Start up a business and change the world

Welcome
“Start a Business And Change the
world???”.
www.thebusinessbootcamp.org

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Scalability
Lifestyle
Investment
Production/Earnings Start-up Growth pathways.

Going Self-employed vs Starting a
Growth Business
Self Employed need :
• To turn a pre-acquired
skill/know-how into a service
• Portfolio (Evidence)
• USP
• Easy access to customers (i.e.
contacts./ networks)
• Self-Confidence
• Basic business know-how
• Relatively high profit margin’s
• Cashflow
Entrepreneurs need:
• A team
• A large market opportunity.
• A WOW
• Key Partners/ Early Evangelists.
• A solution/ offer customers will
buy/use.
• A “Market Validated Business
Model” that is both repeatable,
predictable and scalable.
• Profits
• Resources and Investment ££££

“There is an opportunity gap when the scope
for growing income at a very fast rate is
limited for those who have too little to invest ,
but expands dramatically for those who can
invest a bit more.”
Banjaree &Duflo- Poor Economics

Need a Business Model?
“A business model describes how your company
creates, delivers and captures value”
Or in English:
“A business model describes how your company
will make money”

Traditional Start-Up Model
Have an Idea
Get Idea
Validation
Develop a
business plan
Source Funding/
Resources
Launch
Business
Valley of Death- See
if anyone will buy
my product.
Get Set-Up
Guidelines
Post- StartPre-Start

See Steve Blank, Four Steps to the Epiphany
Attempts to Premature Scale is the
No 1 reason that ambitious
business start-ups fail.- Source Start-up
Genome.
New Start-up Model

Whose the Customer?
www.thebusinessbootcamp.org 8

Do you know your customer?
The Problem Solution?
• Do you know what their
problem is?
• How important is it to the
customer ?- £££
• Why is it not being solved?
• Why are present solutions
inadequate?
• Why now? – when does the
problem become in need of
a solution?

Value Proposition- The hypothesis
• I intend to offer ( insert
product/ service) to a ( insert
name/type of customer) so
that they will be able to
(insert the benefit/value to the
customer).

“In life a hypothesis that something
is superior to something else cannot
be scientifically proven but it can be
demonstrated”
Robert Hughes.

The competition- your customers
perspective?
• Incredible Ignorance
• Dr Do nothing
• Mr Do it myself
• Superman ( What’s
their kryptonite)
• Boy in costume
Who are you competing
against for your customers
attention?

Minimum Viable Product-MVP
1. Hypothesis- “Product- Customer Fit”-
Customers will buy my product idea because…..?
2. Evidence- What can I do to disprove/ prove my hypothesis?
3. MVP- A product that will test the hypothesis with customers

Whose your “first” customer
Customer- A person with a
problem you can solve?
Segment – A group of customers
that you can…
• Reach
• Convince to “test & trail”
your MVP
• Be you co-developers
• Be your Evangelizers - Lead
on to more custom/ new
customers.

Customer Relations- Where there is
Love there is growth?
Love = Growth
• Viral- Customers love you so they
get at least one other person to use/
buy i.e. Facebook, Spotify
• Customer Acquisition- You
pay £££ to market your product and
the profit from the customers you
gain is greater than the marketing
costs??? (N.B. Margins often need to be high)
• Stickiness- Customers “love” you
so they keeping coming back for
more e.g. Apple- MacDonalds.

What is A Start-Up?
“a start-up is an organization formed to search
for a repeatable and scalable business model”
- Steve Blank- “4 Steps to an Epiphany”
“an organization dedicated to creating
something new under conditions of extreme
uncertainty”- Eric Reis- “Lean Start-up”

Part 2
Business Canvas Model

http://youtu.be/QoAOzMTLP5s?hd=1
www.be.foundercentric.com

Part 3
Lean Start up Basics

Part 5
Still Need Money

Step1- Know the different types of
finance available
• Bootstrapping through Personal resources (time and money = sweat equity you are
investing)
• FFF- Family Friends & Fools – People who will give you funds with little questions asked
including reward based crowd funders such as Peoplefundit.
• Government Grants
• Customers and Suppliers- “Build slowly at low risk by obtain credit from suppliers and
growing business through profits from paying customers”
• Loan providers- “Increase business growth ambitions by increasing investment by
taking out debt”
– Banks ( Overdraft-unsecured and secured loans)
– Community Finance Institutions ( Soft/ unsecured loans for riskier ventures)
– Leasing Companies.
– Invoice lenders (Factoring, invoice discounting)
– New loan markets such as Market Invoice and Funding Circle.
• Investors-
– Private Investors- Business Angels such as Angel Capital
– Venture Capitalist
– Crowdcube
– Government Backed Investment Funds
Matching the right mix of sources to the right stage and type of finance is the key to
successful fundraising

