5 key hiring ‘blind spots’ and how to eliminate them Recruitment is no easy task, but failing to address limiting weaknesses in your hiring strategy will make it that much harder Written by The Startups Team Updated on 7 November 2023 Any experienced driving instructor will tell you that a failure to check your blind spots can result in you missing something you really should have seen. Much like learning to drive a car, a recruitment process guide can have many potential blind spots that can cause a hiring manager to miss something crucial. With the wrong approach, your ideal candidate may never make it to interview, let alone pass a probation period.As director of talent acquisition myself, I’m constantly trying to avoid our team from missing out on talent and making false-positive or false-negative hiring decisions because of any of these blind spots in the sourcing, evaluation, and onboarding phases of recruitment.Businesses with unnecessarily restrictive or inflexible hiring practices are always prone to these mistakes. These can limit a recruiting team’s ability to secure candidates who would otherwise be a perfect fit. Indeed, findings show that 76% of hiring managers admit that attracting the right candidates is their biggest recruitment obstacle.So, just what are these hiring blind spots? Here are five key factors to look out for and how you can eliminate them…1. Restricting your search areaNever close a position until you’ve sourced a sufficiently diverse pool of candidates.Too many employers are still limiting their search strategies to specific geographies — despite the availability of remote and hybrid working practices making it possible to adopt a location-agnostic approach. A restriction on your hiring by location is a restriction on success.Your organisation may have skills gaps that local candidates are simply unable to fill. But, by embracing a global-first approach — removing geographical barriers from your hiring strategy — you significantly expand the talent pool and increase your chances of uncovering the perfect candidate for a role.Businesses must also avoid limiting themselves with narrow sourcing channels. To identify and attract more diverse candidates, you should consider factors such as competencies and actual skills as key influences as opposed to relying on experience and education degrees.Weigh up ‘coachability’ and skillset, rather than fixating on the brands a candidate has worked for previously. You shouldn’t be swayed too much by big names unless you’re certain that a candidate directly contributed to their success. Promoting roles internally can also diversify representation for senior roles (helping to overcome any entrenched historical bias externally for these positions).2. Creating an uneven playing fieldTry to make sure the balance of power is not disproportionately skewed towards the employer.You don’t want to risk making the experience daunting and intimidating for the candidate. Remember, you’re trying to attract top talent. This is as much an opportunity for a candidate to assess a potential employer as it is the other way around.With such a power imbalance, the candidate may not be presenting the best version of themselves during an interview, which means their performance may not accurately represent their suitability for the role. In this scenario, a successful or unsuccessful interview may not be an indicator of success or failure in the role itself.To redress the power balance, it’s important to manage candidate expectations from the outset while giving them ample opportunity to ask questions during the interview and share their feedback via candidate surveys.It’s essential that you respect your candidates’ time. This may mean accommodating time zone differences when scheduling interviews, giving them sufficient information to prepare for the interviews, and always providing feedback.3. Misunderstanding what your candidate wantsRemote’s recent Global Benefits Report highlighted that 60% of candidates consider employee benefits to be a key differentiator when assessing one employer against another.That said, many employers still fail to understand what their candidates want, offering the kind of ‘benefits’ that potential employees don’t consider valuable.The best employers establish a core benefits package that provides tangible value, and that often includes benefits like flexible working policies, wellbeing support, employee training, and professional development opportunities that don’t cost much for a company but make a difference for its employees.An in-office ping pong table or a ‘pizza Friday’ policy, for example, is rarely the kind of benefit employees will prioritise when considering an offer.4. Overlooking the importance of diversityWhile businesses are increasingly embracing diversity, many mistakenly assume that simply adding more diversity to their workforce is sufficient.It’s about empowering those individuals to find their voice in the company and influence its overall direction. This involves hiring with diversity in mind for all positions, including senior and director-level roles.By committing to DEIB (diversity, equity, inclusion and belonging) not only in hiring but also in your style of leadership and your organisational culture, companies can realise the benefits of a truly diverse workforce. This makes the business more attractive to potential employees and fostering a progressive culture of innovation that introduces multiple unique perspectives.Moreover, it’s equally important to offer benefits that facilitate DEIB in the workplace, and this goes beyond ensuring equal pay for work of equal value.Consider your parental leave and flexible working policies, for example: do you offer fair and equal parental leave across all locations? Do you platform effective Employee Resource Groups aligned to the backgrounds and experiences of team members? Does your flexible working policy provide special accommodation to take into account the needs of employees with disabilities?5. Failing to invest in retention strategiesIt’s estimated that replacing a salaried employee could cost up to 6 to 9 months of their annual salary. But, employers often overlook the importance of a robust retention strategy following the successful onboarding of a new hire. Investing in retention is every bit as important as sourcing and embedding new talent — if not more so.A high employee turnover can contribute to low morale, decreased productivity, and an increase in overall costs. Almost two-thirds of employers agree that reducing turnover increases motivation within the organisation. Businesses that meaningfully invest in employee retention also spend significantly less on recruitment and training.Several factors contribute to a high retention rate, of course — with recognition and rewards programs being a key driver — but providing a clear pathway for employee development is paramount; empowering employees to upskill is key to driving engagement, though development is about continuous coaching rather than simply periodic training.By recognising and removing these ‘blind spots’ from your hiring strategy, you stand a better chance of not only attracting but retaining great talent, removing unnecessary restrictions and limitations and restoring the balance of power between employee and employer.If you think your hiring strategy might be suffering from short-sightedness, review these five key factors and ensure you’re not starving yourself of great talent. Anastasia Pshegodskaya Anastasia Pshegodskaya is Director of Talent Acquisition at Remote, one of the most fast-paced unicorn companies in the world. Before this, she built and led the global sourcing team at GitLab, while previously driving recruiting initiatives at Fortune 500 companies Uber and Dell. Anastasia is extremely passionate about people, and how technology can bring positive change for them — it drives her recruiting career and life. Remote Share this post facebook twitter linkedin Tags Expert Opinion Written by: The Startups Team
Rising again after insolvency Getting back up from insolvency can be one of the toughest challenges founders face. Lessons can be learnt from the stories of those who overcame the challenge. Written by The Startups Team Updated on 7 November 2023 BBC figures have shown that small independent businesses are driving a rise in business insolvencies, as the cost-of-living crisis, the changing way we shop and the financial strain caused by the pandemic causing many companies to fold.But while closing down or losing the business you’ve built up can feel like the end of your career as an entrepreneur, for many it turns out to be the beginning.“Bankruptcy doesn’t define your worth or your future. It’s a chapter, not the whole story,” says Konrad Bergström, Swedish serial entrepreneur, whose lifestyle business Megascine went under in the early 2000s, leaving him homeless and half a million euros in debt.“With hard work and determination, you can bounce back, stronger and more resilient than ever,” Bergstrom says. He went on to found Zounds, one of the fastest-growing businesses in Sweden. “I’m living proof that even the darkest times can lead to the brightest days.”Here, Bergstrom and others give their tips for building back better as an entrepreneur, even after the worst happens.Take controlKarim Ullah started a media business in 2007, but it closed three years later after being affected by the credit crunch and his own poor health. He later started a restaurant in Stansted, Essex, called Brohmon, eleven days before lockdown hit.“We nearly lost it all within two weeks of opening, but we did survive,” he says of his second business attempt, which was recently named the best restaurant in Essex by a local newspaper. Ullah credits his success to the attitude he developed after losing his first business.Find everything that’s in your control and find all the good people you know to help youWe are all blessed with certain gifts, and we need to use them to the full. If you’re good with numbers, use those skills, if you’re good with technology use those skills,” he says.“There’s no magic trick, just using good old common sense and being good to people. Not all people will return the favour, but you don’t need everyone to do it.”Choose your mindsetBergstrom says that, of all the lessons he’s learned from coming back from failure, the most important was that mindset is everything.“Surround yourself with believers, not pessimists. Don’t let the negativity of a recession blind you to the potential for success,” he advises.“Bankruptcy doesn’t define your worth or your future. It’s a chapter, not the whole story. Seek support from mentors, friends, or professionals who can guide you. Stay adaptable and persistent in your pursuit of success.”Do what comes naturallyVeronica Pullen ran a bookkeeping and payroll business before declaring herself bankrupt in 2009.“I felt embarrassed, ashamed, as a bookkeeper I should manage my money better than this and I thought it meant I was a rubbish business owner,” she says. Veronica took a part-time payroll job but dreamed of being able to write from home for a living. She realised that she was someone who uses social media quite naturally and that businesses would pay for that skill. “Today I help small business owners write words that sell their personal brand services online – sales copy, social media content, and compelling comments/responses,” she says.“Bookkeeping and payroll were skills I learnt. They were not subjects I loved learning about or work I’d do for free if nobody paid me. “Writing copy, content and comments/replies and online marketing is in my blood. I type to people online because I love it and it is relaxing for me. “That is the key to a long-term successful business in my view. Look at what you do easily that other people come to you for help with because they struggle with it. Then match the parts of your gift to what people will pay for help with.”Don’t rush the returnDalia Hawley, from Leeds, lost her sports massage business in the pandemic. “When everything shut down, so did my business,” she explains. “Losing a business is painful. It becomes part of our identity. It’s easy to have a knee jerk reaction when you lose a business.”Dalia launched a new skincare brand, Dalia Botanique a few years later, but took her time over formulations and research, working in a part-time job to support herself while she transitioned back to being a business owner. “It’s easy to get super excited if you are an entrepreneur,” she says. “I get a big rush from new businesses and new ideas and it’s easy to jump in headfirst.“But don’t rush, do your market research, customer value proposition, check your competition. Taking your time will ensure a more successful outcome.” Rosie Murray-West Rosie Murray-West is a freelance journalist covering all aspects of personal finance, as well as business, property and economics. A former correspondent, columnist and deputy editor at The Telegraph, she now writes regularly for publications including the Times, Sunday Times, Observer, Metro, Mail on Sunday, and Moneywise magazine. Share this post facebook twitter linkedin Tags News and Features Written by: The Startups Team
Navigating the single use plastics ban Businesses serving food direct to customers need to meet the new guidelines or risk a fine. Here's what you need to know and some potential benefits for your SME. Written by The Startups Team Updated on 7 November 2023 From the beginning of October 2023, customer-facing startups have faced an extra challenge, especially if they are serving food. The government has banned them from offering several types of single-use plastic items, and those who continue to use them will face fines.The ban only applies to those serving retail customers (rather than those serving businesses) and includes the following items when used to serve food designed to be eaten straight away.Plastic plates, bowls, and traysPlastic cutleryPolystyrene food and drink containers.Businesses are now not allowed to use up their current stock of plastic cutlery, but must move to alternatives – a move that has proved challenging for some businesses.“Many small businesses find themselves at a crossroads, unsure of where to begin, particularly when they’re already contending with rising operational costs,” says Greg Gormley, founder of climate technology start-up Skoot.“It’s our collective responsibility to ensure that businesses are equipped with the right tools to step up to the challenge.”What has changed?The government had already banned plastic stirrers, straws, and cotton buds. Now, companies that serve the public cannot use single-use plates, cutlery or food and drink containers.The ban includes biodegradable, compostable and recycled plastic, so even those who had put solutions in place may find they still aren’t compliant.However, the fine that businesses receive if they are not compliant is small – £200, which can be reduced to £100 if paid within 28 days. The regulator can also recover the costs of any investigation into companies not using plastics.Raff Schieir, director of plastics recycling business prevented Ocean Plastic, sad that “more robust legislation is required”.“The penalties are not strong enough to encourage businesses to change their behaviour and switch to recycled in a meaningful way. Most companies would still rather pay the tax than improve the circularity of their supply chains. This is why we need the government to incentivise businesses to make better plastic choices,” he says.Are other plastic items banned?As well as a charge for plastic bags, which applies to all shops regardless size, the Government introduced a plastic packaging tax last April. This applies to plastic packaging with less than 30% recycled content, charged at £200 a tonne. However, companies that manufacture or import less than ten tonnes of plastic packaging a year are exempt. For those who are not exempt, making changes to remove plastic because of these bans is expensive.Priyanka Swamy, CEO and Founder of human hair extension business Perfect Locks, says the ban has “taken its toll” in terms of cost. “We had to re-evaluate our packaging and invest in more sustainable, environmentally friendly materials. This shift wasn’t just an ethical decision but also strategic as customers increasingly turned to eco-friendly brands.”What alternatives are out there?Businesses seeking alternatives to plastic can find more solutions than ever. Anna Laird, from chocolate business Resident Pheasant, now uses cardboard where possible, but says that to ensure food is fresh she also uses a cellulose film made from eucalyptus wood pulp.“Cost is a little higher than normal plastic. My biggest issue is that the compostable film and hamper film wrap look exactly like plastic…so there is still a little confusion out there” she says.Other alternatives include wooden stirrers, paper cups with corrugated sides to ensure that they are not too hot to hold, paper straws and cardboard food containers.What can be done with old stock?As mentioned above, even if you are using up old stock to sell to customer you could still fall foul of the plastics ban. However, Rick Smith, Managing director at business adviser Forbes Burton, says that companies that supply businesses – rather than individuals – can still use the stock.“The new ruling for plastic plates, bowls and trays only applies to supplying the public, so B2B companies have a little wiggle room,” he says. “Businesses that find themselves with a surplus of old stock may be able to find another company to take them off their hands.”How can I find the positives?While finding alternatives to plastic can be expensive, customers often react positively to eco-packaging, especially if businesses explain its significant.Gormley, at Skoot, says that customers are concerned about plastic use and will actively use businesses that minimise it. He points to a recent YouGov survey of British diners showing that plastic is their top sustainability concern, above tree planting and solar or wind projects.Communicating to your customers how you’ve removed plastic from your supply chain, whether this is in response to legislation or not, can pay dividends and create brand loyalty. Rosie Murray-West Rosie Murray-West is a freelance journalist covering all aspects of personal finance, as well as business, property and economics. A former correspondent, columnist and deputy editor at The Telegraph, she now writes regularly for publications including the Times, Sunday Times, Observer, Metro, Mail on Sunday, and Moneywise magazine. Share this post facebook twitter linkedin Tags News and Features Written by: The Startups Team
