New UK tipping law to return £200m to hospitality workers each year A new law is pending in the UK that will benefit hospitality workers currently missing out on service charges. Written by Stephanie Lennox Updated on 15 May 2023 After years of campaigning by trade unions and hospitality workers, a new UK tipping law has been passed that will ensure service charges go directly to the employees who receive them. The Employment (Allocation of Tips) Act 2023, which received Royal Assent last week, will come into effect in 2024 and is expected to put £200 million back into the pockets of workers each year.The new law aims to address the long-standing issue of employers deducting service charges from tips and gratuities, leaving workers with less than customers may believe they are receiving. Under the new legislation, businesses will be prohibited from withholding any part of the tips, gratuities, or service charges paid by customers, and must ensure that the full amount goes directly to the workers who provided the service.How the new tipping law will workThe new tipping law aims to end the practice of employers withholding tips and service charges from their staff. Under the new law, all tips and service charges will belong to the employees, and businesses will not be allowed to use them for any other purpose. The law will apply to all hospitality businesses, including restaurants, bars, and cafes, and will cover all staff members, including those on zero-hour contracts.The passing of the act into law has been widely welcomed by trade unions, worker organisations, and advocacy groups. They believe that it will significantly boost the earnings of hospitality workers, many of whom are on low wages and rely on tips to supplement their income.According to a survey by payment provider Square, contactless tipping rose by 33% since the start of the COVID-19 pandemic, as customers look for a way to show support for hospitality workers while reducing physical contact.Impact on hospitality business ownersThe new law should ensure that staff’s hard-earned service charges are not used by their employers to supplement their business revenue. Understandably, this may not be seen as an immediate win by some who are running restaurants, bars and cafes.There will be some new considerations for business owners in the hospitality trade. For instance, the law requires that businesses display their tipping policies clearly, including information on whether tips are shared among staff or kept by the individual who provided the service.Here are some essential things for hospitality business owners to keep in mind:Be open with your customers: It will be a legal requirement to display your tipping policies, but also consider this an opportunity to engage your customers with your brand values and how you treat your staff.Be open with your staff: Explain the changes for them clearly and be ready to tackle any likely questions about when the change comes into effect for them.Consider getting in ahead of the 2024 law change: If they don’t already, it may foster goodwill with your team to ensure they get their service charge sooner than the legal requirement date. This will avoid a sense that you’re simply doing it out of obligation.Be conscious of cash flow: Understandably, this is a painful time for business owners to lose a share of their income – even if a service charge might be a debatable source in the first place. Stay on top of your cash flow forecasting and be more conscious than ever of our overheads and cost of goods sold. With some tough months still to come in an uncertain economy, it’s essential to ensure you’re spending wisely and maximising your returns.Find savings where you can: Take a moment to compare the fees on everything from the restaurant POS system you use, to the business electricity supplier you’re contracted to. Finding a better rate or more appealing contract could help you make up for a shortfall in restaurant takings. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Inside the inclusive London cafe where the only rule is that employees must be kind The Fair Shot Cafe brews up more than just coffee - its inclusive workplace training scheme provides work opportunities for people with learning disabilities. Written by Stephanie Lennox Updated on 15 May 2023 Nestled down a quiet street in Covent Garden, just a minute’s walk away from the bustling underground station, sits a very different kind of coffeehouse.Part-business, part-social experiment, Fair Shot Cafe’s mission is simple: transform the prospects of people with learning disabilities and Autism Spectrum Disorder (ASD). Through valuable skills training, apprentices are given the experience they need to enter into long-term, sustainable employment.Founded by CEO Bianca Tavella in 2019, the social enterprise has since kickstarted the careers of 21 young adults – as well as opening its doors across multiple central London locations. Still, there remains a family feel to the newest Fair Shot home on Slingsby Place.Graduation pictures from the first two cohorts of trainees line the walls (the third, 15-person cohort began in September), alongside a mixture of cheerful potted plants.Standing ready at the till is its server, Thomas Coombe-Tennant. At Fair Shot, trainees rotate to a different station each day to ensure they develop a breadth of catering skills. Support is available via a job coach who shadows their mentee and helps with tasks or communicating with customers, if required.Thomas tells Startups he has learnt a lot during his time at Fair Shot, and wants to be a barista in his next job. “I really like working here, and I have made lots of friends,” he smiles. “I have learnt listening skills and how to speak up.”Fair Shot trainee, Thomas Coombes-TennantStaff work alongside the trainees, providing support. There is no division here: visitors are invited to interact with trainees and assist with their customer service training. Such visibility was important to Tavella.“I wanted to open a cafe because it was public facing,” she says. “I knew it would give people the opportunity to be part of the movement.”People with disabilities ‘shut out’ from employmentTavella was inspired to start Fair Shot after her parents helped to set up a support group for people with learning disabilities when she was a child. Employment for adults with a learning disability or ASD has remained consistently low for years.However, the latest government figures show that the rate had fallen considerably to 4.8% by October 2022. For the remaining 95%, the chances of finding work are slim without good quality learning and development support.Fair Shot aims to be the missing link between employer and job seeker. While programmes like the government’s Access to Work grant exist, this is exclusively for practical alterations like recruiting a BSL interpreter or adapting a vehicle.Fair Shot Cafe at Slingsby Place, Covent GardenFirms are expected to make ‘reasonable adjustments’ for disabled employees – including changes to the recruitment process – with minimal guidance. Fair Shot takes care of this part of the process, which can be daunting for those unacquainted.Tavella says there are a lot of misconceptions about creating an inclusive workplace that employers can wrongly buy into. In fact, she herself was unsure that the idea was possible.“I was constantly fed misinformation about people with learning disabilities and what they were capable of,” Tavella bemoans. “I had gone to similar cafes, but I’d never really seen the trainees fully do everything like they do here.”It was only after she successfully ran a taster session at West London College, and trained up 40 adults with learning disabilities for her workforce, that she knew the Fair Shot model had legs.Empathy is the best policyBuilding an inclusive workplace means first understanding the obstacles for workers with disabilities. These vary hugely depending on the individual. For example, language barriers will vary if a person has hearing impairments, is non-verbal, or simply prefers to use a different communication style.For Fair Shot, hardware has proven to be a surprisingly important tool. Tavella recalls taking a long time to find a POS system that could be accessible and easy for trainees to use.“I picked Square because it’s easy to add pictures or take photos of menu items,” she announces. “We have had trainees who don’t know how to read. Some trainees can be super focused on taking an order and might be non-verbal, meaning customers have difficulty following. The imagery makes the POS accessible and usable to them.”Bianca Tavella, founder and CEO of Fair ShotBut, as Tavella tells it: prioritising diversity, equity, and inclusion (DEI) in the workplace, such as through a neuroinclusive work policy, is not just about bringing in new technologies or processes.Equally – if not more – important is for staff to take an open-minded, empathetic approach to people management. In this way, the employer learns as much as the trainee.“With one of our trainees, we realised she needs a set structure for her day,” Tavella recounts. “So, every hour, the job coach made sure she did something different. That’s something that she can now draw up herself at the beginning of every shift.”Hiring is a similar story. Other than hospitality experience and a DBS check, the only requirement asked of Fair Shot employees during the interview stages is that they must be kind.“We want to create a forgiving and supportive environment,” Tavella explains. “Everything’s exactly the same for every person, we don’t use different calendars or machines. It’s the support and patience we offer in our person-centred approach that is unique.”Alba Bagueste has worked as a full-time employee at Fair Shot for 18 months. She says that the experience has shown her the importance of keeping an open-minded, varied approach to inclusivity.“Something that works for one person, will not work for another,” she elaborates. “Working here has really taught me how to adapt my communication style.”Alba Bagueste, Fair Shot employeePartnering for goodApplying this kind of bespoke coaching model is also what has given Fair Shot its most impressive statistic: 67% of all trainees were job ready after just one year of learning.That’s because the cafe’s goal is sustainable employment, not just a stamp on the CV. Rather than shoehorning apprentices into the first available job opening, Fair Shot instead collaborates with its employment partners to craft a position that considers a long-term, personalised plan.Tavella highlights an ex-trainee who has Down syndrome as an example. While the original goal was to hire a host-cum-coffee maker at a branch of Treehouse Hotels, the graduate’s chatty disposition saw him also being placed as a door greeter.Firms are often told that, to build a workplace that promotes DEI, they must invest in expensive hardware or third-party consultancies. But Fair Shot’s approach to hiring signals that an organisational culture promoting trust and respect is the real, base ingredient for partners.It might feel like a small step change. Still, that attitude shift is what Tavella sees as the secret weapon to promoting a fairer, more equal workplace.“I’m not only trying to give our trainees employment, I’m also trying to change people’s minds,” she says. “You can see the impact that we’re having already. Exposing people to that positive experience makes such a difference.” Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
New government bill proposes major changes to employment law The proposed 'Smart Regulation' bill is intended to cut red tape for businesses, but unions say it could put worker protections at risk. Written by Stephanie Lennox Updated on 15 May 2023 The Department for Business and Trade has announced it will scrap the EU’s Working Time Regulations 1998 (WTR), in a move which has major repercussions for small business employment law in 2023.Under the new plans, the government will remove the requirements for recording working time and reduce the complexity of calculating holiday entitlement.The government claims the reforms will take advantage of post-Brexit freedoms and remove red tape for business owners. Critics argue that the changes will make it easier for bad bosses to take advantage of their workforce.Below, we outline what the new policy is, and how it might impact your people management strategy.SMEs no longer required to report on working time hoursIn a policy paper, entitled Smarter Regulation to Grow the UK Economy, the Department for Business and Trade outlined major reforms to WTR. Notably, the removal of a retained EU law that requires working hour records to be kept for almost all members of the workforce.Under the proposals, the EU’s Working Time Directive will remain. The law limits UK employees to 48-hour working weeks – as well as how many hours workers can operate at night.The existing law does not currently apply to certain employment groups, such as those who are self employed. However, employers who do currently follow working time rules will no longer be required to keep records to ensure that the time limit is being followed.Certainly, the reduction in administrative requirements is welcome news for small business owners. If employees are currently tasked with logging their working hours, removing this activity will free up more time to carry out other activities that add value.There is also a financial incentive. Currently if working hour records aren’t kept then the risk to employers is an unlimited fine.Nonetheless, the reforms will also make it easier for negligent bosses to overwork their employees. Paul Nowak, general secretary of the Trades Union Council (TUC) criticised the government’s stated aims, calling them “a gift to rogue employers looking to exploit workers and put them through long, gruelling shifts without enough rest”.Last year, we cautioned against a bonfire of regulations that the government had planned, which would have seen thousands of employee protections instigated by the European Union revoked at the end of 2023.Whitehall has since backtracked on this declaration, but the ‘Smarter Regulation’ bill shows that some laws are still at risk.Holiday pay changes could mean increased productivity, but worsened health and wellbeingThe bill also recommends the introduction of rolled-up holiday pay for UK workers. If holiday pay is rolled-up, employees are routinely paid an additional sum of money with their basic wage.The resulting payslip is labelled as “holiday pay”, even though the employee is not actually taking any time off. When the staff member actually comes to take a holiday, they are paid nothing, as they have already had the money.Workers taking their holiday as pay, without taking the days off, potentially means increased productivity for the business. Particularly in the current economic climate, employees on lower salaries often do not want to take their leave if the cost of being off work is higher.However, certain firms will find the proposed changes thornier than others. Practically speaking, employment contracts will need updating. Small firms with operations in the UK and EU will have to think about different approaches to how holiday pay is calculated.Rolling-up holiday pay was also previously ruled illegal in 2006 (except for in specific cases such as zero-hours contracts). The practice was deemed to dissuade employees from taking adequate rest time unless they have budgeted carefully and saved their holiday pay.This can be disastrous for mental health and wellbeing, and is more likely to lead to stress and burnout.To encourage individuals to take sufficient time off, best practice is for employers to pay staff when holiday is taken, rather than spreading the costs out over the year.New bill is good news for temporary workersOne advantage of the proposal is that it will make the confusing holiday pay claims process simpler for temp employees.In temporary employment, workers are contracted only for a specific period of time. For example, fixed-term, project- or task-based contracts, as well as seasonal or casual work like day labour.It has been estimated that millions of pounds of holiday pay has been left unclaimed because temps didn’t realise they were entitled to it when their contract came to an end.Julia Kermode is founder of IWORK, the body that champions temporary and independent workers. Praising the announcement, Kermode said: “At a time when every penny counts, the move to roll up holiday pay will help hundreds of thousands of temps make ends meet.”Demand for temporary staff has been steadily increasing for UK businesses, as lingering uncertainty around the economic outlook sees companies avoid committing to long-term contracts.According to a survey from KPMG and the Recruitment and Employment Confederation (REC), temporary job roles in the UK have surged from 52.5 points to 53.3.In the current financial climate, recruiting temp staff brings benefits aplenty for businesses. Temporary employees can be recruited quickly and easily to cover absences such as long term sickness, maternity or paternity leave, and sudden departure. Post-Great Resignation, as firms grapple with high staff turnover, this is particularly beneficial.Small business owners should consider full impact of changeAnything that might affect employees’ wages, working patterns, and wellbeing requires careful consideration from business owners. For the moment, the more complex elements of the policy – who it will impact, how strictly it will be enforced – are unclear.The government claims the changes will help to save small businesses an estimated £1 billion per year by shortening admin processes. That will not be the case for every business, however.Those with operations or employees in both the EU and the UK will surely find the system more confused than ever. Stickier areas of people management, such as unpaid leave or those with a flexible bank holiday policy, will also be difficult for employers to plan for if holiday pay is rolled-up.We recommend managers take the time to properly review the policy and how it might impact every individual in the business.There are benefits for SMEs to enjoy from the Smarter Regulation bill. But they must be balanced out by a nuanced, transparent approach that keeps the employee, not the employer, at the centre. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