Step 2- Match the funding need to purpose?
23

www.ngfc.org.uk
Information:
• Capital Enterprise What’s On in London- www.capitalenterprise.org/whats-on
• Business Link - www.businesslink.gov.uk
• Start- up Britain - http://www.startupbritain.org
• British Library- www.bl.uk/bipc
• HMRC Small Company Enterprise Centre- Source of advice and help
http://www.hmrc.gov.uk/manuals/vcmmanual/VCM10050.htm
• HMRC R& D Tax Credits www.ucl.ac.uk/advances/advances-news/hmrc
• HMRC Guide & Support- http://capitalenterprise.org/guide-to-rd-tax-credits
• British Business Angel Association: www.bbaa.org.uk
• Guide to Early Stage Investment:
http://www.paloalto.co.uk/about_us/Early_Stage_Investment_by_Alan_Gleeson.pdf
• Guide to 100 offers for start-ups – www.capitalenterprise.org
And if you have not checked them out please look at the latest schedule of advice and training events at :
www.ngfc.org.uk .

Need less than £10K to start?
- Sources of Grants- www.j4b.co.uk
- Competition funding £1000 issued to 10+ businesses per month- http://www.shell-livewire.org
- Princes Trust http://www.princes-trust.org.uk/need_help/enterprise_programme.aspx
- £3500 Enterprise Loans for Under 25’s- http://businessinyou.bis.gov.uk/start-up-loans/
http://www.facebook.com/freethebusinessinyou
- New Enterprise Allowance Scheme – Check who delivers the scheme in London by e-mailing Capital Enterprise.
- Community Development Finance Associations- http://www.cdfa.org.uk - Also check out North London Community Finance
- ELSBC Access to Finance – Business Plan support for those looking to raise up to £10K
• Soft loans for Creative Businesses- http://www.creativeindustryfinance.org.uk/
Need Less than
£10K to Launch a
business
No Funds
Grant-
www.j4b.co.uk
Unemployed?
New Enterprise
Allowance Scheme
Self Fund
Borrow
Write a simple
Business Plan & 12
month cashflow
Community
Development
Finance Institution
Bank

Banks only make a margin on loans of between 2-7% -so they can only afford very low default rates and
this means they will not lend to a business or entrepreneur that is deemed “risky”. And you are deemed
an unacceptable risk if:
1. You have a bad credit history
2. Failure rate in you business sector is high
3. You have no confirmed customer invoices- no evidence of sales = no evidence you can re-pay the
loan
4. The business has no trading history – difficult to get a loan unless been trading for over 6 months
5. You are unable to offer security to cover the bank if the business fails.
6. Your customers are overseas –so there is a risk they cannot be legally forced to pay for goods
ordered.
7. What you want to do with the borrowed money is widely regarded as having a poor success rate
e.g. Research and developing a new product and especially marketing.
Banks like RBS are the best source of relatively cheap loans for trading
businesses.
You can’t a business loan from a bank because?

Where do NGFC
members fit
Figure 1. 4 Steps to developing a high
growth business. ( Source HBR)

Funding Product Development: Tech
Grants & Awards General
• J4B- Portal for grant finding http://www.j4b.co.uk
• Technology Strategy Board ( R&D Funding) - http://www.innovateuk.org -
http://www.innovateuk.org/content/competition/grant-for-rd-single-business.ashx
• Knowledge Transfer Networks- www.innovateuk.org
• London European Enterprise Network- http://www.een-london.co.uk
• E Funding for SME R&D - http://www.eurostars-eureka.eu/what.do
• EU Funding for R&D collaborations: http://ec.europa.eu/research/participants/portal/page/calls
• Knowledge Transfer Partnerships funding support- http://www.ktponline.org.uk/ktp-what-will-it-cost-
my-business
Translation/ Follow on research funds.
• www.rdfunding.org.uk/bulletin/queries/Search.asp?TheCloseMonth=July&TheYear=2011.
• http://www.rcuk.ac.uk/kei/ktportal/Pages/Followon.aspx
• https://ktn.innovateuk.org/web/145175/overview
• http://www.ahrc.ac.uk/FundingOpportunities/Pages/BrowseOpportunitiesOld.aspx
• http://www.ahrc.ac.uk/Pages/default.aspx
• http://www.theculturecapitalexchange.co.uk/

