to you by Buckworths Brought
issue 03 | Spring 2015 | quarterly ÂŁ5 where sold
BUSINESS An intro to Enterprise Apps
LEGAL Moving to the UK
FEATURE Coworking in London
LONDON buckworths.com
LISBON buckworths.pt
Corporate Law Firm of the Year UK 2014 Worldwide Financial Advisor Magazine
Corporate Lawyer of the Year UK 2015 M&A Today
Corporate Lawyer of the Year 2014 Lawyer Monthly
Financial Deal Maker of the Year 2014 Finance Monthly
Dear Reader Step right up, step right up and gather to see the newest, most impressive and truly tantalising spectacle your eyes ever did read. For in this quarter’s issue we have tamed the lion but kept the Roar, bringing you a big top full of startup extravagance (and all the other useful bits)! In what seems like forever since our last performance piece (it was before the New Year), we are proud to present our latest circus themed edition. Here at StartUp Roar we have been busy scouting out the rising startup stars of 2015. The New Year not only offers resolutions but is also an extremely busy period for companies that are looking to expand, incorporate or seal investment before the end of the tax year in April ’15. December’s issue focused on looking forward and at StartUp Roar we aim to honour that commitment by bringing you the latest and the greatest in the startupsphere! In this issue we cover the intricacies of setting up your own business (unfortunately, it’s not simply a case of baking a cake and selling willy-nilly), our favourite co-working spaces across London and making apps easy with Fliplet. So take your seat, make yourself comfortable and enjoy the read – this is one show you cannot afford to miss! Hamish Parker-Jones Editor
2
ROLL UP…
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CONTENTS
FEATURE Coworking - 17 Buckworths highlight their 6 favourite Coworking Spaces in London
LEGAL Managing Risk - 6 Identifying financial, legal and reputational risks with your business
TRAVEL Vida Cruises - 38 Taking your holidays on the water
Moving to the UK - 10 Tapping into the UK investment market Legal Structures - 14 An introduction to structures for a full-profit business Social Enterprise - 14 The pros and cons
BUSINESS Enterprise Apps - 24 Internal mobile motivation Smart Grant Scheme - 28 A taste of competition Service on Demand - 34 Living in the on-demand economy
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CONTACTS T. 00 44 20 7952 1721 E. editor@startuproar.co.uk W. www.startuproar.co.uk /startuproar @RoarStartup StartUp Roar StartUp Roar is published by Buckworths Limited trading as “StartUp Roar”, 200 Aldersgate, St Paul’s, London EC1A 4HD. All statements and opinions contained herein are those of the writers and content contributors and do not reflect the opinions of Buckworths Limited. Any content of a legal or financial nature contained in this magazine is published by way of guidance only and shall not be deemed to constitute legal, accountancy, tax or financial advice. No content contained herein is intended to be, nor shall be interpreted as, a financial promotion. No advertiser or subject of any articles is or shall be deemed to be making or communicating any inducement to engage in investment activity of any kind. Buckworths Limited specifically disclaims any liability for losses, damages or other expenses incurred by any person as a result of reliance on any statement in this magazine. Copyright 2015. All rights reserved. No part of this magazine may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of Buckworths Limited.
LEGAL
Setting up a Business In the last edition of StartUp Roar, we discussed legal structures available for use by for profit businesses. Later in this edition, the legal forms of social enterprises are
reviewed.
matters to
do
consider
But
what
entrepreneurs when
other need
founding
a
new business?
Tax Regime Businesses operating in the UK benefit from a relatively straightforward tax regime with tax payable on profits of the business at 20%. Expenses incurred in the course of business may be deducted from income to reduce the taxable profit of the business. VAT is generally chargeable at 20% of turnover (depending on the nature of the goods or services being sold and the specific VAT scheme that the company has opted for) and businesses can usually offset VAT they have paid out against VAT they have collected. Businesses do not have to register until their VATable turnover has exceeded ÂŁ81,000 in any twelve month period.
5
“The first objective is to understand the risks associated with your business. Once the risks have been identified, those risks need to removed or reduced as far as possible.” Michael Buckworth, Buckworths
Each business carries with it risks – some of these are financial, some legal and some reputational.
Managing Risk The first question founders should ask is “Is my business legal?” One would hope that the answer to this question should be pretty obvious. However, occasionally the legalities of a business
Not necessarily – the founder needs
periods, particularly where the goods
can be difficult to identify. This
to understand whether any of the
are ordered online. Whilst there
particularly occurs in business sectors
regulatory regime relating to arranging
are certain exclusions to these rules
where there is a regulatory regime in
and/or managing investments apply.
for certain types of goods, founders need to be sure whether or not these
place. The
second
priority
of
an
exclusions apply.
For example, a founder wishing to
entrepreneur is to identify the legal
set up a business to source and find
regime applicable to his business. Even
Finally, founders must understand the
valuable old cars and then bring
with “vanilla” retail businesses, there
cost of doing business and must have a
together individuals to buy those
is a degree of complexity as regards
plan for ensuring that their business will
cars together might consider that this
the rules applicable to the sale of
either be profitable over time or will
is a business handling the purchase
goods. Consumers, for example, are
provide both founders and investors
and sale of cars. Unregulated, right?
entitled to return goods within certain
with a return on their investment.