AI legislation needed now for the UK to win the global tech race Ramprakash Ramamoorthy stresses how important it is for the UK government to support its AI technology ambitions with the necessary legal infastructure. Written by The Startups Team Updated on 7 November 2023 The UK’s ambition to establish itself as a global tech powerhouse has been a cornerstone of recent government policy discussions, with significant focus on Artificial Intelligence (AI) technologies over the past year. Ongoing initiatives such as the £54 million investment into secure and trustworthy AI development and a £100 million investment in a taskforce for safe AI development, reflect the government’s ongoing commitment to fostering AI innovation. These investments have not only helped promote research and development, but also created a great platform on which AI developments can further advance. Recent news, however, has revealed that MPs have warned that the Prime Minister’s global AI ambitions could be at risk unless new AI regulation laws are introduced at the impending global AI summit, which is scheduled for November at Bletchley Park.The delay in introducing such regulations could potentially leave the UK lagging behind its European counterparts and jeopardise its standing as a leader in the AI race. We believe businesses, industry experts, academia, regulators and government are the stakeholders who should all work together to ensure the right aspects are considered to develop the correct landscape for the ethical and responsible deployment of AI. This could help the UK remain at the forefront.Addressing concernsAI is sometimes portrayed negatively in the media as something that could overpower and take job opportunities away. The AI summit presents a great opportunity to address such concerns while the technology remains in its frontier development stages for mass adoption.In order to help the ethical rollout of the technology, several challenges need to be addressed, including the potential for biases and discriminatory outcomes with AI adoption. For example, in hiring processes, AI algorithms may inadvertently perpetuate biases present in historical data. All parties involved in setting regulation and guidelines should consider the best way of tackling this issue and address what can be done to mitigate biases and discriminatory outcomes.Further education on the impact of the jobs market is needed to demonstrate the power the new technological developments also have to create new employment opportunities. Just like any technology evolution or revolution there will be some change, but this will be balanced. For example, it is quite possible that the next breakthrough for AI will be to generate code (software). This could mean that ‘the low hanging fruit’ of software development could be done by AI and only the highly sophisticated software is human generated. If this were to come true, over 50% of software in the next generation could be machine (AI) generated. This could possibly bring down the cost of software and the number of people working on it. It could be the ‘industrial revolution’ moment for the software industry. The focus then may shift from software development to solution building, customisation and deployment – all of which is very people intensive and requires customer and domain knowledge.AI to supercharge businessAccording to the UK’s National AI Strategy, set out by the Department for Science, Innovation & Technology, by taking a proactive role in the development of safe and responsible AI technologies, the UK can attract more business and investment opportunities, ultimately driving economic growth and innovation.If applied with the right strategy, AI has the potential to supercharge a business, enhancing operations, improving customer experience, and unlocking opportunities for new industries and job roles. For example, AI is already being used in business tools to help with aspects such as fraud detection, forecasting and analysis of data. It is also becoming increasingly used to enhance CX with customer service bots enabling faster response times for simple customer enquiries, and flagging when more complex enquiries require human response.Zoho has been developing use of AI for business for over a decade in-house, and is already applying it within many business tools to create better solutions for customers, including data cleaning, sentiment analysis, product recommendation, malicious file detection, translation, trend detection, receipt scanning, outage prediction and many more.As well as adding value, it can also deliver significant cost savings for businesses. For example, a report from Yell even disclosed that businesses could save over £29,000 per year with AI deployed.To realise its full potential, international collaboration on AI regulation is needed from all stakeholder groups, with input from successful business use cases to date. This could result in sharing of best practices, increasing standards and benefitting businesses of all sizes as well as the global tech ecosystem.The road aheadThe regulation of AI will not be a one-size-fits-all endeavour. Different industries and applications may require tailored approaches to address their unique challenges and opportunities. This adaptable approach to regulation could potentially lead to better outcomes for businesses and society as a whole.The upcoming Bletchley Park Summit has the potential to be a turning point in the responsible development and use of AI technologies. By fostering international collaboration and consensus on AI safety, the UK has an opportunity to shape responsible AI practices globally. Ramprakash Ramamoorthy - Head of AI Research for Zoho Europe Ramprakash heads a unit specialising in Machine Learning and analytics for Zoho's suite of products for businesses of all sizes. With 55+ applications, Zoho caters to 100 million+ users for their end-to-end business. Zoho Corporation Share this post facebook twitter linkedin Tags Expert Opinion Written by: The Startups Team
Border Target Operating Model: how will it affect imports into the UK? UK exports have been subject to new EU rules. but there is no reciprocal arrangement for goods coming the other way. The BTOM plans to address that. Written by The Startups Team Updated on 7 November 2023 The Border Target Operating Model (BTOM) has been introduced from January 2024, after multiple delays. It is a new system of checks on all goods imported into the UK.It has most relevance to goods imported from the EU because, due to Brexit, that is the part of the border model that has changed. But it also replaces the system applied to goods imported from the rest of the world.Since Brexit was implemented in January 2021, goods leaving the UK face new EU controls, but there has been no reciprocal arrangement to check goods arriving from the other direction. “It’s hugely frustrating that the government has yet again delayed the implementation of vital checks on goods entering from the EU for the fifth time,” said NFU President Minette Batters in a statement.Delays are to allow businesses further time to prepare and for the government to incorporate feedback from stakeholders, including from the agricultural sector who cited the growing threat from animal and plant disease, such as African Swine Fever and Xylella fastidiosa.A change to importing rules of this scale requires investment for businesses to prepare. Businesses said their supply chains would need time to adapt to new controls.But with rules introduced for UK importers but no reciprocal arrangements, UK businesses face a trading disadvantage. What is the BTOM?The BTOM is a global protocol for biosecurity controls and is the UK’s new system of import controls for goods from the EU. The system is supposed to mean less bureaucracy and more digitisation than would have been the case using the original post-Brexit model.New rules will be introduced in stages through 2024. It has a specific emphasis on sanitary and phytosanitary (SPS) measures for goods like live animals, plants, and animal products, so particularly impacts farmers, food importers and bio-science industries.“There are three distinct milestones,” said William Bain, Head of Trade Policy at the British Chambers of Commerce (BCC) in a phone interview. “The first two only affect importers bringing in products of animal, plant and foodstuffs origin.” However, delays here could impact businesses from any sector.In January, new rules for sanitary and phytosanitary controls or ‘health certification”, and full customs controls for non-qualifying Northern Ireland goods were introduced. By the end of April, checks on medium-risk animal products, plants, plant products and high-risk food (and feed) of non-animal origin from the EU will be implemented. Qualifying goods will face documentary, identity, and physical checks and imports of sanitary and phytosanitary goods from outside of the EU will adopt a new risk-based approach.Safety and security declarations for EU imports will be mandatory from the end of October 2024 and there will be a more streamlined dataset for imports. The government said this Milestone 3 will be tied into the rollout of single trade portal.The aim is to reduce the safety and security data requirements from businesses, make it easier to submit data and improve how the data is used.What does it replace?The new rules do not replace an operating system that is still used. The BTOM is being introduced because legally there must be post-Brexit trading arrangements in place for goods imported from the EU.When new Brexit trading arrangements took effect in January 2021, the UK did not have a replacement system for imports in place, nor an agreed reciprocal arrangement with the EU.A draft version of the BTOM was published in April 2023 but businesses warned they would not be able to absorb the extra costs of the new checks and these would be likely passed onto consumers.Why is it being introduced?Part of the reason for the delay is to shield businesses from these costs, but also because the extra costs could raise food prices and increase already high inflation, which has contributed to the UK’s cost of living crisis.There is also an issue around the UK’s food security, which, according to the NFU, is around 60%. New checks on EU imports could disincentivise EU food exporters to export to the UK, affecting supply, potentially further raising prices and causing food shortages.There are other reasons why parts of the UK farming community think a new system needs implementing without further delays. Rob Mutimer, a Norfolk pig farmer and chair of the National Pig Association, recently warned border rules are needed to protect the UK’s biosecurity to ensure African swine fever (ASF) does not reach the UK. It’s highly contagious and fatal for pigs. New cases have recently emerged in wild boar in Sweden and commercial pigs in northern Italy. The government acknowledges that an ASF outbreak would be “a fundamental threat to the viability of our pig industry”.What changes will it bring about?Import checks will likely raise costs for EU farmers. This will stop UK producers being undercut but could incentivise EU producers to stop exporting to the UK, opening up the market to cheaper alternatives, from countries with less stringent rules on quality and provenance. The government says digitisation of the process will save businesses £500m annually because by using electronic certificates, there will be fewer checks.However, any new system inevitably brings extra costs and more paperwork that could affect competitiveness. The NFU is concerned about the impact to the UK’s biosecurity.How does it affect businesses?Currently, when UK businesses trade animal and plant products with EU businesses they face new post-Brexit rules that increase the cost of trading. EU companies can still export goods without reciprocal checks, giving them a commercial advantage as they can undercut British businesses.Horticultural businesses are affected because they are no longer the hub for controlling rules and product quality. Instead, this will be handled by border control posts. NFU President Minette Waters sees this “as a major point of jeopardy, with unknown costs and heightened biosecurity risks.”The government confirmed in Parliament that extra costs to businesses will be £330m annually. The cost alone of export health certificates is £160m. The BCC wants a veterinary deal to remove the requirement for export health certificates for both UK and EU businesses.What about Northern Ireland?Businesses in Northern Ireland may welcome the delay of BTOM due to the unique pressures they have experienced from Brexit with the introduction of the Windsor Framework in October. BTOM rules will be implemented as part of the Windsor Framework.Rules regarding food products will change to ensure goods made outside the UK are not relabelled as ‘from Northern Ireland’ to gain access to the UK. This means most goods in Northern Ireland will qualify for full access to the UK, though food and animal feed products will need to be owned or processed in Northern Ireland by an NI registered business to qualify.What should startups and SMEs do?Businesses need to ensure their EU suppliers are prepared for the new system, that suppliers have their export health certificates for meat and dairy products ready to use.“Speak to your suppliers in the EU,” said Bain. “If you haven’t, do it today to ensure there is enough slack in the supply chain in case of delays and in the sourcing journey time to minimise waste.” The NFU said the government must use the delay wisely to “raise awareness among EU exporters and to address the concerns expressed by many in the supply chain.” One sector particularly affected, horticulture, will experience a shift of control away from them to border control posts. This represents a major biosecurity risk.One potential way to make integrating Milestone 2 in April easier is to see if your business qualifies for the ‘Trust a trader’ scheme, being set up for heavy users.The obligation is on the importer to follow the new regulations but it depends on the specific type of contract businesses have. Some large supermarkets use a ‘delivery duty paid’ (DDP) system that obliges suppliers to deliver direct into warehouses. In this case the onus for following regulations is on the exporter, who could also qualify for the ‘Trust a trader’ scheme.According to the UK government, “Traders welcomed the model as an improvement over the model inherited from the EU, particularly the proportional approach to risk and the ambition to use Trusted Trader schemes as part of the model,” it said in its updated Border Target Operating Model. Benjamin Salisbury - business journalist Benjamin Salisbury is an experienced writer, editor and journalist who has worked for national newspapers, leading consumer websites like This Is Money and MoneySavingExpert.com, business analysts including Environment Analyst, AIM Group and written articles for professional bodies and financial companies. He covers news, personal finance, business, startups and property. Share this post facebook twitter linkedin Tags News and Features Written by: The Startups Team
