevant complementary products. Consider creating bundled pricing packages that combine these complementary items at a discounted rate. Additionally, leverage customer data to offer personalised discounts or incentives to specific customer segments. Keeping a close eye on customer retention rates and repeat purchases will provide valuable insights to fine-tune strategies for maximising CLV.

4. Nurture your relationships: Building lasting relationships with customers is at the heart of CLV. Invest in personalised outreach initiatives that go beyond generic communication, for example in CRM systems that channel AI to leverage personalised marketing emails or post-purchase follow up messages. Respond promptly to customer comments and messages, which demonstrates a commitment to customer satisfaction. Share authentic and relatable content that resonates with your audience. Standing out from the crowd requires genuine engagement, and nurturing relationships fosters customer loyalty over time.

Conclusion

One engaged and loyal customer will always be better than two fresh ones who won’t give your business a second thought. Return clients will bolster your CLV and give you more security as you know certain portions of your customer base will keep making purchases. Strengthening your customer base is all about working smarter, not harder.

Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

Vivienne Westwood says remote jobs are in style

The fashion house has told staff to work from home in order to meet Net Zero targets.

One of the UK’s biggest fashion houses has officially endorsed flexible working. Vivienne Westwood, which is estimated to employ around 250 workers, has adopted a hybrid work model with most employees working from home three days a week

The decision, communicated to staff at its Battersea headquarters, was first reported by The Times and is apparently part of a drive to become more sustainable.

The shift aligns with Startups’ findings that two thirds of businesses intend to implement flexible work this year, and is also likely to be motivated by talent attraction.

WFH better for the environment

Work from home (WFH) models are one of the simplest ways to slash transport emissions. Millions of cars off the road as people skip their commutes translates to a major reduction in greenhouse gases, air pollution, and noise.

The perks will resonate with the fashion industry. Criticism of the sector’s substantial carbon footprint has been considerable, triggering a rise in the number of eco-conscious challengers. Startups named three sustainable and upcycling clothing brands in the 2024 Startups 100.

With green set to be a key colour for the fashion industry this year, it’s only fitting that Vivenne Westwood (the firm known for its outlandish designs) be the one to set the bar.

The company’s influential founder Dame Vivienne Westwood, who died in 2022, was an outspoken climate change activist. Alongside WFH plans, the business said it will urge customers to buy less “to raise awareness of the environmental impact of overconsumption”.

Remote work green and lean policy

Going sustainable can come with a lot of added expenses for businesses. Eco-friendly materials carry a premium price tag due to smaller production volumes. Meanwhile, renewable energy sources often require an initial investment that can be daunting.

Vivienne Westwood’s decision to cut down on office usage is a savvy way to encourage a green transition, while still enjoying significant cost savings on high rent or lease expenses.

According to a recent Startups survey of 546 small firms, those based fully in-office were twice as likely to have laid off staff in 2023, compared to remote and hybrid organisations.

Employees happier at home

Research also suggests that hybrid work models can positively impact employee satisfaction and engagement, both of which are key concerns for today’s businesses.

Young people are one of the toughest nuts to crack. The fashion industry has a big audience in Generation Z, and the majority want sustainability to be a key priority for businesses.

The group is also increasingly regretful of careers that don’t allow them to work from home, making flexible working their most sought-after employee benefit when job seeking.

This could be why the same Startups survey found that 66% of respondents plan to adopt a flexible working model in 2024, as a way to supercharge hiring plans this year.


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

Remote workers are less likely to be fired

Remote workers enjoy better job security, signalling a potential solution to the ongoing business trend of mass layoffs.

Flexible working could save your job this year. Exclusive data from Startups reveals that companies clinging to a fully in-office culture were twice as likely to have laid off staff in the past 12 months, compared to remote and hybrid-friendly counterparts.

Startups surveyed a representative sample of 546 UK businesses towards the end of 2023. The results show that 38% of fully in-office firms made job cuts last year, compared to 16% of remote teams.

Flexible work options are already among the most important employee benefits for those on the hunt for new jobs. Now, it seems there’s an additional job security incentive for seeking a hybrid or fully remote role this year.

Remote teams liberated from layoffs

Mass redundancies dominated last year’s headlines as employers like Meta, Google, and X (formerly Twitter) sought to save money.

This trend isn’t fading in 2024. The New Year has already seen tech giants like Amazon and Google announcing layoffs, Meanwhile, countries including the United States, Netherlands and India were reported to be among the top countries for sacking employees without warning.

Startups’ research pinpoints working from home (WFH) as the most cost-effective shield against layoffs. Shrinking or ditching office space means companies can save on one of their highest expenses while maintaining a stable workforce.

Even switching to a partly-remote model was found to have a positive impact. Hybrid firms, where employees were required to go into the office for two or three days per week, also showed an improvement on fully in-office counterparts with a layoff rate of 30%.

Richard Parris, Managing Editor of Startups.co.uk, comments: “It’s cold, it’s grey, and it takes you an hour to get there each morning. But, there’s yet another reason to resent your office as we begin 2024: it could cost you your job.

“Our research found that businesses allowing employees to work fully remote roles or hybrid setups have less risk of laying off staff, compared to those with a fully in-office culture.”

WFH better for mental health

Recent discussions on mandatory in-office policies have highlighted concerns about their impact on employees’ mental well-being.

Last week, WebMD’s parent company elicited groans with its cringeworthy, ‘back-to-the-office’ video. Google’s forced return to desk life has also fueled employee dissent.

Staff who refuse to give up work from home privileges have pointed to the improved work-life balance and mental well-being they achieve as a result. After years of debate, it seems their arguments are finally resonating with decision-makers.

This improvement to mental health doesn’t just extend to staff, but also to those running companies, too. The Startups survey also shows that 11% of business leaders in full-time office-based roles report lower mental well-being compared to those running remote or hybrid-working businesses.

Flexible working to explode in 2024

With even the C-Suite now experiencing the benefits of flexible working, 2024 could be the year the debate around remote versus office working is finally won.

In our survey, 66% of business leaders told Startups they intend to improve their flexible work options this year.

This includes 12% saying they were considering introducing a four-day work week, and 14% who aim to increase the number of days staff can work remotely.

Conversely, and in good news for employees, just 6% of employers said they intended to increase the number of days their staff were expected to attend the office in 2024.

Remote work could win the talent war

With job security concerns rising, the Startups survey suggests that companies offering remote or hybrid work models could be at an advantage when it comes to hiring right.

The findings are particularly relevant to employers because the survey also found that 80% of respondents are actively seeking to increase their staff over the next year.

Remote work could be the secret recruitment weapon for HR teams. It aligns with recent trends in the job market, where flexible work options are becoming increasingly important to employees.

Workers have even been found to prioritise home working arrangements over salary, suggesting that a hybrid or remote working policy could help firms source the best talent while keeping staffing and payroll costs down.

Parris adds: “If you’re on the lookout for a new role this January, the smart money is on applying for remote and hybrid positions. As well as the improved work-life balance and lower commuting costs, you may benefit from better job security, too.”


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

Getting the most out of the gig economy as a small business owner

With a stagnant economy and rapidly evolving work culture, is now the time for small businesses to leverage the expertise and flexibility of freelancers?

Thanks to the widespread adoption of flexible, hybrid and remote work policies and an unpredictable economic environment, we’ve seen several dramatic shifts in the workforce over the past three years. 

Freelance revolution

With Gen Z and Millennial workers turning increasingly to freelancing, the global gig economy is projected to reach a value of $14.39 billion by 2030 – largely fuelled by online workers with specialised professional skills. 

But evolution in response to disruption is nothing new. In the world of work, a similar period of rapid change was sparked by the 2008 recession, with the launch of platforms like Airbnb, Taskrabbit and 99designs introducing the market to new ways of connecting buyers with services – and people with alternative sources of income. 

While various platforms laid the foundations for the gig economy in the late 2000s, the freelance economy has evolved into an aspirational model, with skilled professionals thriving in industries transformed by post-pandemic attitudes to work, and broader acceptance and adoption of remote collaboration.  

