start up a business and change the world presentation

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WelcomeStart a Business And Change the world???. www.thebusinessbootcamp.org

Agenda11:00 Welcome and Introductions11:05: A new way to start a business John Spindler11-30: Turning an idea into a business- The Minimum Viable Product Examples- Rob Fitzpatrick12.00 Business Canvas Model- ( Including Giff's exercise) Rob Fitz-Patrick 13:00 Lunch

13:45 Lean Start-up Principles - Rob Fitz-Patrick14:50 What Next? Road-mapping your start-up - Tips. 15.00 Break15-15 Still Need Money How to fund a runway using alternative finance such as crowd-funding, peer-to-peer lending, soft loans and seed investment John Spindler16:00- Q&A 16:30 Networking and finish

www.thebusinessbootcamp.org

InvestmentProduction/EarningsStart-up Growth pathways. www.thebusinessbootcamp.org

Going Self-employed vs Starting a Growth BusinessSelf Employed need :To turn a pre-acquired skill/know-how into a servicePortfolio (Evidence)USPEasy access to customers (i.e. contacts./ networks)Self-Confidence Basic business know-howRelatively high profit marginsCashflow

Entrepreneurs need:A teamA large market opportunity. A WOWKey Partners/ Early Evangelists. A solution/ offer customers will buy/use.A Market Validated Business Model that is both repeatable, predictable and scalable.ProfitsResources 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 www.thebusinessbootcamp.org

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 Modelwww.thebusinessbootcamp.orgPost- StartPre-Start

See Steve Blank, Four Steps to the EpiphanyAttempts to Premature Scale is the No 1 reason that ambitious business start-ups fail.- Source Start-up Genome. New Start-up Modelwww.thebusinessbootcamp.org

8Whose the Customer? www.thebusinessbootcamp.org9

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 hypothesisI 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. www.thebusinessbootcamp.org

The competition- your customers perspective? Incredible IgnoranceDr Do nothingMr Do it myselfSuperman ( Whats their kryptonite) Boy in costume

Who are you competing against for your customers attention?


Minimum Viable Product-MVPHypothesis- Product- Customer Fit- Customers will buy my product idea because..?

Evidence- What can I do to disprove/ prove my hypothesis?

MVP- A product that will test the hypothesis with customers www.thebusinessbootcamp.org

Whose your first customerCustomer- A person with a problem you can solve? Segment A group of customers that you canReachConvince to test & trail your MVPBe you co-developersBe your Evangelizers - Lead on to more custom/ new customers.


Customer Relations- Where there is Love there is growth?Love = GrowthViral- 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 modelSteve Blank- 4 Steps to an Epiphany

an organization dedicated to creating something new under conditions of extreme uncertainty- Eric Reis- Lean Start-upwww.thebusinessbootcamp.org

Part 2Business Canvas Model


http://youtu.be/QoAOzMTLP5s?hd=1

www.be.foundercentric.com


Part 3Lean Start up Basics



Part 5Still Need Money


Step1- Know the different types of finance availableBootstrapping 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 GrantsCustomers and Suppliers- Build slowly at low risk by obtain credit from suppliers and growing business through profits from paying customersLoan providers- Increase business growth ambitions by increasing investment by taking out debtBanks ( 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 CapitalVenture CapitalistCrowdcubeGovernment 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? 24

www.ngfc.org.ukInformation:

Capital Enterprise Whats 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.htmHMRC R& D Tax Credits www.ucl.ac.uk/advances/advances-news/hmrcHMRC 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 .

www.thebusinessbootcamp.orgNeed 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 25s- 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 10KSoft loans for Creative Businesses- http://www.creativeindustryfinance.org.uk/

www.thebusinessbootcamp.orgBanks 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:You have a bad credit historyFailure rate in you business sector is highYou have no confirmed customer invoices- no evidence of sales = no evidence you can re-pay the loanThe business has no trading history difficult to get a loan unless been trading for over 6 monthsYou are unable to offer security to cover the bank if the business fails.Your customers are overseas so there is a risk they cannot be legally forced to pay for goods ordered. 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 cant a business loan from a bank because?

Where do NGFC members fitFigure 1. 4 Steps to developing a high growth business. ( Source HBR)www.thebusinessbootcamp.org

Funding Product Development: TechGrants & Awards GeneralJ4B- Portal for grant finding http://www.j4b.co.ukTechnology Strategy Board ( R&D Funding) - http://www.innovateuk.org - http://www.innovateuk.org/content/competition/grant-for-rd-single-business.ashxKnowledge 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.doEU 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.aspxhttps://ktn.innovateuk.org/web/145175/overviewhttp://www.ahrc.ac.uk/FundingOpportunities/Pages/BrowseOpportunitiesOld.aspx http://www.ahrc.ac.uk/Pages/default.aspx http://www.theculturecapitalexchange.co.uk/


Funding the RunwayAccelerators : Training & Mentoring programmes that provide fast-track to seed funding forScalable new businessesLean Camp : http://leanca.mp - http://be.foundercentric.com/ Start-Up Weekend: http://london.startupweekend.org Launch 48: http://launch48.comTech Hub : http://www.techhub.com Google Campus- http://www.campuslondon.com/ The Business Bootcamps- www.thebusinessbootcamp.orgY-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/


CrowdfundersCrowd 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.itwww.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 AngelsAngel 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 LondonLondon Business Angels: http://www.lbangels.co.uk Oxford Early Investments- http://www.oxei.co.uk/about.phpEnvestors- www.envestors.co.ukFinance South East- www.thefsegroup.comAngels Den- www.angelsden.comVenture Director- www.venturedirector.com- www.boundarycapital.com Start-up Funding Club- http://www.startupfundingclub.com/ E100- London Business School - http://www.london.edu/facultyandresearch/subjectareas/strategyandentrepreneurship/enterprise100.html #1 seed- www.number1seed.co.uk Keiretsu Forum- http://www.keiretsuforum.com For an alternative list check out- http://www.designcity.co.uk/angelnews/edition_94.htm#article1


www.thebusinessbootcamp.orgSeed 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 companyInvestors cannot control the company receiving their capitalInvestors 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

www.thebusinessbootcamp.orgThe quality and connections of the management teamThe size of the business opportunity/ funding needThe scope for building a sustainable competitive advantageThe 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 Whats important when seeking finance

Recommended Slide-deck


Part 6Q &A


The Endwww.capitalenterprise.org www.thebusinessbootcamp.org

start up a business and change the world presentation

Documents

business canvas model

business john spindler11

ambitious business startups

product idea

insert product service

insert nametype of customer

solution offer customers

customers perspective