This is how start-ups can support employees going on parental leave As your employee starts their parenthood journey, Harriet Morton-Liddle explains what you can do as an employer to support their return to the office. Written by The Startups Team Updated on 7 November 2023 Your employee has just told you they’re expecting a baby – fantastic news! As your employee prepares to embark on an exciting (and sometimes scary) journey to parenthood, you’ll need to think about how to properly support your employee while they’re on parental leave.How employees are treated during parental leave can affect their happiness, wellbeing and likelihood of staying with the company. It can also greatly affect how your current and prospective employees view your company.Whether you’re dealing with an imminent mother to be or an employee going on paternity or shared parental leave, it’s imperative that founders get things right.Make sure there’s a clear handover, with someone to take over their job roleBefore your employee goes on parental leave, you should be thinking about how their role will be re-allocated. Will it be divided between existing employees, will you hire a temporary team member, or a freelancer to fill their role? Whatever you decide, make sure you plan and prepare well in advance, so that your employee doesn’t feel stressed handing over projects last-minute and your temporary employee feels confident in handling the role and performing the necessary duties.A great way to ensure a smooth transition is to hire this person whilst your employee who’s going on maternity leave is still working, so that the temporary employee can shadow and see how the role is performed.If hiring an extra person isn’t possible, then make sure to gradually split the workload evenly between team members before your employee takes their parental leave, and monitor your team’s workload.This approach will give peace of mind to employees going on parental leave, those who are allocated the work, and yourself as a founder.Check with your employee how often they want to stay in touchKeeping in touch days – also known as KIT days – are a great way for your employee who’s taking parental leave to touch base with the team, keep up to date with important company information and feel included in the team culture.Employees are allowed to work no more than ten keeping in touch (KIT) days during maternity or adoption leave without bringing their leave or pay to an end. They are also allowed to work up to 20 shared-parental-in-touch (SPLIT) days without bringing shared parental leave or pay to an end.KIT days are optional and should be agreed between yourself and your employee when they happen and if they want them at all. Some employees will simply want to switch off from work and enjoy parenthood.Whatever you decide, be open and flexible, as what’s agreed initially may change over the course of their leave.Do not change their role whilst they’re on parental leaveMake sure that when the employee returns, their role hasn’t changed. This could not only cause anxiety and stress for employees returning to work, it may also be considered maternity discrimination if their role has been demoted or changed, or their responsibilities have been given to colleagues.If, for whatever reason, the role has to be changed, make sure to communicate this with your employee in good time and explain whether it’s temporary or permanent, and the reasoning for this, as well as how it will affect their return to work.Give your employee a flexible schedule when they return to workWhen your employee’s parental leave comes to an end, it’s incredibly helpful for employers to be as flexible as possible – even if it’s just for the first few months that employees return to work.Being a new parent can have a big impact on an employee’s physical and mental wellbeing, so having a supportive employer is crucial.Whilst some employees might be happy to jump back into the routine of full-time work, for others it can be stressful, overwhelming and anxiety-inducing so having an open conversation about flexible working is essential.It may be that they return to work on a part-time basis for the first few months, you allow them to work remotely, and then gradually build their days back up when and if they feel comfortable to do so.Ensure there’s someone who can support their return to workAdditionally, when your employee does return to work, make sure either yourself or someone on the team are present to welcome them back, either on a call or in the office.Coming back to work can be overwhelming, so having someone to support them in that transition is critical to reduce your employee’s stress or anxiety about their return.Schedule in a check in to see how they are doing, discuss the plan for easing them back into work and be sure to regularly meet with them in the first few weeks to check in on how they’re doing.Becoming a parent is no easy feat, and having a supportive employer will make the world of difference. It will also set an example for your entire company on how you support employees through a huge milestone in their life, and your ability to retain and nurture your employees. Harriet Morton-Liddle, co-founder of Nugget Savings Nugget Savings Share this post facebook twitter linkedin Tags Expert Opinion News and Features Written by: The Startups Team
Reports that WeWork could file for bankruptcy as early as next week After months of speculation, US media outlets have reported the coworking giant could be filing for bankruptcy as soon as next week. Written by The Startups Team Updated on 7 November 2023 WeWork, the firm that put coworking spaces firmly on the global map, is reportedly planning to file for bankruptcy after warning investors over “substantial doubts” about its future back in August.The news follows a consistent run of problems that have plagued the company since its co-founder, Adam Neumann, exited in 2019 after a failed Initial Public Offering (IPO). With sales hit hard by the COVID-19 pandemic, shares plummeted by 95% by September.According to reports by the Wall Street Journal, the venture capital-backed business could file a petition for Chapter 11 as early as next week, marking a complete 180 from its $47bn valuation four years ago.Hundreds of landlords across WeWork’s 39 countries of operation will now be asking who will guarantee their rental income, while small businesses worry if their business premises will remain open.What does this mean for WeWork?WeWork’s expected bankruptcy means it joins a cohort of business failures triggered by the pandemic and worsened by the current world economic crisis.Hit by a drop in member numbers as many moved to a remote working model, and facing mounting liabilities, the company has also been impacted by high interest rates that have made borrowing more expensive.Those financial concerns have worsened considerably this week. After the story broke late Tuesday evening, WeWork shares fell by more than 40% in after-hours New York trading.Filing for bankruptcy does not mean that every WeWork office will turn its lights off from tomorrow. Instead, the move protects the company from legal action from disgruntled landlords, to whom it is unable to afford making lease payments.In a business update in early September, David Tolley, the chief executive, told landlords that WeWork would exit some “unfit and underperforming locations.”How does WeWork’s bankruptcy affect the UK’s SMEs?UK SMEs based in a WeWork building will now be wondering how the latest announcement will affect them. Some have already felt the impact. Last week at The Bower in Old Street, WeWork’s occupiers were temporarily blocked from accessing the building.As WeWork doesn’t own any of its office space and rather pays rent to landlords, WeWork UK members will not have the same rights and protections as tenants should the provider file for bankruptcy.If this does take place, members are unlikely to be pushed out of their offices. They will only be locked out of the building if WeWork cancels its agreements with landlords. Depending on their contract terms, this could mean they don’t get their money back.Given that the majority of WeWork’s 653,000 members have signed short-term agreements, the financial impact will hopefully be kept to a minimum. Those that have signed six-month or year-long contracts will be less lucky.However, this is a worst-case scenario. WeWork could get rid of just one of its buildings, which means its members may be able to switch to a new location. Landlords could also find other flexible workspace operators to take over WeWork’s leases.Will Kinnear, founder of the coworking agency HEWN, explains: “It is important to note WeWork is not the flexible workspace sector, as elsewhere the sector is booming. WeWork’s downfall does not necessarily reflect the market as elsewhere operations are stable and thriving.”What should WeWork members do now?With no statement or information coming from WeWork so far, its member base in the UK is at a crossroads. Startups spoke to one business owner whose business is based at a WeWork in Manchester. They said they learnt about the news today at lunchtime, having had no prior warning from the coworking provider.Kinnear advises WeWork members to consider their next step. “You can either wait and see what happens – it’s likely the landlord is already speaking to a new operator – or start looking for a new space with an operator you feel aligned with, like The Office Group, Co-Space, or Spacemade,” he suggests.Should you decide to start shopping for a new premises, Kinnear recommends moving quickly.“If the worst does happen and WeWork’s occupiers must leave, then there will be huge demand for flexible space in a very short time frame,” he explains. “Those operators picking this demand up will start changing their pricing structure as supply becomes constricted.”Read our below guides to the top cheap coworking spaces in the UK for alternatives to WeWork:LondonManchesterBirmingham Share this post facebook twitter linkedin Tags News and Features Written by: The Startups Team
When should startups hire a Chief Human Resources Officer? For growing businesses, making the decision to hire a CHRO can be a key step to building a long-term workplace culture. Written by The Startups Team Updated on 7 November 2023 Any founder will know that having the right people by your side is crucial to creating a successful business. Attracting, developing and employee benefits is therefore essential. But this can certainly be challenging.For example, a team in a relatively new company may worry about issues such as job stability, especially in the tech sector which has seen many layoffs this year. It may also be difficult to maintain your company culture as you grow, particularly if it’s rapid.That’s why it’s so important to be completely transparent in your communications with your team. From setting out your expectations clearly and regularly updating them on what’s happening in the business, to asking for feedback and listening to their needs. This is imperative for any founder who wants to nurture a strong team.But as a founder, your priorities will also change as your business evolves. To make sure you’re keeping your people at the heart of your organisation, it could be time to introduce a Chief Human Resources Officer (CHRO).So, why might they be an asset to your organisation?More on this topic – see our guide to the Best HR & Payroll SoftwareWhat is a CHRO and how do they benefit a business?A Chief Human Resources Officer (CHRO) is a role that combines strategic oversight of a business’s key HR needs for its growth plans, along with oversight of all day-to-day HR activities, including hiring and managing employees. As a CHRO is a senior role, typically sitting within C-Suite, the CHRO will usually manage other HR functional managers, who may be responsible for Business Partnering, Operations, Reward, Benefits, Talent and Talent Acquisition.There are plenty of ways that hiring CHRO can be beneficial to a startup or scale-up. But, here are a few of the key ones.As your priorities shift with your growing company, the CHRO is your point of contact for keeping you in the loop about how the team is doing day-to-day. This gives essential time back to founders to focus on the vision for the company while ensuring the team is well looked after as you step back.A CHRO also has an important ‘time economy role’ in a young company. They are experts in making the most of a smaller team by assessing the business’s priorities, and then assigning what is required from internal talent versus what can be outsourced. This helps to ensure that the team is hardworking, but not overstretched.They’re also sometimes in a better place to make decisions or inform updates to the tech stack. For example, whether employees are spending too much energy on time-consuming manual tasks and when a new tool could be brought in that can reimburse your most valuable resource.When is the right time to bring HR into your C-Suite?The first thing to remember if you’re wondering whether to introduce a CHRO is that the maturity of your company is not just about its size.If you’re finding that your employees have been at the company for upwards of a year, this is a great sign of a healthy workforce that could benefit from professional oversight.Second, you can also look at the landscape of the senior team. A workforce will often benefit from a CHRO when non-founding members are beginning to feature among senior leadership. This shows that management needs more specialised roles as original members branch out to focus on their specific priorities.Indeed, with this in mind, a company entering its next round of funding will benefit from a more specialised C-Suite. The CHRO’s specific people role offers a natural progression from this point, by enabling founders to concentrate solely on their next raise.Third, founders should also map how the priorities of their company have changed since launch. For example, has the people agenda become one of the company’s top three business priorities? This means it’s prime time to bring on a specialist to keep the team valued and well-managed.Keeping people at the heart of the businessThe early days of a startup will see enormous growth, and a founder’s priorities will look very different one or two years in from launch. As you look to shift your priorities around the business, it’s important to delegate where you can to ensure your team remains a strong backbone to your vision and goals.In short, bringing in a CHRO allows other members of the C-Suite to maintain the company’s trajectory both by freeing up their time and ensuring the rest of the team can further the company’s vision. This role is also key to keeping your people happy and motivated.So, as the business evolves keep an eye out for the signs that indicate it’s the right time to bring on a CHRO. Babu Vittal Babu is the People and HR Practice Leader at RTP Global RTP Global Share this post facebook twitter linkedin Tags Expert Opinion Written by: The Startups Team
