Elite Business Magazine February 2015

FEBRUARY 2015

flying the

flag

Having conquered the UK market with a turnover of ÂŁ200m, barter company Astus, co-founded by Frances Dickens, has headed overseas in search of further fame and fortune

FEBRUARY 2015

ÂŁ4.50

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02/02/2015 20:51

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s many as two million sole traders and small companies missed out on £1.5bn of online sales in a single weekend last year, according to the Department of Business, Innovation & Skills.

Online retailers had their best ever year as consumers spent £1 in every £4 online, say Capgemini.

Nettl, the new network of web design studios is supporting small businesses with a free one-hour consultation for 100 entrepreneurs and startups in each city and a £500 grant (€600 in Ireland) towards a Nettl commerce web shop.

Many UK small and medium-sized businesses totally missed out on cyber spending of up to £500,000 a minute in December and January sales due to their lack of online presence.

According to research by BIS, more than half of customers (55%) say they find it hard to support local businesses when they simply can’t find them online. “Even those that do have an online presence, over two-thirds are non-transactional,” says Simon Devonshire, from BIS. “Our clients tell us they know they need to sell online, but find it

£500,000 website grants for SMEs difficult knowing where to start,” says Peter Gunning, chief technology officer of Nettl. “They hear about how expensive web development is and worry they’ll get ripped off. It’s Nettl’s mission to remove the mystery surrounding ecommerce and help small businesses just start selling online.”

“To show our support for SMEs we’re offering local businesses who sign-up for a no-obligation consultation, a £500/€600 grant towards the cost of their web shop,” says Gunning.

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Nettl have put together a guide called Exploiting Ecommerce. This covers the anatomy of a web shop, winning with Click & Collect and fatal mistakes businesses make. Elite Business readers can download free at www.nettl.com/uk/elitebusiness

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55% say they find it hard to support local businesses when they simply can’t find them online.

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Nettl are offering a FREE one-hour, no obligation website consultation for readers of Elite Business, to discuss how to get your business selling online.

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02/02/2015 23/01/2015 15:40 10:13

CONTENTS

20 A giant leap

Frances Dickens is taking her barter business to the world

07

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02/02/2015 19:19

CONTENTS

VOLUME 04 ISSUE 02 / 2015 REGULARS 11 12 14 17 18 98

Editor’s letter Contributors News & events Talking point Book reviews Start-up diaries

28 One to watch

Talking balls with football data app Squawka

34 Computer couture

08

46 Shoestring budget

Think outside the box to cut costs without cutting colleagues Clive Lewis offers tips for SMEs to stay in control of finances

51 Exclusive experiences

Get to know consumers to tailor their customer journey

54 The Power 15

The who’s who of the digital world

Are you ready to don wearable tech must haves?

62 Style and substance

40 Total eclipse

67 Pride and unprejudiced

A look at businesses that have outdone themselves in year one

34

28

48 Staying afloat

An interactive website is key

LGBT business leaders on inclusive workplaces

70 Shaking stereotypes

Meet the women proving that it’s not a man’s world anymore

76 Glass half full

Lyndsey Simpson points out the power of positive thinking

79 The hot list

The latest must-have gadgets, hardware and apps for forwardthinking small businesses

82 Hack off

Banish the baddies and protect your business from hackers

86 Fast forward

Neil Crockett lays out his plan to make the UK a titan in the tech world

89 Cry freedom

What does the Modern Slavery Bill mean for UK businesses?

54 Contents.indd 2

02/02/2015 19:19

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EDITOR’S letter VOLUME 04 ISSUE 02 / 2015

Scan this QR Code to register for Elite Business Magazine SALES Harrison Bloor – Senior Account Manager harrison.bloor@cemedia.co.uk Darren Smith – Account Manager darren.smith@cemedia.co.uk Samuel Darcy – Account Manager samuel.darcy@cemedia.co.uk Suzanne Smith – Account Manager suzanne.smith@cemedia.co.uk Siobhan Stokes – Account Manager siobhan.stokes@cemedia.co.uk EDITORIAL Hannah Prevett – Editor hannah.prevett@cemedia.co.uk Josh Russell – Feature Writer josh.russell@cemedia.co.uk Ryan McChrystal – Feature Writer ryan.mcchrystal@cemedia.co.uk Jade Saunders – Junior Writer jade.saunders@cemedia.co.uk DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Rishita Devji – Intern Designer rishita.devji@cemedia.co.uk Dan Lecount – Web Development Manager dan@cemedia.co.uk Marketing Kelly Dunworth - Head of Communications kelly.dunworth@cemedia.co.uk Claudia Laing - Marketing Manager claudia.laing@cemedia.co.uk Lucy Jones - Marketing Assistant lucy.jones@cemedia.co.uk CIRCULATION Malcolm Coleman – Circulation Manager malcolm.coleman@cemedia.co.uk ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk Colin Munday - Management Accountant colin.munday@cemedia.co.uk ADMINISTRATION Daisy Jones – Administrator daisy.jones@cemedia.co.uk DIRECTOR Scott English – Managing Director scott.english@cemedia.co.uk

Sacrifice teaches great discipline Lots of entrepreneurs talk about sacrifice. They will tell tales of shoestring budgets and surviving on cans of baked beans in the early days. But, generally speaking, once a business becomes more established, the bootstrapping tendencies go out of the window and founders enjoy a life of relative luxury.

It’s not always the case. More than a decade after she co-founded Astus, a media barter company, Frances Dickens had to make the ultimate sacrifice: she moved more than 10,000 miles away to Sydney while her family remained in the UK. She admits it wasn’t an easy time but she didn’t have a choice: the business was expanding into Australia and needed a steady hand on the tiller. It was a critical point in her son’s education so uprooting him wasn’t an option. Instead, she took a stoic approach: get in, get the job done and get home to her family.

This is an attitude that deserves our utmost respect. Just think what the UK workforce could achieve if they were similarly inclined to sacrifice their short-term comfort for long-term achievement.

But this is what sets Dickens and other entrepreneurs apart from us mere mortals. And it’s also just one of the reasons she deserves all of the success coming her way.

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HANNAH PREVETT EDITOR

Circulation/subscription UK £40, EUROPE £60, REST OF WORLD £95 Circulation enquiries: CE Media Limited Elite Business Magazine is published 12 times a year by CE Media Solutions Limited, 4th Floor, Victoria House, Victoria Road, Chelmsford, CM1 1JR Call: 01245 707 516 Copyright 2015. All rights reserved No part of Elite Business may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor.

Elite Business magazine will make every effort to return picture material, but this is at the owner’s risk.

Due to the nature of the printing process, images can be subject to a variation of up to 15 per cent, therefore CE Media Limited cannot be held responsible for such variation.

cemedia.co.uk

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02/02/2015 20:19

CONTRIBUTORS Lyndsey Simpson Simpson has a busy few months ahead of her, giving talks at both the Global Recruiter conference and at our own Elite Business Event in London. In her column this month she gets her teeth into the power of positive thinking, and in her own efforts to embrace the ethos is trying her hand at simple mindfulness techniques. Together with husband Andy, she will spend Valentine’s weekend in Valencia. To get you in the mood for romance, here is a picture of Simpson with Colin the Bear, a wedding present to her husband… long story.

Jon Card Jon Card is a freelance journalist and ‘pen for hire’ who writes regularly for The Guardian, as well as this venerable title. He recently visited San Francisco, spending a week writing, interviewing, drinking, not sleeping and pretending he didn’t have jet lag. Upon his return he wrote our feature on online copy and how an exciting, interactive website is a growing necessity for businesses in an online age. He recommends entrepreneurs enlist the help of experienced, non-jet lagged media professionals. As to who that could be...he couldn’t possibly comment.

