02 November 2015
5 things to ask yourself before starting a business
We at the London Business Support Service work with the British Library conducting regular one-to-one confidential business clinics on the first Wednesday of every month at the Business & IP Centre.
During these clinics we meet with many startups and realise that there are numerous reasons for starting up a business. However, once the process has begun, the main goal must be to succeed – and the best way to ensure success is to address some of the following questions before you start.
1. Do I want to or do I have to?
What is the driving force behind your decision to set up your own business? Is it a long term passion or have circumstances forced you into it?
If the latter, take some time to carefully consider how you feel about your choices, going forward. Resentment can have a negative effect on your chances of success, therefore it is beneficial to re-think your attitude as a positive mind will improve your enjoyment of each achievement towards your goal.
If, on the other hand, you are about to embark upon your dream of being your own boss, you already have a positive outlook – and passion drives energy, which is a key factor for getting things done when you’re the one who has to do it.
2. Is everyone who matters on board with me?
You should never have to do this alone. If you have a family, a business partner, financial partner or other interested parties, listen to their suggestions and keep them in the loop.
Their support will help provide a natural synergy to maintain a good momentum. Any negativity should be analysed and quickly resolved.
Many clients of ours have taken advantage of the connections available at the British Library and you too can build a network of like-minded entrepreneurs at the Business & IP Centre.
3. Do I have a support network?
Your support network will include essential services such as accounting, legal or start-up business advisory services necessary for running your business.
Outside of your immediate associates, you may need a range of consultants with experience across diverse subjects: website design, social media management, HR, grant funding specialist or business mentor, to name but a few. By building a network of contacts, you will be able to locate assistance with any issues as they arise.
And, don’t forget, your experience could also mean that you are an important contact for others in your network.
The Business & IP Centre offers a range of services from carefully vetted consultants, coaches and industry experts to help you overcome most of the challenges faced by a start-up.
4. Can I make it work?
You have to really honest with yourself – can you make it work? What will it take? Planning at the outset, rather than deferring potential difficulties, could be critical. Gut instinct is no substitute for comprehensive research. Find out what others encountered on their journey and how they found workable solutions to overcome inevitable barriers.
5. Do I need a backup plan?
A good question! Some say that if you feel the need for a backup plan, you don’t have the confidence to succeed. The real answer is that you need several backup plans – at key stages of the business plan.
You will undoubtedly need a brief but solid business plan covering key points. A business mentor with experience of supporting start-ups will be able to guide you through the process, ensuring that you identify important areas of your business and address them appropriately.
Come along to our business clinics at the Business & IP Centre which are suitable for any type of business in any type of situation, and our experienced business advisors are here to provide you with cost effective business support services that result in tangible and measurable benefits to your business.
Nauzar Manekshaw, Business Advisor with the London Business Support Service
28 October 2015
Dare to dream: How to be a startup success
Last night Kanya King MBE, CEO and Founder of the MOBO Organisation, took the stage in the British Library before heading to another in a series of events leading up to one of the biggest British awards shows of the year – the MOBOs. The Business & IP Centre at the British Library and the MOBO Organisation joined forces to bring together a panel of leading lights in the creative industries, including June Sarpong MBE, Yinka Ilori and Levi Roots, who shared their groundbreaking stories of what can be achieved with the right attitude and determination.
The event was part of MOBO’s ‘Rise With Us’ Season, taking place this month, designed to recognise the achievements of diverse artists, designers and entrepreneurs and inspire the next generation of up and coming talent.
The panel shared their individual stories of starting up and gave some invaluable tips for people wanting to follow in their footsteps.
Kanya King MBE
Kanya started the MOBO Awards from her bedroom in 1996 to give a platform to emerging talent who would go on to achieve global success. Now MOBO, one of the most recognisable brands in British music, helps create more opportunities for exceptional talent across all of the creative industries; in her own words ‘Inspiring a generation who dare to dream’. Success wasn’t without its barriers for Kanya. While she had passion and determination she also had no contacts in the music industry, no money and most people told her it wasn’t possible. Finally she got her break when a meeting with an LWT Executive resulted in a broadcast slot with Carlton Television. With only six weeks to pull together the first MOBO Awards, and with many people still doubting that an audience would be interested in celebrating diverse talent, the odds were against her. However, that first show was a hit and, now in its twentieth year, the MOBO brand is bigger than ever.