Government to reject corporate investment tax extension: SMEs react SMEs speak out against the government's plans to reject the extension of Full expensing, amidst challenging macroeconomic conditions. Written by The Startups Team Updated on 7 November 2023 The government is set to reject calls from businesses to extend a £10bn corporate investment tax cut.Full expensing (FE) was introduced as part of this Spring’s budget to lessen the blow of a rise in corporation tax from 19% to 25%. FE lets taxpayers deduct 100% of the cost of certain machinery – like IT and factory machinery, for example – from their profits before tax. The scheme is effective from April 2023 to 31 March 2026.According to reports by The Guardian, industry leaders are set to lobby Chancellor Jeremy Hunt this week with the goal of an extension to FE being announced in the Autumn budget – but Hunt is expected to reject the bid due to constraints on public finances.Startups spoke to UK SMEs and startups to find out their thoughts on the expected rejection.Ifty Nasir, founder and CEO of equity management platform Vestd“Startups and SMEs are facing a very challenging macroeconomic environment, which will naturally increase the focus on the chancellor’s upcoming autumn statement. Reports that corporate investment tax cut changes won’t be extended will be a blow to businesses that are desperate for some certainty to make long-term planning and investment decisions.“Incentivising investment into startups and SMEs, which represent 99% of businesses in the UK, is a key driver of economic growth. Temporary commitments make it difficult for those businesses to make well-informed long-term infrastructure decisions, and this will have a significant impact on other considerations such as investment in their workforce.”Rick Smith, managing director of business consultancy Forbes Burton“With month-to-month insolvency figures already the highest they’ve been in recent years, any rejection to extend ‘full expensing’ could prove costly for the scores of businesses that rely on up-to-date machinery and IT solutions.“The change could also see manufacturers and IT service providers struggle with an inevitable loss of business should the corporate investment tax cuts be replaced with something less incentivising for their customers.“This, combined with higher corporation tax, rising operating costs and soaring utility bills, could put a good amount of businesses under significant financial pressure in the near future.” Jules Herd, CEO of Cookham Cocktail Club“Over the last 12 months, the government has found more and more ways to penalise small businesses. As a company that operates in the drinks sector, we have already had the cost of duty increased. This, combined with a 6% rise in taxes, means that our opportunities for revenue and growth are being severely limited.“Creating further barriers to growth, such as not extending the investment tax cut option, will ultimately end up killing businesses such as ours as we already work to extremely tight margins. The government should stop extolling the economic benefits of small businesses if it is going to consistently let them down by not accommodating their needs.“Given that SMEs account for 99.9% of the business population (5.5 million businesses) for three-fifths of employment and around half of turnover in the UK private sector, the government is playing a dangerous game in compromising the sustainability of those companies during what is one of the worst financial crises that the country has experienced.”Iain Herd, co-founder of electric vehicle charging cable supplier EV Cables“We echo the sentiment that further government backing in the form of tax incentives or grants could significantly ease the financial burden on SMEs, enabling us to contribute more robustly to the UK’s economic fabric. Particularly, aids directed towards mitigating manufacturing and tooling costs could be a game changer.“We remain optimistic and are keen to leverage the new tax incentives to accelerate our growth, bolster local manufacturing, and continue delivering safe, reliable EV charging solutions.”Relevant contentBusiness tax: tax rules and deadlines for SMEsTime for a new leaf on business rates Kirstie Pickering - business journalist Kirstie is a freelance journalist writing in the tech, startup and business spaces for publications including Sifted, TNW, UKTN, The Business Magazine and Maddyness UK. She also works closely with agencies such as CEW Communications to develop content for their startup and scaleup clients. Share this post facebook twitter linkedin Tags News and Features Written by: The Startups Team
Eight in ten SMEs missing out on income with ‘friendly’ clients 85% of SMEs are losing almost £80 per appointment from dealing with friendly customers and finding it hard to set boundaries. Written by The Startups Team Updated on 7 November 2023 SME owners know the importance of building solid relationships with clients, but could it actually be losing you money? New research by Yell has found that 85% of SMEs are losing on average almost £80 per appointment due to ‘friendly’ relationships with clients.The study, which surveyed just over 250 small businesses owners in the UK, explores how business owners separate their professional and personal lives and the impact this can have on their finances – particularly at a time when many small businesses may be struggling to stay afloat.The nature of small business means owners often engage with the same customers on a regular basis, developing closer relationships with them than the average high street brand would.According to the survey, 86% of SME owners work with clients that have become friends or already were – with numbers rising to more than 94% for those in the beauty sector, and 90% in the trades.In addition, 75% of SME owners said they find it hard to set boundaries with their clients.The vast majority (82%) admit that they take more time with ‘friendly’ clients, spending an extra 25 minutes on average with each of them.Outside of lost earnings, the blurring of personal and professional lives is also taking a toll on business owners’ free time – 98% of those surveyed admitted to replying to business queries within their personal time, with that figure growing to 100% for the beauty and trades sectors.Many SME owners said they find it hard to tackle the issue or have been put off from doing so due to bad experiences when trying to enforce time boundaries or payment terms – 59% said they’ve received negative responses from customers in this scenario.Setting boundaries with clientsSarah O’Rafferty, head of PR at Yell, shares tips on setting boundaries, getting paid and separating life and work.Communication is key“A lot of business owners can immediately be on the back foot when an appointment is overrunning, because they haven’t already communicated any extra costs that will be incurred to the customer,” says O’Rafferty.“Having to backtrack and try to get this extra fee paid after the time has been spent is where a lot of these negative responses can come from as customers could feel ‘cornered’ into paying more, or that they haven’t agreed to the additional spend.“If you feel your session might overrun or are mindful that previous sessions have done so with that particular client, it’s always best to communicate before this happens of any additional fees, or that you are simply unable to spend the time due to other commitments.“This way, both yourself and your customer will be in agreement, and there’s no grey area no matter how close your relationship is.”Visualise these boundaries“Detailing any policies on your website and directing all new or existing customers to these – and any changes in them – will go a long way. You can then refer to these during appointments too to continue to set the boundary.“Having these policies present on a website or even social media bios can be particularly useful for customers that contact you out of your working hours. Listing these clearly manages expectations of when you will and won’t respond.“There’s a reason large companies have their customer service opening hours clearly displayed wherever you can find contact details for them – it should be no different for your business, no matter how big or small you are.”Separate work from your personal life“It isn’t all up to your customers to read your website, your policies and when you are available to answer phone calls or reply to messages – you need to manage your time too.“When starting up, many business owners opt to use the same phone number and email address for the sake of ease. However, ignoring calls or messages when they’re right there in front of you is easier said than done.“Setting up a business email and purchasing a low-cost work phone that you can switch off once the working day is done will go a long way to solving this problem.” The power of saying ‘no’“A big skill to learn in any business is being able to say no,” adds O’Rafferty. “There can be a tendency to want to agree to everything, please everyone and take every job on, but it simply isn’t possible.“Remembering that you’re the boss and that you make the rules is key. Politely declining a request or making it clear up front that an appointment needs to finish at a particular time will help to manage expectations with your customers and, in the long run, help them to respect you and your business more.”Relevant contentHow tech supports human interaction and customer relationships in SMEsThe Rule of 7: increasing customer interactions in the digital age Kirstie Pickering - business journalist Kirstie is a freelance journalist writing in the tech, startup and business spaces for publications including Sifted, TNW, UKTN, The Business Magazine and Maddyness UK. She also works closely with agencies such as CEW Communications to develop content for their startup and scaleup clients. Share this post facebook twitter linkedin Tags News and Features Written by: The Startups Team
New UK procurement regulations to support and protect SMEs The Procurement Act will establish a new procurement regime in a bid to support growth in the economy and protect SMEs against national security risks. Written by The Startups Team Updated on 7 November 2023 New UK procurement rules have become law today, aiming to deliver simpler, more effective public sector procurement and helping SMEs access a greater share of approximately £300bn of expenditure per year.Procurement is the process of finding, obtaining and securing goods or services a company needs to operate effectively.The Procurement Act will establish a new public procurement regime following the UK’s exit from the EU. It aims to support growth in the economy by creating a simpler and more transparent system that reduces costs for businesses.The new rules will also protect SMEs against national security risks in public contracts.High-risk suppliers will be put on a public debarment list and prevented from bidding for some categories of goods or services – such as areas related to defence and national security – while allowing them to continue to bid for contracts in non-sensitive areas.“This Act is all about supporting British business using the opportunity of Brexit, as we change the way [the] government works so it delivers better for people across the country,” says Alex Burghart, parliamentary secretary for the Cabinet Office.“In particular, we draw on the new freedoms available to us by leaving the European Union to embrace and best support our small and medium sized businesses.”A shift in approachThe new Act promises to streamline the way that companies bid for public contracts and give procurers more room for negotiating prices and innovative solutions with these companies.It will also be possible to exclude suppliers from bidding for contracts – not only if they’ve performed badly on other contracts in the past, but also based on modern slavery or professional misconduct grounds.The Act also introduces a new duty for ministers to proactively consider suppliers for potential debarment investigations.To achieve this, the government will introduce a new National Security Unit for Procurement – the unit’s aim is to protect people across the country by investigating suppliers who may pose a risk to national security, and assess whether companies should be barred from public procurements.Contracting authorities will need to take account of the national strategic priorities set out in the National Procurement Policy Statement – examples include job creation, enhancing supplier resilience and fostering innovation.The changes of the Act are expected to come into force once secondary legislation is approved and after a six-month implementation period concludes.Is it enough?The Procurement Act is a step in the right direction, but will it achieve enough to meet targets that are already years late?In a report published by the National Audit Office (NAO) in 2016, the government set a target for 33% of spending to reach SMEs by 2020. Despite these ambitions, in 2023 – three years later than its target year of 2020 – government spending in SMEs is still falling short of its seven-year-old target of 33%.In 2020/21, a breakdown of departmental spending showed that 26.9% of total spend went to SMEs – and in the financial year 2021/22, this figure actually decreased to 26.5%. For the latter, 14.1% covered indirect spending and just 12.3% was direct.It’s imperative that the government continues to communicate with SME leaders to ensure future legislation supports their struggles – especially as the impact of Brexit rumbles on.Relevant content Working with government: a guide for small businessesNew government measures tackle late payments to SMEs Kirstie Pickering - business journalist Kirstie is a freelance journalist writing in the tech, startup and business spaces for publications including Sifted, TNW, UKTN, The Business Magazine and Maddyness UK. She also works closely with agencies such as CEW Communications to develop content for their startup and scaleup clients. Share this post facebook twitter linkedin Tags News and Features Written by: The Startups Team
From startup to scale-up: how we doubled our headcount in just one year Every startup wants to grow fast. But what does that look like in practice? Jennifer Urquhart explains how to scale at pace, while setting your organisation up for success. Written by The Startups Team Updated on 7 November 2023 When we founded Enoda in 2021, we had a clear mission statement: sustainable prosperity for everyone. We want to work together to build a world where everyone can prosper in a way that does not continue to deteriorate our planet.Not only does this speak to the clean energy technology we are delivering, but also, teamwork. Our purpose must resonate with whoever walks through our door.It’s not always easy to stay focused on your “north star” as teams grow. After all, recruiting for small businesses and business plans evolves as you respond to new opportunities. But keeping purpose in mind, I believe, is key to scaling in a way that ensures longevity.It’s one of the reasons that, at Enoda, we’ve grown headcount by +156% in the last 12 months. So how did we onboard so many new starters not just to the business, but also, our mission?Find out all you need to know about the recruitment process with our recruiting for small businesses guide.Stay founder-ledAs one of four founders, our strong relationship and clear, shared OKRs for the business has meant that we have been able to make decisions quickly, and invest in the right resource at the right time to progress.We are committed to keeping Enoda founder-led, and feel this is the best way to ensure that we don’t lose sight of our “north star”.It means that sometimes we’ve had to make difficult leadership decisions along the way that curtail short-term wins for longer-term success. But it’s the latter you need to keep in mind if you don’t want your startup to burn out.Go slowly with your core team and early hiresTo grow a business quickly and sustainably, I believe a strong, core team is fundamental for this to happen successfully. At Enoda, to build and deliver our technology, we needed to recruit a team of the most extraordinary engineers and scientists.Not only did they need to be the very best, but they needed to understand our purpose and be willing to work towards our main goal. This environment of achievement and collaboration helps drive our passion to succeed.The founders were in total agreement that HR was an area that should be invested in early on, in order to create a workplace where employee performance is valued, and staff understood the importance of the work they were delivering.From a very early stage, we not only looked to build out our technical team, but also our operations team, which had to grow in tandem to achieve our goal. Two of our very early hires were our Head of Talent Acquisition and our Head of Human Resources.We wanted recruitment