#Quittok: why are young people quitting on TikTok? With over 46.9M views on TikTok, the hashtag #Quittok shows young people quitting en masse from their toxic workplaces. What can SMEs do? Written by Stephanie Lennox Updated on 15 May 2023 Frustrated Gen Z employees are quitting and exposing their toxic jobs live on TikTok, hinting at a generational disconnect between companies and their young workforce.Whilst some workers still opt for the traditional method of sending a nicely worded notice email , Gen Zers are opting for sitting in front of a camera and airing their work grievances.These live quitting videos often gather thousands if not millions of views, suggesting lots of other young workers relate to feeling trapped in toxic workplaces.Research by Rethinkly reveals over a quarter (28%) of Gen Z employees feel they have no voice in the workplace. Further, 23% of Gen Zs confess enduring unmanageable stress and 98% say they are dealing with symptoms of burnout.Gen Z is expected to make up 27% of the workforce by 2025 so the issues exhibited on TikTok need addressing.Where does the workplace disconnect come from?Although recent research shows that 74% of business leaders believe Gen Z is more difficult to work with than any other generation, this can be misleading.Llive streaming quitting your job is symptomatic of when Gen Z entered the office. Many young workers started their careers online after completing their degrees virtually due to the pandemic and subsequent lockdowns.Having to transition between working virtually and coming into the office, experts say young workers struggle to navigate interpersonal relationships, the etiquette of work friendships, and professional boundaries.According to LinkedIn research, 18 to 25 year olds are the least confident of all generations in their current job or role. Further, a global survey of 10,000 workers found that Gen Zers were unable to switch off from work compared to other groups.Lack of understanding from older managers can quickly yield frustrated employees and even public resignationsAccording to Andrew Jackson, co-founder of Rethinkly, “this behaviour is most likely the result of a negative company culture in which mutual respect and communication have completely broken down.”Bridging the generational gapWhat can businesses do to stop frustrated employees from hitting ‘record’ and quitting en masse? The key lies in creating spaces to understand why employees are unhappy and what can be done about it.“Companies must consider all of the tools and processes they have in place to ensure employees have safe spaces to air their concerns in a healthy way before reaching this point,” advises Jackson.“It has never been more important for organisations to create the best working environment possible to prevent this from happening.”Gen Zers have taken to social media to quit in part because they’re digital natives, but importantly, because it’s a platform where their complaints feel validated.If a platform can be created internally in a company so that employees feel comfortable unveiling their work grievances, lots of potential Quittok videos could be deterred. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Small businesses experiencing hiring regret amid skills shortages Small businesses are regretting hiring three new recruits a year, on average, as outdated hiring practices see employers attract ill-suited candidates. Written by Stephanie Lennox Updated on 15 May 2023 Businesses with 1-49 employees will hire three unsuitable candidates this year, on average, costing them thousands in recruitment fees and productivity losses.Global hiring platform Indeed surveyed 1,000 business owners to explore the number of incompatible appointments a firm makes each year. Results indicate that a tenth of small companies will make five mis-hires annually, on average.Facing mounting worker shortages, SMEs are growing increasingly desperate to find talent. Indeed’s research is a reminder to employers that, if taking a chance on an ill-matched applicant, the financial risk of getting it wrong could outweigh the potential benefits.Business owners are now being advised to probe their hiring process for areas where unsuitable candidates might be slipping through the cracks.Inefficient recruiting makes a bad hire harder to spotWe previously identified overly-long application processes as one of the top job advert mistakes that are putting off candidates. Now, it seems that the issue is also frustrating business owners.More than half (55%) of all employers said hiring is inefficient with the most common complaints about the traditional model being that the hiring process took too long (68%).Two thirds (67%) of companies said mismatched candidates got too far in the process.Candidates rejected in the latter stages of the hiring process were more frequently turned down for technical reasons such as right-to-work issues (38%), which could have been identified earlier using right to work checks.Employers are increasingly searching abroad for talented candidates due to a shortage of skilled labour in the UK. Earlier this year, Startups research showed that searches for overseas work visas had hit a record high as many organisations look further afield to recruit for sought-after skill sets.Salary ambiguity causes mismatchesThe survey also revealed the most common reasons why applications broke down. Most cited were salary expectations (37%), expectations of role (37%) and lack of hybrid working options (35%).Lack of transparency on salary, or available benefits and perks like flexible working, is often another complaint from job seekers. Startups heard from Dan Hudson, founder of the careers app GiGL, who says employers who leave off this information must take the blame for creating an inefficient process.“[Remuneration] is the most popular thing that candidates look at when they look at an employer profile,” Hudson reveals. “Salary and the benefits are at the top of the list of questions that candidates ask about. Why would you not give the information?”What is the cost of a bad hire?The cost of a bad hire is estimated to be three times higher than the salary paid. This penalty is especially devastating for small businesses, which tend to have smaller cash reserves than large-scale employers.Based on the annual salary for a worker being paid the Living Wage (£19,000 per year before tax or pension deductions), the estimated fee facing SMEs for three bad hires a year is £57,000.Inflation has left today’s economy dangling at the edge of a recession. SMEs are being forced to contend against countless financial pressures including record-high energy bills. In this context, hiked staffing costs is a major cause for concern – particularly as statistics show planned redundancies have grown to near COVID levels.Raj Mukherjee, EVP and General Manager at Indeed, said: “The cost of making the wrong hire can be measured in hours lost and financial loss from open roles, neither of which any business can afford.”Stronger brand identity could be key to finding the ‘right’ candidateThe Indeed survey suggests small businesses identify mismatches a third quicker than larger companies. On average, SMEs took the shortest time (12 days) to realise a new employee was unsuitable for the role compared to 18 days for large businesses.Inadequate soft skills (50%), such as communication and team working, were identified by small businesses as the biggest cause of mismatch, beating role-specific hard ones.Listing company values is one way to emphasise organisational culture and provide a clearer definition of the skills needed to succeed in a role – a mutually beneficial step that will help the job seeker as well as the recruiter.LinkedIn says it has observed a 154% increase in values-related terms on entry-level job posts between 2020 and 2022. This is likely due to meaningful work (roles that align closely with a person’s own beliefs and ethics) becoming a greater priority for employees.Job descriptions should communicate the behaviours bosses most value in an employee, like honesty and empathy. This will provide important context for the candidate on whether they will work well with coworkers and managers.More on this: could small businesses use AI to plug worker shortages? Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Hiding in plain sight: is AI really taking over without businesses knowing? As AI becomes increasingly more normalised, it's likely your business has been using artificial intelligence without even knowing it. But does this mean that AI is quietly taking over and what does it mean for small businesses? Written by Stephanie Lennox Updated on 15 May 2023 According to government statistics, 34% of medium sized companies and 15% of small businesses have already adopted at least one type of artificial intelligence technology.Research by Pragmatiq found that business management, ecommerce, and marketing are where AI is most used, whether businesses are aware of it or not.These statistics follow predictions of vertiginous growth in AI technology usage, with annual expenditure expected to surpass £35 billion by 2025.AI is also predicted to eliminate 85 million jobs and create 97 million new roles by 2025.Is artificial intelligence taking over?As dystopian as these statistics sound, according to a Department of Science, Innovation and Technology report, the AI revolution will be a gradual shift rather than a technological Big Bang.For instance, there is still widespread reticence towards the adoption of AI technology due to knowledge gaps and low public trust.The government is currently working on bridging this trust gap through its strategy outlined in the AI whitepaper, which aims to create a robust policy program to regulate AI.Moreover, skills gaps are making it harder to hire the right people to use the new technology. In fact, only one in ten global workers have in-demand artificial intelligence skills.Nevertheless, there is an acknowledgement that AI represents opportunities for growth. According to government figures, 269 new AI companies have been registered on average each year since 2011.AI companies also generated £10.6bn in AI related revenues, employed more than 50,000 people in AI related roles, and secured £18.8bn in private investment since 2016.Where do small businesses sit?Although AI’s adoption is gradually growing and generating profit, only 39% of small businesses believe it will have a positive impact.This is due to the funding and product development gaps that SMEs run into when implementing AI projects, leaving the big cake slices to large enterprises.Of the 3,710 UK AI companies that are currently registered, 28% were small businesses and 60% were micro businesses. However, 71% of all AI revenue (£7.6bn) was generated by large firms despite just making up 4% of the AI business population.Small and medium sized companies together account for just over a quarter (£2.8bn) of AI revenue.The skewed contribution between SMEs and big tech reflects how disparately capital is allocated. Most importantly, it illustrates the risk aversion that still handicaps SMEs seeking venture capital investment in the UK.As a result, AI SMEs are pushed to rely more heavily on external finance to support AI product and service development. Democratising the AI revolutionThe spread of AI is arguably unstoppable. However, it would seem small businesses are quite rightly worried about being given a mere supporting role in the start of a new technological era.An academic stakeholder, providing a statement for the DSIT report, said, “As a sector becomes more aware of AI and use cases, you will start to see more people dabbling, that will catalyse others.”However, in order for this to occur, sectors need funding and access to the right tools. Feedback from stakeholders and businesses in the DSIT report suggests SMEs need funding, the right tools and more public sector contracts to generate greater adoptionWhether it’s by improving access to R&D tax cuts for small businesses or providing more support in securing venture capital for AI-related projects, policymakers have an important role to play in democratising the adoption of AI in the UK. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
UK companies that have introduced a four-day work week Job seekers are increasingly prioritising flexible working for the many benefits it brings. Written by Stephanie Lennox Updated on 15 May 2023 The traditional 9-5 is dead. Four in five UK businesses now believe flexible working is critical to success. With previously progressive policies like remote working now the norm, the top employee benefit in town is the four-day work week.After the success of two six-month trials in 2022 and 2024, more businesses are seeing the benefit of four-day work weeks. And while not completely common, the demand for flexible working, changing employee expectations, and high competition for talent mean businesses are rethinking how work gets done.Below you’ll find a list of the organisations that have introduced reduced hours, without a loss of pay, in the last two years. We’ve also catalogued seven case studies from early adopters to give curious small employers a better understanding of how the policy works in practice. This article will cover: UK companies that have introduced a four-day week 7 inspirational examples of businesses with a four-day week (and what you can learn from them) What is the four-day work week? UK companies that have introduced a four-day weekTo help business owners stay on top of the trend, we’ll be keeping the list below updated with news from any UK employers that implement or pilot a four-day working week.Hackney HouseIn September 2025, it was reported that interiors brand Hackney House had permanently moved to a four-day working week and was accredited as a “Gold Standard” four-day week employer by the 4 Day Week Foundation.As part of this move, the company announced its “Nature Fridays” initiative, encouraging employees to spend time in nature, as well as improve wellbeing, creativity, and productivity.Concrete YouthConcrete Youth is a sensory theatre for people with multiple learning disabilities. In April 2025, the business announced a four-day work week for employees to improve work-life balance and wellbeing, as well as offering the Real Living Wage for all staff and freelancers.Joe Ryle, Campaign Director of the 4 Day Week Foundation, said: “With 50% more free time, moving to a four-day week gives workers the freedom to be able to live a happier and better life.”Camloc Motion ControlLeicester-based manufacturer Camloc Motion Control permanently adopted a four-day working week in March 2025, with employees working Monday-Thursday from 8:00am to 5:15pm. According to the company’s press release, findings reveal that a four-day work week lowers carbon footprint (due to less commuting and reduced factory floor and office operations), a healthier work environment, and improved productivity.“By allowing our team more time to rest and recharge, we’re creating a working environment that promotes focus, creativity and job satisfaction – all the elements essential in delivering the high standards of customer service we strive for,” a Camloc spokesperson said.Custom HeatAfter a successful trial, heating and plumbing company Custom Heat adopted a four-day work week in March 2025.The company says the trial not only improved employee wellbeing, but also gave it a competitive edge in attracting talent, as job applications advertising this benefit surged by 250%. Meanwhile, staff turnover had dropped by 67%.PR DispatchLondon-based PR company, PR Dispatch, transitioned to a four-day week in November 2022. Every Friday, the office shuts down to ensure staff can benefit from the flexibility of a three day weekend.Founder, Rosie Davies-Smith told Startups: “By Thursday evenings, I’ve realised that I’m crossing off more tasks on my to-do list, thanks to increased focus. I’ve observed an overall increase in productivity among the team, which has positively impacted PR Dispatch’s output.”AwinOne of the largest employers to test out a four-day work week last year was the global affiliate platform Awin, which employs over 1,300 people. Following the trial, 94% of employees felt their work-life balance had improved. Most excitingly, business profits grew by 13%. Awin gave staff the option to work a flexible week in February 2023.CamlasWelsh PR firm, Camlas, became the first public affairs company in Wales to introduce a four-day week in May 2023 following a successful trial. The company says it hopes the new way of working will help staff keep a successful “work-life balance” and thrive “both professionally and personally”.Bex Design and PrintIn June 2023, industrial printer Bex Design & Print announced that its print factory in Calne, Wiltshire, would completely shut down to save electricity, reduce employee car journeys, and improve productivity. Managing director Mel Conway added: “Giving our factory team a three-day weekend means they can come back to work every Monday feeling refreshed.”Springbok AIAlso in June 2023, Springbok AI, a leading AI consultancy, announced it would implement 4-day working week for staff. The move follows the success of a year-long pilot that resulted in a 16% increase in employee wellbeing.Victoria Albrecht, CEO and Co-founder of Springbok AI said: “This move reaffirms our commitment to innovation and underscores the importance we place on our people’s wellbeing.”Tyler GrangeTyler Grange, an environmental consultancy firm based in London, announced it would implement a four-day week in June 2023 after a successful trial run in 2022.In a blog explaining the decision, co-founder Simon Ursell said: “We found a four-day week is more productive, we do about 106% of the work in four days that we used to do in five. And that’s because we are better at it, not because we are compressing hours.”BE YELLOWPR and marketing agency, BE YELLOW announced staff would all work a four-day week from day one of employment in July 2023, giving employees one day a week to focus on professional and personal development.Speaking to Startups about the benefits of adopting this shortened schedule, BE YELLOW co-founder Hayley Knight revealed: “I have noticed reduced stress levels, increased happiness, and more time for creativity and developing ideas for my clients, as well as more time for my loved ones.”LunioManchester-based software company Lunio announced it had adopted a four-day week in March 2024, following a successful trial period carried out last year.Commenting on the decision, Beth Lang, who is Head of People at Lunio, said: “Once we were in the middle of our trial and hitting our targets, still covering everything that needed to be done each week, a 4-day work week was basically a done deal.”Fletcher’sPopular Plymouth-based restaurant chain, Fletcher’s moved its front-of-house staff to a four-day week in late May 2024, in order to give workers a better work-life balance.Owner Fletcher Andrews said the change was also in response to inconsistency in bookings, which has seen Tuesday and Wednesday become less popular among patrons.WBR GroupThe Bolton-based firm, a provider of SSAS services, announced in early June 2024 that it has adopted a four-day week with no loss of salary, after a successful trial in January.According to The Business Desk, WBR’s feedback shows that employees are using their new-found time to embrace creativity, innovation, education, family time and rejuvenation.Almond FinancialIn January 2025, the Lincoln-based financial advisor said it will introduce a four-day week this year. The change will see the office close on Fridays, without a reduction in earnings for staff. Commenting on the news, Principal Financial Advisor, Sam Robinson, argued that, “innovative working practices can succeed in finance when properly implemented”.Other UK companies that have adopted a four-day week include:3D Issue448 Studio5 Squirrels Ltd64 Million Artists92 MinutesAccurise LtdAcuity SolutionsAdvantage Business PartnershipsAdvice CloudAdvice Direct ScotlandAgile Communication AgencyAgricultural Recruitment SpecialistsAKA Case ManagementAlliance Publishing TrustAmity Community Action CICAndy Matthews StudioArts Marketing AssociationAscendancyAtlas TranslationsAWOAwscapeBaker ConsultantsBarefoot ArchitectsBarking and Dagenham GivingBedrock LearningBiBOBig Potato GamesBimble SolarBJP Consulting Group LtdBlinkBookishlyBoxfishBrandPipeBreaksBrett Nicholls AssociatesBritish Ecological SocietyBritish Society for RheumatologyBrookButcher Bayley ArchitectsCairn EcologyCamlasCauseway Irish Housing AssociationCentre for Local Economic StrategiesCentre for Thriving Places LtdCharity BankCitizens Advice GatesheadCity to SeaCivoClimate Policy RadarCMD: Studio (Villainous Games Studio)CMG TechnologiesCobryColtech GlobalCommon KnowledgeCooked IllustrationsCounting King LimitedCRASH ServicesCreatioCrystallisedCyber and Fraud Centre – ScotlandDash Accounting ServicesDataLaseDigiLabDigital Guerrilla ConsultancyEarth Science PartnershipEarthlyEast Marsh UnitedEdith Garland ArchitectureElektra LightingElement FourElliott & Company Consulting EngineersEnergiesprong UKEpic HREscape the CityEscentralESG GamingEsteem TrainingEverydayEvolved SearchFLOCCFMC TalentFormedixFortem PeopleForthstarForward CarersForward SpaceFour Day Week LtdFurness Insurance ServicesFuture Economy ScotlandFuture ProjectsGeeks For Social ChangeGiant DigitalGirling Jones LtdGlobal Partners DigitalGood Ancestor MovementGracefruitGreenpostGround And Project Consultants LtdGungho MarketingHappyHearFocusHello Heat PumpsHello StarlingHighfield Professional SolutionsHighgate IT SolutionsHutch Games LtdIndependent Food Aid NetworkInfigoIntercultural Youth ScotlandInterlinkJerba CampavansJMK SolicitorsKairos Women+Kinfolk Network CICLEaF TranslationsLegacy EventsLemongrass Marketing LTDLIT CommunicationLiteral HumansLondon FundersLoud Mouth MediaLoveGunnLUX – The Food & Drink AgencyMadeby.studioMaggie Chapman MSPMarketing SignalsMatthew Edwards & CoMATS ConsultancyMavin PowercubeMelville Housing AssociationMental Health FoundationMerthyr Valleys HomesMiddle Child TheatreMiddleton Co-operatingMoxMRL ConsultingMSDS Marine & MSDS HeritageMuckle MediaMutualMycoPunksNative EcologyNEONNeonhiveNew Economics FoundationNew Vision Digital MarketingNoteworthy Support LimitedOpportunity GreenOriel SquareOriginal Consultants LtdOrmiston Wire LtdPale Fox EsportsPaul David Smith PhotographyPaul Morgan & Associates WealthPeak PEOPeoplePlanning Aid ScotlandPlaudit AgencyPollard Media LtdPoolPortcullis LegalsPoterisPressure DropPrinciples AgencyPTHRPunch CreativePureFluentQuality of Life FoundationQueercircleRebootRed GiraffeResilience BrokersReward AgencyRichard John Andrews LtdRiseSafer FosteringSchucoScottish Community Safety NetworkScotland’s International Development AllianceScottish Green PartySecure Digital Exchange Limited (SDX Messaging)SensatSEOMG!Shout Loud SocialSidequest LtdSinister Fish GamesSocial Enterprise DirectSocial for GoodSofter SuccessSounds Like TheseSplit BananaSQSStagecastSTC ExpeditionsSTOP AIDSStreamGOStudio CottonSynergy VisionT-Cup StudiosTai PawbTailored ThinkingTBL Services LTDTalewindTarget Composites LtdTarget PublishingTeam Custard KrakenTeampointTechnoeventThe Agile Communications AgencyThe BeaconThe CircleThe UPAC GroupThe Young Women’s MovementThink ProductiveThis Is BeyondTHRYVETime AppointmentsTriberaTriggerTyler Grange GroupUnify Learning & DevelopmentUniqodoUPAC GroupVault City BrewingVenture StreamVerriBerriVetro RecruitmentWaterwiseWe Are PurposefulWeBuyVintageWelcome to the JungleWellbeing Economy AllianceWheringWhyfieldWolf & MoonWomen’s Budget GroupWoven Ink Studio LimitedXasoYnni Sir GarYou HR ConsultancyZettelerZync Digital 7 inspirational examples of businesses with a four-day week (and what you can learn from them)Some employers are ahead of the game. Here are seven companies that have been working a four-day week since pre-2023, and what they’ve learned from the experience.1. Atom BankIn November 2021, the app-based lender became the UK’s biggest employer to trial a four-day week. Testing complete, Atom Bank reported a 49% increase in applications for roles at the bank, and a 13% increase in employee engagement year-on-year. The bank’s 424 employees have since moved to working 34 hours for the same pay.Anne-Marie Lister, Chief People Officer at Atom bank, said: “We are a progressive bank and a progressive employer. Our experience in planning for and moving to a four-day week has shown that it is possible for businesses to do this and