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Neil Crockett Clive Lewis This month, Lewis has taken time out of his busy schedule to talk us through keeping control of business finances. As of late, most of his energies have been put into launching the new ICAEW publication on export finance and insuring, Competing in the Global Race.

With the general election just around the corner, Lewis wishes the parties would get a move on and reveal their business manifestos.

He was suitably impressed by a recent speech given by Labour’s shadow business secretary, Chuka Umunna, but won’t be nailing his colours to the mast just yet.

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We are very excited to welcome on board Crockett, our new house techie. He has a plethora of experience under his belt, including working at Arthur Andersen, Rank Xerox and Compaq before joining Cisco. He successfully led Cisco’s sponsorship bid for the London Olympics 2012 where he was responsible for the delivery of all Cisco’s technology and services, marketing and a major digital legacy programme. For his inaugural column, he lays out his plan to make the UK a worldclass tech economy.

02/02/2015 19:21

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02/02/2015 15:48

NEWS & EVENTS

Transferwise has become London’s second

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Frederic Legrand - COMEO / Shutterstock.com

$1bn technology company in just a week, after the international money transfer business was valued by a top Silicon Valley venture capital fund. The Shoreditch-based start-up raised $58m from Andreessen Horowitz in a deal that reportedly values it at $1bn. This announcement comes just days after Hammersmith-based Shazam attracted the same valuation. TransferWise allows people to transfer money internationally over its online platform, at a lower rate than many big banks. Over £3bn has been transferred through the platform and co-founder Kristo Käärmann said: “Our success in the UK has shown that it really helps to be close to the customer.”

With three months to go until the general election, parties have begun laying out their plans to boost business in the UK. To help small businesses, prime minister David Cameron has promised to triple the number of start-up loans to at least 75,000 by the end of the next parliament, making £300m in loan capital available. Potentially, the scheme will have created at least 100,000 jobs by 2020. The programme provides small loans (on average £5,000 – £6,000) to people who would struggle to secure credit from banks or building societies because of a lack of collateral.

Arvnick / Shutterstock.com

Britain’s economy has shifted more towards low-skilled jobs and less towards highskilled ones compared with other European countries, according to research from the University of Oxford. The findings which cover 1996-2008 are likely to add to the debate over the long-term issues of pay, skills and productivity in the UK, where employment levels have been remarkably resilient but labour productivity languishes below most other rich countries. The prime minister called Britain the “jobs factory of Europe”, championing employment rates that are flirting with record highs. But are too many employers left unable to find the skilled workers they need?

Great news for lefties the world over: the anti-austerity Syriza party have taken control of the Greek government. But are the markets so happy? At first they were rather buoyant but as newly installed prime minister Alexis Tsipras has started laying the groundwork for Greece to stop paying down debt, the Athex composite index, which began losing strength in December when the prospect of a Syriza win became a real possibility, plunged more than 9% on January 28. The euro remains fairly steady, though – suggesting the fear of a full-blown “Grexit” remains pretty muted. So let’s put the scaremongering on hold for now.

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It seems Britain is divided more by wealth than geography. According to the thinktank, Centre for Cities, for every 12 new jobs that have been created in cities and towns in southern England since 2004 only one has been generated in towns in the rest of Britain. The thinktank also found that the gap between Britain’s best and worst performing towns and cities had dramatically widened in the last 10 years, creating a two-tier economy of dynamism and decline. Its annual report, entitled Outlook 2015, compared the performance of the UK’s 64 largest cities and towns and found the south far outperformed the north between 2004 and 2013.

Many people don’t like discussing their salary, much less asking for more of it.

However, it seems that a third (34%) of UK office workers often inflate their salary to impress friends or family. The poll by LondonOffices.com also found that 13% said they had significantly increased their salary, with some admitting to doubling it.

More than half (52%) said they weren’t comfortable with discussing their salary with other people. The remaining 48% said they didn’t mind as long as it was with someone they trusted. Young employees were more like to lie about their salary compared with older workers.

02/02/2015 19:22

NEWS & EVENTS

Santander has launched an ambitious

year-long programme of support for entrepreneurs and small businesses.

Delivered in partnership with Cause4, the programme will develop a network for female entrepreneurs, support ambitious social enterprises to scale internationally, and encourage responsible business practices that impact bottom line results for entrepreneurs. According to official statistics, SMEs account for 59% of private sector employment and contribute to almost half of commercial turnover in Britain, making them vital for job and wealth creation. This new programme of support is aimed at businesses with a turnover of between £500,000 and £50m a year with demonstrable growth in turnover, profitability or job creation.

Business start-ups have raised £83.7m of seed funding through the Seed

scheme, in the first year since it was set up by the government. However, there’s still significant potential for take-up to grow, according to Radius Equity, the provider of tax efficient private equity investments.

Latest figures reveal that 1,120 small businesses secured funding through SEIS, which was set up in 2012 to boost investment in start-ups and early stage businesses by offering generous tax reliefs to private investors.

Tupungato / Shutterstock.com

Enterprise Investment Scheme (SEIS), a new tax efficient investment

According to figures released by Oxfam in January, the combined wealth of the richest 1% will overtake that of the other 99% of people next year unless the current trend of rising inequality is checked. The warning came ahead of the annual World Economic Forum meeting at Davos. The international agency, whose executive director Winnie Byanyima co-chaired the Davos event, warned that the explosion in inequality is holding back the fight against global poverty at a time when one in nine people do not have enough to eat and more than a billion people still live on less than $1.25 a day.

Perhaps the time has come for businesses to take steps to tackle the problem in the way they pay employees.

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UPCOMING EVENTS Angels Den London Angel Club Session 1 February 2

Business Junction Network Lunch in Marylebone February 5

Angels Den SpeedFunding February 4

Xerocon 2015 February 10 & 11

One London Wall, London EC2Y 5EB

Salisbury House, London Wall, London, EC2M 5QN

News.indd 2

Asia House, 63 New Cavendish Street , London, W1G 7LP

Battersea Park, London, SW11 4NJ

Business Junction Networking Lunch February 12 Wood Street, 53 Fore Street, London, EC2Y 8AX

Business Scene Kingston 4 Networking Breakfast February 17 Portsmouth Rd, Surbiton, KT6 4ES

Business Junction Networking Breakfast February 18 Merchant Taylors’ Hall30 Threadneedle Street, London, EC2R 8JB

The Supper Club The Big Event with Mishcon De Reya February 19 30 Pavilion Road, London, SW1X 0HJ

Business Junction Networking Lunch February 26 Grosvenor Casino Golden Horseshoe, 79-81 Queensway, London, W2 4QH

A full event listing is available on our website: elitebusinessmagazine. co.uk/events

02/02/2015 19:22

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02/02/2015 15:41 29.01.2015 17:00:50

TALKING POINT

Secondary solutions What is driving UK workers to seek a secondary income?

WORDS: JADE SAUNDERS

T

he UK workforce has had its ups and downs over the past few years, from thousands stuck on zero-hour contracts to employers including regular overtime in holiday pay. With the economy supposedly on the rise, it came as quite a shock to learn that over a million people had second jobs despite nearly two million people being unemployed.

According to the recent Labour Force Survey, the number of UK workers taking a second job has risen substantially: there are now around 1.2m people working two jobs in the UK. It would be right to assume that many have been forced to take on secondary employment to meet the ever increasing living costs and lack of wage growth over the years. However, many are venturing out into secondary employment as a means of exploring entrepreneurial pursuits. Websites like Etsy and Big Cartel are giving crafty characters the opportunity to sell their intricate and individual designs while People Per Hour and HourlyNerd are offering skilled souls the chance to freelance in their spare time.

Whether second jobs are a way of surviving or a build up to a career change, the number of us working second jobs is only headed one way. Those working more hours just to support themselves is an issue that needs to be explored by the government and businesses alike, perhaps tax relief for the lowest earners or the introduction of a penalty for employers not paying the living wage. In the meantime, is there a danger the UK could become a nation of overworkers?