Kanya gave some tips to the entrepreneurs in the audience including: be passionate about what you do and make sure to prioritise - focus, focus, focus. Her advice is that you don’t always have to get it right, you just have to get going and persistence is key – ‘never give up on your dreams’. She didn’t get where she is today because of talent but because she refused to give up. She emphasised that much more can be achieved when you have a team around you that is united in your belief.
Yinka Ilori
Yinka Ilori is a London-based designer specialising in up-cycling vintage furniture, inspired by the traditional Nigerian parables and African fabrics that surrounded him as a child. When he started off as a designer he felt that there weren’t a lot of black designers and there weren't many people for him to relate to. He wanted to give up many times but his family were consistent in their support for him and told him to keep going.
Since starting up, he has exhibited internationally in solo shows, runs regular workshops and is involved in many projects. One of his most recent projects is partnering with the British Library shop as part of the current West Africa: Word, Symbol, Song exhibition. Yinka came to the British Library when he was starting up to do research in order to find his unique selling point to build his brand. His main piece of advice for entrepreneurs? Remember to tell your story how you want to tell it.
June Sarpong MBE
June, one of the most recognisable faces of British television, is also the Co-founder of the WIE Network (Women: Inspiration & Enterprise). WIE is dedicated to women in leadership and it’s not surprising June is involved when she said that fight for empowerment and equality get her out of bed in the morning. She is driven to empower everyone in society to be the best we can be and believes it leads to a stronger economy, safer planet and overall a fairer and better world. Speaking at the event, her mandate was clear: we have to ensure women and those from diverse communities are empowered.
June's number one piece of advice was 'before you start to worry about what other people think about you, worry what YOU think about you!’ Like Kanya she also emphasised the need to learn to control your thinking, have a goal and focus on it.
Levi Roots
A MOBO nominated reggae artist, a pioneer in Caribbean food and culture, Dragons’ Den star and with a new ‘rastarant’ opening soon, Levi shared his story about starting his Reggae Reggae sauce in his small Brixton kitchen and giving back to the community by visiting hundreds of schools, universities and prisons each year as part of his School of Life tour. His journey to becoming a successful entrepreneur was shaped by his experiences. His advice for entrepreneurs is to work with someone who knows more than you – a mentor. But his biggest piece of advice? Be true to yourself.
As June said at the event, ‘It’s a very exciting time to be creative in Britain’ and we couldn’t agree more. If you are starting, running or growing a business and need some help, check out our week-long series of events coming up in November for Global Entrepreneurship Week.
Join the MOBO Season #RiseWithUs
26 October 2015
How to take your business from a start-up to growth stage
Growing a business isn’t easy. Moving into new markets, developing your brand, and protecting your intellectual property require determination, hard work and support. Which is where our Innovating for Growth programme comes in: a free three month small business support programme, funded by the European Regional Development Fund and run at the Business & IP Centre at the British Library, it provides expert advice and support for businesses looking to grow in areas including strategy and sustainability, branding, intellectual property, marketing and product development.
Pictured above: Victoria Eggs used the Business & IP Centre to grow her business
Recently Innovating for Growth businesses came together to celebrate their completion of the programme and the progress they had made on their business growth. The programme has, to date, assisted just under 240 businesses and helped them collectively to generate more than £14m in Gross Value Added for London. Innovating for Growth participants have also won an impressive roster of awards, from Overall Best Business in London to Great British Entrepreneur Award, and the project itself was a finalist in last year’s RegioStars Awards ‘Smart Growth – SME Innovation’, the only London project to be nominated by the Greater London Authority.
Pictured above: Rose Hill grew her business with the help of our Innovating for Growth programme
At the Innovating for Growth showcase event Amelia Rope of Amelia Rope Chocloate, Jo Ayoubi of Track Surveys and David Showell of Cycle Confident Ltd gave some advice for those looking to start and grow a successful business:
From Amelia:
- Test your market with any new concept before you put a lot of money into it
- Get out there, meet people, chat about your product
- Get out of bed with a mantra of Go. For. It.