6
LEGAL FINANCE
7
8
LEGAL Insurance
you can get out of the agreement if
agreement with a customer even if
need be.
they are refusing or are unable to pay. These issues can be resolved by
Insurance is essential for almost all businesses. Most will automatically
For many risks, you can exclude
setting out in your terms of business in
have public liability insurance and
liability. This would be applicable for
what circumstances you can terminate
employer’s liability insurance, each of
example in a tech business when you
your contract with a customer without
which is relatively standard. Services
would state that you are not liable if
being in breach of contract.
businesses will often have professional
your application, website or software
indemnity insurance which covers
goes offline for some reason (perhaps
negligent
advice,
due to a server failing). Similarly you
inventors
and
whilst
sellers
product
may
have
product liability insurance. In addition
Regulatory Regime
would generally exclude your liability for special types of damages.
Employment laws in the UK have become more employer-friendly in
to customer-facing insurance policies, some businesses may have directors
Sometimes, often for commercial
recent years. In most cases, employees
and officers liability insurance (D&O
reasons, you can only limit your risk.
are
insurance) which is designed to protect
You would generally match your
dismissal� until the expiry of two years
directors from liability if something
maximum liability to your insurance
from commencement of employment
goes wrong.
coverage. Finally, some risks cannot be
giving employers a wide discretion
limited. These risks include personal
to terminate the employment of
Getting the right insurance is important.
injury and death. For these risks, you
employees who are not performing or
Entrepreneurs should be careful to
must have insurance.
are not suitable for the business. There
review policy terms before purchase to ensure that it is suitable.
not
protected
from
“unfair
are some exceptions. In order to require payment from a customer, you need to show that
The rules relating to the maintenance
you have demanded payment which
of companies are light touch and easy
is generally achieved by sending an
to satisfy. A company must file a return
invoice and that payment is due (i.e.
to Companies House each year along
Having an agreement with your
the payment period stated in your
with a copy of its accounts. A company
customer is important for several
terms of business has expired).
will make intra-year filings when it
Customer Terms
appoints or removes directors and
reasons: to limit your liability, to ensure that you can get paid for the goods or
Finally, in some circumstances, you
when it changes its share structure (for
services you sell and to ensure that
may not be able to terminate your
example, by issuing new shares).
9
Foreign Companies The UK is a fantastic jurisdiction in which to operate a startup business. Businesses operating in the UK (whether UK or foreign business) are able to attract investment from UK investors who benefit from SEIS and EIS. The UK startup community is
foreign entrepreneurs to the UK,
In this article, StartUp Roar explores
very well developed meaning
many of whom have experienced
how a foreign business can gain access
that entrepreneurs can access a
growth and success to a far
to the UK startup market.
range of support and advice. This
greater extent than their peers
has attracted a large number of
back home.
10
LEGAL
s: Moving to the UK Entering the UK Market In order to take advantage of SEIS and EIS and government grants in the UK, a foreign company needs to either create a UK holding structure or establish a permanent establishment in the UK. Whilst there are complex rules governing each approach, the below summarises the requirements. The first approach will require the foreign company to create an English holding company that sits above the existing foreign compan(y/ies). This is done by way of a “share for share exchange”.
This is a tax neutral transaction
management; a branch; an office; a
requiring a valuation to be completed
factory; a workshop; an installation or
in the home jurisdiction and the value
structure for the exploration of natural
of the company to be reflected in the
resources; a mine, an oil or gas well, a
issued share capital of the new English
quarry or any other place of extraction
holding company.
of natural resources; or a building site or construction or installation
The result is that all the shareholders
project. Also, the foreign company
of the foreign company swap their
would usually register as an overseas
shares in the foreign entity for shares
company with the companies regulator
in the new English holding company.
in the UK (Companies House).
The foreign company becomes a wholly owned subsidiary of the English
A permanent establishment may also
holding company.
exist in the UK if there is a “dependent agent” in the UK. This is defined as “an
The second option is for the foreign
agent acting on behalf of the company
company to establish a “permanent
has and habitually exercises their
establishment” in the UK which
authority to do business on behalf of
requires the foreign company to have
the company”.
a permanent office in the UK which carries out a significant part of its business from that office and employ one or more persons in the UK. A permanent office includes: a place of
11
The authority of the agent to conclude
Enterprise Investment Scheme (SEIS)
this scheme receive up to 30% of
contracts may be written, verbal or
which applies to the first £150,000
the amount invested by them back
implied (i.e. it is implicit by virtue of the
raised by the company and the
from HMRC as a deduction from
enterprise taking no active involvement
Enterprise Investment Scheme (EIS)
their income tax bills in the tax year
in the negotiation or conclusion of
which applies to the next £5,000,000
of investment, the year before or the
contracts).
raised each year. Companies seeking
year after. Investors must hold the
to raise investment under SEIS must
shares for three years after which, on
However, this specifically refers to
have started preparing for their trade
a sale of the shares, they benefit from
agents who conclude contracts with
within the period of 2 years prior to
a 0% rate of capital gains tax on any
customers.
the date of investment.
gain meaning that the gain is tax free.