For founders and small business owners who have to wear a lot of hats, leveraging the gig economy can be both a lifeline and a cost effective pathway to growth. Having run 99designs by Vista – a platform that connects small businesses and startups with global community of freelance designers –  since 2009, here are a few tips we believe can make outsourcing become your superpower: 

1. Understand what you really want

Ask any freelancer and they’ll tell you there are two types of clients: ones who know what they want, and those who don’t. And there’s no question which group is typically happier with their results. 

To get the most out of a freelance relationship, both sides should be clear on the specifics of a project, so before you reach out, identify the key deliverables, map out any important deadlines or milestones, and specify the objectives for whatever project or task you want help with. To get the best results, you should also be able to clearly articulate the business needs the freelancer will be fulfilling, and communicate who you are as a brand. 

Putting in time and effort creating a really clear and thorough brief will pay off in the long run, both in terms of the quality of output, and your relationship with the person taking on the work. Ensuring everyone is on the same page from the start is non-negotiable for successful collaboration.  

2. Be clear on your budget

When it comes to setting your budget, it’s worth looking at typical rates locally and on online platforms to establish a rough guide, but don’t be scared to discuss budgets with freelancers: people can be willing to tailor quotes based on a number of factors, including opportunities for follow-up work. 

Of course, you need to take into account what your business can realistically spend, but it’s also worth thinking about the value the project itself brings both financially and in terms of time. Ask yourself how much it would cost the business if you didn’t get this work done, or if you were to hire someone full time? What value is delivered by freeing up your own time to focus on other things? 

Remember a freelancer is a small business owner too: their time and expertise is valuable and will help power up your own business, so investing appropriately is a smart move.

3. Prioritise communication and trust their expertise

Irrespective of how talented your freelance partner is, good communication is critical for success. Collaboration is a two-way street, so be prepared to answer questions, provide any additional context and assets they might need, and be ready to provide timely feedback when requested. 

But bear in mind the saying ‘There’s no such thing as too much communication’ isn’t always true! There’s a difference between regular and productive communication and micromanagement: remember that they are an expert and you chose to work with them for a reason. With timelines set, budgets agreed, and a thorough brief provided, you need to trust freelancers to use their expertise, knowledge and skills in a way that will benefit your business.

Treat your freelance partners as an extension of your team: praise for good work, honest and clear feedback (and prompt payment of invoices!) go a long way to fostering trust and appreciation. 

4. Share your values and purpose

While you might be concerned about freelancers caring less about your brand or business than either you or an employee might, that assumption might not be correct. 

The vast majority of creative freelancers want to work with clients and brands whose values align with their own, so sharing your purpose and brand story with freelancers at the outreach stage will increase the chances of working with a partner who is very much invested in your organisation’s mission and vision. 

And while they might not be local, one of the benefits of the broad adoption of remote work is how much better we all are at collaborating online. It’s worth thinking about how you might be able to include longer-term freelancers in your team culture and develop processes to help them feel even more engaged with your business and results. 

Final thoughts

With changing attitudes to remote work and the continuing evolution of the freelance economy, opportunities to connect with creative talent around the world have never been more accessible. Working with freelancers allows you to tap into expert help whenever (and wherever) it’s needed, filling skill gaps and allowing you as a founder to focus and scale your business. 

Patrick Llewellyn, CEO of 99designs by Vista

Patrick Llewellyn is CEO of 99designs by Vista, the global creative platform that makes it easy for small businesses to work with professional freelance designers around the world. 99designs has paid out more than US$400m to its creative community to date, working across brand and logo design, packaging, web design and more.

99designs by Vista
Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

London workspace in 2024: here’s why you need to go flexible

With hybrid the norm and the Flexible Working Bill incoming, will flexible working spaces provide the capital with the perfect work-life-cost balance?

As  2024 begins, London’s flexible office market will continue to gain momentum buoyed by the government’s Flexible Working Bill, expected to be implemented in spring.

The rise and rise of flexible workspaces

Over the past few years, we have seen the market across London rapidly adapt to ever-evolving working dynamics – with hybrid and fully remote becoming the norm for workers. 

In 2022, there was continued pent-up demand for office space due to the pandemic. In 2023, we saw a course correction and ended the year in a new steady state. This is backed by figures from Cushman & Wakefield who found central London office lettings are forecast to hit around 8.5 million sq ft this year. While this is below pre-2020 levels, figures show that we have established a new normal for the industry.

The increasing appetite for flexible workspace in 2024 is supported by recent Startups research that points to UK employers embracing remote and hybrid policies as their preferred way of operating. The continued growth will be a reflection of businesses looking for increasingly agile and adaptable high-quality office spaces in prime locations without the constraints and hassles that so often come with traditional offices. 

Where flexibility meets productivity

Work-life balance has become increasingly important to employees and employers alike in recent years, with the old school 9-to-5 office grind no longer meeting the needs of all workers. Landmark Space’s recent research revealed that the non-linear working day and week is still disrupting the status quo, with Tuesday (65%), Wednesday (65%) and Thursday (59%) remaining the most popular days for office-goers.  We anticipate this will continue throughout 2024. 

Blending both remote working and in-office time can provide the flexibility that professionals are looking for, giving them space to adapt their jobs around their personal responsibilities, while still enabling in-person connection and collaboration. 

For businesses trying to find that equilibrium between business needs and employee work-life balance, it can feel increasingly complex, with the realisation that there is no one size fits all solution. Therefore, options such as a flexible office caters to these diverse workstyles, simultaneously fulfilling business needs and office requirements alongside employee preferences. 

Looking forward, companies that maintain agility in response to the growing demand for flexibility among employees are poised for success. Businesses that choose to transition to flexible workspaces will experience optimised flexibility and increased productivity.

In-person connections: going beyond the virtual world

Virtual fatigue has also become prominent, with people increasingly looking for genuine, face-to-face interactions. Our research highlighted the importance of social interactions among office goers, with 45% of workers emphasising the value of connecting with colleagues as the most beneficial aspect of the office. This sentiment was closely followed by collaboration with colleagues on work projects (43%) and face-to-face meetings (36%). 

Flexible workspaces, especially shared coworking areas, provide an ideal hub for the types of impromptu brainstorming sessions, water cooler chats, and coffee breaks that allow organic relationship-building, alongside structured every day in person meetings. For those feeling drained by endless video calls, these spaces facilitate stepping away from the virtual world and into a space where tangible connections are not only possible but encouraged. 

This trend will continue to bolster the success of the flexible office market, with hybrid workers especially craving personal interaction. 

Cost efficiency: the practical appeal

Next year, most businesses will continue to feel the effect of the economic headwinds we are experiencing. Traditional office leasing can be expensive, with fixed costs that leave little room for adaptability. Given this, businesses may well turn to flexible serviced offices. This demand is especially high among SMEs and entrepreneurs who are growing and scaling up businesses, often on tighter budgets but in need of professional spaces. Savings can add up substantially over time so businesses will continue to think carefully about their office spaces. 

In order to stand out from the crowd when businesses are considering flexible spaces, providers should not just continue to help them save on office management and operational costs. We should be looking to add value by offering amenities, food and drink or concierge-like services at reception, for example. 

Final thoughts

So, as we head into 2024, growth in the flexible workspace market across London shows no signs of waning, with a growth rate of 2% predicted by Savills*. Flexible offices continue to address the needs and preferences of modern professionals and businesses, all of whom are increasingly valuing adaptability, work-life balance, and in-person connections. 

Ed-Cowell-CEO-Landmark-Space
Ed Cowell - CEO, Landmark-Space

Ed leads the Landmark Space team as Chief Executive Officer. Prior to joining Landmark Space, Ed was the CEO of a PE owned vehicle leasing company and has held senior roles in G4S, Speedy Services and Barclays. Ed draws on extensive leadership experience to drive Landmark Space forwards and has a passion for exceeding the current needs of clients and exploring their future requirements.