bring huge benefits to their people.”2. EarthlyStartups-100 firm, Earthly is a green technology platform that helps businesses remove at least one billion tons of carbon from nature by 2030. The company’s culture is similarly forward-thinking, with its employee base working 32 hours per week with no loss of pay.The perk has not been given in isolation, however. On top of this, every staff member is fully remote at the company and can choose to work flexible hours between 7am and 8pm.Earthly also offers generous maternal and paternal leave – two popular benefits and perks that are in high demand amongst working parents.3. JMK SolicitorsJMK Solicitors is one of the first employers in Northern Ireland to commit to and implement a four-day week for all employees, with no reduction in pay. Since January 2020, all JMK staff have had their work hours reduced from 37.5 hours to 30 hours with no loss of pay.Michelle Murphy, HR and Operations Manager at JMK Solicitors revealed that the shift had made the company more resilient to disruption caused by the pandemic, stating it “prepared our people for the tsunami of rapid developments that the COVID crisis brought about.”4. London Landmark HotelFive-star hotel, The London Landmark is one of the few hospitality firms that caters for a four-day week. Last January, executive head chef Gary Klaner unveiled the plans as part of a strategy to improve overall work-life balance for its chefs.For F&B businesses looking for inspiration, a smart recruitment strategy appears to have played a big role in the Landmark’s four-day success. In a press release, the hotel clarified that productivity was “maintained through a recruitment drive in January and February, which increased the number of kitchen staff that the hotel employs.”5. ScoroAs an end-to-end work management software, it’s only fitting that Scoro has made managing work-life balance equally simple for its 140 employees.In July 2022, after discovering how ‘unproductive’ Fridays were at the company (all system usage of Scoro’s platform goes down by 23% at the end of the week) every team member began working a 32-hour, four-day week. Crucially, with no drop in salary.Founder and CEO, Fred Krieger thinks collaboration software has proved crucial to this success. “As long as companies consider their processes, and use the right technology, transitioning isn’t only possible – but potentially the best decision a company can make.”6. SensatSensat describes itself as a data company that helps firms to ‘make smarter decisions’. The successful implementation of a four-day week proves it’s more than qualified to advise.Since March 2022, employees at the drone technology startup (which was also runner-up in our list of the top 100 startups for 2023) have enjoyed a 32 hour week on a full salary. It’s also had a hugely positive impact on organisational culture.Sensat cofounder, James Dean, told us: “Through hybrid working, working a 4-day week, and having flexible hours, amongst other initiatives, we see our people naturally adapting the way they work to suit how they can best create value every day.”7. Thryve TalentAs one of the fastest-growing global recruitment companies, we’d expect Thryve to be ahead of the game for flexible working.Employees at Thryve work 8 hours each day with no reduction in pay and no increase in the hours worked on those days. Despite working directly with clients, Thryve states that it has consulted with numerous four-day week experts to work out the best operational approach.Clearly, it’s working. The company is currently hiring for new roles, and it’s been certified Gold by 4 Day Week, a campaign group for flexible working. What is the four-day work week?A four-day workweek is a system of working where employees work full-time over four days, rather than the usual five.While still far from commonplace, the idea has gained traction this year after early adopters reported a huge number of benefits, with SME employees even willing to take an 8% pay cut for it.How does a four-day week work?Many managers think they already know what a four-day work week looks like. Yet there are plenty who get it wrong by confusing the reduced hours blueprint for compressed hours.For example, numerous large employers, including Metro Bank and Sainsbury’s, have introduced what they describe as a four-day week to employees. However, their staff must choose to work longer shifts to make up for their ‘lost’ fifth day. Some even specify that the benefit must come with a pay cut.This misunderstanding is quickly becoming an urban myth. That’s why our list above only includes firms which propose a permanent 35-hour (or less) four-day week. Crucially, with no loss of pay.How do I introduce a four-day week at my company?This is the exact question that today’s employers should be asking themselves.According to research reported by ACCA, 70% of employees and 79% of recruiters expect a four-day week with no loss of pay will be in place by 2030.Testing the strategy for yourself now, and discussing its strengths and weaknesses with colleagues, will ensure you maintain a competitive recruitment edge over rivals – who are almost certainly hosting similar conversations.Certainly, we don’t recommend introducing a four-day work week without having a proper plan and strategy in place. Applications like free project management (PM) software can be used to completely manage the transition.Business leaders can use a PM system to plot out milestones and objectives, as well as monitor progress. They can then review the data to analyse the results and make a well-informed decision on whether to progress.Experts argue that new technologies could help to ensure a smooth transition to a four-day work week. Learn more about how to use AI to make four-day working a reality. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
The subscription business model: is it right for your business? Subscription models have increasingly become more popular and you might be thinking of adopting one. But is it right for your business? Written by Stephanie Lennox Updated on 15 May 2023 Whether it’s Netflix or Spotify, you can probably think of a couple of subscription business models off the top of your head. Their increased popularity is symptomatic of how great they can be for business, and most importantly, a powerful tool for growth. Therefore, if you’re thinking of converting your customers into subscribers, you’ve come to the right place.However, subscription models are trickier than just asking your customers to pay a certain amount each month. It takes careful market research, constant innovation, and an extra dose of savviness to know how to retain subscribers. In this guide, we’ll walk you through how the model works, its benefits, its drawbacks, and some tips to promote your business and make your subscription launch a resounding success. In this page What is a business subscription model? How do business subscription models work? Examples of business subscription models What are the main advantages and disadvantages? Essential tips for subscription businesses Conclusion What is a business subscription model?In a subscription based business model, customers – read ‘subscribers’ – are charged a recurring fee for access to a product, instead of paying once upfront. Subscribers can usually choose to pay the fee monthly or yearly. This might sound familiar because it’s likely you are a subscriber to at least one service or brand.The key thing to understand about subscription models is that they are focused on customer retention over customer acquisition. Rather than battling to acquire new customers every single time you launch a new product, with subscribers you’re simply trying to retain them. This is more cost effective and better for nurturing long-lasting customer relationships that give you a steady income stream.Since customers are repeatedly engaging with your brand through their subscription, you can continually capitalise on that growing customer relationship. For instance, you can easily show them how you’re adding value through updated and new products. How do business subscription models work?Business subscriptions models follow a pretty simple modus operandi. Subscribers are charged on a recurring basis for a product or service – for instance, £4.99 a month. Subscriptions are renewed and activated automatically with a pre-authorised credit card or current account. Most subscriptions can be renewed or cancelled at any time, giving subscribers more flexibility over how and when they want to engage with a brand.Although this isn’t always the case, subscription models can also be tiered, which determines the level of access customers have to a product or service. For instance, a premium subscription in a streaming service means you can watch Succession uninterrupted with no ads but a regular subscription will put an ad in every episode. Did you know? Gartner predicted that 75% of organisations selling direct to consumers would be offering subscription services by 2023. Examples of business subscription modelsBusiness subscription models are very versatile and can work for many different types of products or services. Some of these are purely digital services, which makes it a good option for nascent online businesses. Here are some examples:Streaming services: think Netflix, Hulu or Disney+. These are content streaming services that, for a monthly fee, will let you binge on any content you want. These models are very popular and made the buy-one-song-at-a-time and Blockbuster video models go out of business. This is probably the most recognisable type of business subscription model.Software subscriptions: rather than paying for a new and improved version of software every time it’s launched, a subscription model gives you consistent access. Giants like Adobe Creative Cloud and Microsoft offer this model, showing it’s a great strategy to retain customers by showcasing how their subscription saves them money.Food service subscription: for this type, think of groceries delivery box service HelloFresh. Subscriptions like these add value by providing access to niche products that cater to specific types of diets. The key to these subscription models is that they make the service feel more personalised to the customer.Monthly subscription boxes: this type of subscription monetises customer’s thirst for convenience. Every month, subscribers get sent a box with consumer goods like clothing or skincare products or anything else tailored to the customer’s needs. These boxes streamline shopping. What are the main advantages and disadvantages?Subscription based business models are not a panacea. They take careful thinking and have some drawbacks that might not make them the best fit for your business. Here are some points to consider.Advantages of subscription modelsRecurring revenue: since your customers are paying repeatedly each month or year, you can make a pretty reliable prediction of how much you’ll be making in each subscription cycle. This is great for when you’re trying to understand your budget as you’ll have a better idea of what resources you have at your disposal.They’re convenient for customers: the less effort there is involved in getting a high-quality product or service delivered, the better. Subscription models are a very convenient way of doing that. Subscriptions save customers from having to find new products and get them in a store or off a screen, which creates an alluring seamless customer experience.Stronger and long-term customer relationships: subscribers are returning customers who are constantly engaging with your brand. This earns trust in your brand since subscribers are accustomed to successfully working with you.The more contact, support, and high-quality service they receive from you through their subscription, the more likely it is they’ll become loyal customers.Reduces customer acquisition costs: rather than splurging on your marketing budget to attract new customers who don’t know your brand yet and may not be interested, you can focus your energy on your existing customers. This is more cost-effective and allows you to focus more on customer referrals.Opportunities for upselling or cross-selling: since subscription models can be tiered, you can easily try to convince subscribers to up their plan. The more customers can move between subscription options flexibly, the more likely it is they’ll want to pay a bit extra for a higher tier if the added features appeal to them.Disadvantages of subscription modelsRequires ongoing innovation → although in theory it is easier to retain than acquire a new customer, you need to give those existing customers a good reason to stick around. Whether this is by updating your software or implementing customer feedback into your product, you need to constantly find ways to show your subscription is superior to a competitor.Could attract low-quality subscribers → if your marketing funnel isn’t sharp enough, you could be attracting customers that just want to use your product for a month and decide to leave right after. For a business subscription model to work, you need to attract subscribers that want to engage with your brand long-term.High cancellation rate → customer churn is always something to consider when starting a business. You’ll need to factor in the possibility of customer turnover and what you’ll do to avoid high cancellation rates. For this, calculate your revenue forecast to be lower than your current number of subscribers. Essential tips for subscription businessesIf you’ve made it this far, it’s probably because you’re convinced that a business subscription model is for you. Here are a couple of tips to ace it:Calculate willingness to pay → doing your due diligence and in-depth market research is imperative before you decide how much you want to charge your customers. Make sure you have data to back up what your customers are willing to pay so that you’re not charging them too much or too little.Determine your goals early → getting your bearings set in stone before you launch your subscription model is crucial. Ask yourself what you want to achieve. Higher customer retention rates? Faster growth? A more stable revenue stream? Deciding on these will give you guiding metrics to assess the success of your subscription model.Make subscribing as easy as possible → no one wants to go through a five-page form to start subscribing to a service. All you want to do is give your name, email, and payment details to get started as soon as possible. If your customer onboarding is smooth , it’ll dissuade potential subscribers from giving up halfway through – or worse – flocking to the competition.Develop strong customer relationships → customers who aren’t happy or who aren’t reminded of the value your service provides on a regular basis won’t stick around. Make sure you highlight the perks subscribers get with their plan, offer new and innovative products, and train your customer support team to be top notch.Use a tiered subscription model → assuming everyone will buy into a one-size-fits-all subscription model is slightly naive. In an age where customers are expected to have personalised experiences and services, it’s important to factor flexibility into your subscription model. Have different options that offer different levels of access to your products. As an added bonus, have targeted special offers for different customers, like a discounted subscription for students.Have a free plan to lure customers in → although subscriptions are more cost-effective than paying a huge sum upfront, some customers could still suffer commitment issues when clicking the subscribe button. By giving them a chance to try out your subscription free for a month, they can have some time to get accustomed and be more willing to subscribe.You also must be aware of the UK’s new laws around online subscriptions. Check out our article on the new online subscription laws and the DMCC Act for everything you need to know. ConclusionSubscription-based models have become more popular for a reason. Not only are they convenient for the customer but they’re also healthy for business. Although they have their drawbacks, if you’re willing to innovate and sharpen your marketing funnel, you’ll be on the right track to launching a successful business model. Done right, you’ll find that subscriptions make it easier to retain customers and supercharge your revenue growth. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Revolutionising work culture: can AI make the four-day working week a reality? The four-day week could be the next big thing to shake up work culture – with the crucial help of artificial intelligence and automation Written by Stephanie Lennox Updated on 15 May 2023 The increasing adoption of artificial intelligence (AI) could be the key ingredient to boost the transition to a four-day working week, an HR expert suggests.Ayming’s HR Barometer 2023 suggests that 64% of organisations support a four-day week and this figure will increase as AI allows employees to do the same amount of work in fewer hours.Rising support for a four-day week follows a pilot where 56 of the 61 participating businesses announced they would extend the scheme after reporting a marked increase in productivity and job satisfaction.After the trial, 39% of employees were less stressed and 71% had reduced levels of burnout. Levels of anxiety, fatigue and sleep issues decreased, while mental and physical health also improved.Research shows that 7 in 10 employees intend to ask their employer to embrace the four-day week, showing that UK work dynamics could soon experience seismic changes.AI as a benevolent force?With the rising popularity of chatbots like OpenAI’s ChatGPT and Google’s Bard, the fear is technology will replace millions of white collar roles.PwC analysed 200,000 jobs in 29 countries and found that 3% of jobs are at potential risk of automation by early 2020s. Its report also revealed that 44% of workers with lower level education were at risk of automation by the mid-2030s.Whilst these figures are foreboding, generative AI has the power to boost productivity and change work culture. Goldman Sachs estimates that AI could eventually increase annual global GDP by 7%.“The case for a four-day week was already strong, but AI could really seal the deal for workers and trigger a widespread transition to a shorter work week,” explains Scott Ward, Partner at business management consultancy Ayming UK.“Although there is some level of anxiety about AI’s impact on labour needs, I’m confident job roles will adapt, and automation will take on a lot of the more mundane tasks that people currently have to do.”A study conducted by Ayming in January of 200 senior HR leaders in the UK found that 30% of businesses are introducing AI or automation that will replace jobs. However, the study suggests this will improve work life and efficiency, saving people time and allowing them to focus on more important and rewarding tasks.Whilst generative AI technology like ChatGPT could be a threat to some job roles, Ward believes the net result will be a win for the working world. “Although this might contribute to redundancies in some areas, it could equally improve work life, making tasks more efficient and allowing people to focus on more rewarding work.”The changing work landscapeIf the pandemic brought about any lessons is that work culture is not set in stone. Hybrid work patterns have gradually become the norm. The four-day work week is no longer the pipedream it would have been a couple of years ago.According to Ayming, workplaces are now adopting more flexible attitudes and employee support.73% of firms back the introduction of volunteer programmes, 72% support providing financial guidance to help employees manage the cost-of-living crisis, 72% are in favour of offering childcare solutions, and 70% support providing therapy for employees.These flexible attitudes, however, are not simply a symptom of employers’ goodwill. The UK is currently in the midst of a staggering fall in motivation among UK workers.According to Ayming UK, 89% of firms reported a decline in motivation and employee engagement over the last three years. Moreover, 26% of firms say they are likely to make redundancies in 2023 and 37% are reducing recruitment.These statistics demonstrate there are push factors that are forcing work culture to shift to accommodate more flexibility and employee wellbeing to retain and attract talent. Therefore, employers should also be looking to nurture environments for meaningful and flexible work. Prioritising flexible workingIn this bleak employment environment, employers are looking for ways to implement more perks and flexibility without sacrificing profit.A four-day week could boost employee retention and encourage more applicants to fill vacancies. 80% of employees consider flexible work arrangements as a deciding factor when evaluating job offers.According to research by Sonovate, 58% of UK businesses currently offer flexible working in some form. This represents a 566% increase over the past seven years.The four-day week is the latest innovation in flexible working and could similarly become the norm in the future. Therefore, employers who are seriously considering making this transition might be best positioned to attract and retain top talent in the market.For entrepreneurs and CEOs that are nervous about decreasing revenue from adopting a four-day week, AI could be the solution to striking the balance between employee wellbeing and productivity. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Personal Branding explained – plus how to create a personal brand Wouldn't it be amazing to have your name or company be instantly recognisable? You can do this with personal branding, and in this guide, we tell you how to get there. Written by Stephanie Lennox Updated on 15 May 2023 Regardless of how different Oprah Winfrey or Gordon Ramsay might be, what they have in common is that they both have built strong personal brands. Just from hearing their names, you can immediately picture the characteristics that define them.As a business, you want to achieve the same associative reflex with your customers so they can immediately identify your brand. But, reaching that end goal is not something to be left to chance. Personal branding is a meticulous marketing strategy that needs persistence and authenticity so that your target audience can know innately who you are. In a market where users are constantly flooded with adverts and information, making a good impression could be the difference between someone buying from you or a competitor.There’s a fine line between personal branding being a vanity show and a clever marketing strategy. In this deep dive, we’ll give you the building blocks you need to make sure you’re doing the latter. We’ll tell you how to launch your personal brand, how to promote your business, help you understand the benefits, and give you some inspiring examples to get started. In this page What is personal branding? Benefits of personal branding Five examples of successful personal brands Steps to create your personal brand Maintaining and growing your personal brand Conclusion FAQs What is personal branding?Your personal brand is how you promote yourself to your target audience. In other words, you intentionally create a profile that is guided by values, skills, experiences and products that reflect what you stand for. This spans all the way from the aesthetics of your website to the unique selling point of your products and services.Your personal brand might be partly in your own control – the information you put out on your site, marketing or social feeds – and partly how other parties, including the media, portray you. So, you’ll want to be careful about what you share and how you allow yourself to be presented. In this digital age, regardless of whether it’s good or bad, anything on the internet is permanent.Having a strong personal brand is the perfect method of differentiating yourself from competitors as your personal brand – as you guessed it – is personal to just you.To build a personal brand, you should ask yourself what valuable knowledge you can share on an industry or topic; what’s your unique point of view; and, how you can make your authentic personality dazzle. Benefits of personal brandingPersonal branding might feel like a daunting exercise, but it’s a rewarding marketing strategy replete with benefits. Here are some you can keep in mind.Helps control first impressions – Although you can’t always fully control what people think of you, personal branding helps you at least maximise your chances that you receive positive impressions. With personal branding, you can tweak how you present yourself to current and potential clients, helping you be memorable for all the right reasons.Makes you feel more approachable – Some 84% of millennials trust neither the advertisements nor the brands that create them, yet they are prepared to believe people they feel they know. Building your personal brand can make you appear more relatable, human, and approachable. This can foster better trust among your target audience and improve conversions.Positions you as an expert in your field – Personal branding is all about foregrounding your unique contribution to an industry. Whether that’s your experience or your hot takes on business trends, you’re setting yourself aside as an expert. This helps your target audience come back to you as a reputable source, boosting your authority and trust.Competitive advantage – A robust personal brand can help open new horizons of business opportunities. When others identify you as an expert in your field, they’ll be more likely to give you opportunities to collaborate on new projects, connecting you with potential customers. Read more How to start a business Five examples of successful personal brandsYou know you’ve mastered your personal brand when people hear your name and need no further explanation as to who you are and what you do. Here are some examples of prominent individuals who have aced their personal branding strategy.Oprah WinfreyWhy her branding works: Without even needing to hear her last name, most people will already recognise Oprah. She consistently built a philanthropic persona through her talk show and charity work, making her personal brand feel genuine and relatable. At the peak of her success, she had an impressive average of 12 to 13 million viewers each weekday and became the first black female billionaire in 2003.What you can learn from her: The last thing you want is for potential customers to be able to easily poke holes in your personal brand. Being consistent and authentic is the perfect antidote for that. Staying true to your intentions and being cohesive in your message will make your personal brand trustworthy.Marie KondoWhy her branding works: Known as the de facto godmother of tidying up, Marie Kondon has made a name for herself as a tidying consultant, award-winning author and TV host. Her name is now easily associated with the KonMari Method, a streamlined way of decluttering your space. Her book has more than 17,000 five-star reviews on Amazon alone and has been featured in The New York Times and The Wall Street Journal. The reason it all works so well is because her concept of decluttering translates smoothly into her online presence, particularly her website. The minimalist aesthetic and clean-looking online profile matches her values and message well.What you can learn from her: in personal branding, consistency goes beyond just what you say and write. It should also reflect in the way your content looks. Branding everything from your website to your socials can go a long way in making your personal brand look cohesive and convincing.Gary VaynerchukWhy his branding works: Known as an incredibly prolific American entrepreneur, Gary has a strong entrepreneurial spirit, an ability to execute quickly, and a track record of business success. His personal brand revolves around honesty and transparency, making entrepreneurship feel less like a romanticised process and more like a relatable one. He’s a five-time best selling author and serves as the chairman of VaynerX, a media and communications holding company. His ‘realness’ makes his personal brand feel more relatable, which is key if you want to foster trust among your target audience.What you can learn from him: Having a knack for telling things how they are can be really attractive for a target audience that is tired of being aggressively marketed to. Having a relatable approach can make you feel more trustworthy and human.Mark CubanWhy his branding works: when you hear his name, you probably automatically think of Shark Tank and entrepreneurship. That’s because he’s managed to continually provide value to his followers through social media content by having a unique take on scaling businesses. His unique takes makes him a differentiated source that his target audience can revisit, because they’ll know they’ll gain something new.What you can learn from him: Personal branding is not just about having any online presence – it’s about having a different online presence. When strategizing your content output, always keep your target audience in mind. Understand how you can give them value and what makes you different from your competition.Elon MuskWhy his branding works: An undeniably controversial figure, Musk has successfully built a personal brand off the back of being consistently unique. Although he may provoke rowdy online debates, his name and tech empire is instantly recognisable, in part because of this. His uniqueness and fearlessness of controversy makes his personal brand robust.What you can learn from him: Tread cautiously. Although building a personal brand on controversial foundations isn’t a sound idea, leveraging your uniqueness definitely is. Don’t be afraid to engage in public conversations, post topical and valuable content, and highlight your unique take. Steps to create your personal brandBuilding a personal brand is a deliberate process that has some crucial steps you won’t want to skip. Here’s what to do to get started:Define your goals and values: Whether this means writing them down on paper or having a serious brainstorm session, you need to clearly outline what values your personal brand stands for. This will help you define what metrics and goals you want to set for yourself. For instance, if you want to build a personal brand that stands for living sustainably, you’ll need to think about what’s going to separate you from competitors and what area of sustainability you want to focus your niche on.Identify your target audience: Now that you have a niche, you need to find the place where your target audience is most likely to reside. If you want to target a GenZ audience, chances are your content will find more success on social media platforms like TikTok. Understand that a personal brand will never be a catch-all solution. It’s natural that there’ll be people that don’t identify with your personal brand.Create a brand strategy: Now that you’ve identified your target audience, you need to ask yourself what type of value your content and brand could provide. What are your content pillars going to be? In other words, what is your unique angle going to be, compared to your competitors? Remember you don’t want to just be another voice in the chorus, you want to be the lead singer.Developing a brand identity: With this foundation set, you can start building your brand. Whether this is through the launch of a new product, social selling on LinkedIn, or having a unique social media presence, ensure you’re always staying true to what your brand stands for. Consistency is key to acing this step. Maintaining and growing your personal brandLeverage social media – it’s nearly impossible to build a personal brand without an online presence. Being active on social media is a fast-track tunnel that directly connects you with your target audience. Posting valuable content regularly is key to growing and solidifying your online brand. Make sure to also use engagement tools such as polls and Instagram Lives to create a two-way conversation with your audience. The more reachable, relatable, and approachable you seem, the better.Network strategically – going on a LinkedIn connection spree isn’t the best way to build your personal brand. Instead, you want to go for quality over quantity. Find people with similar interests, who are engaged in similar conversations and topics, and surround yourself with others who want to also become thought leaders in your industry. Building your narrative through similar connections will help your brand feel more cohesive and believable, making it easier for your target audience to find and trust you.Build your authority – in order to make your brand a point of reference in your industry, you need to consistently build your authority by posting and sharing valuable content. This could be a unique take on the future of AI if you’re in the tech industry or unveiling your hot take on what the four day working week means for HR teams if you’re in the recruitment sphere. Whatever it is, it should be true to your brand and differentiate you from the competition so you can bolster your authority. ConclusionWhile at first glance, personal brand building might seem like a vanity show, it’s in fact far more sophisticated. Done intelligently, personal branding is a smart way of marketing yourself and your business while fostering trust among your target audience. Crucially, it can make you stand out from the competition.Personal branding can be a great way of bulking your network and finding new business opportunities, all by simply being yourself. By identifying values that feel true to your brand and posting content that adds value, you’ll start setting the foundation for becoming a household name in your industry. Frequently Asked Questions Why is personal branding important? Personal branding is a robust way of fostering trust among your target audience by championing the values you and your brand stand for. It helps you have a differentiating edge over your competition, which can help drive sales. How can I create a successful personal brand? You need to follow four steps to set the foundation for a successful personal brand. These are the steps to follow: define your goals and values, identify your target audience, create a brand strategy, and develop your brand identity through thought leadership and social media. The key is to be consistent with your message. What are the benefits of having a strong personal brand? A strong personal brand is a great way to separate yourself from the competition and clearly spell out what you and your brand have to offer. It also helps you establish authority and trust among your target audience, which is a reliable sales magnet. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Second time’s the charm? UK TikTok Shop launches on Beta TikTok has thrown its hat back into the social commerce ring with its TikTok Shop launch on Beta. However, there’s some déjà vu from 2021. Can this time be different? Written by Stephanie Lennox Updated on 15 May 2023 TikTok has invited a select number of sellers to sign up to its latest version of TikTok Shop on Beta, before launching to the rest of the public.Those who participate will be able to provide feedback for product improvement and get their hands on a 0% referral fee for the next 90 days.A new and improved TikTok Shop could represent a mammoth business opportunity – the platform has over 1.6 billion users. 83% of these say TikTok plays a role in their purchase decisions, making it a prime platform for brand discovery.It could also be a game changer for SMEs given that 47% of users say TikTok is the platform they use most to engage with smaller businesses.Unlike its primary competitor Instagram Shop, TikTok Shop allows direct product buying from live streams and videos. The social commerce model will take 1.8% commission from sold products during the first 90 days, rising to 5% thereafter.Can social commerce go TikTok viral?Although the launch of TikTok Shop bodes well for business on paper, in practice its launch could be significantly more complicated.This isn’t TikTok’s first ride in the rodeo of social commerce, after all. Culture clashes between TikTok’s Chinese owners and London staff tainted TikTok Shop’s UK launch in 2021.Reports of burnout and tension between staff and former TikTok head of ecommerce Europe, Joshua Ma, led to an exodus of more than 20 members from the London team.This rocky start was followed by a lack of traction, with the Shop operating at a loss and many live streams generating zero sales.In sharp contrast, TikTok Shop has been a resounding success in Southeast Asia. In 2022, the platform reportedly racked up a gross merchandise value of $4.4 billion thanks to a network of agencies who manage livestream presenters and virtual shopfronts.In comparison, social commerce in the UK is still in its nascent stages. In 2022, 22.4% of the population were ‘social buyers’. In China, this percentage was around 84% – one of the highest in the world.In some ways, the new launch of TikTok Shop on Beta could be read as an attempt to clean the slate and compete against Meta’s Instagram social commerce model.Could bad press get in the way?Although TikTok is undoubtedly a popular platform, recent controversies have dented public trust in the app.Just last month, TikTok was fined £12.7m for misusing children’s data and its CEO, Shou Zi, was questioned in the US Senate over concerns about data privacy and the company’s ties to the Chinese government. TikTok has also been banned from being installed on government and BBC devices.Headlines exposing TikTok’s patchy data privacy could jeopardise TikTok Shop’s success, especially when considering users have to trust the app enough to hand over their payment details.However, if lessons are learnt from TikTok Shop’s success in Southeast Asia and the dramatic episode between Ma and London staff, there’s hope.TikTok will need to convince both sellers and shoppers that it has bolstered its data privacy security practices and that brands have fertile ground for scaling through social commerce. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Great Resignation: employees say more L&D opportunities would stop them from leaving As wage growth continues to fall, experts are advising businesses to consider what development opportunities they are offering staff. Written by Stephanie Lennox Updated on 15 May 2023 Business owners have been warned to provide more learning opportunities for employees or risk losing key talent, in a movement labelled ‘the Great Upskill’.Following months of mass resignations triggered by the Great Resignation, e-learning solutions provider IMC has found that 86% of employees would remain with their current employer for longer if they offered frequent learning and development (L&D) opportunities.Rising inflation has led to a rapid fall in real wages, which has torpedoed staff morale in many companies. Office of National Statistics (ONS) figures show that job-to-job moves in 2022 reached a record average of 946,000, driven by resignations rather than dismissals.The IMC research indicates that today’s workers would feel more motivated to stay at a firm with L&D opportunities, providing an impetus for business owners to invest in upskilling.Skills shortage threatens small business growth in 2023The IMC survey indicates that one of the best ways to tackle heightened staff turnover is to invest in workplace education programmes for employees.Pouring more money into L&D might feel like unnecessary spending in today’s economy. In the current hiring landscape, however, it is actually a savvy move from the business owner’s perspective.Sourcing talent has become an uphill battle for managers. The high volume of working-age people who left full-time employment during COVID has left recruiters with a scant pool of applicants to choose from.In turn, this has created a lack of in-demand skills, particularly when it comes to tech roles. SMEs are being held back from progressing in fast developing areas, such as the use of AI, instead having to search abroad to find suitable job-ready candidates.As a result, L&D funding should be thought of as a cost-saving measure, rather than an additional expenditure.Research by the British Business Bank has shown that the estimated cost to hire somebody on the UK average salary is £3,000. Using half of that amount to expand your existing employees’ knowledge and experience provides an attractive return on investment for the business owner.Workers more likely to apply to companies with L&D opportunitiesIMC’s teachings can also be applied to recruitment. The e-learning provider also found that 92% of job candidates use L&D offerings – which can range from funding for courses or a coaching leadership style – as a deciding factor when comparing two employers.This figure demonstrates why businesses should consider the whole package they offer staff, not just salary. In such a competitive market, benefits and perks can be the key differentiator for job seekers, not salary.Dan Hudson, founder of the free job-finding app GiGL recently told Startups that information on company benefits was the most popular section on any GiGL job listing.Leaving this information out, he said, was one of the biggest mistakes employers make on job adverts. More than a business blunder – it risks turning candidates completely off from your hiring gap, damaging team expansion alongside overall company growth plans.Employees prioritise soft skills in a remote working worldWhen asked what kind of L&D courses employees want to be offered, Stephen Adams, founder and director of Inspirational Coaching, reports seeing a spike in the number of requests for soft skills training.“In particular, the demand for techniques to develop essential skills such as communication, resilience and problem solving have seen a significant upturn,” he says.Earlier this week, we reported that bosses had overwhelmingly voted Gen Z employees as the ‘most difficult generation to work with’.65% of managers say they have fired more Gen Zers than employees of any other age. When asked, several blamed the bad communication habits that younger staff members had developed in today’s post-COVID era of virtual team working.In this context, investing in employee workshops that can improve collaboration skills – alongside communication software that can aid further development – is crucial to reduce conflict in the workplace.More on this: read our guide to the top collaboration tools for small businesses to help your team work better together online. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Could employers use AI to combat worker shortages? As labour shortages continue to threaten SME growth plans, we explore whether rapid rollout of AI technology could be the saving grace for small employers. Written by Stephanie Lennox Updated on 15 May 2023 Skilled labour shortages have been making hiring hellish for organisations – and the issue isn’t going away soon. According to a report by the International Monetary Fund (IMF), the tech talent shortage will swell to more than 85 million employees by 2030.The problem is not just in tech. Hiked staff turnover rates across multiple industries have hit SMEs hard. Hundreds of thousands of people left the workforce post-COVID during the so-called ‘Great Resignation’. Worryingly, the trend looks set to continue.Worker shortages are a reason to celebrate AI’s rapid expansion. Virtual assistants can perform repetitive tasks – filling hiring gaps and essentially doubling output.Swapping human workers for cheaper robot counterparts might also be a savvy financial decision for small businesses in today’s poor economy. It would certainly cut down on recruitment and onboarding spend, as well as dramatically reduce payroll costs.Large employers like IBM have already announced that they will pause hiring for roles that can be replaced by AI. But, with some experts having expressed concern that implementation is too fast, is workforce automation a good idea for SMEs in 2023?What are the risks of workforce automation for small businesses?When it comes to digitalisation, rushing ahead without thought is a no-go – regardless of how fast-moving the landscape is.Here are three things for SMEs to consider before pressing ahead with workforce automation this year:1. Hiring freeze could backfire amid digital skills gapToday’s businesses are already struggling to source qualified tech talent. Some 29% of SMEs say the shortage of skilled workers poses a high risk for their business, and companies could soon find themselves short on the manpower to execute more complex AI plans.Last month, we reported on Salesforce findings that only 1-in-10 small businesses have in-demand artificial intelligence skills. These include programming languages and blockchain.2. Most roles still require a human touchOn April 30th, the World Economic Forum’s “Future of Jobs” report outlined the two most desirable traits in workers in the next five years: creative and analytical thinking skills.Machines are also not developed enough to display these traits yet. Yes, they can handle simple administrative tasks, such as in project management. But IBM CEO, Arvind Krishna has already admitted that some functions, such as evaluating workforce productivity, won’t be replaced by AI this decade.Customers still prefer to speak to real people over machines, as the former naturally has far more social intelligence. A poll by Userlike found that 60% of customers would sooner wait on hold for a human operator, than speak to an AI assistant.3. Rushed implementation could bring security risksJust 24 hours after IBM announced that 30% of its staff could be replaced by AI functions, AI expert, Dr. Geoffrey Hinton quit his high-profile job at Google. The so-called ‘godfather of AI’ stated concerns about the speed of development, and the lack of safety and control.AI is moving very quickly, and progress and protection must be balanced. The government has already announced plans to regulate the AI industry following concerns about the potential for data breaches and cyber attacks.Companies that buy into AI technology should not introduce it to the workplace without having a secure support infrastructure in place.Don’t rage against the machineIt’s easy to grow fearful when talking about new technologies. But caution can lead to hysteria, obscuring the ample opportunities that AI will bring to resource-stretched small businesses.Ensuring that workforce automation has a positive impact on businesses means seeing the computer as a new colleague, not the antagonist in a hostile takeover.The AI industry contributed £3.7bn to the UK economy in 2022 and is expected to scale massively this year. While perhaps too early for small employers to implement at scale immediately, the tech should certainly be on SME radars – particularly for those struggling to fill vacancies.IBM’s hiring plans change, for example, represent a slow integration of AI, carried out over a five-year long period. With a similar mindset, small business owners can align the technology with their existing strategies, and take advantage of its significant time and cost savings.See our list of the Most Innovative UK AI Startups to Watch Share this post facebook twitter linkedin Tags AI News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
IBM CEO predicts 30% of his staff will be replaced by AI in the next five years The computing giant has paused hiring as it estimates that almost a third of ‘non-customer-facing’ roles will be obsolete due to rapid AI advancements. Written by Stephanie Lennox Updated on 15 May 2023 Technology giant IBM will stop hiring for roles it believes artificial intelligence (AI) is capable of replacing, signalling a major step change in the use of ‘smart computers’ in today’s workforce.In an interview with Bloomberg, published on Monday, CEO Arvind Krishna estimated that up to 30% of non-customer-facing roles – roughly 7,800 jobs – could be automated in the near future. Krishna named human resource (HR) roles amongst the first to be robotised.Machine learning platforms such as ChatGPT, have quickly been utilised across industries as companies apply the technology to basic tasks, such as AI marketing. For many, automated tools have also been a hiring life ring during the current recruitment crisis.IBM’s strategy, however, is one of the boldest moves yet. There could also be downsides, with some analysts expressing fears about the potential for AI to disrupt the labour market.Back office roles most likely to be replaced by AISpeaking to Bloomberg, Krishna specified that IBM plans to pause hiring for roles which are ‘non-customer-facing’ – specifically, those in human resources.Among the tasks he said could be fully automated were providing employment verification letters, or moving employees between departments. Such fiddly admin duties can require manual time, but remain ripe for automation.Somewhat surprisingly, given they are commonly crowned ‘most likely to be replaced by AI’, customer assistants will remain protected at IBM. Krishna confirmed that customer-facing roles, such as software developers and sales teams, will not be impacted by the change.IBM’s senior leadership remains conscious of customer preferences for human interaction over machines. Last December, Userlike found that 60% of customers would rather wait in a queue for a service agent than speak to a virtual AI assistant.Recession worries accelerate AI adoptionLeaps forward in AI advancement have coincided with mass cullings across the global tech landscape. From January to March 2023, US employers announced a combined 270,416 layoffs due to economic troubles, causing chaos in the labour market.The technology sector accounted for over a third of these cuts (102,391) and IBM was part of the wave. In January, it cut 3,900 roles after missing its annual cash target.With the tech giant now appearing to undergo a significant structural shift, it’s clear that the move to AI is about long-term budget reduction as much as headcount – a staff fall-off, as opposed to short-term layoffs.As further proof, tech brand Dropbox last week made 500 staff members redundant. In a statement, it said the move had a dual purpose: to save money and build out the company’s AI division.According to a recent Goldman Sachs report, 300 million jobs across Europe and the US face being replaced by smart computers if the current rate of AI expansion continues.However, the report stresses that worker displacement from automation will likely generate new jobs, leading to employment growth in the long-term.See our list of the Most Innovative UK AI Startups to Watch Share this post facebook twitter linkedin Tags AI News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
1000% increase in UK business search for AI experts The digital skills revolution continues as more employers look for employees that are well versed in artificial intelligence Written by Stephanie Lennox Updated on 15 May 2023 Data reveals that searches for AI by UK businesses have surged by 1,070% in the past six months, according to a survey conducted by Fiverr.Searches for ‘AI art’ also shot up by 6,223%. Debate rages about the merits and drawbacks of AI-generated imagery, with some artists crying foul over intellectual property infringement. Recently, artist Boris Eldagsen refused to accept Sony’s photography award, pointing out that his entry was AI-generated. But, none of this controversy appears to be deterring businesses from searching for the term.The piqued interest in artificial intelligence suggests an increased awareness of the potential of generative AI tools, and that businesses are exploring ways of leveraging the technology.Buki Adedapo, UK Country Manager for Fiverr, says, “services that are trending on the Fiverr platform are indicative of society’s rapidly increasing awareness and adoption of AI on a wider scale, following the launch of a number of generative AI tools to varied success.”Preparing for the AI RevolutionThe high demand for AI skills are symptomatic of how quickly the UK is prepping to welcome the widespread use of the technology.Last month, the government released its AI whitepaper, outlining a roadmap to drive innovation in the sector and become a global policy leader in regulating its use.The UK is currently placing third in the world for AI research and development, and is home to a third of Europe’s AI companies. The AI industry contributed £3.7bn to the UK economy in 2022, with cities such as London and Manchester forging ahead.According to a study by Business Name Generator, London leads the way as the world’s most AI-driven city, having 2,645 AI events on offer. London, Manchester and Jakarta are at the forefront of education with up to 29 AI-specific university courses to choose from.Employers want AI skills, but do employees have them?Although the growth in searches for AI skills indicate its normalisation in the workforce, demand and supply are mismatched.A new study by Salesforce revealed that only one-in-ten global workers have in-demand AI skills. Nearly a quarter of global workers rank AI skills among the top three most important digital skills right now.Upskilling can close this gap, and 97% of global workers believe businesses should prioritise AI skills in their employee development strategy.If the demand and supply of AI skills are not growing at the same pace, this could represent a concern for UK startups looking to reign in AI in their operations.Both policymakers and employers will need to ensure that UK employees have access to the necessary skills training to seize the new wave of the digital revolution. Share this post facebook twitter linkedin Tags AI News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Founders Forum Group acquires Tech Nation The acquisition by the entrepreneur network represents an opportunity to sustain Tech Nation’s ethos of supporting UK startups. Written by Stephanie Lennox Updated on 15 May 2023 Founders Forum Group (FFG) has formally acquired Tech Nation in a bid to continue the startup support network’s mission to empower the UK’s tech sector.This injects a dose of confidence back into the startups industry, which was left in shock when Tech Nation announced its closure in March after its government funding was pulled.FFG is a global community of businesses that seeks to support entrepreneurs at every stage of growth and foster an innovative environment akin to Silicon Valley. It’s known for hosting events and forums like London Tech Week.Tech Nation programmes and reports will be relaunched as part of FFG’s existing portfolio of events and services tailored to entrepreneurs.Tech Nation’s outgoing founding CEO Gerard Grech and Board Director Sarah Wood will help steer the transition as part of FFG’s Tech Nation Advisory Board.How did we get here?TechNation ceased operations on March 31 after the government pulled its funding last September.Launched in 2011, Tech Nation was financed by the government’s Digital Growth Grant. This was a £12.09 million pot of money used to aid the UK’s existing digital tech firms, enable startups to scale-up, and grow regional support networks.In a shock announcement, the Department for Digital, Culture, Media and Sports (DCMS) reallocated the grant to Eagle Labs, a tech incubator run by Barclays Bank.In the last decade, Tech Nation has helped shape the trajectory and success of UK tech to be the number one digital economy in Europe and third globally, valued at $1 trillion. The UK is also home to over 20 places that host at least one tech unicorn.While 80% of startups fail within the first two to five years, over 95% of startups on Tech Nation’s accelerator programs have gone on to scaleAlumni companies include Deliveroo, Monzo, and Revolut.Keeping the UK’s tech sector globalPerhaps most importantly, FFG will continue to process the Global Talent Visa for the Home Office.Although this is a temporary measure while a new endorsing body is found, it shows global tech talent is still welcome in the UK.The Global Talent Visa has been a key ingredient in diversifying representation in the UK tech sector.Professionals from over 100 nationalities have been given the visa and have built their careers in the UK. As a result, 15% of tech scaleups have at least 1 immigrant founder.There are currently over 2,500 Global Talent Visa holders working in over 900 UK tech businesses. What’s next?With a difficult economic landscape and significant reductions in access to R&D tax credits, the acquisition could help the sector’s ability to access support.Gerard Grech, Founding CEO and Tech Nation Advisory Board member, concludes, “I am confident FF Group will continue the vital work of Tech Nation, leveraging its influential network to evolve Tech Nation’s existing programmes, foster entrepreneurship nationwide and supercharge scaleups and high-growth businesses across the UK.” Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Upcoming strike action: how will it impact your small business? Our 2023 strikes tracker will keep small business owners up-to-date on all planned worker action, and its potential impact. Written by Stephanie Lennox Updated on 15 May 2023 Small businesses have lost out on 680,000 days of trading per month, due to industrial action, according to new data from small business lender iwoca.Cumulatively, this totals just over four million days of trading lost across six months – around 0.7 days for each of the UK’s 5.6 million SMEs.Strike action has taken its toll on the day-to-day running of UK businesses. 31% of companies taking part in the analysis reported that strikes have had a negative impact on their business.On one hand, employees from a range of industries and organisations have now successfully secured pay rises. RMT union members last week accepted a 14% wage increase, putting an end to months of chaos for commuters.Yet more strikes are on the way over the next few months. This International Worker’s Day, we’re unveiling our 2023 strikes tracker. We’ll record all upcoming protests as and when they are announced, as well as offer a quick explainer of how your business might be impacted. This article will cover: UK strikes tracker How have strikes impacted UK small businesses? UK strikes trackerWe’ll be updating the below list with any new strike updates as and when they are announced, to keep SMEs in the loop about how worker action might affect their operations.Train strikesMembers of the RMT Union (20,000 train managers, caterers and station staff) and ASLEF members of staff who work for 16 train companies will walk out following disputes over pay and working conditions.June 2023Friday 2 JuneSaturday 3 JuneMay 2023Saturday 13 MayFriday 12 MayWednesday 31 MayAny weekday strikes will affect employees commuting to their workplace – particularly around London and the Midlands, where ASLEF companies largely operate.Small businesses in Liverpool saw the biggest impact from the earlier date, as Eurovision fans’ travel plans to the ‘capital city of pop’ are disrupted.Teacher strikesTeachers went on strike as part of National Education Union (NEU) action. Small businesses who employ working parents will need to consider how this might affect their childcare plans. Hybrid office could allow impacted staff members to work from home, for example.May 2023Tuesday 2 MayThe NEU executive will next meet on 17 June to decide whether to take further strike action in the week commencing 3 July.Heathrow Airport strikesSecurity officers at Heathrow airport went on strike for eight days in May. Companies that operate abroad, or do business with foreign partners, were most likely to have been impacted.The action also coincided with the coronation bank holiday weekend, which means SMEs in London could have been affected by a drop in the number of foreign tourists visiting.May 2023Thursday 4 – Saturday 6 MayTuesday 9 – Wednesday 10 May Thursday 25 – Saturday 27 May How have strikes impacted UK small businesses?The UK is currently seeing the most significant wave of staff revolts since the 1980s miners’ strike.More than two million working days were lost to private and public industrial action in 2022. Staff members across organisations from the Rugby Union to BT Group have united to lobby against real wage pay losses caused by inflation.30% of the 500 small business owners who were surveyed said the strikes had affected their company negatively. Only 3% said they had been impacted positively.On a scale of very positive, to very negative, what effect have industrial strikes over the past six months had on your business?Percentage of respondentsVery positive effect1%Fairly positive effect2%No effect66%Fairly negative effect24%Very negative effect7%Don't know2%While most small businesses do not employ striking workers, they rely upon many of the services offered by those taking action. Lots of sellers, for example, use the post office to send their items to buyers.Accordingly, the most commonly cited business challenge caused by strike action was delays to customer orders. Worker action at major couriers like Amazon has dramatically reduced the number of drivers on the road.One in five survey respondents told iwoca that their parcels hadn’t arrived at customer doorsteps on time, jeopardising existing customer relationships when most small firms are already experiencing a squeeze on profits.Outside of deliveries, 18% of business owners said they had adapted work plans to accommodate the strikes. Meanwhile, 1 in 10 reported being unable to get to work, or having to refuse work, as a result of the train strikes.Which of these statements applies to you?Percentage of respondentsA customer order has been delayed due to postal strikes21%I have had to change my work plans due to strikes18%I and/or an employee have been unable to get to work because of train strikes6%I have been unable to take on work due to train strikes4%None of these apply to me65%Business support for strikes remains largely unchangedWhile the strikes have had a negative impact on some small businesses, 34% of SME owners in the iwoca survey said they remained onside with striking workers.SME opinions on strikes have largely been solidified since June 2022. 43% of entrepreneurs said they had not changed their views on strikes in the preceding six months.Meanwhile, 22% of small businesses have felt more supportive of the ongoing striking workers since summer. Only 32% said their support has fallen.This could be due to how quickly SMEs have adapted to remote working post-COVID. Tellingly, 66% of business owners said the strikes had not caused any disruption to their operations.The majority of organisations have adopted a hybrid working policy in the past two years. As a result, many have been able to easily shift their operations to adapt to any disruption caused, waving goodbye to pre-COVID traditions like the daily commute.Small business owners back future strikes – but call for resolutionAs the UK moves into a new FY, companies should be prepared for looming strike action to hit balance sheets. Civil service staff will strike on April 28, which could impede business admin tasks, such as last minute payroll submissions.For those needing to travel nationally or abroad for work, there are multiple storms brewing.3,100 National Express bus drivers are undertaking indefinite strike action as of 20 March until an acceptable pay deal is reached. Security workers at Heathrow Airport will also be striking from 31 March.As some transport, healthcare and teaching unions suspend strike action after accepting new deals, SME owners welcome cooperation between employers and workers to resolve any upcoming protests.In fact, more than eight in ten SMEs (82%) believe that employers and workers should come to an agreement without the need to strike.Colin Goldstein, Commercial Director at iwoca, said: “While strikes have impacted industries across the board, we’re now starting to see the ripple effect of sustained industrial action on small businesses.“If you’re one of the UK’s 5.5 million small businesses, you now have to contend with lost trading days due to strikes as well as the rising cost of doing business, including spiralling energy costs and inflation.”To ready their business for the inevitable repercussions, we recommend entrepreneurs use our Startups business continuity plan. It will help you to deal with unpredictable events – of which SMEs have had more than their fair share over the past half a decade. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Is Gen Z the most difficult generation to work with? Their bosses say yes Three in four managers say they find it difficult to work with Gen Z , as pre- and post-COVID attitudes towards working clash. Written by Stephanie Lennox Updated on 15 May 2023 Disparate attitudes towards work are creating conflict between younger workers and their older managers, according to a survey by ResumeBuilder.com.The findings show that of 1,344 managers and business leaders surveyed, 74% believe Gen Z is more difficult to work with than any other generation.In some cases, relationships are souring to the point of being cut short. 65% of managers say they have fired more Gen Zers than employees of any other age.Some may dismiss the criticisms as older people griping about ‘entitled, lazy young people’. But the overwhelming vote of no confidence in Gen Z staff members – who are predicted to make up 27% of the workforce by 2025 – is cause for concern amongst business owners.Below, we’ll explore the generation gap in more detail, and explain how senior leaders might resolve the conflict.Gen Z workers disagree with bosses on the ‘new world of work’Organisational cultures have undergone a huge shake-up since COVID. With the idea of flexible working having firmly taken hold for UK businesses – the government has even made it a day one legal right through the Flexible Working Bill – the line between personal and professional behaviour is blurring for companies up and down the country.From benefits packages to the office dress code, every workplace has been affected as bosses embrace a more relaxed approach to day-to-day duties.Most of Gen Z has only ever worked in an environment where pyjamas on a work call wasn’t normal. For this group, the ‘old ways’ of the 9am start time are dead and buried.Now, ResumeBuilder’s research suggests that managers are struggling to align their expectations with the performance styles of younger colleagues.Workforce clashes over digital workingEach generation brings new challenges, perspectives, and beliefs with them to a workplace. But ResumeBuilder’s findings suggest the gap between pre and post-COVID workplace attitudes is too wide for teams to bridge, creating real management issues.Overall, nearly three-quarters of managers and business leaders surveyed say they find Gen Z to be more difficult than other generations to work with. Of this group, 49% find it difficult to work with Gen Z employees all or most of the time.According to the respondents, Gen Z slack off. Managers argue that younger employees lack effort (37%) and motivation (37%).Akpan Ukeme, head of HR at SGK Global Shipping Services, admits he has butted heads with Gen Z colleagues on multiple occasions.“They think they know everything about the digital world,” he protests. “They think they’re better, smarter, and more capable than you. They will tell you that to your face.”Of the respondents who claim Gen Z is the most difficult generation to work with, 34% say they would prefer to work with Millennials, 30% with Gen X, and 4% with Baby Boomers.Poor communication skills lead to Gen Z disconnectWe recently reported on the glossary of new office slang that Gen Z employees have brought to the workplace. Amongst the favourites, ‘work goals’, ‘vibe’, and ‘feeling it’.Some would say it’s all harmless fun. Combined with the ResumeBuilder research, however, this influx of social media-inspired jargon represents a deeper issue. Workers from different generations are finding it increasingly difficult to understand each other.Adam Garfield is marketing director at Hairbro. Garfield praises Gen Z workers for prioritising meaningful work. But he also says he believes younger colleagues fall down when it comes to communication.“While they are proficient in using digital communication tools, they may lack some of the interpersonal skills required for face-to-face interactions,” he attests. “Gen Z could benefit from developing their communication skills to build stronger relationships with colleagues and clients.”All roads lead back to the pandemic. Gen Z staff may have begun connecting with colleagues remotely during lockdowns, with no experience of making and taking traditional work phone calls. It is likely they now collaborate via a hybrid business model, presenting potential for confusion and ambiguity.According to Lucid’s 2022 State of Collaboration report, 67% of employees prefer to meet in person because they feel virtual meetings aren’t collaborative.Bad communication is guaranteed to spur team working. In our guide to the importance of teamwork, we highlight the seven key principles of communication – without which, a team can end up directionless and, ultimately, missing its objective.Experts say training is key to generational conflict resolutionOf the managers who indicated they find Gen Z difficult to work with, 59% say they’ve fired a Gen Zer. This statistic points to the scale of disruption that the issue is causing.Particularly when companies are finding it so difficult to find talent that they are actively searching abroad, trigger-happy managers handing out notices left and right has genuine ramifications for business growth.Allowing discontent to fester into firings will also not help with wider employee engagement. Low staff morale – a surefire symptom of workplace conflict – is guaranteed to induce a higher turnover rate, as workers feel they are unable to progress.Chief Career Advisor Stacie Haller blames COVID-19 for the Gen Z disconnect, arguing that younger colleagues who began their careers during the remote era of the pandemic have not been able to witness good office communication first-hand.“We know that with remote work and education, communication skills do not develop as well and people tend to work more independently,” she stresses. Haller’s solution? “This generation may need more training when it comes to professional skills.”How to bridge the generational gapWhile flexible working has brought many positives to the workplace, government findings highlight plenty of negatives. Chief amongst them: challenges when monitoring staff performance.Here are three ways to improve communication between line managers and their reports when working remotely:1. Organise in-person team-building activitiesTeam building exercises help to build trust and respect between colleagues. Gen Z employees will learn more about the skills and talents of their managers. This will serve to mitigate conflict, encourage communication, and increase collaboration.2. Audit your hybrid working policyNow is a good time to re-examine your hybrid work policy (or design one if you haven’t already) to make sure it is supporting every member of staff.Crucially, review your current mechanisms for performance evaluation, such as ensuring all line managers have regular catch up meetings with their reports.3. Invest in management trainingIt’s easy to blame the new workers, but good communication skills are also an important trait for managers to own. Investing in a management training program will better equip leaders to handle development or performance issues amongst younger employees.Still struggling to promote harmony in your workplace? Read our guide to conflict resolution for six more strategies you can use to reduce the impact of the generational gap. Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
40 innovative AI startups to watch UK startups are leading the stride in the AI revolution. We spotlight the ones to keep your eye on. Written by Stephanie Lennox Updated on 15 May 2023 Artificial intelligence has become the new entrepreneurial frontier to cross. From ChatGPT to Google’s Bard, a technological race has begun and innovative businesses everywhere are looking to break the latest AI product.The UK is exceptionally well positioned to lead the AI charge, with a vibrant startups sector that is seizing the new possibilities that artificial intelligence offers.As the UK government strides ahead to become a world leader in AI, UK startups have already received the memo, with numerous businesses at the forefront of AI innovation. In this article, we highlight the top 25 UK AI startups to keep on your radar. In this page PolyAI Infogrid Humanising Autonomy Intelistyle TeamSportz KYC Hub Sprout.ai Genie AI Clever Lili Ltd Mintago Jiva.ai Gigged.AI Wayve Stability AI Haiper Charm Therapeutics Mind Foundry Mosaic TX Salience Labs Solvo.ai Vestico Apheris Edgify Workfinder Greyparrot Conte.ai Rosa Biotech Netacea Vira Health Nanograb DeepSearch Labs Orbital Materials Eilla Unitary WeWalk MagicAI IRIS Audio HACE My SMASH Media AthenaAI AI trends among UK startups The UK’s AI Innovation Whitepaper - What is it all about? Earlier this month, the UK government published its AI whitepaper, laying out a roadmap to drive innovation in the sector. It proposes a regulatory model that, is hoped, will drive growth in the AI sector. It;s part of the UK’s national AI strategy, which over the next 10 years, seeks to position the UK as an AI global superpower.Among other things, it proposes to:Avoid heavy-handed legislation so that AI innovation is not stifledGive responsibility to individual existing regulators as opposed to an overarching body, so AI can be developed in a context-specific manner for each industryPromptly draft rules for the use of AI to become a leading voice in the international conversationNurture public trust in the use of AIIt’s hoped the plan will help unleash the benefits of AI, which already contributes £3.7 billion to the UK economy. Top AI Companies in the UK to watchTo understand what the future of AI in the UK will look like, we’ve found the top 20 startups using the emerging technology in the most innovative, useful, and creative ways.They made this list due to their collection of funding successes, unique way of using AI, and overall inspiring business stories. PolyAIFounders: Nikola Mrkšić, Tsung-Hsien Wen, Pei-Hao SuFounded: 2017Website: poly.aiThe impending pain of having to call customer service is something any customer can relate to. What’s more, with rising call centre costs and the push to divert customer support to online chats, it can be even worse to realise you can’t even make a phone call at all. This is where PolyAI steps in. Its artificial intelligence voice assistants have been designed so smoothly it’s hard to distinguish whether you’re talking to an AI or a human being. Contrary to other AI voice assistants, PolyAI’s technology is reactive rather than predictive, which means the technology actually listens and understands what you’re saying.PolyAI recently secured $40m in a Series B funding round and is looking to increase its global expansion. Major UK brands including Metro Bank, Greene King, Whitbread and Starling Bank are already entrusting customer support calls to PolyAI’s technology. It also snatched up the seventh spot in the Startups 100 2023 Index. InfogridFounders: William Cowell De GruchyFounded: 2018Website: infogrid.ioIf your eyes have watered at the sight of your latest office electricity bill or if you constantly grumble about how cold the air conditioner is, Infogrid offers a smart AI-powered solution. Through AI-controlled automations, Infogrid gets rid of the hassle of fine-tuning the conditions of your office and saves you having to hire external contractors. It aims to make every building healthy, efficient, and sustainable.Infogrid recently raised $90 million in a Series B funding round and has won countless awards for its technology, including the Corporate Vision Technology Innovator Awards. Humanising AutonomyFounders: Maya Pindeus, Leslie Nooteboom and Raunaq BoseFounded: 2017Website: humanisingautonomy.comHumanising Autonomy envisions a world in which AI technology is built around people and has a positive impact on humans and society. Whether it’s a vehicle, traffic control, a smart home device, or any other automated machine, AI helps machines to understand someone’s intentions from their movements or body language without infringing on ethical standards.Humanising Autonomy’s focus on making AI human-centric has already helped it secure success. It recently raised $11m in a Series A funding round co-led by Beacon Capital LLP and Emellience Partners. To date, it has raised a grand total of $17.2m. IntelistyleFounders: Michael Michelis and Kostas KoukoravasFounded: 2018Website: intelistyle.comAs everyday as the task might seem, picking an outfit can be a daunting decision. Any ecommerce fashion website will be ripe with options, which, to a shopper, might feel overwhelming. Intelistyle offers a unique AI styling experience, saving you a personal stylist and the headache of visualising your potential outfits in your head.Intelistyle uses AI to personalise shopping experiences for customers. Its tech is already used by major fashion retailers, including H&M, Tommy Hilfiger and D&G. The startup harnesses information about outfits customers already own to make recommendations on what they should buy next. Impressively, in London Fashion Week 2019, Intelistyle’s AI programming outperformed professional stylists, catching the attention of the likes of Forbes, and our own Startups 100 listings. It has received numerous accolades, including Best AI Product in Fashion in the CogX awards in 2021. TeamSportzFounders: Francisco BaptistaFounded: 2019Website: teamsportz.proWhat if there was a way to improve your athletic skills on demand, regardless of what sport you play? With the TeamSportz app, that is possible. The platform enables clubs to run their teams more efficiently and gain access to elite performance stats with unique AI technology. Its features include the ability to track players’ goals and performance with intuitive dashboards and personalised statistics.TeamSportz efforts to democratise access to sports technology have already bred success. It secured a paid partnership with London Sports and, to date, the startup has more than 2,000 active players using the platform. It has also raised funding from investors in the UK and the US, including sporting giant Strava’s founder, Mark Gainey. KYC HubFounders: Farnoush Mirmoeini and Jay RaoFounded: 2017Website: kychub.comKYC Hub is boosting business confidence by enabling firms to lower their risk of falling victim of financial fraud through the power of AI. Its technology focuses on reducing processing time when conducting due diligence procedures and enhanced checks on businesses or individuals. Its meticulous design has uncovered hidden risks that other due diligence processes may not. For clients, this results in a 40-80% reduction in operational costs.KYC Hub’s impressive track record has already led it to being shortlisted for five categories in the RegTech Insights Award, competing against publicly listed companies and multinational corporations with thousands of employees. The company has customers from Singapore to the US, and is planning to empower organisations to prevent financial crime in even more locations. Sprout.aiFounders: Raphael Gouth and Niels ThonéFounded: 2018Website: sprout.aiSubmitting and processing an insurance claim is stuff that can come straight out of nightmares. Not only is it slow, but it requires navigating a dense sea of documents and unstructured data. This is where Sprout.ai guides the way as the lighthouse that both claimants and insurers were looking for.Sprout’s AI software has been developed specifically for the insurance industry, and streamlines the entire process from claim to settlement. Processes that would previously take months can now be done in near real-time. Sprout has already been able to bring its cutting-edge technology to insurance giants like Zurich and MetLife, and has raised £8 million in Series A funding. Genie AIFounders: Nitish Mutha and Rafie FaruqFounded: 2017Website: genieai.coIf you’re not a lawyer (and sometimes, even if you are), it’s likely that the legal world feels complicated, obscure, and difficult to understand. Genie AI is trying to change that. The London-based startup seeks to make legal services available and affordable to everyone by providing open-source access to hundreds of legal business templates.With Genie’s smart machine learning, anyone can review documents on the platform and proof clauses against thousands of past deals. What’s more, its technology enables firms to customise their documents based on relevant context, like sector, business size, jurisdiction, and contract type. The startup has garnered impressive success, with over 100 organisations signing up to Genie AI every day and experiencing a 30-fold rate of growth in one year with zero marketing spend. Clever Lili LtdFounders: Alex Hak and Petia HakFounded: 2019Website: https://www.gcsehistory.com/Scouring the internet for GCSE revision materials can feel like looking for a needle in a haystack. The task becomes even more difficult for neuro-diverse students who struggle to find means of catching up with their peers. That’s why Clever Lili launched the app, designed to help students with ADD/ADHD, dyslexia and other neurodiverse conditions to approach revision with confidence.The app is unique thanks to its karaoke function, which highlights text as the AI reads it aloud. The voice can be slowed down, sped up, or even turned off depending on the student’s or teacher’s preference. The AI app has already acquired considerable industry acceptance. In 2021, it became a finalist in the Education Resources Awards 2021. It has also received support from multiple UK exam boards including Edexcel, CIE, and AQA. MintagoFounder: Chieu CaoFounded: 2017Website: mintago.comIn the midst of a bleak economic winter, users are in need of a platform that can help them better manage their finances. Mintago identified this gap in the market and launched a platform fully focused on financial wellbeing, particularly for better managing pensions. It comes equipped with a whole host of features, including free IFA access, an interactive AI helper, and budgeting tools.Mintago’s service is unique in that it isn’t biased towards any one pension provider. Employees can contribute to their pension with confidence, and decide whether to keep their pension pots separate or combine them for ease using the Mintago “pension hunter” tool. Employers are guided through the implementation of salary sacrifice pension in a hassle-free way. Mintago claims to have saved over £1 million for businesses and found over £10 million of missing pensions for employees. Recently, it won the Best Personal Budgeting Service Awards in the Fintech Breakthrough Awards. Jiva.aiFounders: Dr Manish Patel, Chetan Kaher, and Sarah D’SouzaFounded: 2019Website: jiva.aiAlthough AI is rapidly becoming more normalised, building artificial intelligence products is still a difficult task to tame. Developing an AI or AI-powered service can often be complex and expensive, making smaller businesses feel like adopting the technology is a pipe dream. Jiva.ai, however, is designed to make that pipe dream a reality.This AI builder platform offers a scalable solution for companies of all sizes, helping entrepreneurs create their own AI function thanks to its approachable tools.The platform has already found a major footing by offering solutions to the medical research industry. It has established partnerships with GE Healthcare, Roche Diagnostics, plus other NHS and academic institutions in the UK and globally. Gigged.AIFounders: Rich Wilson and Craig ShortFounded: 2021Website: gigged.aiFinding the right staff and contractors can be an arduous and time-consuming process. Gigged.AI wants to change this, by giving recruitment a true 21st century spin by using AI. The company’s AI-driven marketplace means it’s able to match companies with the most suitable candidates in just ten seconds, automating one of the most time-consuming tasks for managers.Gigged.AI has also utilised the power of NFTs to design its GigChain platform. This offers freelancers a way to easily and securely verify their identity, work history, certifications and more. Despite its young company age, Gigged.AI already has 200 clients, including the BBC and Leidos and has received over 5,000 freelancer sign ups. Further attesting to its success, it was also awarded £100,000 through the SMART Scotland Grant. WayveFounders: Alex Kendall and Amar ShahFounded: 2017Website: wayve.aiAutonomous vehicles are no longer the stuff of science fiction, and in a market rushing to capitalise on this potential, Wayve is making…well, waves. The self-driving car startup is building end-to-end machine learning algorithms to make cars smarter than ever before. As opposed to “conventional” self-driving cars, Wayve builds a comprehensive data-driven system that doesn’t depend on a certain range of given “if-else” statements. This makes the vehicle safer in unfamiliar situations.Wayve has secured $200 million in funding and has partnered with Microsoft. More recently, it launched a partnership with Asda to launch the UK’s largest self-driving grocery home delivery trial. Stability AIFounder: Emad MostaqueFounded: 2021Website: stability.aiDreamStudio home page, product of Stability AIStability’s AI ethos is to democratise access to the technology to foster global creativity and innovation. With a network that surpasses 14,000 developers, Stability AI is backed by research