business in the UK (for instance the
The pre-requisite for these schemes is
Companies can raise up to £5,000,000
rental agreement to obtain premises)
that the company taking the investment
per year under the EIS scheme and
will not fall within this definition.
must either be a UK company (i.e. for
investors can invest up to £1,000,000
a foreign business, investors invest into
per year
Contracts
concluded
for the purposes of establishing the
Registering a permanent establishment
its UK holding company) or, if a foreign
is often a more complex option than
company, it must have a permanent
These schemes have made startups
setting up a UK holding company
establishment in the UK.
very
when viewed from the perspective of
attractive
for
investment
with the result that London is
on-going compliance. Whether or not
Investors under the SEIS scheme
the number one place to raise
the foreign company has a permanent
receive up to 50% of the amount
investment in Europe.
establishment in the UK is a factual
invested by them back from the tax
question to be decided by the UK tax
authorities (HMRC) as a deduction
authorities, HM Revenue & Customs
from their income tax bills in the tax
(HMRC).
year of investment, the year before or the year after. Investors must hold the
Government Grants
Both of these options allow the
shares for three years after which, on a
There are a large number
company to take on investment from
sale of the shares, they benefit from a
of government grants for
UK investors claiming tax relief.
0% rate of capital gains tax on any gain.
startups employing people
The gain is essentially tax free.
in the UK and/or doing something
innovative
in
Accessing finance in the UK
The tax reliefs for investors under SEIS world and significantly reduce the risk
The most popular grants
The UK has two extremely generous
for investors in early stage startups. It is
are
schemes for investors investing in
relatively easy for companies to qualify
Startups can be awarded up to
startup companies. Equity investors
for SEIS – the first step is to seek an
£250,000 to build and develop
(those purchasing shares) in young
advance assurance from HMRC that
their prototype. This money is
companies carrying on a “qualifying
the company qualifies.
not repayable. The grant requires
business”
(which
includes
their sector.
are some of the most generous in the
most
TSB
Smart
Grants.
“matched funding” meaning that
businesses other than property/real
EIS is the bigger scheme for companies
the company must raise investment
asset businesses and leasing of assets)
who have already raised money under
simultaneously with receipt of the
can claim relief on their investment
SEIS or who have exceeded the two
grant.
under
year limit on SEIS. Investors under
12
two
schemes,
the
Seed
LEGAL
13
Social Enterprise Social
enterprises
can
be
interest
the CIC, the assets must be applied for
provident
the benefit of the community and not
structure or a specialist not-for-
society or a limited liability partnership.
to repay creditors. The CIC cannot
profit entity. There are pros and
Further, a charity can be operated
transfer any assets for less than market
cons of each approach.
through a number of structures.
value apart from to another CIC,
guarantee,
a
operated through a for-profit
company,
an
community industrial
other asset locked company or charity. A social enterprise is a business
Sole
carried on for a social purpose. Social
unincorporated associations benefit
enterprises can be operated via a
from light touch regulation. However,
number of structures.
those responsible for running the
traders,
partnerships
and
business will be personally liable and The desire to pursue a social purpose
exposed to the full risks and liabilities
impacts on the structure, governance
of the business. For this reason, they
and use of profits. In the main, social
tend not to be practical structures
enterprises aim to benefit the social
for businesses operating in the public
purpose for which they were set up,
sphere and/or with significant liabilities.
rather than to maximize profits for their shareholders. One of the most important things to consider when setting up a social
Common legal structures
enterprise is what legal structure
Community interest company (CIC):
to choose. It is vital to consider
CICs
which structure will offer the best
as a social enterprise structure for
protections for the social purpose,
businesses with a social purpose which
how the structure will impact on the
did not wish to become a charity. The
business’s ability to manage risk and
CIC structure requires the business
access finance, what tax breaks will be
to offer safeguards to protect its
available (if any) and how stakeholders
community purpose. This is done via
can be incentivised.
the imposition of an asset lock which is
were
originally
established
contained in the articles and operates A social enterprise can operate via one
to protect the community purpose.
of a number of legal structures. These
Except in limited circumstances, assets
include an unincorporated association,
cannot be distributed to the CIC’s
a company limited by shares or by
shareholders. Upon a winding up of
14
LEGAL
15
CICs are much more flexible than
Limited company: businesses wishing
wider community other than its
charity structures and can offer limited
to provide the benefit of an asset lock
members) or a co-operative society
returns on investment to investors
without restricting the possibility of
(Co-op) (set up to benefit solely its
and reasonable remuneration for
operating the business as a for-profit
members). IPSs offer members an
directors. They are regulated by the
business can use a standard limited
equal stake and an equal say in the
CIC Regulator which offers a lighter
company structure and replicate the
management and pursuance of the
touch approach to regulation than
asset lock provision in the articles of
purpose for which the society was
the Charity Commission. The CIC
association. However, unlike CICs,
set up.
must satisfy a community interest
the shareholders of such companies
test both upon incorporation and
can amend the articles to remove the
Charities: a social enterprise can
throughout
the
lifespan.
asset lock at any time. This gives added
become registered as a charity if it
The
must
provide
flexibility but also potentially puts the
has been set up for a purely charitable
interest
community interest being pursued
purpose and it meets the stringent
at risk.
requirements of charities legislation
a
CIC
community
report
each
CIC’s
year.