Landmark Space
Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

Employee engagement crisis is now so bad it’s affecting government policy

The falling response rate for the government’s monthly labour market survey is now impacting workplace policies.

In a sign that employee engagement has hit a crisis point, reduced survey participation rates mean the UK government is now struggling to form effective labour policies.

Statistical response rates have been steadily declining over the past few years. In October 2023, the Office for National Statistics (ONS) suspended publication of its monthly Labour Force Survey (LFS) due to concerns about the accuracy of the data being gathered.

The shift mirrors a similar pattern in UK workplaces. Last year, a report from workplace consultancy Gallup found that just 10% of UK employees feel engaged at work – one of the lowest recorded in Europe.

What is the Labour Force Survey?

The LFS is a survey of private households in the UK. Every month, it tracks key indicators like labour participation rates to give employers and employees an up-to-date picture of the jobs landscape.

Forming the backbone of several crucial policy decisions, the data collected is then used to inform initiatives, such as flexible working measures and minimum wage adjustments.

But, with many households no longer bothering to fill in their responses, an ONS update today revealed it was still unable to source precise analysis of the UK work landscape.

This could have significant consequences. Inaccurate findings could lead to misdirected policies, potentially exacerbating existing problems or overlooking emerging trends. Underestimating unemployment could lead to a drop in support packages.

Organisations, too, rely on these insights to make informed decisions regarding hiring, training, and adapting to shifting workforce dynamics.

Staff engagement risks economic recovery

Governments and statistical agencies are taking note of the drop in contributors. Initiatives like increasing sample sizes and offering alternative participation methods like online forms are being explored.

However, declining staff engagement is not an isolated case. It reflects a broader trend of reduced worker participation across various sectors, fuelled by the rising cost of living and anxieties about job security due to recent high-profile layoffs.

As a result, many employees are switching off from full-time work and engaging in anti-work trends like ‘quiet quitting’.

Disengaged employees pose a concern for businesses. Their lower output, higher error rates, and poor morale can jeopardise a company’s objectives and competitive edge.

Additionally, the ripple effects of absenteeism and heightened staff turnover can create a vicious hiring cycle that further hinders growth potential.

In a business landscape where growth is crucial for survival, fostering a positive work culture and motivating staff through meaningful work is key to reversing this trend and ensuring growth in 2024.

Find over 50 ways to motivate employees in our guide to the top employee benefits and perks.


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

You have two months to update your Google Business Profile

Google is pushing business owners to update their profiles by March 2024, as they put an end to their official website hosting systems.

In a recent announcement, Google has revealed its plans to shutter basic websites created through Google Business Profiles. 

The affected sites, specifically those ending in business.site and negocio.site, will face closure in March 2024, with Google redirecting customers to their respective Google Business Profiles.

Google advises users to update their Google Business Profile as soon as possible, and to change to a new website domain.

Act now or face the “Page not found”

After June 10, pages will no longer even be redirected. 

Visitors attempting to access your Google Business Profile website will be met with a discouraging “page not found” error, as the website will have been inactive for around three months.

Google emphasises: “If you’d like to continue having a website for your business, consider creating a new website using other tools and updating your Business Profile with the new website address” to avoid inconvenience.

The quest for new website builders

In their official statement, Google also recommended exploring alternative website builders, emphasising the importance of a seamless transition for maintaining an active online presence.

Google sold its Domains business to Squarespace in 2023, and has been redirecting Google Domains customers to Squarespace ever since. But interestingly, in its list of the six website builders they officially recommend, Squarespace only snags second place, behind Wix

The list also features GoDaddy, Google Sites, Shopify, and WordPress.

The clock is ticking – update your Google Business Profile by March to fight the 404 and keep your online presence intact.

4.9 out of 5
  • Website fuctionality
    4.5
  • Design features
    3.9
  • Help and support
    4.6
  • Reputation
    4.8
  • Pricing
    4.2
  • User experience
    4.4

Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

Gen Z can’t write emails, says Jodie Foster

The Silence of the Lambs actor says young people don’t know how to write business emails anymore. Does it matter?

Hollywood actor, Jodie Foster has bemoaned that young people don’t know how to write business emails anymore, in comments to The Guardian.

Describing younger colleagues as “really annoying” to work with, she called out their poor grammar. “In emails, I’ll tell them ‘this is all grammatically incorrect, did you not check your spelling?’ And they’re like, ‘Why would I do that, isn’t that kind of limiting?'” she explains.

Foster joins other employers and managers who criticise Gen Z for their new ways of working, which are reshaping how businesses communicate.

Are young workers killing corporate culture?

Corporate culture can be challenging for newcomers to adjust to. That’s especially true today, when organisational cultures are being re-defined in an increasingly digitised world.

Trends such as flexible working, which took off at the same time that many Gen Zers first entered the workforce, have led to workplace debates about everything from remote work attire to should employees answer calls outside work hours.

Those who think young people are not following these business rules correctly feel irritated. 16-25 year olds have been labelled the anti-ambition generation, referring to their supposedly entitled views about how much freedom they should have at work, and their belief in pushing back against always on culture.

One area that has garnered particular attention from commenters – now including Jodie Foster – is the topic of corporate speak. Gen Z, who grew up in the internet age, are more used to instant messaging and text speak.

A recent study by Sky found that young people now habitually ignore phone calls, with over half even blanking their parents.

The age group’s struggles to understand and adopt corporate talk could be one reason why young people are now being viewed as rude or entitled. By shunning traditional communication channels, Gen Z employees are getting lost in translation.

Is Slack making us stupid?

The generational language divide has been worsened by the switch to messaging platforms post-COVID. Whereas the majority of business comms were previously done over the phone or by email, many firms now rely on apps like Slack, Microsoft Teams, and even Whatsapp.

As a result, an emoji-filled, informal way of communication has trickled into UK workplaces.

Traditional salutations or sign-off greetings are being replaced by ‘x’ or even GIFs. Spelling and grammar has gone out the window as online slang and abbreviations take over.

While older channels of communication still exist – and are popular with customers – the lines between what is and isn’t acceptable business language are increasingly blurred.

Informal communication

There are plenty of benefits to a more relaxed communication style. While formal talk can make those who are unfamiliar feel left out, encouraging coworkers and managers to speak to each other more casually can bridge gaps and create a sense of belonging.

Off-the-wall chats, jokes, rumours, gossip, and feedback are all examples of informal communication styles. These help to build rapport between colleagues and enable the expression of emotions, ideas, and personal views – all of which are required for effective problem solving and collaboration.

The advantages are particularly pertinent to Gen Z, who typically populate junior roles and are less familiar with the ins and outs of corporate culture.

Don’t say ‘regards’ to the business email yet

Foster’s complaint that young people can’t write business emails may be fair criticism. But as more businesses embrace an informal communication style, does it really matter?

In a word, yes. If colleagues are using different tones, communication channels, or slang words to work together, this could negatively impact teamwork.

Good employee engagement relies on workers feeling connected, which means it is more important than ever for companies to create inclusive workplaces where everyone feels their preferred communication style is valued and respected.

The key is to strike a balance between formal and informal communication to give employees a chance to familiarise themselves with both.

For example, channels like emails or meetings are usually reserved for legal, contractual, or policy-related content. Informal channels are better for bonding through social messages, collaborating with colleagues, and resolving urgent or simple matters.

Bosses should educate staff on when it is and isn’t appropriate to use formal or informal speech. Encourage them to tailor their speech to the environment, audience, message, and feedback. And, if they ever work with Jodie Foster, tell them to find a spellchecker.


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

Boomers hit hardest by January blues

January is the prime time for staff burnout, and older workers are the most likely to struggle this month.

Employers are being warned to pay close attention to older worker absences this January, as research finds staff aged between 50 and 64 are the most likely to take sick leave.

Data from the Office for National Statistics (ONS), analysed by claims.co.uk, found that older workers are 125.9% more likely to call in sick than Gen Zers, throwing cold water on the stereotype that young people don’t work as hard as senior colleagues.