- Mistakes happen, accept them and just work at avoiding the same mistake when it presents itself to you again
From Jo:
- Stay in touch and in front of your customers and contacts; send them short, regular emails (not sales emails). There are lots of competitors and it's easy for people to forget about you.
- Never burn your bridges: even if you're hurt or upset, don't fall out with people. You'll probably bump into them at some point in the future.
- Be curious about things that are happening outside your business, as you may find new ideas and ways of staying ahead of your competition that way.
From David:
- Take time to recruit (hard as it may be).
- Accelerate your selling when you are growing. You are doing something right so don’t slow down, even if operationally you may be stretching yourself.
- Accept growth is a relentless task at all times creating challenges and opportunities. Rise to the challenges and take the opportunities. That is what entrepreneurs do.
Experiences of growing a business
During the event some of the businesses told us about their experience of growing a business. A common theme among participants was the need for clear, constructive guidance and support, and the opportunity to network with other small businesses trying to develop and expand.
“Overall, we've had a really positive experience of the programme. We were delighted to have been chosen to take part and we've taken away some great ideas. We're feeling excited and inspired about the future - a bit like we've fallen in love with our company all over again. We've also met lots of like-minded business owners that we're going to stay in touch with, so that we can keep sharing our experiences and supporting each other.” Cristina Harvey, The First Word
“Innovating for Growth has given us a wealth of knowledge across key areas of business. We've been given the tools to help our business grow from market experts and were busy implementing what we've learned. I've also had my eyes opened to the incredible information resources that the library offers. It's an outstanding programme and resource and we feel lucky to be part of it."Dominic White, Ovio.
The Business & IP Centre was launched with the aim to support businesses, entrepreneurs and inventors grow their organisations by using our valuable resources and expertise and working with a network of trusted partners. Innovating for Growth has been delivered with thanks to the GLA, ERDF and our deliver partners: ABA, asb law, Gearing Up, Makersco and Red Ochre.
Innovating for Growth is part-funded by the European Regional Development Fund
17 September 2015
Book review: Start a business for £99 by Emma Jones
Emma Jones the founder of Enterprise Nation and also an Ambassador of Business & IP Centre has published a new book Start a business for £99. Emma works closely with us in the Business & IP Centre.
She founded Enterprise Nation, which runs diverse campaigns to support business start-up and growth. Enterprise Nation are one of Business & IP Centre partners who run monthly StartUp Saturday events in the Centre. Emma also occasionally chairs our Inspiring Entrepreneurs evening event panels.
I’ve chosen this book because of its intriguing title. Having read it, I can see it would be very useful for people who have an idea, and want to make a living from bringing their idea into the market.
It covers pretty much everything you would need to know from starting wit a business idea, to funding, marketing, social media promotion, growth and much more.
Inside you will find out how to:
- Come up with a winning idea
- Take your idea from concept to market
- Carry out high-value, Low-cost market - research
- Develop a professional online presence for less
- Make the most of free technology tools
- Raise your profile with no marketing budget required
- Find space and people by borrowing and bartering
The book is divided into four parts making it is easy to navigate. Each part is broken down into chapters for clearer explanations. In each chapter Emma presents a case study. One of her case studies was Imran Merza, the entrepreneur behind Jealous Sweets, who was also supported by our Innovating for Growth programme.
As Emma mentions “Imran and his business partner Taz had no knowledge of the confectionery market and no idea where to begin”. Imran took advantage of the free resources at the British Library Business & IP Centre and conducted his market research to help him build his business plan. It helped them target their audience market and their spending habits. With this knowledge, they knew who to approach to sell their products.
The book provides you with a checklist of essential things you need to start a business and how you can do them all for under £99.
Here are the essentials:
- Register as Limited Company - £15.00
- Insurance - £5.00 ( for 1 month)
- Broadband - £2.50
- Domain Registration - £4.50
- Meet Face to Face with Customer - £5.00 (cost of coffee)
- Logo - £3.30
- Business Cards - £9.99
- Home Office - £20.00
- This Book - £12.99
- Bottle of bubbly to celebrate - £10.00
Total - £88.28
Julie Boadilla on behalf of the Business & IP Centre
08 September 2015
Five Preparation Tips for Entrepreneurs
Dr Stephen Fear, Ambassador to the British Library’s Business & IP Centre and Chairman and Founder of international organisation Fear Group, outlines key skills any successful independent entrepreneur should include in their work ethic.