(including falling within one of the Industrial and provident society (IPS):
increasingly
narrow
classifications
IPSs are societies which can take
of
purpose and being operated for the
the form of either a community
public benefit). There must be an asset
benefit
society
lock in place to ensure that all assets
(Bencom)
are applied solely for the charitable
(set up to
purpose. One of the biggest benefits
benefit
of becoming a registered charity is that
a
charities are entitled to a number of very beneficial tax breaks.
Financing Like for-profit businesses, social enterprises can raise finance from
debt
and
equity
financing. Social enterprises are also able to benefit from targeted grants. Grant funding is available to social enterprises whatever the legal structure. However, structures containing an asset lock and/or restrictions on investment returns and salaries are often viewed as more suitable for grant funding.
16
FEATURE
Top 6: Co-working Spaces London has a world What are Co-working spaces? class offering when Co-working spaces offer fully serviced, shared working environments that unlike it comes to office most traditional offices, are not employed by a single organisation. space, and particularly Often considered a haven amongst creative professionals and freelancers, coco-working spaces, working spaces offer a sense of synergy amongst people who share the same for startups. This is values, goals and mindsets. Designs are meticulously thought out in order to make excellent use of space, optimise work flow and most importantly offer a sense of our pick of the best – genuine comfort that is often missing in standard office space. in no particular order.
17
Central Working Central Working is one of the most established co-working spaces in the market. Shortlisted as one of the UK’s Top 100 Startups of 2012, Central Working currently operates in 4 locations in London (Bloomsbury, Whitechapel and 2 in Shoreditch) and one in Manchester. Users can tailor the space to suit their individual or collective needs be that as a one-off drop in session, a permanent office or a coworking area. With a curated membership of SME’s in clubs across London they provide the support, infrastructure and tools needed to create the connections, momentum and recognition for growth. Aside from offering great coworking spaces, Central Working have partnered with some of the biggest names in the tech startup sector such as working with Google to create Google Campus and have helped Barclays to create The Escalator, the world’s number 1 startup accelerator. They have had incredible success from the launch of Angry Birds in the UK, Hootsuite, the home to Microsoft Ventures in the UK, and hundreds of other businesses from all sectors - Not just tech businesses.
centralworking.com
18
Club Workspace – London Bridge Workspace is one of the most established coworking businesses in the capital. With 10 locations spanning both sides of the Thames, the clubs are renowned for hosting some of the countries leading startups and creative SME’s. However Workspace’s uses are not just limited to that of collaborative working, they also provide excellent event spaces that can be rented on a “one-off” basis. Here at StartUp Roar we are avid fans of Workspace’s multi-functionality and frequently host our seminars across their portfolio of sites. But, with a little bit of bias, we have managed to highlight our favourite club from the 10 spaces currently on offer – London Bridge. Workspace London Bridge is a playful inviting space. It boasts a large circular lounge area affectionately named the “rotunda” in which you can prop yourself on a bean bag whilst chipping away at emails, or like us, utilise the space to create a small scale auditorium. It creates the perfect atmosphere of peaceful professional – and who doesn’t work better nestled into an oversized pillow stuffed with massaging beans!?
club.workspacegroup.co.uk
FEATURE
19
1
TOP 6 CO-WORKING SPACES in alphabetical order: 1. 2. 3. 4. 5. 6.
20
Central Working Club Workspace Innovation Warehouse Level 39 Techspace The Trampery
FEATURE 6
5
3
2
4 To Canary Wharf
21
Level 39
Innovation Warehouse
Level39 is Europe’s largest technology accelerator space for finance, cyber-securities, retail and future cities technology companies. Occupying the entire 39th floor of the iconic One Canada Square building, Level39 was opened on 18th March 2013 by Boris Johnson, Mayor of London, and has quickly become an important part of Tech City- having hosted over 200 events, including hackathons, skunkworks and demo-days.
The key to any successful startup is originality, breaking the mold to achieve something that has never before been accomplished. And what better way to nurture these budding enterprises than in an environment that celebrates being innovative?
Level39 is a space for early-stage businesses that have potential for highgrowth. Members are looking to create, test, market and deliver scalable worldclass financial, retail and future cities technology products and services. Level39 also plays host to innovation and accelerator programmes – these are short programmes that aim to boost a young company’s growth over a concentrated period of time. Last, but by no means least, Level39 host many startup and investor events, publish an online blog and newsletter and have a coffee machine controlled by an iPad. And to top it all, their view over Canary Wharf and the rest of London is unparallelled
level39.co
22
Innovation Warehouse does just that. The space already boasts some of the capital’s fastest growing startups such as Touriocity a platform that connects tourists with local expert guides - alongside a selection of angel investors who also occupy the space. Furthermore members are actively monitored and encouraged to push boundaries in order to truly grow and develop. Located on top of Smithfield Market in Farringdon, one of Europe’s largest dedicated startup spaces. Innovation Warehouse benefits from being right in the heart of one of the most forward thinking cultural hotspots in the world. As well as holding regular events, Hackathons and Seminars, Innovation Warehouse also hosts an in-house cat making it the purr-fect place to hatch evil plans in the style of Blofeld.
innovationwarehouse.org
FEATURE Techspace
The Trampery
Arguably, co-working spaces were originally conceived to help cater to the rapidly expanding tech startup community. With the launch of the app store, mobile technology (and quite frankly tech in general) ignited a technological revolution lead by a new wave of developers and forward thinkers – and their successes were life changing.