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People want a new challenge The number of individuals with second jobs and the increase in self-employment are interconnected. Many of those taking second jobs are working for themselves, either with end clients directly or through platforms like Darren Fell People Per Hour or Uber that give them access managing director of to large pools of clients. Although there are Crunch Accounting undoubtedly some people having to take on second jobs to make ends meet, research into the UK’s workforce has actually shown that the majority undertaking self-employed activities do so because they want a new challenge, more control over their working lives, or to break away from the monotony of the nine-to-five.

This change has been referred to as ‘the gig economy’, or ‘portfolio careers’ – the next generation of workers don’t expect a job for life, they expect to jump from job-to-job. The latest figures from the Global Entrepreneurship Monitor show the number of those taking on extra 17 work through self-employment do so for positive reasons.

It is also becoming more common for companies to hire freelancers, as it’s seen to be more cost effective, particularly for small businesses that only need people on a project-by-project basis. This opens more doors for those who wish to take second jobs and is beneficial for the market as a whole. We predict this trend to continue and expect company structures and processes to evolve as a result.

Putting all your eggs in one basket is a risk In my opinion having a reserve or secondary income is essential whether you are employed, self employed, or run an established business.

The idea of a second income isn’t new; in the 1940s, 1950s and 1960s it was commonplace.

Stephen Fear Many working-class people like my mum and businessman and dad had second jobs. In my mum’s case it was British Library’s entrepreneur in selling insurance door-to-door but many residence others worked in factories during the day and were barmaids or bar men at night. It wasn’t really frowned upon or considered to be unusual. In those days, people just got on with it.

I always advise people to have two jobs: cash may be King but cashflow is Queen. By having two jobs, one where you earn most of your income and the other where you earn a support income, gives a family or an individual added protection should either be lost. The same applies to businesses: putting all your eggs in one basket puts you at risk. An electrician who sub-contracts to one developer could find himself in dire straits should that developer go bust for any reason.

Make sure you have two or more sources of income at all times. Do not be lulled into a false sense of security – we live in a world where the only thing that is certain is that the future is uncertain.

02/02/2015 19:23

BOOK REVIEWS

Design to Grow - How Coca-Cola learned to combine scale and agility (and how you can too) David Butler and Linda Tischler

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Gamechangers – Creating innovative strategies for business and brands Peter Fisk

W

T

Publisher: Portfolio Penguin Out: February 26, 2015 RRP: £14.99

Publisher: John Wiley & Sons Out: Now RRP: £24.99





hen seeking out advice on growing your business, you could do worse than listen to a Coca-Cola senior executive. In Design to Grow, David Butler has compiled an easy-tounderstand guide to growth and development. Within the company, he has been involved in many major innovations and so has considerable insight and perspective to offer any business.

'Design' in the book covers everything from product design, websites, branding, signage and more. Co-written with Fast Company editor, Linda Tischler, it is broken into two sections: Designing for Scale and Designing for Agility. Part one reads like an historical document, charting Coca-Cola’s eventful history. The pair outline some initiatives ranging from altering the design of bodegas in Latin America to rolling out the Freestyle drink machine. These experiences make up the most interesting points of the book.

Part two reads like a ‘how-to’ guide and is where readers will find most practical value. It looks at the approaches companies can take to create new value and sustainable growth.

It is certainly true that tomorrow’s business winners are the ones who have mastered both agility and scale. And while Design to Grow has something to offer many entrepreneurs, it is more than a little CocaCola centric. It can also get a little repetitive as key points are made again and again. In all, this is a worthwhile read, even if you are not one of the businesses Butler and Tischler are aiming at. RMC

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he future is upon us, innovations in technology have advanced immensely and we hold more power at our fingertips than ever before. Businesses have endless possibilities to create, engage and inspire. The ever-changing landscape has helped create a new generation of businesses; Peter Fisk calls these the gamechangers. These revolutionary entrepreneurs seek to redefine the current market or build their own; they seize opportunities and strive to do not only a little bit better but to be different by changing the game.

One of the biggest gamechangers in the world is Google, which lives by its mantra, “why try to be only 10% better, when you could be ten times better?”

This book explores 100 of the greatest inspirational gamechangers who have ideas and make them happen, from pioneering medicine to our favourite food and drink inhaled in a zero calorie powder. It is written in short and sharp sentences to get the adrenaline pumping, each chapter is unique and can be read daily to inspire the next generation of entrepreneurs. It explores new ways for businesses to change the future and shares with readers thought-provoking quotes and explains how and why gamechangers are creating exclusive businesses models to suit themselves and redefine customer engagement. Fisk lists the fundamental characteristics that gamechangers seem to share and dedicates a chapter for business leaders hoping to adopt gamechanging attributes in their own business.

Entrepreneurs, take note. JS

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31/10/14 11:46 am 31/10/2014 18:54

THE ELITE INTERVIEW

BEGINNINGS WHEN FRANCES DICKENS CO-FOUNDED ASTUS IN 2003, IT WAS A TALL ORDER PERSUADING THE MEDIA WORLD THAT THE BARTER BUSINESS NEEDN’T BE CONFUSING NOR MURKY. SHE’S NOW DOING THE SAME DOWN UNDER AS THE COMPANY TAKES ITS WARES TO THE WORLD

THE ELITE INTERVIEW

It was really good going back to scratch and doing all the stuff I like doing

WORDS: HANNAH PREVETT PHOTOGRAPHY: EMILIE SANDY LOCATION: THE CLUB AT THE IVY, LONDON

A

s barter company Astus geared itself up for expansion to Australia in 2011, it became apparent that one of the senior management team would need to relocate in the short term. That duty fell to co-founder Frances Dickens. “The trouble with barter is you can’t pick it up quickly,” she says.

“We didn’t have anybody in the UK office who didn’t have young kids and who had the level of experience to go out there and open it up.”

She’s right that media barter certainly has its complexities. Put simply, the process means companies can pay for media campaigns (in newspapers, magazines etc) partly in cash and partly in their own products or services. So a car manufacturer may pay 80% in cash but the rest in cars. These products will then be sold on to corporate clients. The media owners are happy because they get new advertisers or additional media spend, while the company has saved itself some cash. Everyone is a winner.

Because it can be a tricky business to explain to new customers, Astus needed a safe pair of hands to spearhead its Australian expansion. In February 2011, Dickens located to Sydney for a year. It’s a common misconception that there won’t be substantive differences in a new market just because it happens to be English-speaking, she explains. “We learned from doing Ireland it’s still a big change from running a successful company somewhere people know how it works versus breaking into a market that’s still suspicious and difficult. It means using the old skills that probably only three of our current management team have got – me, my co-founder ‘Jacko’ [Paul Jackson] and David Jones, our UK MD.” Eight years after she and Jackson had started the business, she was starting again. “It was really good going back to scratch and doing all the stuff I like doing and doing the presentations for the agencies and clients,” she says. “I worked like an absolute fiend. I was in the office at 7 o’clock in the morning and I left there at 7 o’clock at night when I’d go to my apartment and keep on working.”

There was a method in her madness. “I was working constantly – which probably wasn’t very good healthwise – but I got so much done so quickly because I just wanted to get home. I missed my family horribly.” Dickens had had to leave husband John and son Jack, now 18, behind in Blighty. “I hope I don’t have to do it again,” she adds.

The career that has now taken her to the other side of the planet wasn’t on the cards when she was a youngster. Having harboured dreams of being a three-day event horse rider, she fell into a sales job after leaving school. “I was an absolute disaster in my O-levels; I only passed three. School bored the hell out of me. I was much more interested in learning how to make money and going out and riding horses than actually sitting in lessons.”