The noun ‘entrepreneur’ derives from the French and means ‘organiser’. Entrepreneurs are traders: some work for a corporation whereas others who cherish their independence are self-employed. Independence is therefore one way of distinguishing between different types of entrepreneur. Independent entrepreneurs are mavericks. There is something about them that sets them apart from the crowd- something more than financial success alone. Some of their ideas fail and some prosper, albeit briefly, whereas others may influence the course of history. Apple, Microsoft, Facebook - all of these companies were started by independent entrepreneurs.
In many ways becoming an independent entrepreneur is an act of revolution, not of course in a political sense but that of the insistence of the individual to be just that, individual. An independent entrepreneur wants to produce a solid expression of his or her desires and dissatisfactions, usually in a positive way for the benefit of society. Of course it’s about making money, but for me at least it has always been about more than that. Interesting projects abound and getting involved and solving problems make me get up in the morning.
1. Be organised
I organise myself and have created a system to reduce mundane tasks so that they are dealt with automatically and therefore I am left with the more exciting job of finding new opportunities. One thing I learnt very early on is that paperwork seldom goes away on its own and the longer you leave it the worse it gets. Automating how you deal with it is essential if like me you prefer doing deals rather than shuffling papers.
I allocate one full day every week to deal with what I call ‘office stuff’. It doesn’t matter where I am in the world, that one full day, which in my case means 14 hours, is spent clearing my desk. Thanks to modern technology this no longer means that I need to be in my office because I have digitised my administration so that I can just as easily work from France or the US as I can from the UK, or even Africa or Brazil.
2. Go paperless
Focus on ensuring everything you need is available on your laptop or tablet if you want real freedom. Once you have created a truly paperless office it goes everywhere with you.
Ringing someone, even on a mobile from New York to London, is still a lot cheaper and more efficient than travelling across time zones and with Skype it is free. I started in a red phone box but am thankful to the entrepreneur who developed the smart phone because without him or her, I might well have back ache by now! We live in a brilliant age for the entrepreneur, an age where almost anything is possible and most things are probable. That is, if you’re organised of course.
3. Exercise your mind and body
I find that a walk gives me the time to prepare and think things through. I avoid the phone or texting whilst walking because it interferes with my thought process. It isn’t necessary to walk for miles, so a stroll around the block is fine. I often do this first thing in the morning when staying in hotels. I have walked the streets of Moscow, Los Angeles, Toronto and most other large cities at some point in my life. Just wandering, looking in shops and people-watching from cafés fills my mind with new business opportunities. Try it for yourself, it works. Preparing the mind is essential if one is to make good balanced decisions, rather than the rushed feeling experienced by many. An organised mind leaves time for entrepreneurial thought to develop.
4. Allocate time as you would money
Time is money, and we spend it in much the same way. Let’s say you decide to work 40 hours a week but waste 27 of them chatting on the phone with friends or using Facebook. That means you only have 13 hours left to earn your daily crust which might leave you wondering why you can’t pay your bills. For entrepreneurs - unless they use time efficiently their businesses never get off the ground. This can often result in friends, relatives or banks not being paid back money they lent to get the business started. Try looking at your time like you do your bank balance. At the start of the week you have a certain amount of both. Spend them with equal consideration to those finite limits.
5. Know your competition
Keeping your own counsel and thinking things through is something many successful people do regularly, including myself. It’s important to create a space between your idea and the clutter that surrounds it so that you can obtain perspective. Learning who your competitors are and what they are up to is essential if you want to progress. Don’t be daunted by others’ success, but instead be inspired by it. I always think a great leveler is to realise that you are probably not as good as the very best and not as bad as the really hopeless. “You’re as good as ANYONE, but not better than EVERYONE.”
Need some more advice on starting and running your business? Come along to our next Inspiring Entrepreneurs event which will celebrate the contributions of Black British entrepreneurs and creative talent in the UK with a panel including: MOBO CEO and Founder Kanya King MBE; June Sarpong MBE, TV presenter and Founder of Lipgloss Productions; Yinka Ilori, Designer and Levi Roots, Reggae Reggae entrepreneur and MOBO nominated musician. Book now.