One of the most unique and confidently quirky co-working spaces in London belongs to The Trampery, a social enterprise that designs and operates spaces for entrepreneurship, creativity and innovation. The company currently boasts 4 locations across the capital including Old Street (in the heart of tech city), Shoreditch, Hackney Wick and London Fields.
Fast-forward to present day and startups and SME’s are dominating London’s economic and business landscape, with the tech sector estimated to contribute £100bn to the UK economy. And what better way to harness all these creative juices than provide a space specifically designed to compliment these talented individuals? Well cue Techspace – one of London’s most unique co-working spaces in that they cater almost exclusively to tech startups. Techspace currently operates from 3 locations in Bath Street, Great Eastern Street and Underwood Street. With a 100mb Internet connection, Sonos music system amongst a cluster of overly competitive ping pong players, Techspace provides a perfect flexible co-working space in the heart of a thriving tech community.
techspace.london
The Trampery’s spaces encourage collaboration across multiple sectors including fashion, retail, tech, research, design, software and policy amongst countless others. This enables startups and SMEs to create efficient and effective networks so that they really hit the ground running; you are bound to find someone who compliments your aims, ambitions and passions. Furthermore, members benefit from shared knowledge in the form of the “Incubator Programme” which offers a series of events ranging from peerpeer learning, workshops, expert talks and meetups. This means that startups can openly share information with one another contributing to business growth and development for all budding members.
thetrampery.com
23
Enterprise apps: Doing business in th It’s the era of the like, tweet
per day which are released into the
large enterprises intend to introduce
and favourite, where on-the-
public sphere and are purchased and
internal apps inside the next year, with
go means breakfast in the left
used by consumers. However the
38% planning on developing 6 or
hand, screen scrolling with the
vast majority of these apps produced
more. This huge expansion into
right whilst your legs cycle away
by businesses are aimed at their
the enterprise app industry
during your 6am gym session. It’s
customers, not their employees.
is largely down to
mobile efficiency at its greatest.
Apps are extremely complex to
tools such as Fliplet,
However, whilst business leaders
build - unique in their coding - and
which enable tech
have harnessed the power of
relatively expensive to produce. So,
novices to create
portable communication with
until recently, many businesses viewed
bespoke mobile
an external audience, internal
apps aimed at the internal audience as
apps
interactions
heavily
a drain on money and resources. But
pre-coded
reliant on the limited capabilities
the complexities associated with app
templates
of email. Communications with
creation are being simplified all the
with simplified
employees,
way down to consumer level, bringing
e d i t i n g
us enterprise apps.
interfaces.
are
still
particularly
those
in the remote workforce, are
using
often restricted to email with a
These
resulting loss in productivity. So
companies
how, in a world where revenue
Apps for Business:
derived from iphone apps alone
create
mean can
centralised
information hubs that
exceeds $50m, are businesses
With the rise in BYOD (bring your
have been specifically
struggling to tap into the full
own device to work) and a general
designed to compliment
potential of mobile technology
shift towards enterprise mobility, more
the employees with their
when it comes to employer-
and more businesses have realised the
individual or collective work
employee interactions?
importance of making their solutions
needs. Good examples of business
accessible over a smartphone.
areas where such apps could be
The “Tech” Problem:
invaluable are marketing, HR and Enterprise apps are mobile applications
finance. These apps also allow remote
produced to specifically enhance how
workforces to access secure useful
With over one million apps available
a business and its employees operate,
information
on both the Apple and Android store,
increasing
productivity
estimated to have the capacity to
it is clear that mobile is quite simply,
(by 46%) and overall job satisfaction
contribute to increased work time by
massive. Businesses produce and
(53% say it helps them do their jobs
an average 240 extra hours per year
publish upwards of 300 bespoke apps
better). It is estimated that 59% of
even when off duty.
24
efficiency,
wherever
they
are,
BUSINESS
he mobile age How Can I Use Enterprise Apps for My Business? There really is little limitations in what enterprise apps have to offer as they are typically moulded
to
suit
your
individual business needs.
One of the biggest advantages of
Enterprise apps usually fall into one of
custom-built apps is the increase in
two categories: apps you deploy to
efficiency and productivity that they
users outside of your company, and
offer. This ultimately brings about a
apps you deploy only to users within
competitive advantage to enterprises
your company.
over other businesses that do not offer similar tools to their employees and customers.
Deploying apps to customers Enterprise to
apps customers
deployed can
be
advantageous to businesses as the app can be designed to provide: •
Alwayson
customer service You
– can
provide your
25
customers with the answers they
new needs often means providing
media for a fast response to a
need, whenever they need them.
a type of personalized service that
problem. Time is critical when
Today’s customers expect to have
goes above and beyond what your
talking about customer care. With
access to customer service on their
competitors can deliver.
an enterprise app, you can provide
terms. And that means providing
• Multichannel support – Today,
faster customer support which will
them with options to access 24/7
customers use various channels
be satisfying for the customer and
support.
to voice their opinions. Some opt
will save your company money.