Winter bugs and cold temperatures might not be to blame. The report attributes a significant portion of absences to mental health struggles, with 12% of UK working days reportedly being lost due to burnout, stress, depression, and anxiety each year.

Sick of 2024 already?

Every year, the UK workforce loses on average 146.6 million days due to sickness, which equates to approximately 4.5 days per worker – or almost a full working week.

January is often the worst month, as employees deal with both the flu season and the holiday blues.

The study by claims.co.uk shows that workers aged between 50 and 64 lose more days at work than any other age bracket, with an average of 56.3 million total days lost per year. Per worker, this works out to approximately 6.1 lost days annually.

Interestingly, the 16 to 24 age group have only lost an estimated 10.2 million days per year – which is 65.2% lower than the average. This equals 2.7 days lost per worker each year.

Sick days sap productivity and fracture teams

Employees taking sick leave naturally leads to a drop in productivity, as fewer team members means less resources to complete their work. This can have a knock-on effect, as co-workers are forced to take on other people’s tasks, increasing their stress levels.

Having a high percentage of specifically older employees off work is detrimental in other ways. Senior staff absence also disrupts mentorship and knowledge transfer, impacting younger employees’ development and succession planning.

If older workers are increasingly away from the desk, younger staff members will feel unsupported. Meanwhile, management tasks are more likely to fall by the wayside.

Could hybrid working = better health?

Implementing flexible work policies can improve overall employee wellbeing. Staff who work from home have been shown to experience better work-life balance and improved morale. This is especially true in winter as the days get shorter and commutes get colder.

Permitting ill staff to work from home will also reduce the risk of ‘presenteeism’ (where staff come into work even when they are sick) and prevent the spread of disease in the office.

Startups recently surveyed 546 businesses about their plans to introduce an alternative workplace model in 2024. The results show that 66% of firms plan to introduce a flexible work policy like remote working or even a four-day week this year.


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

“Don’t mess with us”: WebMD’s back to the office backfire

The company’s cringeworthy efforts to get remote workers back into the office have left employees feeling as sick as a dog.

Internet Brands, the company that owns major internet names like WebMD, has caused an upset after an internal video telling staff to give up remote working was published online.

Striking a balance between bizarre and blackmail, the full video sees CEO Bob Brisco warn employees who are working from home that he will be “more serious” about forcing them back to the office.

The film’s messaging has sparked backlash from employees, who are increasingly embracing flexible work models as a way to improve work-life balance.

WebMD’s messaging misfire

The full Internet Brands video, entitled “A Message From Company Leadership” was published on the firm’s public Vimeo channel earlier this month.

In classic corporate format, it features a variety of office stock images, workers laughing at meeting tables, and shots of panicky-dancing employees giving their best impressions of not being held at gunpoint.

Following the significant attention the video has received, the company has since published a new introduction defending its tone and style. “For the record, our return to office policy is a hybrid one,” the new line reads. “[And] corporate videos are corporate videos!”

Nonetheless, this latest attempt at crisis control does little to mitigate the video’s threatening subtext of ‘back to the office, or else’.

Far from displaying flexibility towards employee demands, Internet Brands’ HR team tells viewers, “your manager will be in touch shortly about how this will be implemented and tracked”, suggesting that employee attendance will be monitored and supervised.

“We aren’t asking or negotiating at this point. We’re informing,” Brisco adds, while posing in front of a green-screened office backdrop.

Office return: both sides refuse defeat

Internet Brands is not the first company to attempt a rewind on remote work policies. Salesforce and Amazon are among major companies that have also stepped up their return-to-office policies despite a backlash from some employees.

Last year, Google said it would start incorporating office attendance into performance reviews. Even Zoom, the company whose video conferencing software made WFH possible, has asked employees to come into work two days a week.

Despite their best efforts, employees have remained steadfast in their refusal to reintroduce the daily commute. As a result, 80% of employers reported they regret earlier return-to-office plans in an August survey.

Remote working to remain popular

Most firms have now accepted the inevitability of hybrid and remote work policies, in light of the damage to talent retention and employee morale their loss could wreak on the workforce.

Startups surveyed 546 business owners at the end of last year about their current and future workplace models. Based on the results, 66% of respondents plan to introduce flexible work in some format this year.

Tellingly, 14% of UK businesses plan to increase the number of days that their staff can work remotely next year, making it the clear favourite amongst business owners and their staff.

Just 6% of companies surveyed said they planned to require staff to come into the office more days per week. This puts WebMD in the minority and suggests that employers are easing off on the ferocity of last year’s return-to-office debate.


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

The AI boom can’t beat customer loyalty

Humans win over machines as research finds that businesses will prioritise customer retention over technology adoption this year.

Forget the AI frenzy: small businesses now say customer relationships are more important for growth than new technologies, as research suggests repeat customers had the biggest impact on success last year.

Startups asked 546 small businesses about the factors that led to them “thriving” overall in 2023. The most popular response was strong customer relationships, as chosen by 54% of those surveyed. 

Having a talented and motivated workforce (40%) came in as the next most important factor, further solidifying the focus on human-centric strategies.

Product development and innovation, often associated with AI, was listed as the sixth most popular choice with 29% of votes. The results signal that, despite its growing popularity with tech giants, AI has yet to become a fundamental business tool.

Loyal customers top business wishlist for 2024

Tight customer relationships was the clear favourite amongst small business respondents, ranking as the number one factor that attributed to business success in 2024.

The results show that servicing customer needs beats out effective marketing and brand visibility as the most valuable business strategy, confirming that satisfied buyers have a bigger lifetime value than new sales leads and acquisitions in customer service.

Factors attributed to business success% of respondents
Strong customer relationships54%
Talented and motivated workforce40%
Efficient operational processes39%
Effective marketing and brand visibility31%
Strategic partnerships30%
Innovation and product development29%
Capitalising on market trends27%
Gaining funding22%
Strategic cost-cutting21%

Strong customer relationships also appear to give businesses a financial edge over competitors. Interestingly, regular customers were shown to have a more positive impact on business performance than cost-cutting measures (21%) or gaining funding (22%).

The results come despite a cost of living crisis threatening consumer confidence. They suggest that customers are still choosing to spend money with firms that are taking steps to improve their customer retention, such as introducing loyalty schemes and programs.

Human touch not yet replaceable

While investment in AI is still seen to be important, Startups’ research indicates companies understand new products need a foundation of strong customer relationships and a capable workforce to thrive.

Building trust and rapport with customers requires human empathy and emotional intelligence, two areas where AI still struggles. Indeed, research shows that an AI trust gap still persists in the UK.

The impact of AI on business communication is still yet to be fully understood. Until the tech is fully embraced by the wider public, business leaders shouldn’t be too quick to write off more traditional methods of B2C contact such as contact centres and telephone calls.

AI brings positive outlook to UK businesses

Despite the findings, Startups’ data also found that businesses that firms who are preparing to embrace AI this year feel better positioned for future growth.

According to the results, a mere 2% of those expecting a high level of AI disruption said they feel pessimistic about their growth prospects.

Meanwhile, 32% of those who anticipate no disruption display negative sentiment towards the future, suggesting that the business landscape could be about to shift rapidly as UK customers increasingly adjust to the rapid emergence of AI startups and software this year.


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

London startups at risk as WeWork money troubles continue

WeWork International, which collects fees from WeWork UK spaces, owes nearly three quarters of a billion pounds to its parent company.
January 2024 update

WeWork and Adam Neumann are back in the news again as the former CEO attempts to make a comeback promising a new leadership style to save his reputation and his former company. For further updates, watch this (coworking) space…

After entering bankruptcy protection late last year, WeWork might have been hoping to leave its money woes behind this year. That ambition has been made harder by recent financial results, which indicate sluggish demand for its UK offices.

The UK arm of the coworking giant, WeWork International, posted a loss of £110 million in 2022, according to figures published by Companies House. It also owes £731m to parent company, WeWork US.