Funding the Runway
Accelerators : Training & Mentoring programmes that provide fast-track to seed funding for
Scalable new businesses
• Lean Camp : http://leanca.mp - http://be.foundercentric.com/
• Start-Up Weekend: http://london.startupweekend.org
• Launch 48: http://launch48.com
• Tech Hub : http://www.techhub.com – Google Campus- http://www.campuslondon.com/
• The Business Bootcamps- www.thebusinessbootcamp.org
• Y-combinator- http://ycombinator.com/
• Tech Stars- http://www.techstars.com/
• Seed Camp: http://www.seedcamp.com
• Springboard- http://springboard.com/ - http://www.f6s.com/profile/1961#programs/ajax-application
• Student Start-ups- http://studentupstarts.com
• Accelerator Academy- http://acceleratoracademy.com
• Wayra- http://wayra.org/en/wayra
• Euclid Opportunities- ( Fin Tech Only) http://euclidopportunities.com/
• Innovation Warehouse- http://www.theiw.org
• Hubventurelabs - http://hubwestminster.net/hubventurelabs
• Dreamstake- http://www.dreamstake.net/
• Green Accelerator- http://bertiinvestments.com/berti-green-accelerator/

Crowdfunders
Crowd funding Platforms-
Reward based Crowdfunding platforms- will help you to raise funding to build a proto-type and market test a
great idea or product.-
• www.kickstarter.com (USA)
• www.indiegogo.com (USA)
• www.peoplefund.it
• www.sponsume.com
• www.pleasefund.us
• www.wefund.com
• www.pozible.com
• www.crowdfunder.co.uk
Equity/ investment Crowd funding platforms:
- www.crowdcube.com
- www.seedrs.com

Business Angels
Angel Investment - £100-500K Seed Investment
• NESTA - www.nesta.org.uk/investments
• British Business Angel Association- www.bbaa.org.uk
• Capital 4 Enterprise- http://www.capitalforenterprise.gov.uk/portfolio
• Angel Co-Fund- http://www.angelcofund.co.uk/
Capital Enterprise top 10 Angels in London
1. London Business Angels: http://www.lbangels.co.uk
2. Oxford Early Investments- http://www.oxei.co.uk/about.php
3. Envestors- www.envestors.co.uk
4. Finance South East- www.thefsegroup.com
5. Angels Den- www.angelsden.com
6. Venture Director- www.venturedirector.com- www.boundarycapital.com
7. Start-up Funding Club- http://www.startupfundingclub.com/
8. E100- London Business School -
http://www.london.edu/facultyandresearch/subjectareas/strategyandentrepreneurship/enterprise100.ht
ml
9. #1 seed- www.number1seed.co.uk
10. Keiretsu Forum- http://www.keiretsuforum.com
For an alternative list check out- http://www.designcity.co.uk/angelnews/edition_94.htm#article1

Seed Enterprise Investment Scheme-SEIS is a tax break launched in April 2012 for UK
tax payers to encourage them to buy shares in start-up companies registered in the
UK
The Facts:
• SEIS investors can input £100,000 in a single tax year rising to a maximum £150,000 over two
or more tax years in to a single company
• Investors cannot control the company receiving their capital
• Investors pick up 50% tax relief in the tax year the investment is made, regardless of their
marginal rate.
• In the 2012-13 tax year, tax payers can roll any chargeable gain in the tax year in to a SEIS
with a full capital gains tax exemption (another 28%)
• The business must be a start-up company -registered in the UK within 2 years of claim.
• The company must not employ more than 25 workers.
• The company must have assets of less than £200,000.
• The company has to trade in an approved sector – generally not in finance or investment, for
example, a property company raise capital as a SEIS.
SEIS- Tax breaks to encourage investment in start-ups

• The quality and “connections” of the management team
• The size of the business opportunity/ funding need
• The scope for building a sustainable competitive advantage
• The level of risk/ security.
• And the timeliness of the proposal
Will determine the attractiveness of your business to investors,
lenders and funders
• The ability of the entrepreneur to negotiate well and of the team to
execute the business plan convincingly-
Will determine the type, price and quality of the deal that can be achieved
Step 4: So remember –What’s important
when seeking finance

Recommended Slide-deck
Ten slides. Ten is the optimal number of slides in a PowerPoint
presentation because a normal human being cannot comprehend
more than ten concepts in a meeting—and business angels are very
normal. If you must use more than ten slides to explain your
business, you probably don’t have a business. The ten topics that an
investors cares about are:
1. Summary and call to action/ what do you want?
2. Problem
3. Your solution
4. Business model
5. Underlying magic/technology
6. Marketing and sales
7. Competition
8. Team
9. Projections and milestones
10. Status and timeline

Part 6
Q &A

The End
www.capitalenterprise.org

Start up a business and change the world

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