• A personalised service - Customer
for the traditional communication
• Intelligent customer service -
expectations for service are rising
methods such as phone and email
Predictive support is the next wave
every day. Being able to meet
and others seek to use social
in the customer service revolution.
these
Fix problems before they happen and delight customers in the process.
26
BUSINESS An enterprise app can be especially useful if your business runs an online platform. You can design an app to
collect
behaviour,
data take
on care
consumer of
server
maintenance and support and even to provide information like response time, uptime and error rates, giving you an easy way to watch over your website performance.
Deploying apps to employees
• Internal communications (Employee handbooks, Induction etc)
Enterprise apps can be designed to optimize work tasks by providing employees with instantaneous access to the information they need to do lounge or engaged in a meeting with up-to-the-minute data on their mobile device through enterprise apps that are managed and updated
through
a
centralized enterprise app store.
identified t
h
e
following formats as
being
most popular amongst clients who apps
distribute to
their
employees: • Sales support ensuring remote sales team always
is that enterprise apps will allow businesses to increase their customer acquisition and retention rates as it places the customer in control, allowing users to interact with a business however they wish to.
• Reporting (to clients, senior management and customers)
have up-to-date information facilitating cross-selling in business with a lot of products/services enabling interactive and visual customer demos • Content marketing • Events (Internal and external) • Product information
So for Startups? Mobile technology is currently gaining incredible
momentum
and
huge
growth is predicted for the enterprise app industry in the latter part of 2015. Startups are in an advantageous position when it comes to competing with larger competitors in the mobile
Fliplet have
outcome
quizzes etc)
their jobs. Whether sitting in an airport a client, employees can easily access
The
• Training (Self assessment,
sphere as enterprise apps can grow organically alongside the company; there is no need for mass integration. This means that when the startup becomes more established, they will already be a step ahead of companies that haven’t used mobile productivity enhancements. This also makes for a more productive workforce leading to quicker expansion and company success. Neither cost nor knowledge need be a barrier to your startup investing in enterprise app technology as tools like Fliplet cut the cost and time to use mobile for bespoke services such as sales and workflow improvement. So hit the ground running and take your business with you. There has never been a better time to make your business mobile.
www.fliplet.com 27
What is the Smart Grant Scheme?
In the last edition of StartUp Roar, we introduced TSB Grants. This article written by Emma Lim of Buckworths outlines the Smart Grant Scheme (“Smart”). Smart is a competition run by the Technology Strategy Board (“TSB”) for small and medium sized enterprises (“SMEs”).
28
BUSINESS
The objective of the Smart Scheme is to encourage SMEs to engage in Research and Development (“R&D�) projects in the areas of science, engineering or technology from which new products, processes and services can emerge.
29
There
are
three
grant
available
types under
of
testing. A maximum grant amount
and will fund up to 35% of a Medium
the
of £25,000 is available and TSB will
enterprise’s costs or up to 45% of a
fund up to 60% of an SME’s total
Small/Micro enterprise’s costs.
Smart scheme:
project costs. The Proof of Market grant is designed to
enable
companies
assess
The Proof of Concept grant allows
proportion of the total project cost.
commercial viability through market
companies to explore the technical
A company will have to match Smart
feasibility and commercial potential
Grant funding with its own resources
of a new technology, product or
and/or investment.
research
to
A Smart Grant will only make up a
and
process. A maximum grant amount of £100,000 is available and TSB will
TSB requires a company to provide
fund up to 60% of an SME’s total
evidence that it can obtain the
project costs.
remainder of the funds to complete the project. One of the key features
The of
Development Prototype
grant
receive a grant from
allows companies to
Innovate
develop an innovative
also gain investment
technology,
under
product
UK the
and Seed
or process, has a
Enterprise Investment
maximum
Scheme at the same time
grant
amount of £250,000
30
of a Smart Grant is that a business can
and all eligible costs of the project,
BUSINESS however financed, can be claimed as R&D tax credits against its taxable profits, thus reducing its corporation tax bill. A company may also apply for additional funding from other public bodies provided that the total percentage of funding from the public sector amount does not exceed the percentage amount claimed from TSB.
Eligibility The Smart Scheme is only available for UK SMEs. Smart defines an SME as a business that has a turnover of no more than â‚Ź50 million, a balance sheet total of no more
employees.
Smart
encourages
applications from pre start-ups, startups and small and medium-sized businesses undertaking R&D providing they meet the SME requirement. The SME status of a business can affect the
than â‚Ź43 million and not more than 250
A company awarded a Smart Grant is required to reclaim eligible costs from TSB after such costs have been incurred. This means that claims can only be made for costs that (i) are directly incurred as a result of delivering the project (ii) have been incurred during the project period and (iii) are capable or being audited.