Dr Stephen Fear on behalf of the Business & IP Centre
02 September 2015
Tips for getting back to business
In this article Business & IP Centre partner life/business coach Rasheed Ogunlaru author of Soul Trader – Putting the Heart Back into Business shares top tips on moving yourself and your business ahead from now to December and beyond.
The summer holidays are over, autumn is arriving and it’s back to school, work and crucially it’s time to get back to business for you if you’re an aspiring or established entrepreneur. This new season is synonymous with harvesting, studying, producing and thanks giving. In business terms it’s arguably the most important quarter of the year: it’s one of the longest stretches without bank holidays; it’s the phase up to and including Christmas - where a huge percentage of business deals and sales are made. It’s that last opportunity to achieve your year’s goals. So let’s get back to business in 3 steps:
Get Ready
- Are you ready? Have you had time out – and have you been able to wind down? Or do you need to take a few days of rest so that you’re really relaxed and re-energised and can give 100%? If need be take time to catch up on sleep, have the right things to eat and feel re-energised and ready to start back and press ahead.
- Ready for business: Clear your desk; sort your filing systems; sort and order any stock; clear your emails; organise your computer files and clear your desktops screen. Make sure that everything is organised, systemised and simplified to save you time. This will clear your head, clear your desk, focus your mind and help you be more productive and efficient.
Get Set
- Set your sights: What's your vision, mission and purpose? What precisely do you want to achieve from your business, and why? As with any journey you need to know where you’re going, for what purpose and how you’re going to get there. Revisit your strategy or write one. It need not be long 2 pages will do it. If you’d like one there’s a 2-page business plan template in Soul Trader – and you can get if for free on www.soul-trader.biz in the free membership area.
- Set your goals: Your strategy should include SMART goals (Specific, Measurable, Assigned/agreed, Realistic and Timed / time related). Tip: Have goals for1) three years, 2) next year and 3) the rest of this year. Start with the long-term and work back. Have clear goals for what you want / need to achieve including a) finances b) marketing / promotion and c) management / operations.
Tip: Make your goals for Sept- Dec very specific and focused. I recommend limiting it to the 2-3 things that will the biggest positive impact on your business.
- Set your timetable: How are you going to manage your time? How will you stay focused day to day? It may help to divide your days and weeks between key marketing, operations / management and finance-related tasks. What time of the day / week are you best to tackle these tasks. Schedule them in to your physical or online diary. If you don’t have a diary or some sort of a planner, then get one.
- Set time aside:
1) To review and fine-tune your goals, progress, opportunities, challenges and priorities – 10 minutes a week is a good start.
2) For you, loved ones, pastimes and rest time. Life shouldn’t be all about work and there will be risks to your health, relationships and productivity if you don’t take the time out you need.
Go….
Now that you’re ready and set, it’s time to go for it.
- Give 100%: From serving a customer to giving a pitch presentation. Be engaging, empowering, enabling, informed, interesting and interested.
- Go out more / be outgoing: Don’t be shy; network in person and online. Ensure that you build a strong presence and clear messages personally, online, via social media and with contacts and clients.
- Go for it: Be personable, professional and proactive. Look for and spot opportunities – develop a dialogue with and listen to customers, contacts and potential collaborators.
Rasheed Ogunlaru is a leading life coach, motivational speaker and business coach. He is author of Soul Trader – Putting the Heart Back into Your Business. Check out Rasheed’s “Networking for Success” event at the British Library Business & IP Centre.
21 August 2015
Spotlight on … The Decorators
The Decorators is an exciting young business made up of four friends who met at uni. They turned their passion for working with space into an experiential design business. Here founding partner Carolina Caicedo shares advice for starting and growing a successful company after completing the Business & IP Centre’s Innovating for Growth programme.
How did you come up with the concept or idea for your business?
The four partners met doing an MA in Narrative Environments at Central Saint Martins College of Art & Design. The course was all about multidisciplinary teams working collaboratively on projects. An opportunity to do an interactive installation at the trade show 100% Design in London came up just at the end of our final year in 2010 and we decided to take it on together. The project was a success and showed us that we worked well together and that we could produce more interesting things by working together rather than individually.