She then took a job in life insurance, where she did surprisingly well. “I’m sure it’s much more respectable now but then it was really like the Wild West. I did really well by telling the truth – which was quite an unusual thing for people selling life

21

the elite INTERVIEW

22

insurance then.” After a brief stint working alongside James Caan at his newly formed recruitment firm Alexander Mann, Dickens began a career in the outdoor advertising industry – which eventually led her into the world of media barter.

“I went to work for a big American barter company, which was probably not a smart move. I should have done a lot more research than I did because if I had I wouldn’t have taken the job,” laughs Dickens. Before the headhunter had approached her about the role, Dickens had not even heard of barter. “I thought it sounded interesting and quite entrepreneurial.”

Yet within a month, she was beginning to wonder if she’d been handed a poisoned chalice. The saving grace was a relationship she’d begun to form with her colleague and now business partner Jackson. In two years they managed to bolster media placements £4m to £43m in a year.

But while she and Jackson worked hard to restore the reputation of media barter in the UK, the same couldn’t be said of her colleagues. “They over-promised and underdelivered. They got commission on the products so they didn’t care if they could deliver [the returns for the client] or not.” Dickens began considering a new ‘delivery-first’ model – which meant clients would get their media first, then would owe the barter company product – thereby boosting the service the customer received. “Paul and I just thought, ‘we can do this differently,’” she recalls.

Before deciding to go it alone, she initially pitched her idea to her employer. “There was a two-day bank holiday in June and I spent that time in New York, including seven hours in a bloody meeting in a room with no windows, trying to convince the Americans to change their model to go delivery-

Elite Interview.indd 3

first,” says Dickens. When they said no, she and Jackson decided to forge ahead.

First things first, they needed capital. This was no mean feat in the barter industry. “It took us ages to get the funding; me and Jacko hiked around everywhere. The biggest problem was getting venture capitalists to understand what we did. The most disheartening day was when we presented to this guy and we thought he got it. At the end he said, ‘I haven’t got a clue but if so-and-so gives you £150,000, I’ll give you £150,000 too.’ We didn’t want money that way: we wanted somebody who really got it.”

Eventually, they managed to find a private investor who ploughed £300,000 into Astus. With Frances’ and Jackson’s contribution and investment from each of the remaining six founding team members, that brought the total kitty to £640,000. It eventually transpired that they didn’t need the safety net – the business generated £6m in revenue in the first year and £3,000 in profit. But Dickens has no regrets: “I don’t think for a minute we would have been nearly as successful if we hadn’t done that. Working in a start-up is tough; you have to work really hard. If you haven’t got a piece of skin in the game I don’t think you ever work in quite the same way as if you have. Even now we have a good share option scheme so everybody has got a piece of the company, no matter how small.”

Little by little, Dickens and Jackson set about changing the perception of the barter industry. “We’d started the process of cleaning it up during our time at [the American company].

We had agencies that trusted us and media owners that saw that we were delivering so it wasn’t as much of a leap as if we’d just gone straight in to try and do Astus.”

Still, it was difficult to make ends meet. “I took an enormous pay cut; it was very tough. I hadn’t juggled money like that since I was a teenager,” she exclaims. By this point, son Jack was in a prep school and fees needed to be paid. “Luckily, my husband was working so he took on the lion’s share of paying for everything. It was very tight.”

The company grew quickly. In month three, it signed its first big client: Mercedes.

In year two, it doubled revenues to £12m. In year three, it doubled them again to £22m.

Dickens says the secret to their success is the company’s ethics. “We drew up a charter

I took an enormous pay cut; it was very tough. I hadn’t juggled money like that since I was a teenager

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the elite INTERVIEW

24

about how we would conduct ourselves as a company both externally and internally. This included things such as we’d not sign a client without their agency knowing about it. We won’t sign a deal we can’t deliver. And one of my personal bugbears was when companies spend so much on entertaining and then people don’t bother to show up; it used to really annoy me. So one of the things I put on there was, ‘if you’re invited to something and you accept it, you will go’”.

When she overheard one of her employees (who no longer works for Astus) saying he wasn’t going to attend a hospitality day clay pigeon shooting the next day, she went in his place. “I was stood there in the car park in my jeans and Timberlands and there’s all these guys with all the gear and their guns and I’m thinking, ‘Oh for God’s sake’. But I bloody loved it.” And so began her love affair with clay pigeon shooting – which has since come to replace horse riding as her hobby of choice. “I’m just too broken to risk falling off,” Dickens explains.

It’s just as well she has plenty to keep her occupied at the office then.

One current challenge is trying to find new office space for Astus’s 32 UK-based staff. To upsize within Victoria, London, where they currently are, they’re looking at rent and rates amounting to £500,000 a year. “It’s mad money.” But she’s reluctant to uproot the team. “I don’t want to move and find we lose members of the team because their journey becomes a pain in the backside. It’s a real dilemma – and a time-consuming one at that,” she adds.

She has the company’s everexpanding global portfolio of clients to attend to, too. Astus is beginning to pick up more custom in Asia and, although it now has staff in Singapore and Shanghai, Dickens still travels to the area regularly to check things are progressing nicely. She also has a couple of lengthy trips to Australia a year.

But nowadays she no longer travels solo. “John comes with me. Having had that year apart, I just said: ‘that’s it.’

We have to pay for his flights ourselves, which makes it quite expensive, but he loves all the places I go and it just makes it a bit nicer.” It also means she doesn’t

Elite Interview.indd 4

In the early days, we’d go out in the street to shout at each other because we didn’t have a boardroom to start with

rush back. “We’re about to go to Australia for a month: I’ll work three weeks of that and have a week off in the middle.

To be honest, if John wasn’t travelling with me, I’d probably have wanted to come back after two weeks.”

John isn’t the only man in her life. There’s son Jack, who has just scored a place at the University of Cambridge. And let’s not forget Jackson. Dickens says the best decision she ever made was going into business with him. “He does the numbers, I do the words. We actually fit really well. I love him to bits; he’s my best mate.” That’s not to say they don’t drive one another to distraction sometimes. “In the early days, we’d go out in the street to shout at each other because we didn’t have a boardroom to start with,” she smiles. “I’m not very good a sulking though so it doesn’t last very long.

I do remember getting annoyed at him about something and we had to go and do a big presentation at Sky. We were walking down there and I wasn’t speaking to him. He said: ‘You’re sulking but I know you – you’ll have forgotten you’re sulking by the time we get to Sky.’ He was right.”

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31/10/2014 15:54 19:26 22/04/2014

Small businesses need to prepare for auto enrolment now With thousands of small businesses facing the challenge of auto enrolment, and the Pensions Regulator recommending taking 12 months to prepare, business owners are concerned about the impact of this legislation on their resources and cash flow. But there are ways to lighten the burden

26

The Sage Auto Enrolment Module was incredibly straightforward Angela Carpenter, Payroll and Pensions Manager, St Helena Hospice

Sage DPS Feb15.indd 1

S

o far businesses in the UK may have thought that auto enrolment only applies to the big guys. But as the legislation continues to be rolled out, more and more small businesses find their staging date rapidly approaching.

Up to 45,000 employers per month will begin to stage in 2016. With the Pensions Regulator recommending 9-12 months to prepare for this legislation, it’s vital that those small businesses that have not yet begun to plan for auto enrolment get started.

Auto enrolment is new legislation designed to make sure we’re saving enough for retirement. It impacts both employers who have to manage and pay for the schemes, and employees who need to be informed about their pay, pensions and options under the scheme.

That all means a lot more admin for businesses. There are the costs of complying with the legislation and the threat of monthly fines for any businesses that fail to meet their obligations. And then there’s the cost of contributing to and managing workplace pension schemes in years to come.