31
32
BUSINESS
amount of grant that can be claimed. If an application relates to a software
or general improvements in efficiency,
Smart grants are a fantastic opportunity
no matter how much merit there may
for innovative businesses to take
be to such a development.
advantage of Government funding.
project, eligibility for the grant will
In conjunction with SEIS, they make
rely upon whether the technical
businesses
development that the project produces
Timeframe
is a “step� change in how computers
hugely
attractive
to
investors. and should be considered as a viable and valuable source of finance
are programmed or used. However,
There are 6 rounds of Smart Grants
for all innovative startups.
the scheme is unable to support
each year. TSB take up to 1 month
projects that lead to incremental
after the relevant round has closed to
For
development, increased functionality
review the application.
interact.innovateuk.org
more
infomation
visit:
33
Providing service o
34
BUSINESS
on demand Whether or not you have heard
arrive and how much it will cost to take
including Fulham, Soho, Marylebone,
of the “on-demand economy”, if
you to your destination.
Westminster
you have ever used a smartphone
and
Notting
Hill.
Following an overwhelmingly positive
application to ring up a driver
Valued at $40bn (£25.5bn), Uber is
response (just check out some of the
or to get a handy-man to clean
such a phenomenal success that many
comments on their twitter handle @
up your house then you know
other companies have adopted their
henchmanapp), the business is looking
what it is – a speedy and
business model and are “Uberising”
to grow and expand into the wider
efficient way of connecting
industries such as retail, healthcare and
London boroughs so even those in
with individuals who can
personal services. Arun Sundararajan,
zones 3-4 can benefit from dropped-
attend to your needs as and
a professor at New York University’s
off Ibuprofen. In the same way as Uber
business school who has studied the
allows registered mini cab drivers
rise of the on-demand economy
to log into the app and do a pick up,
The rise of the on-demand economy
comments that “These services are
perhaps between pre-booked jobs,
can be attributed, in part, to the
successful because they are tapping
Henchman has the potential to allow
pairing of the workforce with a
into people’s available time more
pre-approved drivers with a vehicle
smartphone. A large number of tech
efficiently ... You could say that people
to make a few drop offs in their
startups have taken advantage of this
are monetizing their own downtime.”
downtime.
professionals
Along the same lines is “Henchman”,
Along similar lines is Health Vine, an
with independent contractors, thus
an app that will bring you anything you
innovative business in the health space.
supplying labour and services on
want delivered to you in 60 minutes.
Through Health Vine, users can submit
demand. The tech giant Uber is one
Whether it is medicine from the
questions about health and welfare to
such company.
pharmacy, red wine for your Friday
verified health professionals. Users can
night in, that Gourmet Burger from
also book a paid-for online appointment
A ride-hailing service, Uber is one of
your favourite restaurant or just a
with a health care professional of their
the highest-valued technology startups
MacDonald’s, a Henchman will deliver
choosing to discuss issues of concern.
to emerge in recent years. The value of
to your address.
At a basic level this could be an online
when you need them.
boom by creating systems that match time-starved
urban
Uber lies in the fact that it takes out all
visit to a private GP using Skype; at
the stress of travel and gets you where
Henchman have created an easy
a more complex level this may be
you want to go. On demand. You no
to use mobile platform that uses
specific advice on complex issues for
longer have to stand anxiously in line
location-based technology to find
which standard accessible healthcare
at a taxi rank, or to wave awkwardly
where you are. The user tells the
provision may not be suitable.
on a street corner attempting to hail
app what he wants and presses “get it
a taxi. One click on your smartphone
now”. Henchman currently operates
Health Vine allows health professionals
and you can see how soon a car will
within zones 1-2 of central London
to contribute and monetise some
35
of their free time. However, Health
providers are constantly
Vine’s model is more than simply an
innovating to try to
“Uber for healthcare”. Health Vine
provide
have combined the service provision
response that meets the
by health professionals with a social
on demand requirement
element allowing health professionals
without
and users to share experiences,
their ability to operate their
tips and information to the wider
business.
the
quick
impacting
on
Health Vine community. Health Vine are creating a database of valuable
A potential risk with the current
experience and information about
trend of developments in this area is
medical conditions that in time will
that the on demand economy ceases
provide users with context as well as
to be about maximising the usage
specific medical advice.
of down time and becomes about providing all services on demand.
One of the fascinating insights that
Returning to Uber, the huge success of
businesses in the on demand economy
their platform has lead drivers to work
may be able to provide is the profile of
solely for Uber. For drivers who may
user who requires the almost instant
be reliant on demand whether or not
gratification provided by on demand
they operate through Uber, this may
services. Are users younger more tech
not represent a significant alteration
savvy people, or have the benefits of on
in their risk. But for other service
demand been picked up by the older
providers, a move wholesale to serve
generation, so called “silver surfers”?
consumers on demand can have a very
Does the on demand economy serve
significant impact on their business.
a particular socio-economic group or are its benefits utilised by people from
Take your hairdresser as an example.
a range of economic backgrounds?