You started your own business at a young age – what advice would you give to other young people hoping to do the same?
I would say look to learn about how to run a sustainable business as soon as you start. Train yourself in all the different hats you’ll have to put on. We set ourselves up as a collective to begin with, we were much more interested in the delivery of creative ideas, than in understanding what it takes to run a business. We learnt the hard way that simply focusing on producing a good service or offer is not enough to sustain a business. I would also recommend finding a business mentor, be it someone with his or her own business or a business coach. All four of us set up The Decorators straight after finishing our MA, with little time spent in industry at times we felt we were reinventing the wheel unnecessarily. Others have done this before you so learn from them.
How did you finance your business at the early stages?
We financed the early stages of the business by taking out a small start-up loan through the University of the Arts London. It helped us take on a studio.
What main obstacle have you had to overcome?
Our main obstacle has been mindset. We have had to shift our mind-set to see ourselves as business owners rather than just designers or creators. With that shift we have experienced a loss of resistance towards the less sexy and fun aspects of running a business.
What do you like the most about running your own business?
For me it is how empowering it feels to be running your own business. It is empowering to be shaping and creating the kind of work you want to do, who you do it with and the culture in which you do it. The self development required to take a business forward is also empowering. It sets you in good stead for whatever may come next.
Which entrepreneurs inspire you?
We are inspired by the recent surge in start-ups that are putting wellbeing and social values at the heart of their business. I have found the watching the rise of Headspace very interesting and it is particularly inspiring when you know how hard it is to get a business going. I am also much more interested in hearing the behind the scenes stories. I listen to the podcast Start-Up, which follows the journey of businesses that are starting up. We usually only get the final success story but it is much more valuable for me to hear about the journey and the struggle to get something to work.
If you had one piece of advice to someone just starting out, what would it be?
Self development is the most important thing in starting up your own business. Developing a can-do and positive mindset is what will get you through the inevitable hard times.
We are now taking applications for the next Innovating for Growth programme find out how you can apply today.
17 August 2015
3 common mistakes made by small business founders and how to avoid them
On the Business & IP Centre Innovating for Growth programme, we have met more than two hundred and fifty business founders in London. We have worked with them to help their businesses grow. I'm responsible for helping them to make a great offer for their customers and deliver amazing products and services.
It's hard to start a business and these business founders never fail to inspire me. But I've noticed some common themes that can hold them back while they are trying to grow from a start-up to an established company. Here are three mistakes that business founders often make, and what you can do to avoid them.
1. Thinking like a craftsperson, not an entrepreneur
This is all about priorities. When you start a business, it’s often in order to sell a particular product or service you are passionate about: something you just couldn’t find anywhere else. You want to focus all your time and energy on crafting that idea. That’s great, but the priority of a business founder – or entrepreneur – is to create firm foundations for the business itself. In that sense, the business is the product: it’s the thing you are making.
As an entrepreneur, prioritise your time toward checking your riskiest assumptions and making sure your business can thrive. Is this the best market for me to sell in? Who are my first ten customers going to be? Can I establish the partnerships I need with suppliers or retailers? Can I compete on price as well as quality? Crafting your passion-product shouldn’t be the first thing you do. That should come when you’re ready, with all the other elements in place.
2. Not talking to customers about what they need and why it matters
So many business founders avoid talking directly to their customers or, if they do, they only pitch the things they want to sell. I'm not sure if this is because people are shy or over-confident, or perhaps a bit of both. But the gap between what your customers actually need and what you think they need is often huge. Non-delivery, under-delivery and over-delivery all cost you money and slow down growth.
This trick never fails: make ten appointments to meet ten customers and talk to them for an hour each about their desires, anxieties and unmet needs. Buy them a coffee near to where they work. You're not allowed to talk about yourself or your ideas, only about them and theirs. After just ten interviews, you'll have a level of insight you've never experienced before.
3. Valuing goodwill over cash
I often hear “It didn't make any money but we learned a lot, and the customers loved it”. Or, “We nearly broke even but at least the client is keen for us to do more”. I bet they are. But you should value cash over goodwill, not in the sense of trying to rip people off, but because profit is the measure of your business's success.