The Centre for Business and Economics predicts that auto enrolment will cost each business up to £28,000 and add 101 hours to their resources. It’s no wonder that, in a recent survey by Sage, the impact of auto enrolment was the biggest concern for small business owners.

The good news is, there’s help on hand.

Much of what’s required to comply with auto enrolment is about organising admin and a lot of the processes can be automated, saving time, resources and reducing the risk of costly errors.

Sage 50 Payroll Automatic Enrolment Edition

and the Pensions Module has been specifically designed to put small businesses in control of auto enrolment preparation.

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The Sage 50 Pensions Module integrates with Sage 50 Payroll to automate the administrative aspect of auto enrolment, making it quick and easy to share data with pension providers.

Automatically identify who is eligible for pensions

No need to run multiple reports to see which of your employees qualify for a workplace pension and those who have opted out.

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Pension providers need accurate information, in the right format at the right time. With so many other things to think about, this can be a real headache for small business owners. But the Pensions Module identifies the correct data and puts it in the right format to send to NEST, NOW pensions, Aviva, Scottish Widows and the People’s Pension.

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The Pensions Module automatically creates letters and emails for employees in the right format and at the times specified by the Pensions Regulator, so helps make sure you meet your legal obligations.

02/02/2015 15:51

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02/02/2015 15:51

ONE TO WATCH

28

LOOK WHO’S SQUAWKING With data visualisations and real-time analysis, Squawka is making the beautiful game of football even more beautiful

One to watch.indd 1

02/02/2015 19:26

ONE TO WATCH

N

WORDS: Ryan McChrystal

We give fans the power to win arguments

One to watch.indd 2

o one can deny the dazzling speed and agility of Lionel Messi or the exceptional grace and shooting prowess of Cristiano Ronaldo on the pitch. Football fan or not, watching these guys play you know they are among the best in the world. Which one is the better player overall is up for debate so it’s a good thing fans love nothing more than an argument. This is why Sanjit Atwal and Leo Harrison set up the next-generation media company Squawka. “We give fans the power to win arguments,” says Atwal.

Squawka is a digital football companion.

Its technology visualises over 500 million data points during a 90-minute football match. It then uses the results to create content to engage the audience, giving fans easy access to more information than they’ve ever had before.

True to form for a business centred around football, it all started over a few beers. Back in 2012, after Harrison sold his shares in Found.co.uk – a marketing company he founded in 2010 – he met with Atwal to discuss what the two could get up to next. Both being huge football fans, they had been toying with the idea of doing something in the sport for some time. Atwal had been in digital media, technology and start-ups for a while, and has his fair share of industry awards under his belt. When the time came to take the plunge, Atwal sold his car and his home and together with the money raised by Harrison through Found.co.uk, Squawka was born.

Twitter was a big influence on the name.

“We love the onomatopoeia of Twitter and ‘tweeting’ so we thought Squawka and ‘squawking’”, explains Atwal. “We also wanted a name which would give us room to grow vertically down the line, or horizontally if we wanted to branch into other sports.”

So with a name and an idea, the first real challenge came of how to differentiate when there are a million and one other places fans can go online to get football content. “That’s where the data side really started to come in,” says Atwal.

“We’re generating all these graphics and visualisation which we can put into editorial content as well. We can talk about football from a media point of view in a very unique way.” Squawka now now produces 150 unique articles on football a day in-house, and nearly all of them are statistic focused. Behind this prolific output is a 35-strong team, almost half of which focus on content. The company is looking into launching user-generated

content in the future.

Sky Sports and the BBC have begun taking note of this trend in sports and have begun to incorporate increasing amounts of data into their broadcasts.

“While their statistics might be useful to represent some of the general trends involved, they are not particularly nimble nor do they account for any inconsistencies or statistical deviations.

This is the point where Squawka comes in. What the next generation of football enthusiasts needs is a system of analytics that more accurately describes what it sees in games,” explains Atwal.

This spearheading is the reason why Squawka is proving so popular and goes a long way to explaining why it cleared up at this year’s Smarta awards, winning best use of tech for its ‘championing innovation in football data and content’ and becoming overall winner. “The team can now walk into the meeting room and see all the awards that we have up there; there are quite a few now and they are a constant reminder that we’ve got an incredible business here. It’s a real morale booster,” says Atwal.

The many wins are well deserved.

Squawka’s target audience are football fans between 18 and 35 and of this demographic, 31% have heard of the platform; a significant proportion still use it on a regular basis. It recently hit its record of 710,000 unique users in one day. Not bad for a company which has spent no money on advertising.

“Looking at the growth of the business and how many fans are using Squawka it’s definitely something that everybody is thinking now: that actually you get much more enjoyment out of the game by understanding it through data visualisation,” Atwal says.

We are a nation of football fans. In the digital age, we are also a nation of people who want information boiled down into easily digestible chunks and we want it now. Statistics help us with these impulses and if they are attractively presented, all the better. “I think it is that realisation from fans that this kind of info was out there and it wasn’t geeky to be into this kind of stuff,” says Atwal.

However, some football fans aren’t quite convinced. “When we launched there was a lot of good feedback but we also saw some fans rallying against the idea of more data,” says Atwal. Some think statistics and data rob the game of its romance and misses the point of the game. But for Atwal, data visualisations

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ONE TO WATCH

add to football. “We felt, as football fans ourselves, that there just wasn’t enough information to really understand the match at a deeper level,” he adds.

“The fact is, data helps make the game more beautiful,” says Atwal. “There’s a very famous quote from Sir Isaac Newton. By looking into the science behind a rainbow, the poet Keats said Newton was destroying the beauty by wanting to know too much. Newton’s reply was to say that by understanding the rainbow it makes it more beautiful – and the same holds true for football and data visualisation.”

One of the most popular features on Squawka is the Comparison Matrix, where you can compare numerous stats of any player; everything from tackles won to red cards. If you were looking to settle the Ronaldo v Messi debate, you will find that overall Messi is the better player, as he has scored more goals and is better at forward passing. Ronaldo however, has the much more effective right foot. “When fans started sharing statistics with each other, it really affirmed to them that this is cool. Their desire to consume that is insatiable and there’s no signs of slowing down at all. The more content we’re pumping out, the more people want to consume,” says Atwal.

As the love of sports becomes democratised, the ways in which we view sports has changed.

And so the popularity of fantasy sports – a

Data helps make the game more beautiful

One to watch.indd 3

particularly American pastime – is on the rise in the UK. In June last year Squawka entered the $70bn fantasy sport market with the launch of its Battle Mode. “This again focused on realtime data visualisations. We wanted to build a game where fans could challenge each other using all of the data coming from the football matches.”

Later this year Squawka will launch a paid-for version of the fantasy product, where fans pay £3 to enter with a minimum of £25,000 up for grabs at the weekend.

Similarly, Squawka also released a game called Passelona where fans guess the five players that will pass the ball the furthest. “We visualise all the passes and have a real time leaderboard. We’re still running the product at the moment and 15% of the people who play it play five times in a weekend – which is genuinely phenomenal.”

As Squawka is a completely free service to fans, it makes its money through advertisements. Even in this area, it is a pioneer. “We have a host of really cool ad solutions that are on offer to brands and media agencies.

We won a lot of awards for our Dominoes Pizza ads, where 15 minutes into every match we’d change all the advertising on Squawka to say: “Hey,

here’s your discount code for your pizza. If you order it now you’ll have it at half-time.” That absolutely flew, we sold a ton of pizzas and the client was really happy,” says Atwal.

So what does the future hold for Squawka?

“We want to get to the point where we’re the largest digital platform for football fans in the world,” says Atwal. “We’ve got a lot of different content ideas such as the more Vice media and Buzzfeedtype content. The fantasy side of the business will be a huge revenue driver for us over the next two to three years and we’re in a perfect position to be the next Sky Sports.”