communities that are creating the newest AI products – from imaging, to code, to audio, to 3D content.Stability AI first launched Stable Diffusion in 2022, which is a pioneering text-to-image model. By adding a few prompts, such as “a Tibetan mastiff in the style of Gustav Klimpt”, you can see jaw-dropping image results in moments.Stability AI has raised $101 million in funding and has made plenty of headlines as the text-to-image tool captivated users around the world. HaiperFounders: Yishu Miao and Ziyu WangFounded: 2021Website: haiper.aiAs generative AI continues to evolve, Haiper is jumping into the mix with a new 3D reality recreation technology. Haiper has launched two products so far – Captur3 and AIGC. The first lets you take 3D ‘pictures’ so you can capture your favourite moments and objects in its most life-like variation. The second takes the text-to-image AI technology one step further by making text-to-3D models a possibility.Although Haiper is still in a nascent stage, it’s already raised $13.8 million in a seed round, so it’s definitely a project to keep your eyes peeled for.Capture3, a Haiper product Charm TherapeuticsFounders: Laksh Aithani and David BakerFounded: 2021Website: charmtx.comThe pandemic made us painfully aware of how crucial it is to be equipped with the latest cutting edge medical insights, so medical research can respond to new and existing diseases. Charm Therapeutics is an example of how AI technology can cross new medical frontiers. It uses AI 3D deep learning technology to deliver new medicines that can target cancers and other diseases with high unmet medical need.So far, Charm Therapeutics has raised $50 million in a Series A funding round. It’s also backed by reputable investors like OrbiMed Healthcare Fund management, F Prime and Bristol Myers Squibb. Mind FoundryFounders: Stephen Roberts and Michael OsborneFounded: 2016Website: mindfoundry.aiGetting involved with an emerging technology can be a solitary and confusing process. That’s what Mind Foundry wants to change, by helping AI grow in an ethical and transparent way. Mind Foundry develops AI solutions that help people and organisations to implement AI more responsibly, with features that promote knowledge-sharing and meaningful understanding of how the technology works.The Mind Foundry platform has been used to solve some of the most challenging applications of machine learning and AI, from detecting fraud costing businesses millions of dollars to collaborative intelligence processing. Attesting to its success, the Mind Foundry secured $30m in funding from Aioi Nissay Dowa, Parkwalk Advisors and Oxford Science Enterprises. Mosaic TXFounders: Mathew Garnett, Adrian Ibrahim, Emile VoestFounded: 2020Website: mosaic-tx.comCharm Therapeutics is not the only AI startup expanding the frontiers of medical technology. Mosaic TX is using AI to help develop oncology therapeutics, working towards making cancer treatments safer and more effective. Currently, it’s incredibly time consuming and costly to test all potential drug, target and therapeutic hypotheses.Through machine learning and statistical methods, Mosaic TX wants to make the discovery of new cancer drugs and treatments a quicker process.Mosaic TX recently closed $28 million in a Series A funding round and is backed by investors like Syncona, Cambridge Innovation Capital, and Innovate UK. Salience LabsFounders: Vaysh Kewada and Dr. Johannes FeldmannFounded: 2021Website: saliencelabs.aiTo seize the AI revolution, developers will need to have new, shiny and powerful hardware. That’s where Salience Labs comes in. Staffed by a full team of physicists, coders and engineers, Salience Labs is developing chips that use light to execute operations. This boosts processing performance and accelerates exponential advances in AI.The research is based on decades of research from the University of Oxford and Münster University in Germany. Salience Labs’s technological proposal has already inspired confidence amongst investors. It recently raised $11.5 million in seed funding and has partnered with Cambridge Innovation Capital, Deeptech Labs, and Oxford Investment Consultants.Salience Labs chip prototype Solvo.aiFounder: Gaurav BajajFounded: 2021Website: solvo.aiWhen the war in Ukraine started and the cost-of-living crisis exploded, we were reminded of how fragile our supply chains can be. Solvo.ai wants to change that and make them more resilient than before. Using value-driven machine learning, Solvo.ai wants to simplify decision making, accelerate recovery and improve resilience in global supply chains. The idea is to help firms adapt to new conditions and recover from disruptions as quickly as possible.The London-based AI has already proven to be of interest to investors, having recently raised £3.47 million in a seed round. VesticoFounders: Maia Sasania, Maddie Forman, Benedikt HirmerFounded: 2020Website: vestico.coShopping for clothes, while exciting, can also be mercilessly frustrating. When you look at the picture of the model, you can never be sure if it will be a match for you. Vestico is trying to streamline that process and give you more confidence as a shopper.Using AI technology, Vestico aims to be an all-in-content, sizing and personalisation platform for fashion and beauty eCommerce. The idea is to reduce returns and boost customer conversions.The numbers already speak for themselves. Brands who use Vestico have seen an 11% increase in their conversions and a 17% decrease in returns. It also recently bagged £250k in venture capital investment from Jenson Funding Partners. ApherisFounders: Robin Röhm and Michael HöhFounded: 2019Website: apheris.comHundreds of companies are sitting on mountains of terabytes of data. However, hiking through that terrain without the right tools is tedious and complicated. Apheris offers the right compass to solve that problem. As a federated machine learning and analytics platform, it enables multiple organisations to extract value from each other’s decentralised data sets. This way, companies can overcome regulatory, technical, and commercial challenges, as well as make business decisions grounded in data.Apheris secured $8.7m in seed funding in a round led by Octopus, LocalGlobe and the ex CFO of Google. It already works with the world’s biggest data owners and major enterprise customers. It has also worked to align quality control systems to reduce carbon emissions in a collaborative data ecosystem along the manufacturing value chain. In short, Apheris is capitalising on the value of sharing data EdgifyFounders: Ofri Ben-Porat and Nadav IsraelFounded: 2015Website: edgify.aiAlthough self-checkout has become a staple of the retail industry, there’s still a margin of error that could lead to losses. Edgify has developed AI-based technology that can be implemented throughout supermarkets, in any scale or scanning device to help solve this issue. It can even distinguish between similar barcodeless fresh groceries, such as Granny Smith and Pink Lady apples. It then shares the acquired knowledge or model across a collaborative framework of POS machines, helping customers have quicker and faster check-outs.Although the idea itself is not too complex, it has lots of value. Edgify has secured $6.5m in Seed funding via Octopus Ventures, Mangrove Capital Partners and a semiconductor giant. It was also part of the Startups 100 2019 Index. WorkfinderFounders: Sherry Coutu CBE, Michaela Eschbach, Ketan Goyani, and Alice MüllerFounded: 2019Website: workfinder.comCompanies value skills more than degrees from colleges or universities, but current HR platforms make it hard for companies to engage in skills-based hiring or career progression. That’s where Workfinder enters the picture. Using AI, it quickly filters employability, data, and business skills underpinning potential employees’ applications. Skillseeker AI is part of Workfinder’s technology which maps seven leading employer-led skills taxonomies to roles, courses, mentors and masterclasses. Its recommendation engine considers between 80 and 2,000 skills factors when conducting a candidate search for clients. With the skills gap currently hurting the labour market, a tool like Workfinder can make a real difference for HR teams.Workfinders endeavour to help clients upskill, reskill and rebalance their workforce has already garnered success. It has worked with big clients like PayPal, Octopus Energy, and Expedia Group. GreyparrotFounders: Mikela DruckmanFounded: 2019Website: greyparrot.aiThe mantra of Reduce, Reuse, Recycle is not enough to prevent massive landfills of wasteland from being a reality. That’s why Greyparrot has wielded the power of artificial intelligence to develop a waste analytics platform for the recycling industry and the circular economy. Through its waste recognition software, Greyparrot monitors and sorts out waste at scale to help boost recycling rates.Its environmental mission has already garnered success. It won the National Recycling Awards in 2022. It also recently was announced as the latest winner of Amcor’s Lift-Off programme and will receive $500,000 investment and access to Amcor’s sustainability and packaging capabilities. Conte.aiFounders: Alex BoginsFounded: 2020Website: conte.aiA car’s autopilot is a great solution to not having to be on edge all the time while you’re driving. Now imagine that, but for managing your social media. Conte.ai has designed a social media autopilot which conducts competitor analysis, prepares a strategy, writes texts, creates graphics and produces four weeks of ready-made posts all with AI. This means you can invest all that time into other more important and critical business tasks. Based on client testimonials and reviews, Conte.ai claims your business can get up to 10 times more social media followers and clients.Conte.ai is already making big strides in the digital marketing space, having won Best Product for Digital Marketing in the SaaS awards and the Best Product for Digital Marketing at the DotComm Awards. It currently is at the Seed funding stage and has raised $2.4M in funding so far. Rosa BiotechFounders: Dr Mark Street-DochertyFounded: 2019Website: rosabio.techCombining the power of machine learning and protein design, Rosa Biotech wants to enable patients and clinicians to get early diagnoses of a broad spectrum of diseases. Born in the University of Bristol, Rosa Biotech has developed Pandra, an innovative sensing platform that can detect life-threatening disease with high accuracy from patient samples.Its mission to empower patients with early diagnoses has already inspired trust from investors as Rosa Biotech recently secured £415,000 from angel investors. It also recently was awarded a grant by Innovate UK through its Biomedical Catalyst Feasibility & Primer Award. NetaceaFounders: Andy Still and Jeremy GidlowFounded: 2018Website: netacea.comProtecting your business from cyberattacks will always be an item in your list of risks, given how technologically advanced they are increasingly becoming. Netacea is helping that list of risks feel less daunting. The company has created an AI platform that differentiates between bots and real humans through its machine-learning elements to ensure the system is constantly improving its recognition capabilities. Netacea helps to protect APIs, apps and websites for clients, giving a holistic cybersecure offering.Its innovative bot-spotting solution has earned it the Forrester Wave Strong Performer Award and the Sinet 16 Innovator Award. The cybersecurity startup has successfully raised funding from six investors. These rounds of funding have won Netacea £9 million in startup funding. Vira HealthFounders: Andrea Berchowitz and Dr Rebecca LoveFounded: 2020Website: vira.healthVira Health is all about helping women better manage menopause. Its first product is a subscription-based app called Stella, which offers personalised treatments based on their symptoms. It also provides access to menopause experts, guided meditation, educational materials, exercises, recipes and online classes. It is designed for companies that want to expand their employee benefit schemes so that gender equality and inclusivity in the workplace can become a reality. This is key considering in the UK, 30% of women missed work due to menopause symptoms.Vira Health is available in the UK, Ireland and US and has raised £1.5m in a funding round in 2022 with investors including LocalGlobe, MMC and Amino Collective. NanograbFounders: Debesh Mandal, Christopher Lau, Shanil PanaraFounded: 2022Website: https://www.nanograb.com/Nanograb is a computational drug discovery company that uses AI to generate the best combination of binders to treat different diseases. Thanks to this technology, drugs can be better targeted to specific areas of the body, changing the way we understand disease treatment and diagnoses. The startups is currently developing cancer treatments.Although it hasn’t undergone any funding rounds, Nanograb is currently taking part in the summer cohort of Y Combinator, a US-based tech startup accelerator. DeepSearchLabsFounders: Maryam TorshiziFounded: 2020Website: https://www.deepsearchlabs.com/DeepSearch labs is a deeptech company focused on creating specialised and bespoke intelligent search engines for industry. Rather than throwing away tons of time on Google searching for the right answers, industry experts can now find curated reports and search results relevant to their field. The startup labels, organises and denoises results using AI, helping its clients find the information that matters.Currently, DeepSearch Labs is currently in a Pre Seed funding round financed by SFC Capital and they’ve raised a total of £127k so far. Orbital MaterialsFounders: Jonathan Godwin, Daniel Miodovnik, and James Gin-PollockFounded: 2022Website: https://orbitalmaterials.com/Using Generative AI and Large Language Models, Orbital Materials develops novel green materials for clean water, air and energy. The startup has developed a foundational model for atoms that can generate materials that can remove contamination or develop novel fuels. Its latest deal was Early Stage VC and has thus far raised $4.8M thanks to its promising environmental agenda. EillaFounders: Nikolay Babulkov, Petar Petrov and Nikola LazarovFounded: 2022Website: https://eilla.ai/Eilla is an AI assistant for financial services professionals. The LLMs based startup helps professionals save time by producing ad-hoc documents in seconds and accelerating the due diligence process by distilling insights from extensive legal documents. This technology targets some of the chronic issues that handicap the financial services industry, as well-paid professionals often are bogged down by having to search, read, and summarise long reports rather than moving forward with clients. UnitaryFounders: Sasha Haco and James ThewlisFounded: 2019Website: unitary.aiThe internet is replete with disturbing and harmful content that human moderators simply can’t keep up with. Bringing a new disruptive method to make the world wide web a safer place, Unitary is using machine learning to teach AI to identify harmful content within its context. Its patented technology can analyse around three billing images a day, or 25,000 frames of video per second, catching bad actors who would have otherwise slipped through the net.Unitary announced a £12.3m in Series A funding in October 2023 and is reportedly pulling in seven figures of annual recurring revenue. As the pace of the internet continues to grow at a vertiginous pace, Unitary’s technology will prove indispensable to make the internet a safer space. WeWalkFounders: Kursat Ceylan and Gokhan MericlilerFounded: 2020Website: http://www.wewalk.ioThere’s 253 million people with vision loss and 50 million of them depend on white canes, guide dogs or another person to get from one place to another. For too long, blind and visually impaired people have depended on legacy methods. WeWalk is opening a new frontier in health tech with a cane that uses artificial intelligence to give visually impaired people more autonomy.Its promises to be disruptive given it already was selected as Amazon’s Startup of the Year and was named a TIME Best Invention. It also has secured £2m in angel investment backed by Manchester City and NESTA, the Social Impact Fund in the UK. MagicAIFounders: Varun Bhanot and Sunil JindalFounded: 2022Website: magic.fitMirror mirror, on the wall, who’s the fittest of them all? With an AI-powered personal trainer living in your looking glass, you’ll soon be told if the answer is you or not. Magic AI is transforming the way we think about fitness, making it less intimidating to start getting into shape from the comfort of your home. The AI technology allows the mirror’s intelligent hologram to analyse movements in real-time and provide hyper-personalised feedback.Despite its young age as a startup, MagicAI has already raised £2m from two venture capital funds and secured investments from prominent figures in companies like Spotify, Stripe, Tough Mudder and Virgin. IRIS AudioFounders: Jacobi AnstrutherFounded: 2019Website: iris.audioUsing cutting edge AI technology to eliminate background buzz, IRIS Audio is working to guarantee crystal clear sound in any industry. Using patented algorithms, IRIS makes it easier for sales teams, extreme sporting environments, and emergency services to communicate on both ends of a call.Last year, IRIS raised £5.6m in a Series A funding round and is planning to roll out its flagship product, IRIS Clarity, to a wider US audience. As it continues to grow and help us all hear better, IRIS will be another example of the power of AI for good. HACEFounders: Eleanor HarryFounded: 2020Website: www.thisishace.com160 million children worldwide are currently still trapped in a cycle of exploitation, a number that has increased by 8 million since 2016. Child labour can be found in nearly every industry and country, posing not only a moral dilemma but also a substantial reputational and financial risk to companies and investors alike. With its AI-powered Child Labour Index, HACE is giving companies a compass to avoid contributing to this social issue.By giving businesses a quantifiable metric of how contributive their investments are to child exploitation, they can find better ways of fighting against child labour and promoting ethical supply chains. My SMASH MediaFounders: Fiona Gillies, Christine Hartland, Mahesh RamachandraFounded: 2018Website: https://www.mysmash.media/The golden age of streaming is gradually drawing to a close, and the pressure to fill the content pipeline with hits has never been more intense. Content creation is both time-consuming and expensive, leaving the industry in search of innovative solutions to discover the hidden gems that today’s audiences crave. The challenge is pitching these projects in formats that can easily sway decision-makers.Their Pitch Builder powered by AI makes it easy for users to protect their pitch and transform new talent into savvy content creators. It currently boasts nearly 2,000 users with a significant 75% based in the UK and 12% in the US. AthenaAIFounders: Askar Bulegenov, Artem ShitovFounded: 2023Website: https://athenachat.ai/Athena AI has developed an all-in-one messenger system for businesses, powered by built-in AI capabilities that can answer customer queries, on the spot. The tech allows businesses to automate their customer support – whether the communication comes in by email, WhatsApp, text or various social media channels.Although it’s in its infancy, Athena AI envisions itself as the preeminent customer support and sales technology company, driving innovation across industries. AI Trends among UK startupsAI is on the road to become the newest normalised technology at our reach. These are a couple of trends to be aware of to know where the future of AI lies.AI in medicine: as shown by Mosaic TX and Charm Therapeutics, AI is on a mission to expand the limits of medical technology by making it easier and quicker to find new treatments. On top of this, AI is also boosting the precision of medicine by optimising electronic health records and enhancing diagnostics. This is helping medical professionals to better customise treatment plans and give patients more reassurance.Creative and generative AI: generative AI refers to the sub-field in machine learning where new data or content is made using an existing data set. In more simple terms, just think about technologies like text-to-image or text-to-3D model, or most notably, ChatGPT. What we might see as AI develops is smarter and more accurate generative technologies that will continue to blur the lines between computer and human generated code, text, images, audio, video and art.AI in personalisation: whether this is helping you pick the right outfit on an ecommerce page or helping you curate the right legal documents based on your industry and company size, AI will continue to enhance personalisation.Democratisation in AI: in the future, AI will not be just at the reach of scientists and engineers. As the technology becomes increasingly more embedded in our day to day, we’ll see more initiatives like Stability AI that will add to the low-code or no-code trend in AI. Therefore, we’ll see AI integrating more quickly and efficiently into workplaces.Read more:The King’s Speech: what can businesses expect from the Autumn Statement? Share this post facebook twitter linkedin Tags News and Features Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.