While you are testing your ideas and building your customer base, find ways to discover which customers will pay you what you are worth, and which ideas they are willing to pay for. If you discount or give away your product or service to early customers, you'll lose the chance to learn the only important lesson: is there a market for this? For a business founder, money is information.
About Christopher Pett
Christopher runs Makersco, a business growth agency working with small and medium sized business owners. Makersco helps clients to find deep customer insights, run fast product development projects and build useful management information systems. He also advises business owners on the Innovating for Growth programme at the British Library Business & IP Centre.
Want to grow your business? We can help. Apply for our Innovating for Growth programme today.
11 August 2015
6 Tips for Pitching to Investors
Listening to the “Dragons” on the BBC2 TV show Dragons’ Den is a good insight into the way your investors may be thinking when you present your ideas, plans and proposals to them. As all good scouts know, you must Be Prepared, i.e. be fully prepared for some intense questioning before investors will entrust you with their money. Here are our 6 tips for getting your pitch right.
1. Know every aspect of your finances – and your research data
Numbers must add up but, more than that, every figure that you use must be validated. You can’t simply base your first year growth rate on a competitor’s established business or make assumptions based on ‘gut-feel’. That is a certain way to get rejected at the very first stage.
How much money do you need and how will every penny of it be invested? What are your start-up/capital expenditure and initial running costs? Are these based on firm quotations from relevant suppliers? Know the best and worst case scenarios for your projected costs.
Who are your customers, what is the size of your potential market and how long is a typical purchase decision process? Why would your product be selected? What steps have you taken or are you planning to maximise the reach of your marketing and sales campaigns?
Importantly, when will investors begin to see a return and how much? What exit options have you considered? You will need to substantiate your claims with independent data.
2. Rehearse your pitch – and practice thinking on your feet
Enthusiasm and confidence are by-products of knowing that you are thoroughly prepared for any question – even if it’s one you hadn’t previously considered.
“He who hesitates is lost” has never been so true therefore you need to keep a clear head and be able to deliver a well-rehearsed pitch that briefly covers all important points. Practicing your delivery with a mentor or business associate, rather than in a mirror or with a close family member, may be helpful in a number of ways. Get them to ask questions, too. The tougher the questions the better prepared you will be.
3. Understand your investors and be open with them
Before you set the level of your pitch, find out about your investors, particularly what business areas they have interests in. If they offer advice, you need to listen because they are the ones with huge amounts of money and, presumably, some proven business acumen. As with all advice, you should take it on board, mull it over and act on it as appropriate.
Don’t try to hide pertinent facts and if you are not sure of the facts, don’t make them up!
4. Be honest with yourself about the value of your business
Excluding assets, the value of your business is calculated on its worth and profit potential to someone else and nothing to do with the amount of time and money you have invested getting to the current point. An entrepreneur will have devoted considerable resources to bring the venture to this point, and that is often considered as personal sweat equity. Investors appreciate this, but they will take it for granted and tend to focus instead on future cash-flow requirements rather than legacy costs.
5. Keep calm and be yourself.
It is easy to put yourself under pressure when big opportunities arise but keeping calm and not panicking will enable your mind to work clearly and your mouth to deliver a clear response!
Knowing that you are well prepared is a major calming factor but, if you are prone to nervousness, practice some calming techniques that will help you through the pitch – perhaps deep breathing or subtle rhythmic tapping of your thumb against your finger.
Let investors see the real you – the person who is driving the business. Believe in yourself and just be you. Investors are real business people, and they want to work with ambitious, driven and practical entrepreneurs.
6. Don’t forget to close!
When you’re finished presenting make sure that ask for the investment – that’s the real purpose of the meeting isn’t it? At this stage the investor may have some additional questions for you. Some may be business-related, others more personal in nature. They’re essentially trying to get a feel if they can work with you as a business partner. So don’t take this approach personally and answer their questions to the best of your ability. And then ask for the investment again.
The London Business Support Service is a valued Partner of the British Library in London. We conduct 1-2-1 confidential business clinics on the first Wednesday of every month at the Business & IP Centre at the British Library. Our business clinics are suitable for any type of business in any type of situation, and our experienced business advisors are here to provide you with cost effective business support services that result in tangible and measurable benefits to your business.