The drop in profits is considerably less than the £153 million loss it made the previous year. But office experts are warning that the potential collapse of the provider could create chaos for UK customers in an already competitive commercial property market.

WeWork’s profit paradox

WeWork’s financial difficulties have been well reported since the company’s failed IPO back in 2019. The brand expanded at breakneck speed during its early growth stages, racking up years of losses that saw it forced to file for Chapter 11 in the US last November.

This has combined with a slowdown in demand for long-term office rentals, triggered by the pandemic and worsened by the rise in hybrid and remote working policies.

WeWork US’ bankruptcy proceedings do not impact WeWork International. But the business has warned that the group’s wider trading position is a growing concern for its extensive UK portfolio.

The firm said that “the recent macroeconomic environment has caused higher member churn and weaker demand than contemplated under the group’s business plan.”

Will Kinnear is founder of HEWN, the UK’s leading specialist flexible workspace agency. Kenner describes his concern at the recent news regarding WeWork International’s profit losses.

“The impact of Chapter 11 in the US will undoubtedly impact the UK business who owe the brand some £731m,” he stresses. “Something has got to give.”

Londoners most at risk

WeWork’s strategy has so far been an attempt to consolidate their position in the market. By closing poor performing sites, and moving members to more profitable workspaces, they intend to negotiate lease payments with landlords and reduce their overheads.

In the UK, this will have the biggest impact on firms based in London coworking spaces. The capital is one of WeWork’s biggest markets globally, accounting for 89% of its UK offices.

Discussing the impact a WeWork collapse could have, Natasha Guerra, CEO of Runway East says it could create short-term chaos as companies flock to alternative neighbouring providers.

“It could also create some chaos for customers – there’s simply not that much flex space free in London to accommodate all WeWork members easily.”

Nonetheless, the London coworking market has boomed in the past year, with more options than ever cropping up to service startups and small businesses.

“WeWork’s collapse, if it were to happen, would create opportunity for UK flex operators who would look to take over their better buildings,” Guerra adds.

Can WeWork cater to the new workplace?

There are still signs that WeWork closed 2023 with a stronger performance. On-demand spaces, a type of flexible payment option which offers “drop-in” workspaces for members, were up 33% in November from a year earlier in the capital.

The trend is likely a result of more companies embracing flexible working for 2024. A recent survey by Startups found that 66% of SMEs will adopt a flexible work model this year.

Still, the increase may not be enough to take WeWork out of the red – particularly now that its partnerships with landlords have become bruised.

In October, the firm briefly moved its occupiers at The Bower, in London’s Old Street to alternative accommodation before managing to strike a last-minute deal with landlord Helical.

Many members have stuck with the coworker throughout its troubles. Should more key properties close, they will likely get cold feet.

“WeWork is a strong brand – which has been its liferaft, and there are customers who are loyal to it. But how loyal will businesses be when they cannot rely on their spaces still being available to them?” Kinnear probes.

WeWork statement:

Following publication of this article on January 10, WeWork sent the below statement to Startups:

“These standalone accounts, which represent the 2022 financial year, refer only to WeWork International Ltd, a services holding company which generates revenue through service, management, and franchise fees. These accounts show a year on year improvement relating to both revenue and operating losses, driven by the recovery from the pandemic and companies continuing to recognize the value of flexible space solutions in this new era of work.

“Since 2022, WeWork has taken decisive steps to strengthen its balance sheet on a global scale, and continues to do so today. The UK and Ireland remain key markets for WeWork, particularly London which saw its best month on record for bookings in November.”


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

40 London startup jobs for a career change this January

Want to work in a fast-paced, high-growth environment? Here are the top 20 startups in London that are hiring this January.

London is the business capital of the UK, and startups are one of the most exciting places to work at. So why not work at a London startup?

Rather than being a little cog in a big machine, joining a firm in its earliest stage of growth means you’ll be able to make a bigger impact on the company’s trajectory – especially if you’re applying to work at one of our 2024 Startups 100 companies.

Representing the UK’s most innovative new firms, their employees are at the cutting-edge of disruptive technologies. We’ve rounded up the in-demand vacancies that our top London startups began advertising in January*. Check them out below.

1. Lottie

Lottie_Co-Founders_Option 1

Head office: London Bridge

Runner-up in this year’s Startups 100 Index, Lottie is a care home search engine that makes it easy to find specialist care for loved ones. Currently employing a team of 60, the firm is advertising four new positions based at its (pastel pink) London Bridge office.

Job opportunities at Lottie:

2. KatKin

KatKin co-founders

Head office: Clerkenwell

KatKin is a premium cat food company that’s also making the world’s first diagnostic, colour-coded kitty litter. With plans to double its headcount this year, it is looking for six animal lovers to join its head office in the City of London (those with cat allergies still welcome).

Job opportunities at KatKin:

3. Peppy Health

Peppy

Head office: Old Street

Employees will be well looked after at Peppy. The health app connects staff with human experts to combat under-resourced health challenges, and is seeking three new team members to achieve its goal of becoming the world’s most trusted healthcare company.

Job opportunities at Peppy:

4. Better Dairy

Better Dairy

Head office: Hackney

Nestled within Hackney’s beer brewing district, Better Dairy is cooking up a rather more unique recipe. The brand makes 100% animal-free dairy products that use 90%+ less CO2, water and land. Any fermentation specialists about? You’ll be the perfect fit at Better Dairy.

Job opportunities at Better Dairy:

5. Packfleet

Packfleet

Head office: Bermondsey

Packfleet has made a name for itself as the courier that cares about its employees. Operating out of a warehouse in the trendy Bermondsey area, the firm has ranked twice in our Startups 100 Index since its launch, and has two engineering jobs available in January.

Job opportunities at Packfleet:

6. AUDIOMOB

Head office: Covent Garden

AUDIOMOB is a technology company that helps developers monetise their games through non-interrupting audio ads. Already boasting an international client portfolio, the firm is looking for three dynamic tech-heads and branding experts to aid its rapid expansion.

Job opportunities at AUDIOMOB:

7. Immersive Gamebox

Head office: Shoreditch

Who didn’t want to work in a game shop when they were younger? Immersive Gamebox is an interactive centre that lets customers play their favourite TV shows as a real-life gaming experience. This January, it has openings for two friendly hosts to welcome visitors.

Job opportunities at Immersive Gamebox: 

8. Hoxton Farms

Head office: Hoxton

Those who want to work on a pioneering, world-leading food startup will be right at home at Hoxton Farms. Having just opened its new 14,000 square-foot facility in the Finsbury neighbourhood, the company has spaces for two food engineering experts to join the team.

Job opportunities at Hoxton Farms:

9. Yonder

Head office: Old Street

Yonder jumped 68 places between 2023 and 2024 in our Startups 100 Index. That’s a reflection of the challenger credit card company’s huge market growth, and is why it needs a Senior Member Support Manager to scale its customer service team in January.

Job opportunities at Yonder:

10. Vinehealth

Vinehealth

Head office: Old Street

Not quite curing cancer, but the next best thing. Medtech platform Vinehealth is giving a helping hand to cancer patients, by using data-backed solutions to offer the support they really need. It is seeking two hybrid workers to join the London office for two days per week.

Jobs opportunities at Vinehealth:

11. Lindus Health

Lindus Health

Head office: Borough

Founded in 2021 to improve the lives of millions of people living with chronic conditions, Lindus Health is a Clinical Research Organisation (CRO). With six open job roles, its website also states that it welcomes speculative applications from those who believe in its mission.

Job opportunities at Lindus Health:

12. Julienne Bruno

Julienne Bruno

Head office: Ruislip

Vegans and foodies alike are welcomed with open arms at Julienne Bruno. Striving to make the world’s best plant-based burrata products at its Ruislip factory, the brand wants two managers to help with production and lengthening its extensive list of grocery retail partners.