Historically
additional appointments. Some on demand leads generated (though
may
have
regular significant
clients research
has
suggested that on demand customers tend to be focussed on immediate service in priority to brand recognition and loyalty). Over time however, the risk is that the hairdresser becomes
hairdresser
swamped by on demand customers
probably relied on regular clients who
who potentially displace the regular
demand
either rebooked each month for their
customers. Mrs. Bloggs who is used to
services through technology amass
hair cut or rang a day or two before
be able to ring a day or two before
huge quantities of data about their
to book, confident that they could
her appointment now finds that the
users, their usage of services and a
be fitted in. The hairdresser knew
hairdresser is booked up. She books
number of other personal and generic
(probably weeks in advance) exactly
elsewhere and discovers that “Blow
characteristics. This information can
how busy he would be and how much
and Go” down the street are just as
(and is) used to analyse trends and to
revenue would be generated in respect
good and revolutionise her hairdo.
better understand what drives people
of any particular working day. He
She starts going there instead.
to require services on demand. What is
could also predict with a fair degree of
clear is that the concept of on demand
accuracy when Mrs. Bloggs would be
Over time, our hairdresser may be
has impacted all areas of service
in for her monthly colour or when Mr.
hugely successful with on demand
provision including those services
Smith would book for his fortnightly
customers, but in the process he has
that are not (and cannot truly be)
cut. The on demand economy may
lost his regular clients and now has few
on demand. Increasingly consumers
have initially provided benefits in that it
bookings made in advance. He has
want instant gratification and service
allowed him to fill up empty time with
no guaranteed workflow lined up in
Most
36
providers
of
on
the
local
BUSINESS
advance and no ability to predict his future cashflows with any degree of certainty. Essentially his business model has changed and operating risks
So,
in
have increased.
the long run, will exposure to the on
Monetising un-used time makes good
demand economy
business sense. Whilst on demand
be simply about
may increase short and long term
maximising
revenues, it may also significantly
downtime
increase operating risks and may
will on demand
require a greater expenditure on
become a basic
marketing and advertising to ensure
non-negotiable
that the consumers with a lower
business
degree of brand loyalty know and use
mantra? Only
the service provider.
time will tell.
or
37
VIDA CRUISES Whether you’re a seasoned sailor or a nautical newbie, sea cruises offer endless entertainment, unparalleled panoramic views and flexibility that the modern day traveller treasures. So here at StartUp Roar we explore 2015’s hottest vacation trend with rapidly expanding startup Vida Cruises, and learn how these swashbuckling cruise specialists can offer you an unforgettable land-sea retreat.
Cruises by the Crew:
Living la Vida Loca:
We’ve all had those frustrating customer service interactions; you’re asking
With its founder having personally
the question but it remains unanswered. Not because your question is overly
been on hundreds of cruises, Vida
difficult. And certainly not because you’ve called the wrong number! Rather
is able to offer its customers a much
the advisor is uninformed, disengaged and quite frankly couldn’t care less
greater insight as to what to expect
about the business let alone the customers’ actual needs.
on board, provide extensive advice on where to visit at docking ports and
Well, when parting with your cash for a holiday, as a customer you want the
most importantly, where to get the
best customer experience.
best ice cream!
Vida Cruises operates from a place of wholesomeness, honesty and hands-
The company promotes cruises all
on experience. Company director Tiago Cesar, has worked on-board cruise
across the globe whilst offering tailored
ships for over 12 years and offers a unique insight into what truly makes each
advice to suit its customer’s individual
cruise special alongside unrivalled local knowledge of destinations all over the
needs. So whether you are looking
world. Through this ‘life on-deck’ mantra, Vida Cruises are able to offer the
for family fun, a romantic retreat or
ultimate advice and deals for its customers – they certainly know the docks
some simple self-indulgence, you’re
from the harbours!
guaranteed to find the perfect cruise.
38
TRAVEL
39
A Couple of Current Cruises: So by now if like us you’re thinking “when do we leave?”, we’ve
selected
two
of
the
most exciting cruises for 2015 departing from UK based ports.
P&O Britannia:
Anthem of the Seas:
Britannia was the newest and largest
Taking cruises to a whole new
member of the P&O fleet when she
level, Anthem of the Seas boasts an
launched in March 2015. Designed
incredible range of ground breaking
exclusively for British holidaymakers,
features that are new to the cruising
she offers 15 decks of fantastic
world. One that particularly stands out
entertainment, leisure, and dining
is the brand new North Star. Elevating
facilities. Britannia will include many
guests 300 feet above sea level, this
popular P&O features such as the
jewel-shaped capsule offers some
Oasis Spa and The Crow’s Nest, plus
breathtaking views of the surrounding
great new innovations including The
area and is an entirely new concept
Cookery Club, The Limelight Club
for the Royal Caribbean fleet. Other
and The Studio.
firsts include the complete redesign of the staterooms, with inner cabins now boasting the first virtual balconies at sea. But with all these state-of-the-art features, there’s still tonnes of room for all the favourites of the RC fleet, including the FlowRider, Rock Wall and the Vitality Spa. All of this, plus some incredible dining options and the best in cruise entertainment.
40
TRAVEL
16
Club Workspace London Bridge, London SE1 3ER
14
Google Campus 5 Bonhill Street, London EC2A 4BX
JUNE 2015
6:30 PM
18
Club Workspace Clerkenwell London EC1R 0AT
RAISING INVESTMENT IN THE UK
MAY 2015
6:30 PM
RAISING SEIS INVESTMENT
APRIL 2015
6:30 PM
INTRO TO STARTUP LAW obtain your free ticket at www.buckworths.com