to be managed in-house to ensure that we harnessed the wealth of internal technical expertise to drive searches and develop talent pools. We could also fully trust that our recruitment efforts were led by someone who truly understood our business objectives. We believe that the strength of our early, core team is why we are able to grow at the pace we do today. To build a winning startup culture, your team needs to be fully engaged, integrated and valued from day one, so that you continue to hire the right people.Design a recruitment strategyIt was vital for us to establish the foundations of the Recruitment team with someone who understood our challenges, along with appreciating the level of talent we needed to recruit.It was also important to invest in tools that facilitated high levels of direct candidate engagement. Namely, a fit-for-purpose applicant tracking system (ATS), which allows vacancies to reach a wide audience. Platforms such as LinkedIn Recruiter are a good start, but you should also think about using emerging machine learning or AI recruitment platforms for cold outreach.Recruitment efforts must be supported by a clear employer brand – can you differentiate yourselves from your competitors?At Enoda we have always been transparent about our values and expected work ethic. As a business hiring a specially skilled technical team, it works for us to advertise salary bandings and provide sponsorship to ensure we attract the best talent with no geographical limits.We have hired from overseas for +20% of our technical team, to ensure that we have a diverse candidate pool. These factors have allowed candidates to self-filter and helped Enoda maintain high conversion rates from interview to accepted offers.You should continually optimise your internal processes as your business grows – we will continue to invest heavily in our own Talent Acquisition team and the tools they need to directly engage with the candidate market.Don’t forget about employee experienceWe have worked very hard to ensure our entire onboarding and probation journey sets the right tone for our business. New employees need to feel welcomed, valued and excited about their new role.An effective onboarding strategy that is employee-centric can positively impact engagement, productivity, job satisfaction and overall success within the company. It’s therefore important to work on getting this right from the very beginning.A strong set of company values underpins a company’s entire operations and drives success. At Enoda, we set the framework, and then reviewed and refined it with the whole team.Now we have employee-designed company values aligned with the beliefs and priorities of our people. This ensures our employees own, and feel accountability for upholding, these values.As well, it’s important to have an “always-on” approach to employee listening and various channels through which to encourage continuous feedback. This makes it possible for you to identify and address issues in “real time”, hear about “pain points” and work to solve problems, remove inefficiencies and pivot according to changes.Planning makes the startup grow fasterIf you’re able to implement some of these strategies at an early stage, you can build the foundations of an organisation that will have all the tools it needs to achieve its ambitions.Engage in strategic, long-term planning. Take the time to find a core leadership team who are fully aligned with the mission, and can react quickly to set the business up for success.With these ingredients fulfilled, there’s no reason your company can’t follow the same path as Enoda for hiring success. Jennifer Urquhart, Founder and Chief Operating Officer at Enoda As founder and COO at Enoda, Jennifer provides oversight of functions including finance, HR, office support, compliance and governance. Previously she was a member of State Street Bank and Trusts UK Community Support Program; and Secretary to COS Investors Trust. Jennifer holds a degree in Financial Services and has 18 years’ experience working in Edinburgh’s financial sector focusing on compliance and regulatory requirements. Share this post facebook twitter linkedin Tags Expert Opinion Written by: The Startups Team
Planting the scaleup seed: why startups should adopt an L&D culture UJJI, a Learning & Development platform, is disrupting how corporate training is done by launching a gamified approach that actively engages employees. Written by The Startups Team Updated on 7 November 2023 Regardless of the industry an employee enters or their job position, it’s inevitable they will have to complete some form of corporate training. Whether that’s understanding how to use the company’s CRM platform or how to spot phishing scams, it’s become a workplace rite of passage.The problem? The content learnt during corporate training tends to fade into a distant memory in the mental hardware of employees, as opposed to being used actively in their day to day.Over 22 million UK workers confessed they don’t feel they are equipped with all the skills they will need to unlock new opportunities in the next five years, according to research by City and Guilds Group.On the employer’s side, 69% of global recruiters say they are struggling to find skilled workers, especially within high demand areas like Operations and Logistics, Manufacturing and Production, IT, and Sales and Marketing.These statistics have a seemingly simple solution: upskilling. The underlying issue is that corporate training is stuck in its old ways, dismissing the importance of active, rather than passive, learning.Seasoned HR and business veterans Ludmila Milla and Rafael Guper want to change that. UJJI is a training app for scale-up teams, which, with the help of AI, offers a gamified active learning approach for those looking to upskill.The bad rep of corporate trainingAccording to survey results, only 34% of employees are very satisfied with their job-specific training. A further 76% say that a company would be more appealing if it offered additional skills training to its staff.Despite this demand for high-quality training and the dissatisfaction of employees who do get job development of some sort, the model of corporate upskilling has largely remained the same. This ends up in low content retention, engagement and implementation levels.“The whole corporate learning is an industry that is very old school,” explains Milla, co-founder and CEO of UJJI. “They were trying to bring this idea of putting people together as a university or a corporate university, so they tried to mimic the learning process but for corporations.”“You are not going to get a degree if you do corporate learning. Getting a certificate doesn’t really mean much because you’re not going to get promoted based on that, it’s much more about how you transform your interactions,” emphasises Milla.Reformulating how professionals understand corporate training already is having significant results. UJJI’s adoption rates for their gamified learning pathways are around 65% after 90 days. This is miles ahead of the industry average of 2.5%“You can have the best [learning and development] content in the world but if people don’t engage with it and they don’t know how to put it into practice, it won’t matter,” warns Milla.Learning from the start lineBesides learning and development being perceived as a one-off chore to tick off the HR checklist, corporate training tends to be associated only with large enterprises. In other words, it’s not a luxury that startups can afford as they try to grow.Starting early, as Milla points out, doesn’t have to be costly or seen as an operational setback. Quite the opposite.Upon discussing the challenges that startups face when they try to evolve into scaleups, Milla details, “These sorts of businesses, they change quite quickly and you need to get your workforce to change with it.”“It’s not only training in the new technologies that are arising or being able to understand the whole market and competition – it’s also about internal change and it’s really hard to keep everyone on the same page,” she explains.Prioritising learning and development from the start can make startups more agile. Narrating her own struggles with scaling up previous businesses, Milla described how some people in her team had to switch departments and manage a new set of tasks overnight because it was necessary to achieve the company’s next stages of growth.“Startups and scaleups are not a niche of small and medium businesses anymore, it’s a whole vertical,” stresses Milla. “It’s a whole industry with their own needs, so we need to focus on helping those companies upskill their teams.” What about the digital skills gap?Learning and development, as AI continues to evolve, is becoming increasingly more important.According to an IONOS survey, 79% of small business owners in the UK consider the adoption of new technologies to be critical for future growth yet 29% said the ongoing shortage of skilled workers is making it hard to adopt said technologies. The digital skills shortage is costing the UK economy roughly £12.8bn.If we focus on AI, the numbers tell a similar tale. According to Salesforce, only one in ten global workers have key AI skills.Teaching workers how to use AI meaningfully will be what separates businesses that are prepared to evolve with technological advances and those that play catch up.“You still need to know how to operate [AI], the people that understand this and are able to think differently and use the AI system to their advantage are going to be able to do amazing things,” Milla predicts.“AI means there’s a new interesting way of differentiating professionals now and it comes from the adaptability to embrace change and being creative and being able to use AI as innovation for the business,” she outlines.Beyond learning and developmentA persuasive L&D offering can make the difference between an employer who stays at a company and one actively looking for a new job. 94% of employees say that they would stay at a company longer if there is investment in their learning and development.Similarly, 59% of millennials claim development opportunities are extremely important when deciding whether or not to apply for a position.Although L&D is an important factor to consider, there’s other measures they can take to ensure they are retaining and attracting the right talent.Speaking from her experience in HR, Milla reveals culture is a crucial ingredient.“You need to bring people that really believe in what you are building and it doesn’t matter what they are doing, they feel they are really helping to change other people’s lives on the platform that they are building,” she stresses.“It’s important to open the discussion about how important and how much of a difference learning and development can make, as opposed to being considered as something nice to have,” she concludes.Even if a startup’s team is made up of five people, fostering a culture of learning and development helps employees feel empowered with the necessary skills for the modern workplace.More importantly, it creates a sense of growth and purpose that can make the difference between a startup having an unengaged workforce and one that supercharges its way into scaling up.Read more:Over half of SME owners understand AI but are hesitant to adopt it Share this post facebook twitter linkedin Tags AI News and Features Written by: The Startups Team
Top tips for starting your own business Making the right decisions early on can save you from serious business headaches down the line, writes Rose Buckler of Starling Bank. Written by The Startups Team Updated on 7 November 2023 Turning a great business idea into your own business can be a complicated process to navigate. Usually starting as a one-person enterprise, the role of a startup entrepreneur has to encompass multiple functions when it comes to starting a business.These can include developing the offering and brand – whether that’s thinking creatively about establishing your product or service and making it a reality or building the business’ purpose, target market, identity, and brand mission.But there are also many practical steps and actions to take to actually set up the company itself, from the business structure to legalities, to running the finances as well as promoting your business too.Here are my top five tips on some key things you need to consider and make decisions on right from the start, to help turn a dream into a running business.Keep financial recordsOne thing you should establish early on is a way to manage and record your finances. There will be a lot of costs associated with your business, so the sooner you start noting down all incoming payments and outgoing expenses, the better.Even if these are small costs such as buying stationery or equipment for your home office, or mileage on your car to get to meetings, it’s worth spending a few minutes each week recording everything to help keep your business expenditure on track.You may even be able to recoup some of these initial set up costs later down the line, provided you can justify them as business related expenses.Decide whether to operate as a sole trader or limited company A big initial decision for an individual to make is whether to set your business up as a sole trader or a limited company.There are benefits and drawbacks for each business structure, and choosing which route to take can also depend on the nature and size of your business. Make sure you thoroughly research to decide which option is best for you.A lot of solo entrepreneurs often operate as sole traders, as there are lower accountancy fees and fewer filing responsibilities. If you did want to establish your business this way, you’ll need to register for a self-assessment tax return, and pay National Insurance contributions and Personal Income tax on any profits over your individual tax free allowance. However if your business profits reach a certain amount, you could end up paying more tax than operating as a limited company.Sole traders are also personally responsible if something goes wrong with the business and your personal assets could be liable. You should consider taking insurance for your trade in the event that someone files a claim against you.Alternatively, you may choose to start your business as a limited company. Some people only choose this once their business profits reach a certain amount due to tax efficiencies.With this structure, you need to register your business with Companies House. Any money withdrawn must be formally recorded as a salary, dividend or loan, with corporation tax- paid on taxable profits.Self-assessment tax requirements must also be considered here by the Company Directors and advice sought where necessary to ensure you are fulfilling your personal tax obligations.One benefit of a limited company is that your personal assets, such as property, are protected against company debts, unlike a sole trader. Some of your clients may also have a policy of working with limited companies only, so do your due diligence for your particular industry.Separate your business funds from your personal fundsBefore you start trading, you must ensure you keep your ingoings and outgoings for the business separate to your personal spending and income. This should help to avoid any tax return issues. With a limited company you need to set up a business bank account in the name of your business.Some business accounts offer additional features designed to make banking easier for small businesses. For example, Starling Bank’s Business Toolkit (just £7 per month) can help you manage invoices, bills, tax and VAT from one bank account, so everything is simplified and managed in one place.Protect yourself with contractsWhen you start trading, you must ensure you protect yourself in writing with contracts for your business.While you probably don’t have a legal team just yet, you can make your own contracts that set out the terms of a project or service for clients. These should include details of deliverables, timeframes, and payment terms.You can find contract templates online, including through the Federation of Self-Employed and Small Businesses (FSB) legal hub, where you can also connect with experts if you need further legal advice.When you’re working with suppliers, you can ask them for a contract from their side. You should review it thoroughly to make sure you’re happy with their terms, what they’re delivering to you, and when, and how best to pay them.Set up relevant business insuranceBusiness insurance helps protect you and your business against unfortunate events. If something goes wrong, it can mean the difference between staying in business or not. Before entering into a contract with a client or supplier, some may also require proof of adequate insurance cover.Business insurance can cover all kinds of things. For example, public liability insurance can cover you for accidents in the workplace, or if you damage other people’s property. Professional indemnity insurance protects you against claims of negligence, or loss of documents or data, and product liability insurance covers any damage or injury from products you sell.Most of these are optional, but it’s compulsory in the UK to get employer’s liability insurance when you start to employ staff or subcontractors, or even having someone do work experience.Other types of insurance can offer protection from instances of theft, fire, legal fees, or if a customer or an employee makes a claim against you. Review the different types of business insurances before you start trading.You should make the decision about which insurances are right for your business based on the risk and probability of different circumstances, and weigh that up with the cost of the premiums and any excess amount not covered by the insurance. Every business is different, so choosing which to set up should be tailored to your needs. Rose Buckler, Head of Business Banking Operations at Starling Bank Rose joined Starling Bank in May 2022 as Head of Business Banking Operations. Previously she spent more than 15 years leading Retail and Commercial banking teams including Large Corporate and high-leveraged, private-equity backed businesses. Working with businesses at different stages of growth has provided Rose with great insight and understanding of diverse business banking needs. Starling Bank Share this post facebook twitter linkedin Tags Expert Opinion Getting Started Written by: The Startups Team