There are also plans to branch into more languages, as it currently only operates in English.

Not that this has stunted its popularity in almost every nation on earth in its short life.

So, for the 69% of football fans aged between 18-35 that still haven’t heard of Squawka: watch this space.

31

Company CV Name: Squawka Founded by: Sanjit Atwal and Leo Harrison Founded in: 2012 Team: 35

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Ready to wear?

34

Whilst wearables are a favourite of tech journos and early adopters, they have yet to reach critical mass. What hurdles need to be overcome before we see real consumer uptake?

WORDS: JOSH RUSSELL

W

earables have expanded from a fringe interest to one with a great deal of potential in a comparatively short space of time. Whilst a few decades ago the prospect of carrying trackers and internet-ready devices on your wrist may have seemed like a sci-fi flight of fancy, wearables are on a real upsurge, with many businesses – tech giant and start-up alike – getting in on the action. Research released last year by Samsung Electronics estimated that wearables would generate £104.7m for UK retailers that Christmas; in total it predicted the British public would be buying around 156,600 smartwatches, 474,900 fitness bands and 316,800 health trackers.

Nonetheless, despite the boom we are seeing in wearable innovation, acceptance amongst consumers is far from unanimous. A survey by Kantar Worldpanel ComTech found just 6% of iPhone users currently own a wearable device; in November 2014, another piece of the firm’s research revealed 84% of consumers weren’t considering buying a smartwatch. Clearly then there are several hurdles to overcome before wearables reach their true potential.

Whilst press coverage of wearables is often gushing, you only have to look below the line to find less than favourable comments from the public. One of the most common complaints

Analysis.indd 1

is wearables are all flash and no substance, that the majority of the time a clear use case doesn’t exist. Certainly smartwatches have drawn their fair share of flak because they add little functionality that isn’t already available on people’s smartphones; this is one factor that has slowed consumer adoption. “A lot of the wearable tech that’s been brought out is all just for show,” comments Lauren Bowker, founder of The Unseen, the fashion technology start-up. “So why would you wear it?”

But this is gradually changing. When new technology enters the market, it often functions more as proof of concept but the making of new innovations is in how they are used. Whilst Google Glass has attracted its fair share of criticism, Sam Clark, the managing director of Conjure, the app developer, feels it has very practical applications for certain industries. “I’ve read reports of surgeons who are wearing Glass and livestreaming the surgery for the students next door,” he says. “That’s a great use case.” From working on production lines and receiving live data on the process to tracking the operational information of heavy machinery, existing wearables can easily be put to innovative use within many industries.

However, the true potential wearables can

02/02/2015 19:28

£104.7m estimated spend wearables would generate for UK retailers that Christmas

In the future, you won’t see any of this technology; it’ll all be seamless Lauren Bowker, The Unseen

Analysis.indd 2

offer is in the creation of devices to solve problems in specific verticals.

Marko Balabanovic, innovation director at Digital Catapult, a national centre aimed at advancing the UK’s best digital ideas, gives the example of healthcare; he points to the American start-up Qardio, which has developed a wearable ECG that helps users track the health of their heart. Another company Applied Nanodetectors, that attended a recent Digital Health Pit Stop event held by Digital Catapult, has developed breath analysis chips that can detect the early stages of asthma. “People need to have that kind of stuff monitored but you cannot always be in and out of a hospital,” he says. “So it’s about taking things that aren’t working very well today and making them much better.”

There are no shortage of big players recognising how tailored wearables could improve their industry. For this reason, IC tomorrow, the Innovate UK programme that stimulates innovation and economic growth in the digital sector, is running a £210,000 innovation prize to bring together significant stakeholders across a range of industries, from Disney to Network Rail, to run trials with digital innovators in the wearables space. On each count, there are clear use cases for wearables in the given sector: GLH Hotels is focusing on ‘guest-centred experience through wearables’, whilst Atos is looking at how wearables can help improve digital access amongst those with physical and cognitive disabilities. McLaren Applied Technologies, the cross-industry innovation wing of the automotive giant, is also participating, eager to explore the wider applications of sensor technology and performance tracking in a range of verticals.

Once these kinds of use cases are expanded upon and fully explored, the average user will begin to see a far greater benefit in wearables.

“Where it will really start getting interesting is where it actively starts to impact everyday life,” says Bowker. When wearables can help address everyday issues, such as discretely monitoring health conditions, she feels people will warm to their benefits. “Helping in that sense is the more important part of the journey,” she says.

However, the real potential to help in these cases comes not from the wearables themselves but the data they generate. And this is something that could have major ramifications, not just on a personal level but for the industry as a whole. “If a device is something you’ve got on your body, then you’re getting data at the kind of frequency that you just wouldn’t be able to get any other way,” Balabanovic explains. “That’s a huge shift.”

Cliche though it is, there are plenty of people who believe big data is the new oil and, if this is true, wearables are perhaps the largest untapped reservoir available to us. This area is of particular interest to McLaren Applied Technologies, which believes that this will offer the most significant benefits to users and stakeholders alike. “The whole proposition around the technology is that it helps people to learn and understand more about themselves,” says Jim Newton, market development director at McLaren Applied Technologies. “If we can help with that then hopefully we can move from a flash-in-the-pan gadget to an essential item that people won’t want to live without.”

35

We need new kinds of cultural norms based on the devices people have Marko Balabanovic,

Digital Catapult

02/02/2015 19:29

ANALYSIS

36

Where it gets interesting is where you start driving behavioural change

Analysis.indd 3

As we’ve seen from the world of fitness trackers, this kind of continuous feedback can have significant long-term benefits for consumers. “Where it gets interesting is where you start driving behavioural change,” says Matt Sansam, programme manager at IC tomorrow. Whilst, in isolation, receiving data on how many steps you’ve taken or calories you’ve consumed is useful, creating feedback loops that enable people to act on data in real time has been shown to be a powerful driver of behavioural change. “If you can drive behavioural change and help people modify things like their exercise patterns or dietary behaviours, that’s when it becomes very powerful.”

But whilst data is at the heart of what gives wearables such potential, it is also one of the real reasons wearables struggle in terms of public perceptions. Given the huge questions still surrounding government access to data and high-profile data leaks, not all consumers are willing to risk giving so much away. “The world of surveillance is definitely one that we don’t understand well enough how to deal with,” Balabanovic says.

However, he feels that most of us are already engaging with this kind of technology on our own terms; given 1.35 billion monthly active users trade off data to make use of Facebook, evidently there is at least tacit acceptance of this. But the question of who has access to data from your trackers remains: is it acceptable for a child to have access to their elderly parent’s health data? What about an insurance company? “We need new kinds of cultural norms based on the devices that people have,” Balabanovic continues. “That is where the real work needs to happen: getting that to all work in a way that people find acceptable.”

But Newton thinks this is perhaps less of a significant adjustment than people commonly assume. “We underestimate people and people’s willingness to embrace new things and new technology,” he says.

He believes that ultimately there is a triumvirate of factors at work: control, privacy and value. Whilst previous innovations like chip and pin were resisted by some because of security concerns, uptake was rapid because of the value it represented to consumers – essentially it was perceived to be worth the trade off. “People adopted it because it was quick

and easy to do,” he says. “The same is true with wearables.”

However, even if the public grows comfortable with the way wearables work, it’s likely it will still be uncomfortable with the way they look. “There is a curve that these kinds of technologies go through,” says Paul Brindley, the runner of IC tomorrow’s wearables contest.

“Initially they’re perceived as being a bit gimmicky and clunky.” Whilst the explicit identity of wearables as gadgets has certainly attracted attention, this overtly technological identity can be off-putting to those that don’t want to wear a conspicuous device on their wrist. “If it’s going to move beyond the early adopters and into the mainstream consumer market then it has to be something that’s really seamless,” Brindley continues.