29 July 2015
Top tips on online accounting for small business
Books are migrating to e-readers, music is being streamed and accounting is now happening in the cloud. This is the quiet revolution that accountants whisper but dare not speak aloud. Accounting software is dead; it’s online and upwards to the clouds. Online accounting has arrived.
It may sound a touch over the top but it’s true. As a business, how you manage your books pretty much manages everything else. Your accounting is an important engine in your business. A well-oiled efficient system will reap rewards; a slow burner with too many miles will underperform and slow you down.
This is where online accounting in the cloud is so significant. Consigned to software history is the accounting package sold ‘out of a box’ installed onto your desktop, run on a local drive and perhaps backed up onto a different drive. It was fun while it lasted but now SMEs have multiple choices when it comes to doing their books.
And here lies the problem. Business owners are generally uncertain about how to choose an online accounting package that works for them. But help is at hand, outlined below are some helpful tips to help you decide on how to choose the best package.
Why choose online accounting?
It’s easy to say the future is online but what are the actual advantages?
- Firstly, you can access it anytime, anywhere and aren’t bound to the PC in your office and you don’t need to keep installing updates
- Being on the cloud means information can be easier to share as well
- It can save considerable time and keeps your records up to date
The question then is which online accounting package to choose? There are numerous packages you can subscribe to out there. Xero and Quickbooks are making inroads but there are lots of others too. There are well over thirty providers of online accounting, so choosing the right one for you can feel overwhelming. The best thing to do is to narrow your focus by asking yourself a few of the following questions:
- How long has the software been around? In other words, is it market tested?
- Is the software UK compatible? Can it deal with VAT? You will need a system that works effectively for VAT returns.
- Can it work with multi-currencies (if you need to trade overseas)?
- Can it integrate with other software easily (known as API) such as CRM or invoicing programmes?
- Will it securely connect into your bank account? This can be very helpful when it comes to bank reconciliation and looking at a live picture of the financial state of your business.
- What is the level of customer support? Are you able to call or use chat while online?
Having confidence in the provider you choose is important as they will be presenting all the data and running all the reports for you. Reports are your window into what’s happening with the numbers in your business, so it’s vital you can see what’s going on clearly. It’s best to see if your accounting software can run any of these types of reports clearly and effectively:
- Profit and Loss reports
- Balance Sheets (divided monthly)
- Company snapshots
- Debtors and Creditors
- Product and Inventory reports (if needed)
- Employee and payroll
Test, test, test
Most of the major online accounting platforms will give you a free trial. Riz Wasti from 2E Accountants and participant on the Innovating for Growth programme recommends you test the software first to see how it works for you. He suggests doing the following:
“Most online software offer 30 days trial period. That’s your opportunity to test the software before relying on it. Use your real transactions, bank payments & receipts, sales invoices, bills and expenses, etc. Softwares will also have a Demo Company setup with data already entered. That’s your opportunity to play with the software”.
Migration to your online platform
Once you’ve selected the best online accounting package for you, do allow for time and some cost to migrate across from an existing platform. As ever, the devil is in the detail (and the numbers). Riz advises that:
“Migrating data from an existing system can be complicated. It’s best to do it in stages, for example starting with sales invoices and bills in batches of months and reconcile bank statements for each month entered. The payment allocation process can be time consuming. Bank data can be uploaded in one go separately to sales and bills, but then bank payments need to match or be allocated.”
All the more reason to do all the research you can on finding the right online accounting package for you. The effort is sure to be well worthwhile in the medium to long term for your business.
If, like most business owners, you sometimes feel confused about your finances in the business, the Business & IP Centre has help available: from how-to guides on running your business, to workshops including “Get Cashflow Confident” with our ‘numbers coach’, Johnny Martin.
Jeremy O’Hare is a Relationship Manager for the British Library’s Innovating for Growth programme, which provides £10,000 of fully-funded and tailored advice for businesses looking to grow. Since joining the British Library in 2005 he has worked with countless businesses, facilitating advice and research as well as providing workshops and information advice for start-ups and established businesses.
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