Why diversity and inclusion in tech isn’t just another box to tick Yvonne Ottley explains how the lack of representation in gaming content led to create Frobelles and how more inclusion will be a gamechanger in the tech world. Written by The Startups Team Updated on 7 November 2023 My name is Yvonne Ottley, and alongside my 11-year-old daughter, Alyssa, I am the CEO of the UK’s first Afro hair championing game, Frobelles. It was never on my roadmap to become an app developer, and the reasons for my foray into the tech industry are rather bittersweet. In 2023, we should be creating new products that push the boundaries of what has previously been possible in tech, not having to create products that counteract a lack of basic representation. Child’s playChildren naturally want to express themselves when playing dress up games or personalising avatars; they want to create an ideal version of themselves, and experiment with their hair, makeup, clothes, and shoes, as they begin to form their own identities. Sadly, for a lot of young girls, it isn’t that straightforward.At just six years old, my daughter asked me why none of her game characters had natural hair like hers, and I had to grapple with an explanation that wouldn’t risk further damaging her self-esteem. It might seem like a small issue to some, but it can have an enormous impact, especially given the social prejudice surrounding natural hair in day-to-day life, whether in school or in the workplace. Hair-raising findingsI spent several days searching for games that had diverse characters with Afro hair, but I was deflated by what I found, or rather didn’t find. Either the characters were black, but had little to no Afro-hair options, or in the case of the most popular games, Afro hair styles were being used in a culturally appropriated way.According to a recent study by Curry’s PC World, across 10 different genres of games, you’re 67% more likely to have a white-only protagonist, compared to 3% BPOC. This is hardly a surprise when you consider that only 2% of game designers in a country the size of the US are black, therefore black characters are consistently underrepresented or misrepresented. DIY DEIIt’s this lack of representation that is having a very negative impact on the self-esteem of young girls, and I didn’t want other families to keep going through the disappointment it brings, so Alyssa and I started designing characters for Frobelles, working with an illustrator to bring them to life.The vibrant, educational, fun, and user-friendly game is voiced by Alyssa, and has three core characters: Coco, Kelli and Krista, all with beautiful Afro hair that can be styled in a variety of ways, including Fulani braids, Puffs and Bantu knots. The app officially launched in 2021 and has since grown beyond just a game, it’s an online community with sisterhood at its heart. While I’m incredibly proud of the product, its growth, the community we have built and the plans we have in place, an app specifically designed for black hair representation should never have been needed in the first place. Game-changing representationI want to encourage game creators to be more intentional about representation in the future, and to consider the impact their products can have on young children. As early as 3-4 years old, they begin to shape their racial and ethnic identities and may form preferences based on them – this surely highlights the significance of promoting positive, diverse representation for children from a young age, which can in turn help to foster self-esteem, inclusivity, and acceptance. I think it’s imperative that gaming and tech studios consider just how beneficial hiring a diverse workforce is; people who can understand the various nuances and ensure that opportunities to make a positive impact are not missed. I truly challenge them to take diversity and inclusion seriously, not just be performative or engage in tokenism.Black representation is more than just a box to tick. Yvonne Ottley - founder of Frobelles Frobelles is the UK’s first afro-hair championing game that’s challenging racial bias and pushing for more inclusivity in the tech world. Frobelles Share this post facebook twitter linkedin Tags Expert Opinion Written by: The Startups Team
Subscription services continue to evolve With some heavy hitters now offering successful subscription services, Glynn Davis takes a look at the latest developments and takeaways for SMEs. Written by The Startups Team Updated on 7 November 2023 Sandwich and coffee chain Pret A Manger was in a desperate position during COVID-19, with the bulk of its stores being in central London where a deserted capital over a prolonged period almost put its future in question.Find out all you need to know about target marketing and the importance it has on the success of your business.Caffeine rushCritical to its survival and return to profitability post-pandemic has been its coffee subscription service that was lunched at a price of £20 per month, giving subscribers up to five barista-made drinks per day.It has since been increased to £30 on the back of its success and recently combined with a Pret Club loyalty scheme offering discounts of 20% on all products. This combined proposition has led to rising subscribers and drinks redemptions. As many as 17.8 million drinks were redeemed in the April-to-June period – up 31% year-on-year.Subscription innovationThis move highlights how subscriptions have expanded out from the traditional area of magazines and now encompass a myriad of goods and services – from on-demand streaming of TV, to razors, meal kits and health & beauty boxes – that can all now be delivered on a regular basis to consumers.A recent launch involves online card company Moonpig whose Moonpig Plus subscription service offers members 30% off all cards for a sign-up fee of £10 and has quickly proven successful at boosting shopping frequency. Such initiatives have led to an explosion in the size of the market – which hit £395 million in 2021 and the forecast had been for it to reach £1.8 billion by 2025, according to research from Whistl. The research also found 81% of people surveyed signed up to at least one subscription in 2021, compared with 65% in 2020, and that the average UK consumer spent an average of £52 on subscriptions last year.Reality bitesHowever, these figures might have to be revised somewhat because the current tough economic backdrop and cost of living crisis is having a negative impact on subscriptions and demand has fallen back – with meal kits and drinks boxes suffering particularly badly.Over a third (35%) of UK consumers are now using fewer subscription services than during the pandemic, with only 17% using them more, according to research from Virgin Media O2, which also found the retreat from subscriptions is most notable in London where 48% of people have cut back on their usage. Among those people surveyed, meal kit subscriptions were used by only 10% in the last two months compared with 13% during COVID-19 and wine and beverage subscriptions are now used by 8% of people versus 10%. There has also been a decline in the number of people using fitness and wellbeing subscriptions, with a fall from 12% to 10%. The performance of meal kit business Gousto is indicative of the changing state of the subscription marketplace. Revenues declined by £10 million in the year to end-December 2022 as losses increased to nearly £160 million. The company is currently addressing its cost base to turn things around. Sadly this is too late for US-based clothing subscription company Stitch Fix that recently closed down its UK operations after suffering ongoing pressures and sluggish demand.Leisure loveBucking the trend in subscription usage are streaming services such as Netflix, which now have 50% of people signed up as users compared with 48% during COVID-19. Music and podcast subscriptions have also fared well with users increasing from 18% to 20%. Also proving particularly robust is fresh petfood subscription service Butternut Box that has recently raised £280 million to add to its previous £100 million fundraising that will help the DTC (direct to consumer) business to further build-out its European expansion programme. The gift that keeps on givingRegardless of the economic backdrop the subscriptions market has constantly evolved, with the specialists tweaking their businesses beyond the initial pure subscription model. Consider some of the earliest market entrants: healthy snack brand Graze moved into selling its goods in retail chains including Boots as well as the major supermarkets. It’s a similar story with shaving subscription Harry’s that can now also be found in many retail stores.There might also be some good news on the horizon for subscriptions because of predicted demand at Christmas, according to research from Recurly, which found 38% of consumers in the UK expressed an interest in giving a gift subscription this Christmas and 24% of people stated they had previously received subscriptions as a gift. The average person stated they are willing to spend a maximum of £75.The most likely beneficiaries of this gift-giving are the food and drink subscriptions providers such as Beer52, Candy Club and Naked Wines, which are cited by 32% of respondents as among the most popular subscription options to receive as gifts. This is followed by 26% of people preferring health & fitness subscriptions and 23% going for streaming video services. Final thoughtAdding further positivity to the subscriptions category is the survey’s further finding that as many as 63% of people would consider continuing with their service after the gift period has ended. We’ll have to see how many extra Pret A Manger discounted Christmas sandwiches are sold this year to its growing subscriber base. Glynn Davis Glynn Davis is a business journalist specialising in the retail and food and drink sectors. As well as writing for publications including Retail Week, Ecommerce Age, Propel, Caterer and Retail Bulletin, he’s also the founder and editor of Retail Insider and Beer Insider. Share this post facebook twitter linkedin Tags News and Features Written by: The Startups Team
Pinterest for Business – Essential Guide Pinterest is more than just a platform to create moodboards and get inspired – it's also a place to boost brand awareness and find customers. Written by The Startups Team Updated on 7 November 2023 You might know Pinterest from that time you were looking for the perfect cookie recipe or when you were gathering inspiration for your living room redesign. While Pinterest has great value for individual users, it’s equally useful for small businesses who are trying to grow their brand and boost conversions.Pinterest is full of opportunity in a way that other social media platforms arguably struggle with – that’s because users flock to it with a clear purpose in mind.This high search intent makes it optimal to boost your conversion rates and grow your user base. Although Pinterest can yield lots of benefits to businesses from all types of industries, it works particularly well for ecommerce brands. Any business selling highly creative and visual products such as those in food, travel, and craft categories will feel at home on Pinterest.Pinterest’s user interface and design is very unique, which is why we’ve put together this guide to help you navigate its boards, its ads offering, its search engine optimisation, social media tools, and much more. By the end, you should feel that you can hit the ground running with your Pinterest marketing strategy. Interested in advertising on social media? Save money by using TikTok for Business. Discover our limited-time offer: when you spend £30, you get £20 back. See the deal On TikTok's website In this page Why is Pinterest a good platform for businesses? Key ways to use Pinterest as a business How to set up a Pinterest business account How to create Pinterest content that drives traffic and sales Pinterest analytics to track your results and improve your strategy How to run Pinterest ads to reach a wider audience Pinterest for business best practices FAQs Why is Pinterest a good platform for businesses?When you think of the term ‘social media’, your mind might not instantly gravitate towards Pinterest. But, it yields high value for businesses that mark their presence on it.Pinterest has a streamlined user journey for businesses, who can easily add links to their Pins. This converts a user searching for inspiration into an active customer in a matter of a few clicks. This is an important advantage over other platforms, as you can’t add links on Instagram descriptions.Another reason Pinterest is great for businesses is that it drives high user intent. Users come to the platform actively seeking inspiration and ideas. This makes it an ideal space for businesses to connect with potential customers who are already looking for a specific product or solution.Pinterest users can pin content to an inspiration board – say for a room refurbishment, or a wardrobe look. For the user, it’s a more creative, personalised user experience that other social media mammoths simply don’t offer. For a business, it gets your products in front of an audience ready to re-engage and potentially purchase. Boards are brilliant for facilitating product discovery and enhancing purchase intent.Who are Pinterest’s users?Pinterest’s user base is diverse, with a significant presence of younger users aged 18-24, constituting 55% of its users in the UK. A key demographic trend on Pinterest is its predominantly female user base, with approximately 72.6% of users being women.This audience primarily uses Pinterest for inspiration and as a search engine. This means it’s crucial for businesses to optimise their content to appear higher in Pinterest’s search results. Nearly 9 in 10 users turn to Pinterest to plan purchases, so getting a high ranking can make a big difference to your sales. Key ways to use Pinterest as a businessPinterest can help build your business’s social media presence and boost your sales in a number of ways. Here are a couple to consider:📍 Using Pinterest to drive traffic to your website: by creating visually appealing pins with direct links to your website, you can attract users interested in your products or content. Ensure that your pins are targeting the right keywords in the description so you can maximise visibility.