There is a sense that the conspicuousness of wearables will gradually fade. “Their overt, gadget-y nature will go away as soon as people can make it go away,” says Balabanovic.

Again Glass is a prime example here: even those for whom it has an identifiable use case can be wary of strapping a very visible display to their faces. But the technology is rapidly advancing and already the capability exists to display information within the lens itself. “It’s not a clip-on separate display; it’s in the actual glass that you look through,” he says. “And obviously if we move towards contact lenses in the slightly more distant future then that’s very discrete.”

And if these kinds of developments are followed to their logical conclusion, it seems that the obsession with conspicuous wearable tech is destined to come to an end. “In the future, you won’t see any of this technology; it’ll all be seamless,” says Bowker. Ultimately she feels that the idea of wearables that feel the need to advertise their presence are likely to very quickly drop from favour. Instead smart design will favour functional technology that is integrated imperceptibly into everyday attire, with the distinction between the two gradually eroding. “We’re not going to be walking around in Blade-Runneresque stuff,” she says. “That’s not the future of wearables.”

This dissolution of the boundaries

02/02/2015 20:25

ANALYSIS

Cut from a different cloth The Unseen

When it comes to seamlessly marrying up fashion and use-led technology, there are few with as much insight as The Unseen. During founder Lauren Bowker’s time consulting in the materials industry – for everyone from Parisian fashion houses to the Royal Academy of Engineering – she saw plenty of technology being used but it was often thrown into a finished product almost as an afterthought. “I wanted to form a design house that was sensitive in the design but literate in the technology,” she says. “One can’t exist without the other.”

Whilst The Unseen doesn’t work with wearables in the traditional sense, it is stretching the way we define the relationship between information and the things we wear. “The purpose of The Unseen is to use the materials and technology available to visualise what you wouldn’t normally see,” says Bowker. From a jacket that changes colour with the wind to a headpiece studded with Swarovski gems that fluctuate in colour over the areas of the brain in use, each design feeds back something about the wearer or the world around them.

The Unseen is now attracting offers from all corners of the fashion world. “Pretty much everyone you could name has been in touch with us to see whether we’ll work with them,” Bowker says. It has begun to create commercial goods but everything it’s been working on will be based on one single maxim. “It should be aesthetically driven but also application-driven,” she continues. “Ultimately we shouldn’t just be creating more stuff around us; the stuff around us should be much more intelligent.”

Fighting fit Fitbit

Few players have capitalised on the explosion in wearables quite like Fitbit; the start-up was first formed when co-founders James Park and Eric Friedman realised that the available components could provide huge insight into users’ exercise routines. “Inspired by the Wii game console and the use of accelerometers in the hand-held controller, they realised the potential that technology posed,” says Gareth Jones, general manager of EMEA at Fitbit. “Fast-forward seven years and Fitbit is a pioneer in the fast-growing health and fitness space.”

Fitbit was astute to identify the potential of the market at such an early stage; as use cases go, fitness has proven to be a banker. “Consumer interest in tracking health has spiked - there has been an upsurge in tracking health and fitness,” Jones says. But the start-up is under no illusion that one can just occupy a single niche forever. “As consumers become more health-savvy, technology needs to keep up and be able to monitor activity in a range of different ways,” he continues.

Responding to user desires is clearly a major thread for the company and the geeky aesthetic of wearables is something it is actively trying to challenge. “The fusion of fashion and design in particular is something we’re exploring now,” says Jones. This is the reasoning behind its ongoing partnership with American designer Tory Burch to design new iterations of its Fitbit Flex, trying to capture a wider slice of the market by shedding wearables’ overtly tech-y image. And the tactic looks set to deliver a very healthy future for the start-up. “We’re looking forward to a really exciting year as the connected health and fitness category continues its rapid growth.”

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between tech and non-tech wearable items may eventually overcome the resistance some have to current wearable technology. “Long term, we see a future where increasingly more and more products are intrinsically intelligent anyway,” Newton says. “The whole idea of wearables as a separate category will start to fade.” When there is no ontological separation between wearable tech and everyday accoutrements, users will cease to see a difference between items that contain tech and those that don’t. “Ideally you want it to be part of your daily life,” says Caroline Hargrove, technical director at McLaren Applied Technologies.

“When it’s really ubiquitous to the point that you don’t think about it then attitudes will change.”

Clearly when these issues have been addressed, we will start to see major consumer uptake. But how far off is that? Where are we on the adoption curve?

While typical tech-advocates and early adopters have already been won over by the concept of wearables, there may be some way to go in the mass market. “Peers of mine who are not working in technology-related fields rather sneer at the whole idea of smartwatches,” Brindley says. But he feels that as some of the aforementioned issues are addressed, wearables will begin to see significant adoption. “I cannot believe that most consumers would not see the potential benefits of the additional functionalities they can provide,” he continues. “Those value-adds to the consumer’s lifestyle are pretty significant.”

Clark feels there is a lesson to be learned from social networking; eventually the sheer number of people who’d adopted social media encouraged others to join because they had to if they wanted to remain a part of the conversation.

“The tipping point is where not being part of it is more detrimental than being part of it,” he says. This is one strength he feels there is to the Apple Watch; whilst features like conveying your heartbeat through its haptic feedback have been maligned in the press, it encourages greater adoption because both parties need the device to take part.

“Eventually not having a smartwatch will mean you’re not included in that conversation,” he explains. “That viral adoption will be at the heart of any wearable growth.”

How close we are to reaching a critical mass with wearables remains to be seen but we’re not lacking evidence that attitudes are changing. “Early devices have proven consumer willingness to engage in this area and have blazed a trail,” says Newton. Whilst she concurs with this, Hargrove is still wary of putting a timescale on how long real adoption will take, at least whilst these issues are still being addressed. “But it’s starting to be realised,” she concludes. “And at some point it will explode.”

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02/02/2015 20:25

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EXCEEDING EXPECTATIONS

WORDS: Ryan McChrystal

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For many start-ups, the first year can be fraught with difficulties.

Often, this is down to cashflow and fundraising problems but challenges around personnel, IP protection and market differentiation can all play a part too. Make no bones about it, starting a business can be tough. The stats back this up: 50% of businesses fail in the first year.

But many of these fledgling start-ups can be prevented from hitting the runners. Whether it’s doing a bit more research or a being given a better steer on funding, with some basic preparation and a little bit of luck, that 50% could be dramatically decreased. We hear from four companies that beat the odds

02/02/2015 19:30

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02/02/2015 28/08/2014 15:42 07:58

FINANCE

Rags to riches Nottingham Car

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Nottingham Car launched in 2010 with around 12 vehicles to its name. With so few cars in its 20,000 square foot showroom, it looked as though it had gone bankrupt before it even started.

However, due to the hard work of founder Charles Sumner, it become one of the largest showrooms of its kind. It currently turns over an average of £300,000 a month and last year it turned over £3m in total.

However, it was the success of year one that set the pace.

Sumner, who has been in the motor trade for over two decades, started Nottingham Cars with very little seed capital. “It was barely enough to cover our overheads,” he says. “In difficult times when bank loans are hard to secure, especially for a business like ours, I just couldn’t get any financial help.”

The company has benefited from two separate loans from Nottingham-based First Enterprise Business Agency (FEBA) to help fund its phenomenal expansion. The first ELEM loan of £20,000 allowed Charles to invest in essential stock, while the second loan of £50,000 was used to convert an outside storage area into much needed additional showroom space.

Sumner also had friends willing to lend a hand.

From day one, his financial ambitions were “basically survival”, he says “I was aiming for a turnover of around £50-60,000 per month but by the end of the first 12 months we had turned over more than £1m, which is phenomenal.”