Customer retention: 10 strategies to keep your customers One steadfast, loyal customer is better than a handful of unloyal ones. Drum up consistent revenue by using these tried-and-tested customer retention strategies. Written by Stephanie Lennox Updated on 15 May 2023 Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality. Are you leaving thousands of pounds on the table every day while chasing new customers? You could be, especially if you’ve been neglecting your existing ones.As the cost of acquiring new customers continues to rise in 2026, retaining loyal customers isn’t just a nice-to-have; it’s a necessity. Not only does it reduce marketing spend, but it’s one of the more effective ways in which a business can achieve sustainable growth. The good news? With the right CRM (customer relationship management) system and strategies under your belt, retaining customers might be easier than you think. To help you make the most of your existing treasure trove of customers, we guide you through ten customer retention strategies that actually work. We also show you how to measure your customer retention rate, and note some common pitfalls to avoid, in order to keep your customers and your bottom line happy. In this article, we will cover: What is customer retention and why is it important? 10 proven customer retention strategies Biggest retention mistakes to avoid How to measure customer retention What is customer retention and why is it important?Customer retention refers to a business’s ability to keep its existing customers and prevent them from switching over to competitors. High retention rates translate to tighter customer relationships, reduced overheads, and higher profits. Alternatively, a poor approach to customer loyalty can result in a higher churn rate, often prompting businesses to spend more on customer acquisition to make up for losses.Simply put, retaining loyal customers can be a game-changer for businesses – and you don’t just have to take our word for it. Here are some stats which point to the potential of a successful customer retention strategy: It costs five times less to retain an existing customer than to acquire a new one. (Source) Loyal customers are 50% more likely to try new products and spend 31% more than new customers. (Source)Up to 86% of loyal customers would recommend their favourite brand to their friends or family. (Source)Maintaining loyal customers takes more than having a good product or service. Yet, the process can be made a whole lot easier by following the steps in this guide and using a top CRM system to track customer behaviour. 10 proven customer retention strategiesPrioritising existing customers is one of the smartest decisions a business can make. Drum up repeat purchases using these tried-and-tested strategies. 1. Automate onboarding and follow-upsYour customer retention effort should start as soon as a customer first makes a point of contact with your brand. Whether they sign up for a service or make a purchase, setting up some automated communication triggers will help create a positive experience from the beginning. This could be as simple as using a CRM system to send a customer a personalised welcome email.Automating follow-ups is another strategy to maintain engagement and address potential issues before customers churn. These could include anything from automated check-in emails to personal recommendations, which can also be managed seamlessly using CRM software.2. Actively listen to customersCustomer feedback helps businesses identify areas for improvement and build a better relationship with customers. Yet, whether you collect feedback through surveys, online reviews or net promoter scores (NPS), simply hearing the words a customer is saying isn’t enough.Instead, actively listening by probing for more information, acknowledging possible inconveniences, and most importantly, doing what you can to offer a swift resolution, shows that you’re committed to delivering a positive experience. Not only does this help customers feel seen, but it also makes them much more likely to stay loyal to your brand.3. Reward loyaltyRewarding loyalty is an excellent way to show appreciation to your repeat customers, and it’s also one of the most savvy decisions a business can make. Whether you choose to award them with discounts, early access to products and services, or other benefits, loyalty schemes give customers a sense of privilege and exclusivity, ultimately helping to strengthen their relationship with your brand.This gives customers a reason to favour you over competitors, helping to reduce your churn rate and expand your bottom line as a result. Simply put, it’s a no-brainer for businesses interested in hanging onto their most loyal customers. 4. Use AI to personalise communicationIf you’re still sending out comms manually in 2026, you’re missing a trick. AI-powered CRM software and tools like ChatGPT are capable of creating highly personalised messages in a couple of clicks. And this goes beyond inserting a customer’s name into a generic template. From personalised email product recommendations to targeted follow-up social media messages, AI can help you personalise a wide range of customer communications, improving the customer’s experience with your brand and driving up loyalty as a result. 5. Offer 24.7 instant support using intelligent chatbotsMost businesses don’t have the time or resources to man helpdesks 24/7 – but this doesn’t mean your customer service needs to be subpar.By using intelligent customer support chatbots, businesses can provide customers with immediate support around the clock, whether they need help with tracking an order or navigating your website.In addition to alleviating pressures from your team, the fast response times and round-the-clock availability of AI chatbots can considerably enhance the customer experience, making it much more likely for buyers to return to your business in the future.6. Offer subscription services or automatic reordersSubscription-based businesses like Swoperz and Gousto are gaining traction fast in the UK, and for good reason. Offering a product or service on a recurring basis, or allowing for automating refills, can considerably boost convenience for customers. It also creates a strong incentive for them to remain loyal to certain brands, providing businesses with stable and predictable revenue forecasts. However, to avoid the customer experience turning sour, we recommend clearly communicating your offering and making it easy for subscribers to quit the service at any time.7. Use flexible payment and return optionsConvenience is the name of the game for customers in 2026. If a customer isn’t able to use their desired payment method or return a product in a way that suits them, chances are they’ll flock to a competitor who can meet their needs.So, instead of giving potential buyers a chance to look elsewhere, we advise providing them with a wide range of payment options, from Buy Now, Pay Later (BNPL) services to digital wallets, and rolling out flexible return options such as extended return windows and parcel drop-off services at various locations.8. Build a strong brandEven with the best product or service in the world, if your brand is weak or lacks clarity, customers have no reason to buy into your business.Fleshing out your brand with strong company values, a well-thought-out mission statement, and a unique value proposition is a prerequisite for attracting customers who resonate with your business. These customers are much more likely to be loyal and speak about your brand positively with friends and family, making them indispensable to the longevity and growth of your business. 9. Build a communityFostering a customer community gives your buyers a space to connect with each other and rally around your brand. A strong sense of community can also help to reduce churn, as loyal customers are much less likely to ditch a brand they feel connected to. If you’re building a community around your brand for the first time, we recommend defining your brand values and target audience first. Then, choose a platform to host your community that reflects these values, whether it be a dedicated online forum or a social media group.10. GamificationCustomer retention doesn’t need to be boring. Incorporating interactive, game-like elements into your user journey makes interactions with your brand more fun and engaging. The positive reinforcement these games create also fosters a sense of accomplishment, making customers more likely to make repeat visits and stay loyal to your brand.From handing out virtual badges when customers carry out specific actions to ranking them on online leaderboards, there are loads of ways to have fun with your customer retention strategy. Just make sure the gamified elements align with your brand identity, and the interests of your customer base. Biggest retention mistakes to avoidEven with the best intentions, businesses can drive away loyal customers by making some simple mistakes. To avoid being used as an example of how not to keep hold of customers, here are some of the most common customer retention pitfalls and, more importantly, suggestions on how to steer clear of them.1. You’re ignoring customer feedbackCustomer feedback acts as a direct line to the customer’s needs, desires, and expectations. So, ignoring input doesn’t just result in customers feeling undervalued and unheard, but it also creates a missed opportunity for businesses to improve their products, services, or customer support system.How to avoid this pitfall: You can use a CRM system to gather, track, and analyse customer feedback. Then, take concrete actions based on this feedback, and communicate changes to customers to show them that their input matters.2. Your communication is inconsistentInconsistent communication can confuse customers and make it challenging for them to understand your brand and offerings. It can also damage trust between your business and your customers, and lower the chances of them making repeat purchases. Fortunately, you don’t need to be a comms expert to overcome this roadblock. How to avoid this pitfall: Develop a clear and consistent communication strategy that encompasses all customer touchpoints, including emails, social media, and customer support interactions, and use automation tools and CRM systems to maintain regular and personalised communication.For help finding a CRM system, try our specialised free comparison tool for quotes.3. Your customer service is poorIt only takes one negative customer service experience for a once-loyal customer to turn their back on your business. Customers can quickly share their negative experiences online, too, triggering a ripple effect which could potentially damage your brand’s reputation.How to avoid this pitfall: Invest in comprehensive training for your customer service team to ensure they can handle a range of customer inquiries and problems effectively.In a broader sense, we also recommend fostering a customer-centric culture within your organisation, where every employee understands the importance of excellent customer service.4. You aren’t personalising your communicationIf you haven’t moved beyond generic, ‘one-size-fits-all’ messaging, chances are your customers just feel like another number. Personalising your marketing efforts makes customers feel valued and appreciated, which in turn strengthens their relationship with your brand. How to avoid this pitfall: First of all, collect data from various sources including CRM systems, purchase history, and email interactions. Then, divide your customer base into smaller groups based on shared demographics, and send targeted campaigns to specific customer segments, whether you opt for email marketing, SMS marketing, or targeted ads. We also advise customising greetings with the customer’s name. It’s a simple touch, but it’s been shown to significantly boost open and click-through rates and revenue as a result.5. You’re over-promising and under-delivering Selling your customers the world may help you land that initial sale. But once a customer feels misled, and their trust in your brand is broken, you can guarantee they won’t be coming back to make a repeat purchase. Negative experiences spread fast, too, whether it be through online reviews, social media, or word of mouth. So, over-promising and under-delivering may also make it harder to secure new customers, in addition to losing loyal ones. How to avoid this pitfall: Focus on setting realistic expectations for your customers to avoid any potential disappointment. Then, aim to consistently deliver more than you promised, whether it be by going the extra mile with postage and packaging or surprising buyers with a little freebie. How to measure customer retentionIn order to measure your success with your new customer retention strategy, you’ll need to know how to calculate your existing rate first.A customer retention rate is a crucial metric that measures the percentage of customers a business successfully retains within a specific period, typically compared to the number of customers it had at the beginning of that period. The formula to calculate your customer retention rate is as follows:Customer retention rate formula = (Number of Customers at the End of a Period – Number of New Customers Acquired During the Period) / Divide by Number of Customers at the Start of the Period x100.Here’s a real-life example of how the formula works, using a cafe in Bristol called “Lush Bean”.At the start of January, the Lush Bean had 80 loyal customers who came in regularly. During January, they welcomed 20 brand new customers. Counting their existing regulars, a total of 90 customers were still coming back by the end of January. Here’s how the Lush Bean would apply the customer retention rate formula, step-by-step:Calculate the number of customers by the end of January: 90Calculate the number of new customers acquired during January: 20Subtract the new customers from the final number: 90 – 20 = 70Calculate the number of customers at the beginning of January: 80Divide the number of loyal customers by the starting number: 70 / 80 = 0.875Multiply by 100 for the percentage: 0.875 x 100 = 87.5%So, using this formula, the Lush Bean is able to work out that its customer retention rate for January was 87.5%.In addition to this formula, there are a few other key metrics that will help you understand the full picture of your customer retention overall, including:Customer churn rateCustomer lifetime value (CLV)Net promoter score (NPS)Conversion ratesNot a fan of lengthy equations? Fortunately, lots of CRM systems are capable of calculating your customer retention rate for you, saving you the time and effort associated with doing it manually. Start building loyalty in 2026Perfecting your loyalty strategy doesn’t need to be an uphill battle, and trust us, it’s a whole lot easier than acquiring new customers from scratch. By understanding your target audience and shaping your retention strategy around their specific needs and demographics, you’ll be in a better position to encourage repeat purchases. But don’t wait until tomorrow. Every day you delay taking action, you risk losing loyal customers who could be pouring consistent revenue into your business. Still unsure about what customer retention strategies would be best for your business? Learn how to identify and meet your customer needs accurately in our comprehensive guide. Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Tags Essential Guides Written by: Stephanie Lennox Writer Stephanie Lennox is the resident funding & finance expert at Startups: A successful startup founder in her own right, 2x bestselling author and business strategist, she covers everything from business grants and loans to venture capital and angel investing. With over 14 years of hands-on experience in the startup industry, Stephanie is passionate about how business owners can not only survive but thrive in the face of turbulent financial times and economic crises. With a background in media, publishing, finance and sales psychology, and an education at Oxford University, Stephanie has been featured on all things 'entrepreneur' in such prominent media outlets as The Bookseller, The Guardian, TimeOut, The Southbank Centre and ITV News, as well as several other national publications.