Job opportunities at Julienne Bruno:

13. Acre

Acre

Head office: Old Street

Revolutionising the mortgage industry with its innovative, end-to-end management system, Acre is hiring three tech roles this month. That includes two entry-level and graduate roles for those who lack experience, but want to work with game-changing technology.

Jobs opportunities at Acre:

14. Fussy

Fussy

Head office: Shoreditch

Life will be anything but dull working at Fussy. The sustainable deodorant brand that boasts Deborah Meaden as an early investor is hiring two marketing and customer service roles to aid its already successful brand-building efforts in 2024.

Job opportunities at Fussy:

15. RideTandem

Head office: Farringdon

RideTandem is an eco-conscious company that’s aiming to reduce the number of cars on UK roads with its clever coach-led commuter service. Having seen great success in 2023, this year, it’s seeking a new marketing representative to come along for the ride this year.

Job opportunities at RideTandem:

*All of the job adverts listed in this article are live at the time of writing (January 10 2024)


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

UK businesses set for four-day week revolution in 2024

2024 could be the year of the four-day week, as research finds a huge number of businesses plan to trial or implement the policy this year.

The traditional five-day workweek could soon be a relic of the past for a significant chunk of the UK workforce. Research shows 12% of UK businesses plan to adopt a four-day working week in 2024, marking a seismic shift in company attitudes towards flexible working.

Startups surveyed a representative sample of 546 small businesses at the end of 2023. The results indicate that, despite prior concerns over productivity and impact on pay, the four-day week has won over both employees and employers.

The trend underscores a broader effort to improve work-life balance amongst UK workers. The same study also found that 66% of companies will embrace a flexible work model, such as a hybrid or remote policy, in 2024.

What’s behind the four-day week boom?

That 12% of UK small businesses are considering embracing a four-day week in 2024 is significant. Proportional to the current SME population, this would represent a total figure of 660,000 firms and thousands of jobs.

Four-day work weeks have rapidly entered into the mainstream following a successful global trial last year. This interest has particularly accelerated in the UK, due to poor levels of employee engagement.

Record numbers of employees are leaving the workforce due to an increase in levels of burnout and stress. Likely, the crisis will only be exacerbated this January. The beginning of the year is one of the toughest months for career blues.

UK companies with a four-day week cite a multitude of reasons for embracing the shorter workweek, including improved employee wellbeing.

In fact, Startups’ four-day week survey found that the majority of four-day week advocates believe it will help to reduce stress and boost morale.

Interested in working a four-day week this year? Read our guide on how to request a four-day week from your employer.

Stress less, earn more?

The potential impact of the four-day week trend is significant. It could reshape the UK workforce, leading to improved employee morale and a more balanced work-life culture.

Studies also suggest that shorter workweeks can actually lead to productivity gains. With fewer hours to spread themselves thin, employees are forced to prioritise tasks, focus more intently, and ultimately achieve more in less time.

The result may help UK companies square the circle by enhancing employee satisfaction without breaking the bank with increasingly unaffordable salaries.

Challenges of a shrunken workweek

Of course, implementing a four-day week isn’t without its challenges. Businesses need to carefully consider how to distribute tasks, schedule meetings, and maintain operational continuity with fewer working hours.

Additionally, questions around employee pay and benefits during the transition need to be addressed transparently and collaboratively.

Likely, some of the 12% of firms planning to adopt a four-day week this year will opt for pilot programs, testing the four-day week in specific departments before a wider rollout.

Others might choose to explore alternative forms of the shorter week. For example, allowing employees to spread their 40 hours across fewer days or condense them into longer, focused stretches.

You can learn more about a shortened work week and how it might benefit your business in our complete guide to the four-day working week.


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

28 CRM statistics you need to know

We uncover compelling CRM statistics to help you understand how to make a transformative impact on your marketing, sales, and business comms.

For startups and small business owners, navigating customer relationship management (CRM) systems can often feel like a cascade of jargon and sales pitches. The overwhelming feature lists that all claim to be “exactly what you need” can also leave you confused about what actually works for your business.

Fortunately, if you’re just after the facts, we’ve sourced the top statistics from across the CRM industry to help you out.

We’ll be sharing 28 critical CRM statistics to help you make informed and strategic decisions about which CRM system to choose for your business. These figures are backed by evidence and industry insights to better understand how CRM tools can boost growth, keep customers happy and improve your sales process.

The CRM statistics you need to know

These statistics provide a clear picture of how CRM systems can help businesses, from boosting customer retention to influencing marketing strategies.

CRM stats for customer retention

  • CRM adoption and customer retention: 47% of businesses reported higher customer retention after adopting a CRM system (DemandSage). Meanwhile, others claimed to have a 17% increase in lead conversions and a 21% rise in productivity.
  • Improving customer experience: providing better customer service is the primary motivation for using CRM tools for 35% of businesses. 86% of SMEs using CRM software rated their customer services as “exceptional” or “very good”, compared to 73% without it (Freshworks).
  • Integrating AI with CRM systems: more businesses are also integrating artificial intelligence (AI) into their CRM systems, leading to a 15% increase in repeat sales and customer retention (Wezom). 80% of salespeople said they’ll use AI to maximise the value of their CRM platform over the next five years, while global AI in the CRM market is predicted to be worth $48.4 billion by 2033 (DigitalSilk).

Takeaway: These statistics show how much value CRM systems can bring to your business, helping you to retain customers, boost sales and make your team more efficient. Moreover, focusing on customer experience and adding AI to the mix can help improve service ratings and drive repeat business, making it easier to maintain long-term customer relationships.

CRM stats for marketing and sales

  • Impact on conversions: the implementation of CRM systems can increase conversion rates by 300% (Finances Online).
  • Impact on revenue: Revenue can increase by as much as 245% when businesses use a CRM platform (LLCBuddy). Statistics reported by Spotio also found that 94% of businesses saw improved sales productivity after implementing a CRM system.
  • Marketing practices: 69% of marketers consider CRM to be somewhat or very important to the success of their overall marketing strategies (HubSpot).

Takeaway: A good CRM system is essential for boosting conversions and increasing revenue, while also helping you better understand and target their customer base. It can make your marketing and sales efforts smoother, leading to more growth and success.

CRM stats for data security

Data breaches have become an unfortunate reality for small businesses and SMEs, with 50% of businesses and 32% of charities reporting some sort of cybersecurity breach in the last 12 months. Therefore, businesses must be aware of the potential risks associated with managing sensitive customer information, so the importance of choosing a secure CRM solution cannot be overstated.

  • Data accuracy and organisation: while facing over 300 million fraudulent sign-in attempts daily, CRM systems are integrating add-ons and solutions to bolster security measures. 94% of businesses also reported a significant improvement in online security after switching to a cloud-based solution (Salesmate).

Takeaway: With data breaches becoming more common, it’s crucial for businesses to prioritise security when choosing a CRM system. Many platforms are now enhancing their security features to protect sensitive data and switching to cloud-based solutions has been shown to improve online security. By investing in a secure CRM, you can better protect customer data and keep your operations safe from cyber threats.

Secure CRM systems: our recommendations

When choosing your CRM system, make sure to opt for one that prioritises data security and offers comprehensive encryption protocols and regular security updates.

For this, we’d recommend Salesforce, Hubspot or Zendesk as they can help protect the confidentiality and integrity of your customer’s information.

Trends and innovation in CRM

  • Adoption trends: adoption trends for today’s SMEs include an increase of AI-driven and customer-centric marketing, personalisation, customer service chatbots and social CRM solutions to help monitor social media and offer timely support to customers (SyncMatters).
  • Business adoption: adoption of CRM software has increased significantly, seeing a 12.6% year-on-year (YoY) growth (AsterSense). A report by Ascendix also revealed that 91% of businesses with 10 employees or more use CRM tools.
  • Industry-specific CRM market share: according to HG Insights, the industries that spend the most on CRM software are finance & insurance ($13.5 billion), public administration ($6.3 billion) and professional, scientific and technical services ($5.6 billion).
  • Popular sales tools: the sales tools businesses should use include CRM software, AI-powered tools and sales analytics tools (Salesforce).