📍 Increasing brand awareness through Pinterest: consistently sharing high-quality, engaging pins that align with your brand’s image and values can help raise brand awareness. Showcase your products, services, and company culture through well-curated boards and content to foster a stronger brand identity and connect with your target audience. According to statistics, Pinterest trends take off 20% faster in the first six months than trends on other platforms. Therefore, if you find the way to launch a trend and keep your brand at the heart of it, you could supercharge brand awareness.📍 Selling and generating leads on Pinterest: Pinterest provides a unique platform for selling products and generating leads. Use shoppable pins and informative content to showcase your industry knowledge and authority. By integrating call to actions and contact forms on your Pins, you can easily grow your user base and find high quality leads.📍 Connecting with other businesses: Pinterest is not only about reaching consumers. You can also use it for establishing connections within your industry. Collaborate with other businesses and influencers in your niche to share content, cross-promote each other’s products or services, and tap into their audience. This can help you expand your reach and create long-term partnerships.📍 Advertising on Pinterest: you can leverage Pinterest Ads to target specific demographics and interests, effectively promoting your pints to potential customers. Use features like promoted pints to boost visibility, engage with a larger audience, and achieve marketing goals. According to Pinterest, ads on its platform give a 2.3 times more efficient cost per conversion than ads on other social media platforms. They also claim to double the return on ad spend for retail brands, compared to other social media. How to set up a Pinterest business accountIt’s quick and easy to set up a free Pinterest business account. The great part is that you have a set of options.If you’re new to Pinterest, you can create a new business account. However, if you’re already an existing user with a personal account, you can either create a linked business account or convert your personal account to a business account.Personal and business accounts on Pinterest are similar, but business accounts include features that are handy for business owners and marketers. This includes access to the Pinterest Business Hub and Pinterest Analytics.Creating a new business accountFollow these steps if you’re completely new to Pinterest or you just want to have an account that is completely detached from your personal account.In the top right-hand corner of your screen, click Sign upClick Create a business accountEnter your email address, create a password and enter your ageClick Create accountFill in the fields to Build your profile, then click NextFill in the fields to Describe your business, then click NextSelect whether you want to run ads, then click NextSelect where you’d like to start, or click X to go to your new Pinterest business accountCreate a linked business accountFollow these steps if you want a business account that’s linked to your personal account, so you can easily switch back and forth between the two.This means you’ll use the same email address and password to sign into both accounts.Log in to your personal Pinterest accountClick the downwards pointing arrow icon in the top right-hand of the screenClick Add accountUnder Create a free business account, click CreateClick Create a linked business accountClick Create linked accountFill in the fields to Build your profile, then click NextFill in the fields to Describe your business, then click NextSelect whether you want to run ads, then click NextSelect from the list of options to Describe your businessSelect where you’d like to start or click X to go to your linked Pinterest business accountConvert your personal account to a business accountThis is for those users that just want to establish their presence on Pinterest as a business but have an existing personal account they’d like to convert into a business account.Log in to your personal Pinterest accountClick the downwards pointing arrow icon in the top right-hand cornerClick SettingsClick Account management at the left of the screenFind the Convert to a business account option, then click Convert accountClick Convert accountFill in the fields to Build your profile, then click NextFill in the fields to Describe your business, then click NextSelect whether you want to run ads, then click NextSelect where you’d like to start or click X to go to your converted Pinterest business accountHow much does it cost to use Pinterest for business?Pinterest doesn’t charge any fees for selling on its platform. You can also set up your business profile and create pins for free.The only expense associated with Pinterest is if you pay to advertise or run promoted pins on the platform.If you’re looking to advertise on Pinterest and want to plan your budget, the average cost of Pinterest adverts is roughly $1.50 per click (£1.23).Whether this sounds like a lot or not for your budget, keep in mind that shopping ads on Pinterest bring a 5 times higher return on ad spend and are 89% more cost effective than other platforms. How to create Pinterest content that drives traffic and salesWhen it comes to being a Pinterest mastermind, there’s a couple of factors to consider if you want to drive traffic and sales.Here are a couple of best practices to integrate into your Pinterest strategy.Know the types of content do well on PinterestSuccessful content on Pinterest thrives on innovation and inspiration. Users are drawn to content that feels actionable and enriching.This includes a range of visually captivating posts such as scenic pictures, practical How-To and DIY guides, enticing recipes for culinary exploration, and anything unusual and creative that sparks their imagination.The key is to offer ideas that can enhance their lives, whether it’s tried-and-tested healthy weeknight dinners for busy families, favourite self-care routines to promote well-being, or step-by-step guides on upcycling old clothes.Create Pinterest-friendly images and videosThere are a couple of ways to create Pinterest content that fits the platform’s ethos but also helps boost your brand awareness.We recommend you subtly brand your Pinterest images, prioritise aesthetics and design, create Pins with multiple images, create step-by-step guides, and join groups and community boards to help expand your reach.Remember that unlike other social media platforms that drive on User Generated Content, Pinterest is about curating a certain aesthetic and fostering inspiration.Write effective Pinterest descriptionsThink of Pinterest as another search engine. If you’re not targeting the right keywords with your Pins, it’ll be harder for your target audience to find you.When you’re writing your description, you should include relevant keywords near the beginning, include your brand name in the first line, hashtags, and have a natural sentence structure (no keyword stuffing!), a call to action, and any other alluring details about the Pin.Optimise your Pinterest content for search enginesThe Pinterest algorithm uses a combination of four factors to determine the order in which pins appear.This is based on the perceived quality of the website your Pins link to, how much engagement your content is fostering, your account’s overall activity, and the topic relevance of your content based on the keyword.To rank higher, we recommend you track Pinterest Trends so your content can stay relevant, create rich Pins with SEO-optimised descriptions, create relevant and discoverable boards and pin to relevant boards. Pinterest analytics to track your results and improve your strategyPinterest has powerful analytics tools to help business users understand their performance on the platform.Here are some of the most important analytics to track and how you can leverage them to improve your Pinterest strategy.📊 Impressions: this measures the number of times your Pins were shown on a user’s screen. A high Pin impression rate is a good thing as it shows your brand is on trend or the algorithm is picking up on your content. If this is low, you’ll probably want to revisit your Pinterest SEO strategy.📊 Saves: these tell you how many times someone saved your Pin to one of their boards. This metric is a pretty big deal, as it shows you how well your Pins are resonating with your audience. This also earns you high brand exposure as those saved Pins will show up on the feed of the followers of that account. If you’re not getting that many saves, look up the keyword you’re targeting and try to understand what competing accounts are doing better than you.📊 Engagements: this measures the total number of times someone clicked or saved your Pin. In other words, it tells you how well your audience is connected with your content. Poor engagement might mean that you need to revisit your target audience and understand what they might need or want from your brand.📊 Outbound clicks: this indicates the number of clicks to the destination URL in your Pin. This is key as a high outbound click rate indicates people are engaging with your brand and are potentially becoming high quality leads. Make sure it’s easy to reach your website from your Pin to streamline the customer journey as much as possible.📊 Top converting Pins: you can measure your top Pins based on different conversion goals. This can be Pin clicks, page visits, add to cart, and checkout. This will help you identify which Pins are examples to follow within your Pinterest content strategy. How to run Pinterest ads to reach a wider audienceRunning an ad campaign to reach even more users can make a big difference on the number of sales you can drive. Here are the type of ads you can run on Pinterest:Idea PinsAlso known as story pins, these are short video segments or up to 20 graphics, designed to draw Pinterest users in with immersive educational content. They’re usually DIY or How-to guides. They look quite similar to Instagram stories, and they let you tag users, add interactive stickers, add voice overs, and have text and graphic overlays.Pinterest collection adsThese display only for mobile users. These are made up of one large, featured video or image and 3 supporting images. If someone taps on your ad, they can then access up to 24 supporting images, giving them more of a chance to explore your content. These are great for e-commerce brands as it facilitates product discovery. The best part? Pinterest can automatically create these for you.Carousel adsThese look like organic Pins but contain a group of images that users can swipe through on mobile or desktop. When someone saves this ad, the entire carousel saves as well. These are great for showing products or ideas from different angles, giving users a chance to better interact with your brand.Promoted pinsThese are the simplest type to run on Pinterest, and are a single image or video that shows up on a user’s home feed. The only thing that sets them apart from normal pins is the ‘Promoted’ label at the top.How much does it cost to advertise on Pinterest?The average cost per click for a Pinterest ad is £1.23 per click. You can also set a maximum daily budget for your Pinterest ads. On top of this, you also have two options for ad group bidding.Custom bidding → you can set the maximum amount to pay for each action in each campaign. There are minimum bids, which vary depending on the ad format.Automatic bidding → Pinterest automatically adjusts your bids throughout the day, every single day, to get the most value for your money.You can track your ad results using Pinterest analytics. Pinterest for business best practicesPinterest is a great platform to promote brand awareness and target an audience that has high search intent. Although you’ll have to make sure your content is authentic, inspiring, and optimised for Pinterest’s search engine, the rewards are high if you have a robust marketing strategy. To summarise, here are the main steps to take to become a Pinterest master. ✅ Create high-quality, engaging Pins: High-resolution images and graphics work best. Experiment with different formats, like carousels, story pins, and video pins, to keep your content fresh and engaging.✅ Keyword optimisation: Use relevant keywords in pin descriptions, titles, and board names to improve discoverability. Pinterest operates as a visual search engine, so strategic keyword usage is crucial to attract users interested in your content.✅ Consistent posting: Maintain a regular posting schedule to keep your audience engaged. Consistency helps build trust and keeps your brand top-of-mind.✅ Use rich Pins: these provide additional context and information about your products or content. There are different types of rich pins, including product pins, recipe pins, and article pins, each tailored to specific business needs.✅ Collaborate and engage: Connect with other businesses and influencers in your niche. Collaborate on group boards, share each other’s content, and engage with your audience by responding to comments and messages promptly.✅ Measure and analyse: Use Pinterest’s analytics tools to track the performance of your pins and boards. Understand what content resonates with your audience and adjust your strategy accordingly.✅ Promote content: Consider using Pinterest Ads to reach a wider audience and achieve specific marketing objectives, such as boosting brand awareness, website traffic, or product sales.✅ Monitor trends: Stay up-to-date with current Pinterest trends and adapt your content to align with what’s popular and relevant. Frequently Asked Questions Is Pinterest a good platform for my business? Although it’s not the most popular social media tool in terms of sheer volume of users, it’s still a very powerful platform for small business owners. Users come to Pinterest with high user search intent, making it easier to get high quality leads and foster brand awareness. It’s also completely free to use, excluding any optional spend for advertising on the platform. How much does it cost to use Pinterest for business? Nothing – Pinterest is completely free if you want to run a business account. However, if you wish to run adverts on Pinterest, it costs about £1.23 per click to run ads. How can I track the success of my Pinterest marketing efforts? You can track your marketing results on Pinterest using Pinterest analytics. This reviews your performance, tracks key metrics, and gives you insights into your audience and content strategy. Share this post facebook twitter linkedin Tags News and Features Written by: The Startups Team