Takeaway: Businesses are increasingly turning to solutions like AI-powered tools, chatbots and social CRM to stay ahead. Adopting these tools and integrating new technologies can significantly improve customer engagement, streamline operations and boost sales. As more businesses adopt CRM systems, especially in key industries, staying competitive means leveraging these tools to enhance customer experience, improve decision-making and drive growth.

Challenges of CRM systems

  • Poor quality data: Nearly one-third (approximately 33%) of sales leaders say that their customer data is incomplete, out of date or inaccurate. 85% of salespeople also admitted to making a mistake due to incorrect CRM data (Salesmate).
  • Technical expertise: 32% of CRM users believe that a lack of technical expertise is a significant roadblock in adopting CRM software (Fit Small Business).
  • Poor quality data: Invalid or incorrect data was reported to be the biggest challenge for nearly one-third of sales representatives, with 85% admitting to making a mistake due to incorrect CRM data (Salesmate).
  • Manual data entry: 17% of businesses report manual data entry as their biggest CRM-related challenge (DemandSage), while 32% of sales representatives say they spend over an hour on manual data entry.
  • Other challenges: additional challenges small businesses face in adopting CRM software include the cost of CRM (31%), data migration issues (30%), user adoption (27%) and the lack of app integrations (23%) (Fit Small Business).

Takeaway: While CRM systems offer significant benefits, businesses still face common challenges. Poor data, time-consuming manual entry and not having enough tech knowledge can slow things down. On top of that, costs, data migration headaches, and onboarding employees can make things all the more difficult. 

However, these issues can be tackled by investing in training, prioritising data management strategies and choosing a CRM solution that’s easy to use, integrates well with other tools and helps automate repetitive tasks.

CRM market overview

The demand for CRM software in the UK has been on the rise in recent years. Moreover, the revenue in the CRM segment of the software market in the UK has been predicted to increase to £1.9 billion by 2028. Due to projections indicating a remarkable annual growth rate of 11.64%, the market is set to peak in the region of £57 billion globally.

Analyst insights from Statista also reveal that a new surge of UK customers are actively seeking software that delivers a holistic view of customer interactions. They also want to be able to analyse data to improve customer experience and increase sales.

Cloud-based CRM software

Additionally, there is a growing preference for cloud-based CRM software, which dominated the CRM industry in 2024 with a revenue share of 58.2% and is used by 87% of companies that utilise CRM solutions. This could be largely attributed to its flexibility, cost-effectiveness and ease of access. It also allows businesses to access customer data from anywhere with an internet connection, making it ideal for remote teams and businesses with multiple locations.

AI and machine learning

The UK’s CRM software landscape is taking significant technological strides in the realms of AI and machine learning, with AI predicted to have integrated into over 70% of CRM systems in 2025. Through iterative learning from data inputs and user interactions, these technologies continuously refine their algorithms, ensuring that the CRM platform evolves in tandem with changing customer needs and market dynamics.

Mobile CRM solutions

At the same time, mobile CRM solutions are gaining ground, empowering sales teams with full access on the go. Statistics reported by DemandSage reveal that 81% of users access CRM software from multiple devices – 48% via mobile and 45% via tablets.

Not only is this useful for quick and easy access, but 50% of teams reported improved productivity from using a mobile CRM, while 65% of businesses that use it are achieving their sales targets. 

Evidently, the CRM industry is set to experience a period of tremendous growth. That means now is the perfect time to integrate CRM into your small business. Compared to manual processes, you’ll be able to enjoy far more sustainable growth and return on investment (ROI), enhanced customer relationships and a competitive edge in your market.

Key benefits of CRM for SMEs

CRM is widely considered to be the fastest-growing software in the digital marketing world, according to Martech, and implementing these tools can offer a plethora of benefits for small and medium-sized enterprises (SMEs). These include:

  • Enhanced operations: CRM systems streamline and centralise important business processes, as well as consolidate customer data, communications and sales pipelines in one accessible platform. Teams can use them to collaborate seamlessly, leading to smoother and faster workflows.
  • Targeted marketing and sales: with CRM integrations that can provide detailed customer insights at their fingertips, SMEs can leverage CRM functionalities to tailor marketing campaigns and sales strategies. Targeted and personalised approaches based on customer preferences can result in higher conversion rates and increased sales, while also offering more time to optimise resource allocation for maximum impact.
  • Improved customer service: CRM tools can help businesses deliver good customer service experiences. Access to comprehensive customer history enables swift issue resolution and proactive engagement. Prompt responses and personalised interactions also help build stronger customer relationships, in turn enhancing loyalty and retention rates.
  • Cost-effectiveness: contrary to concerns about initial investments, CRM implementation often yields substantial cost savings. Automated workflows and data-driven decisions also mitigate operational inefficiencies while also reducing overhead costs.
  • Better data-driven decisions: CRM tools equip SMEs with valuable data analytics and reporting capabilities. From inventory management to sales forecasting, insights provided by customer data will help to make informed decisions across projects and departments.

CRM implementation best practices

Businesses should consider CRM implementation as a strategic investment that, despite initial complexities, can deliver significant benefits over time. The most effective practices businesses should use include:

  • Conducting thorough training programmes and providing ongoing support to enhance end-user adoption rates.
  • Leveraging automation features within CRM systems to reduce the burden of manual data input will free up valuable time to focus on impactful, strategic activities.
  • Implementing data quality management practices, ensuring regular data cleansing and updates.
  • Integrating CRM with other business tools and data sources to enhance the completeness and accuracy of the information within the system.
  • Embracing user-friendly CRM interfaces and platforms to mitigate complexity concerns, making it easier for teams to navigate and utilise the system effectively.

Conclusion

These statistics illustrate the multifaceted impact of CRM systems on various aspects of business operations.

With a modern CRM platform, you can transform your customer retention, enhance your marketing, navigate the challenges of customer data security, and build business resilience for future challenges. 

To find out more about CRM software, or understand the best options for a small business to choose from, we recommend taking a look at our pick of the best CRM systems for small businesses.

Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

Refreshing alcohol alternatives to beat the dry January blues

Waving bye to the booze this January? We list the top health-conscious brewer brands to know in 2024.

Alcohol is out, sober living is in. That’s according to a new YouGov survey, which shows that 39% of 18-to-24 year olds now self-describe as fully alcohol-free.

According to the survey, 44% of Gen Z now regularly or occasionally reach for the soft stuff over beers and wines; a 13% increase on last year, signalling a splash of change in the UK’s current and future drinking habits.

For this group, abstaining from alcohol isn’t just a month-long challenge; it’s a growing lifestyle trend. The shift is fueling a boom in the alt-alc drinks market – and innovative startups are leading the charge.

Let’s leave the hangover in 2023. Featuring brands from the Startups 100 Index – our annual ranking of the top new businesses in the UK – we’ll raise a glass (of water) to some rising stars in the alternative drinks space.

1. The Health Option: Jubel Beer

 

JUBEL founder, Jesse Wilson

JUBEL founder, Jesse Wilson

Forget watered-down versions of the best-known beer labels. JUBEL has entered the alt-alc markter with a whole new drinks category. Combining fruity flavours like peach, elderflower, and grapefruit with the crisp finish of lager, JUBEL’s lighter, 4% ABV recipe is low-cal and keeps drinkers hydrated to beat the hangover.

Inspired by après-ski, JUBEL has climbed high since launching in 2018. Having become the best-selling craft beer on tap in over 400 pubs, as well as the best-selling craft beer in Sainsbury’s within three years, it’s perfect for those wanting a lighter option on a heavy one.

2. Beerless Buzz – IMPOSSIBREW

IMPOSSIBREW

IMPOSSIBREW founder, Mark Wong

Plenty of us could happily wave goodbye to the taste of alcohol. But giving up the social buzz and increased confidence is harder to imagine. So what if you could replicate those effects without the ethanol? That’s the promise behind IMPOSSIBREW, a non-alcoholic drink designed to offer a buzz-like experience minus the hangovers and health risks.