How to optimise ecommerce store navigation with product taxonomy Learn how to develop an effective product taxonomy that can optimise your ecommerce website’s navigation and on-site search for higher conversions. Written by The Startups Team Updated on 7 November 2023 It’s not enough to simply have a great product catalogue; you also need to make your ecommerce platforms easy for your ecommerce customers to find what they’re looking for. One of the most effective ways to improve e-store visibility and navigation is product taxonomy development. A product taxonomy is a hierarchical system of categories and subcategories that organises products based on their shared characteristics. It’s the invisible architecture that powers your e-store’s search and navigation features. A well-structured product taxonomy helps improve discoverability and drives more sales for your online business. Let’s get into the details of how that happens. Benefits of a strong product taxonomy1. Improves store navigationThe hierarchical categories and filtered navigation enabled by taxonomy makes browsing intuitive for customers. They can easily drill down to find exactly the product type they need.2. Allows faceted filteringTaxonomy lets customers filter product listings by attributes like price, color, customer rating, brand, and other properties. This further refines searchability.3, Optimises on-site searchA taxonomy with intelligent keyword tagging improves relevance for on-site product search. Customers can quickly find products matched to their search terms. 4. Enhances recommendationsThe recommendations provided to customers about related or frequently purchased together products rely on the taxonomy parent-child connections you establish between complementary products.5. Provides marketing intelligenceTaxonomy data reveals insights like best-selling categories, popular attributes, and relationships between products customers purchase together. This data can be used to personalise marketing campaigns. Key steps in building a product taxonomyStep 1: research products and catalog structureThe first step is researching your existing product catalog and structure. Review all your products and start grouping them into logical categories and subcategories. Analyze how products relate to each other to determine parent-child relationships. For example, dresses can be a parent category with skater, maxi, cocktail, and sundress as child categories.Take time to understand your product offerings and how customers search for and view related products. This research provides the foundation for building your taxonomy.Step 2: define hierarchy and categoriesWith research completed, start defining a category hierarchy and determining appropriate categories based on your product lines and customer search behaviour.Aim for a hierarchy about 3-4 levels deep as too many levels can confuse navigation. Determine main, high-level categories like electronics, fashion, and furniture. Then create subcategories under each to further divide products. For electronics, subcategories could include computers, TV & video, smart home tech, and so on.Keep categories consistent across your ecommerce site. For example, TVs should always be under “Electronics > TV & Video” rather than sometimes under “Entertainment”. This will ensure a consistent taxonomy. Step 3: tag products with relevant keywordsAccurate tagging makes it easier for customers to find products by associating relevant keywords with them. When adding a new product, think of keywords and phrases customers may use when searching for that item.For example, a red cocktail dress could be tagged with “red dress, “cocktail dress”, “party dress”, “going out dress”, and so on. Avoid overly broad tags like “clothing” as they have low search relevance. Prioritise keywords likely to be searched by your target audience.Step 4: create parent-child relationshipsLink products that go together using parent-child relationships. If someone views a camera lens, recommending the compatible camera body as a “parent” product provides a logical cross-sell opportunity.Similarly, a laptop can have a charger, laptop bag and extended warranty as “child” accessories to suggest when customers view the parent laptop. Build these connections to guide customers to related purchases.Step 5: organise products into categoriesWith your category architecture defined, tag products, and relationships established, and organise all products into the most suitable categories and subcategories. Ensure each product has accurate taxonomy classification and keyword tags for findability.If a product fits multiple categories, place it in the category customers are most likely to browse for that item. Cross-link related products using parent-child relationships instead of duplicating products across categories.Maintaining and improving your taxonomyTaxonomy development is not a one-time project, rather an ongoing endeavor. So, you must maintain and refine your ecommerce product taxonomy for optimal performance.Add new products to existing taxonomyAs you add new products, slot them into existing categories within your defined taxonomy. Also tag them appropriately with relevant keywords. Evaluate if new products warrant creating additional subcategories.Evaluate taxonomy search effectivenessRegularly review search analytics to see frequently used terms and assess if taxonomy is surfacing relevant results. Refine tags and categories to better meet customer search needs.Expand high-traffic categoriesAnalyse categories with significant traffic and expand the taxonomy depth in these areas so more filter options can help the consumer reach their desired products quickly. Remove unused categoriesCut old, outdated or little-used categories that clutter navigation and on-site search results instead of adding value. This will keep your taxonomy lean.Refine product tagsLook for tag gaps or inaccuracies, such as products missing essential keywords that they should rank for. Continuously improve tags to optimise product discoverability.Moving forward with ecommerce product taxonomy developmentA product taxonomy takes time to construct but pays off by creating a foundation that is optimised for effective navigation. So, maintain taxonomy as a long-term strategy, not a one-off project. In case you need assistance with this process (when not having enough time on your hands, for example), you can also seek assistance from product taxonomy development service providers. Jessica Campbell - ecommerce consultant and content strategist Jessica has published over 2000 articles & informative write-ups about eCommerce & Amazon marketplace solutions covering Amazon listing optimization, Amazon PPC management services, Amazon SEO & marketing, Amazon store setup, and Amazon Virtual Assistant Sevices. Her well-researched and valuable write-ups have helped thousands of businesses uncover rich insights, strengthen their business processes, and stay afloat amidst the rising competition. Jessica Campbell Share this post facebook twitter linkedin Tags Expert Opinion Written by: The Startups Team
Sickness absence: how the UK can do better Employment lawyers, Winckworth Sherwood, explore strategies employers can use to mitigate the risks and cultivate a healthier, more productive workforce. Written by The Startups Team Updated on 7 November 2023 News of UK sickness absences reaching their highest level since 2004 will make uneasy reading for employers, with 2.6% of total working hours lost last year. Around 185.6 million days were lost due to sickness in 2022, which is the highest level on record, with a notable rise across all age groups. Such worker malaise raises fresh questions about the state of employee health and its impact on the UK economy. Absenteeism can cost the UK £14 billion annually. Encouraging remote and flexible working modelsOne potential solution is the implementation of remote and flexible working models, with their viability highlighted during the pandemic. Such approaches can help employees maintain a better work/life balance while minimising the risk of spreading illnesses. Legally, employees now have a right to request flexible working from day one of their employment and can make up to two requests during a 12-month period. The flexibility of home working can alleviate the stress of commuting, create a more comfortable working environment, and allow workers to build their lives around lifestyle or childcare commitments. 1 in 4 UK workers still work a hybrid working week, with 78% reporting an improved work-life balance. Flexible working can also include flexitime, in which an employee can start earlier or later than ‘core working hours’, and compressed hours, where an employee fulfils full-time hours over a reduced number of days. The four-day working week: a worthwhile experiment?The employment landscape abounds with companies trialling the four-day working week with no corresponding reduction in pay. Of the 61 companies who participated in the country’s largest pilot program, 56 have opted to extend the new working pattern. Employers cite benefits as more productivity and enhanced business performance. Typically, happier, more fulfilled employees are more focused and efficient in the workplace, while rested minds may be better when it comes to innovation and creative tasks. The model will free up more time for employers to prioritise their mental health and wellbeing. Mental health is the leading cause of long-term sickness absence, so affording employees more time to rest and recharge after a long break can reduce stress levels and their accompanying absences. Of course, the four-day week doesn’t come without its pitfalls, so employers will have to weigh up whether it works for their business. For instance, some companies simply won’t have the correct infrastructure or culture in place. Take time to weigh up the pros and cons and assess whether you can properly service your clients within that time. An option could be to stagger the days across your workforce so you can remain open five days a week. Incentivising employee welfareEmployers have a crucial role to play in fostering a culture of wellbeing, and improving employee welfare can be a powerful step towards reducing absenteeism. According to the ONS, the occupation groups with the highest absence rates are those in caring, service, elementary and administrative positions. These may typically include repetitive, sedentary or overly demanding tasks. Make sure to support your workforce with frequent breaks, access to mental health resources and wellness programmes that promote physical activity and healthy lifestyles. Can the UK learn from the rest of the world?UK employers may do well to take inspiration from our European neighbours, such as the Scandinavian countries, who are frequently cited among the happiest regions to live and work. Scandinavian countries typically emphasise a healthy work/life balance with shorter working weeks, longer holiday periods and generous annual leave. Flexibility is also a cornerstone of their work cultures, with employees often given the freedom to adjust their work hours to accommodate personal needs or family commitments. The focus is on a results-oriented approach that prides the quality of work over hours spent in the office. This flexibility not only enhances work-life balance but also allows individuals to work when they are most productive – for instance, early in the morning or evening. Winckworth Sherwood - Employment lawyers A full-service law firm with a diverse client base, Winckworth Sherwood prides itself on providing market-leading advice across a broad range of sectors and markets. Winckworth Sherwood Share this post facebook twitter linkedin Tags Expert Opinion Written by: The Startups Team
Embedded finance is the innovation SMEs need for 2024 Ivo Gueorguiev explains why embedded finance is the best way for firms to fortify for challenges on the road ahead. Written by The Startups Team Updated on 7 November 2023 Digital transformation is revolutionising every aspect of our lives, and the financial services industry is experiencing the impact daily. Embedded finance, a term often used to describe the integration of financial services into non-financial platforms, is causing a seismic shift in how end users interact with money. Despite the change, fintechs and incumbent banks alike have focused predominantly on the consumers. As a result, we have seen a wave of neobanks with niche propositions targeting individuals. The current government says it is committed to putting small and medium-sized enterprises (SMEs) at the centre of its economic policy to revive Britain. Yet, SMEs and their loyal customers continue to face a lack of digital banking and other financial services tailored to their ever-evolving needs. The role 5.6 million SMEs play in the UK economy means the disconnect could cause missed opportunities, hinder growth, and lose the nation’s competitive position. As inflation still weighs, the need for innovative solutions is more urgent than ever.Recent estimates suggest that UK brands stand to gain a staggering £230bn windfall from embedded finance. Here’s how else the project could support SME growth in the next 12 months.Flexibility in an uncertain environmentSMEs have struggled to access a wide range of financial services that meet their unique needs compared to larger businesses. They are overlooked by traditional financial institutions and face complex, time-consuming finance processes, high fees, and limited access to credit.Embedded finance is a game-changer for SMEs. It bridges the financial services gap by offering SMEs access to products and services directly within their existing business tools and platforms. Imagine a small retailer seamlessly processing payments, applying for a business loan, and managing payroll all from a single platform. Merging services simplifies financial management, reduces costs, and enhances overall efficiency.Furthermore, embedded finance solutions can be designed with the specific needs of SMEs in mind. They offer scalability, flexibility, and affordability – results which are critical for smaller businesses with fluctuating financial demands. Whether handling everyday transactions or planning for expansion, SMEs are empowered by these solutions to make informed financial decisions and grow with confidence.Recession-proofingSMEs have long fought against a lack of support from their banks, with almost three in four saying they struggle to secure a meeting with their bank or financial manager, leading to delays in their business plans. Embedded finance can automate the routine steps when engaging with banks by integrating financial tools seamlessly into operations. Users can set up automated invoicing, track expenses, and reconcile accounts in real time. These automation features save time and reduce the likelihood of costly human errors.Moreover, embedded finance solutions provide SMEs access to sophisticated data analytics tools. SMEs can gain deeper insights into their financial performance, customer behaviour, and market forecasts. For instance, they can analyse sales trends, identify loyal customers, and optimise inventory management. With this knowledge, SMEs can make data-driven decisions, optimise their strategies, and respond more effectively to changing market conditions.Smarter financial planningEmbedded finance isn’t just about making existing financial services more accessible. Beyond the basics of payments and loans, embedded finance solutions can offer value-added services that transform financial planning and forecasting.With 82% of SMEs saying the cost of living is negatively impacting them, embedded finance can help create a robust financial plan. With forecasting tools, SMEs create realistic budgets, set achievable financial goals, and track progress. This proactive approach to financial management empowers SMEs to make strategic decisions that align with their long-term vision.Additionally, embedded finance solutions offer personalised recommendations based on the financial data of SMEs. These can cover everything from cost-cutting strategies to investment opportunities, enabling SMEs to optimise their strategies and spot new growth opportunities. Access to capital and the cost of borrowingAccess to capital has long been a major pain point for SMEs and impeded growth. Traditional lending institutions often demand extensive paperwork, collateral, and impeccable credit histories. Historically, this approach has excluded many SMEs from accessing the funds they need to succeed. Embedded finance disrupts this status quo by providing alternative funding sources that are more accessible and flexible. SMEs can tap into a broader range of lenders, including peer-to-peer platforms and fintech companies with embedded finance solutions. These platforms leverage data-driven algorithms to assess creditworthiness, making borrowing decisions faster and more inclusive. Additionally, embedded finance solutions can democratise and scale innovative lending models for SMEs, such as revenue-based and invoice financing. These models provide SMEs with options that align with their cash flow and revenue patterns. Revenue-based financing allows SMEs to repay loans based on a percentage of monthly revenue, making it easier to manage repayments during periods of fluctuating income.The road aheadWith almost 20% of new businesses failing in their first year, SMEs need value-added services and improved access to capital more than ever.Embedded finance has the potential to reshape the financial services landscape for SMEs similarly to what it has done for consumers. As it continues to evolve, SMEs that embrace the solutions will not only adapt but also thrive and defy the odds in a fiercely competitive business environment. Ivo Gueorguiev, co-founder of e-money service provider, Paynetics Gueorguiev is a seasoned investor and banker who co-founded а pioneering retail banking group in Central and Eastern Europe. Before that, he helped establish a new financial era in post-Cold War Central & Eastern Europe. A business builder rooted in financial services, he is currently on a mission to redefine payments and built from scratch a group focused on retail banking in CEE and was previously a senior banker at the EBRD. Share this post facebook twitter linkedin Tags Expert Opinion Written by: The Startups Team