Cleverly designed using blended natural plant ingredients like lavender and hops, the brand’s trademarked ‘Social Blend’ mimics the relaxing effects of alcohol. It’s also delicious, having won numerous taste awards and become the most followed beer brand on TikTok.

3. The Ethical Choice – Drop Bear Beer Co.

Drop Bear Beer co-founders, Joelle Drummond and Sara McNena

Featured in the Startups 100 Index back in 2023, Drop Bear Beer Co is the world’s first all-female and LGBTQ+ founded alcohol-free brewery. From caramel-kissed lagers to citrusy Yuzu Pale Ales, their uniquely crafted range caters to every taste bud.

2024 is already shaping up to be a stein-sized year for the brand. Having recently brewed its very first batch of beer in the Drop Bear Brewery in Swansea, Drummond and McNena also partnered with Planet Organic in January to bring their delicious brews to a wider audience.

Dry January or forever dry?

Older generations might view pressing pause on the prosecco as a seasonal trend. During ‘Dry January’, the campaign delivered by Alcohol Change UK, thousands of people sign up to abstain from alcohol for the first month of the year.

But for Gen Z, this isn’t just a fad. The YouGov research suggests younger generations are increasingly adopting mindful alcohol consumption all-year round.

As the health risks of alcohol – like addiction, liver damage, and worsened mental health – become common knowledge, younger people are more cautious about indulging.

Alcohol alternatives allow consumers to enjoy social settings and familiar flavours without the downsides. Thanks to the increase in Alcohol Beer Duty, introduced last year, they are also often cheaper to make. Brewers can then pass these savings onto consumers.

23% of young people surveyed by YouGov said that choosing low or no alcohol drinks lowered their overall intake of alcohol. As long as the market remains competitive, the popularity of alco-substitutes looks set to continue.


Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

Retail pop-up Sook calls time amid tough trading

The Startups 100-listed flexible retail space provider had been riding high following initial investment, but Sook's founder has announced closure after failure to scale funding

In a sign of just how tough the UK funding environment is becoming, the modular retail space innovator Sook has gone from one of the UK’s startups to watch, to shuttering its business, nearly overnight.

Posting on LinkedIn last week, Sook founder John Hoyle announced with regret that the business would no longer be trading.

“In spite of the extraordinary efforts of our team, growing sales and achieving international scale we were unable to raise sufficient investment to continue in the current environment,” Hoyle stated.

We’d picked Sook out as a brand to watch for 2024, following its successful application to the Startups 100, and its inclusion in our previous Startups 100 list for 2023. Yet the sudden collapse of Sook’s business shows just how much the high street is in dire trouble. The vicious combo of an economic downturn, rising rent, painful business energy costs, and challenging business rates have meant many new businesses don’t dare dream of a bricks and mortar outlet.

Meanwhile, an unfathomable number of big UK brands have gone into administration amid the crises, leaving high streets hollowed out across the land. While Sook’s business model looked like a welcome tonic for this tough environment, sadly the business has come to join the very trend it was looking to turn around.

Sook’s modular approach not built to last?

The Sook model sought to quietly redefine retail space in a post-pandemic world.

The business provided modular fit-outs for popup store spaces and events. Commercial landlords with an unoccupied space could turn to Sook, which, in turn, helped businesses launch pop-up events and in-store experiences with a seamless setup and flexible lease length.

“The relationship between commercial landlords and occupiers is a broken one due to the misalignment of expectations,” Hoyle told us last year. “Landlords are struggling with high vacancies, but offering traditional terms, while occupiers demand flexibility.”

Among Sook’s pop-up space alumni are Depop’s number one global seller, Danielle Mass, founder of Remass. Danielle used a Sook store fit-out to connect in person with over 3,000 consumers.

By the end of last year, Sook was offering retail units in London, Birmingham, Liverpool, and other UK destinations. In October 2023, the business launched a space in the Mall of Africa, South Africa, with a franchise agreement set up for further expansion potential.

Sadly, all these expansion plans now look set to finish. At the time of writing, the Sook website was still live and with the appearance of being open to new business, but Hoyle’s LinkedIn message suggests this won’t be the case for long.

Hitting the rocks of funding

Sook’s early funding journey took the business from initial seed investment, to crowdfunding, to angel investment, including from Tobin Capital.

However, to achieve its growth ambitions, the company had earmarked further investment requirements, which failed to materialise as 2024 began.

Access to sufficient capital continues to be one of the greatest challenges for the UK startups scene, and it’s a critical issue for businesses seeking to scale up and realise their growth ambitions.

Hoyle remains proud of the Sook journey to date, and in his LinkedIn post, emphasises the strengths and capabilities of the Sook team.

“I’m so proud of all that we achieved and incredibly sad that we cannot continue. Please support our team members as they search for new roles.

“They have first hand experience of disrupting the retail and real estate sectors during incredibly challenging times. Thank you to everyone who supported us over the last five years.”

Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.

AI startup crowned UK’s best new business in Startups 100

The 2024 ranking of the UK's most disruptive new businesses names its first ever AI winner with Unitary, a tech firm that detects harmful content online at massive scale.

Startups.co.uk has kicked off the New Year with the reveal of its 2024 Startups 100 Index. This year Unitary, an artificial intelligence (AI) business that conducts content moderation at extraordinary scale, takes the coveted top spot.

The win is a historic moment for the index, now in its 16th year, which celebrates the UK’s most disruptive businesses founded in the past five years. Unitary’s triumph marks AI’s arrival at the forefront of impactful innovation, underscoring its ability to confront modern challenges like online misinformation, hate speech, and abuse.

But, Unitary is just the first glimpse of the groundbreaking ideas bubbling within the Startups 100. The full list exhibits bold inventions aimed at tackling today’s pressing global issues, from workplace change to climate action.

Richard Parris, Editor of Startups.co.uk, comments: “The ingenuity and innovation of the brands featuring in our annual Startups 100 index never ceases to amaze, and this year is no exception. Our highest ranking business, Unitary, is truly a brand of the future, and we’re excited to crown it as our top UK startup for 2024.”

Top five UK startups for 2024

Startups.co.uk has compiled its annual list of the 100 fastest-growth UK startups for 2024, based on factors such as market potential and secured funding. Here is a glimpse of the top five:

  1. Unitary – AI safeguarding tool filtering out harmful content that’s unfit for human eyes
  2. Lottie – Care home marketplace making it easy to find specialist care for loved ones
  3. Maeving – Britain’s first EV motorcycle that can recharge as easily as a smartphone
  4. KatKin – Premium cat food company making the world’s first diagnostic kitty litter
  5. Peppy – Digital platform supporting staff with under-resourced health challenges

For more, see the full 2024 Startups 100 

Startups also awards seven special categories each year to recognise startups demonstrating exceptional innovation alongside social responsibility.

The judging panel for 2024 included distinguished figures in the entrepreneurial landscape:  Finn Lagun, Karen Lynch, Danielle Bowman, Eloise Skinner, Ian Wallis, and Chris Forbes.

Click to read more about the nominees and winners:

“Shared mood of opportunity”

Buoyed by a lower inflation rate and technological advancements like AI, this year’s Startups 100 are preparing for a prosperous 2024.

To complement the release of this year’s index, Startups.co.uk also carried out a survey of 546 UK small businesses. We found that 92% of respondents feel optimistic about their growth prospects for 2024, with 59% reporting high levels of optimism.

Testifying to the resilience and ingenuity of UK startups, newer businesses feel the most positive about the future. 74% of those founded in the past year are optimistic about 2024, versus just 47% of companies that launched in 2019.

Parris concludes: “Despite the crises of the past couple of years, we’ve seen some incredible businesses from every corner of the UK in our rankings. There’s a shared mood of opportunity and an optimism for the year ahead that’s invigorating to see as we begin 2024.”[/vc_column_text]

Written by:
Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
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