When Sumner saw a gap in the market, he went for it. “I followed supply chains of other companies back to the supplier and found a small percentage of cars which were being disposed of, despite their high mileage.” These cars weren’t too old, perhaps 2007 at the oldest, and were fully serviced. “These vehicles could actually be sold to the public at a low cost, which is what we did.”

While doing this he was exploring the other market of high-value cars. “I was exploring all angles, exploiting all the gaps.”

Many businesses fail in the first 12 months because they have no idea about financial management. “In business you need flows coming in from many, many different angles.

What we did – and continue to do – is reinvest everything and plough it back into the business,” says Sumner.

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BaseKit

Going global For Juan Lobato, CEO of website building platform BaseKit, success is about so much more than financial performance. “Success is being able to point to BaseKit’s operations in 26 countries worldwide, acknowledging over 40,000 new customers a month and becoming the world’s fastest-growing website editor in the hosting industry.”

During Lobato’s first year, the aim was to attract the attention of outside investors. “We aimed high, targeting well-known accelerator programmes.

However, we surpassed our initial expectations by securing over £10m in funding from leading European venture investors Eden Ventures, NESTA and Nauta Capital by 2011.”

The most crucial factor was the process of identifying the main accelerator programmes and tailoring our approach to each of them, without compromising the substantial growth BaseKit experienced at the time. “Had we not identified and worked towards each of these, we would not be in the position we are today.”

BaseKit faced the challenges common to many

SMEs in its first year. Unpredictability of circumstances made it very difficult to plan, while initial expenses became difficult to deal with. “We addressed these issues through a commitment to understanding its audience and working to emphasise the importance of its services to other growing businesses, allowing it to expand,” explains Lobato.

In those first 12 months he learnt the value of regular discussions with customers and partners, of regularly stepping back and analysing our progress, and of identifying and planning for the best chance of investment cannot be overstated.

“For attaining financial success it is also important to keep both eyes on the prize. The range of valuable accelerator programmes across numerous industries could also be vital to the success of your business early on.”

BaseKit is currently expanding into new industries and regions. From the creation of valuable partnerships in Asia, through to its expansion into the American market, it is looking to expand its international presence. “This is supported by our increasing focus on telecommunications, where BaseKit is partnering with high profile companies to offer its services along with other amenities that start-ups require,” says Lobato.

02/02/2015 19:30

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FINANCE

No place like home Freedom Homes

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Kemi Egan co-founded Freedom Homes with Laura West in 2010 when both were homeless and living out of the office of their last failed business. “Even though we were in the middle of a recession, there were still successful people making it, so I thought I must be missing something – it can’t be that hard,” says Egan. She went about reading every book and attending every conference she could find to learn as much as possible. Within 12 months, Freedom Homes had a portfolio of around £1m and had raised over £500,000 of private finance, surpassing the pair’s comparatively modest goals of £2,500 gross cashflow per month coming in from properties and raising £100,000.

The main driver for the success was Egan and West’s willingness to do whatever it took to triumph. “Being an entrepreneur is about living five years of your life like no one else will, so you can spend the rest of your life like no one else can,” says Egan. “Step one: we had no revenue

Teaching an old dog new tricks W1 Self Storage

W1 Self Storage has only been operating for just over eight months but already it has surpassed where founder Oren Barrie thought it would be by the end of the first year. It is the only business of its kind in such a central location in London. The problem with being a pioneer is that it’s often difficult to tell how well received your business will be.

“We’ve converted the lower level of a car park in Mayfair – 50 yards from Oxford street – into self storage. We always knew there was a high demand for self-storage, it was just a question of seeking out that demand,” says Barrie.

“Our biggest problem was letting people know that we were here because, being in Westminster and being below residencies, we’re not allowed to put signs or banners outside,” he says. “We did a lot of leafleting to residential and business

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stream, therefore we needed one. We had nothing else to lose; we were on our arses in the office, so we trekked around the country, researching different areas to find which areas had the biggest income. We’d all like to live in those Victorian homes in central London but the fact is those people that do struggle to pay their mortgages. So we settled on Lincolnshire.”

With help from one of her clients from the previous business who had a few properties, some cash, and total confidence in their venture (he didn’t know they were living in the office) they were set. “From there, once we had some track record to show what we were doing, it came together really, really quickly. It was about nine months into that year that we actually realised what had happened. I was still homeless, but I had eight properties,” says Egan. “It was a completely incredible trajectory.”

Despite her quick success, she doesn’t believe in get-rich-quick schemes. “There’s nothing that will transform your life in 20 seconds, except working really hard, doing the right thing and trying everything and anything to get you where you need to be.”

properties, but we also did a lot of work making sure we were easily accessible online. I may be of the older generation that doesn’t necessarily understand all of this stuff but I know enough to know that 90% of our marketing budget should be spent on social media and SEO.” Barrie isn’t really a fan of business plans, nor does he like outside pressure. “Everything we do is funded internally; we don’t have any bank borrowing, meaning we don’t have anyone telling us what to do and we don’t owe anyone anything.”

Being in business for so long, Barrie has a sixth sense for what will succeed and what will fail.

“With my 30 years experience, I guess that most of my decisions are based on gut feeling. And my gut feeling told me W1 Self Storage couldn’t fail.

Storage is such a massively expanding industry and to be able to put a facility within central London, I can’t imagine any problems.”

With this in mind it is no wonder Barrie is so confident about the future. “I’m not young any more so I don’t want to build an empire, but if things keep going as they have done done, by the end of the year we’ll be making a lot money.”

02/02/2015 19:31

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FINANCE

£

£

£

Five-minute money masterclass

Cut costs, not co-workers

WORDS: Ryan McChrystal

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Controlling costs is a major concern for any business. Tightening the belt usually means less pay, less benefits and less progression for workers. In extreme cases, it could even mean letting staff go. However, employees needn’t be the first victim of cost cutting. On a shoestring budget, there are easy ways to cut down on costs so you’re not spending where you don’t have to. In fact, with a little research, businesses may find that ‘necessary expenses’ are not really necessary at all. There are plenty of opportunities for small businesses to think outside the box and slash spending. Here are some simple tricks that could save you those precious pounds.

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Manage your cash flow

Take control of your energy bills

It may seem obvious but effective cashflow management can be one of the most effective ways for small businesses to reduce costs.

Christoph Rieche, CEO and co-founder of iwoca, the online business lender, says: “If you can manage your cashflow more effectively and pay bills when they are due – or ideally a little bit early – you will often be able to reduce your cost base by renegotiating deals.”

While there is no secret to good cashflow, Rieche recommends being on top of everything that goes into and out of your business and trying to work out what will happen in future. “You can calculate out how much working capital – cash or short-term assets available for new investments – you will have going forward. If you are short of working capital you will need to cut costs, increase sales (e.g. by liquidating old stock) or consider external financing options.”

If your business is on a shoestring budget, improving energy efficiency can be a great way of reducing costs while adding to your green credentials. Anthony Ainsworth, B2B and marketing director at E.ON UK, says: “By taking control of your energy consumption – the where, the when and the how much – you can see where savings can be made and either quantify the success when it comes or justify any capital expenditure you need.”

Free help and advice is available on the E.ON website, as is information on energy monitoring gadgets such as monitors or smart meters which can talk remotely to your supplier and provide accurate, live usage data.

It’s easy to focus on the initial price or design of equipment, forgetting to think about the lifetime energy cost. “Efficient lighting, for example, can quickly make an impact in areas that see long daily use such as hotel corridors and shops with long opening hours,” says Ainsworth.

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FINANCE

Overhaul comms infrastructure

Give freelancers a go

Mark Russell is director of operations for UK and Ireland at Swyx, a unified communications vendor that provides software-based solutions specifically aimed at SMEs. “If you are a growing company with multiple offices or you support flexible working then installing technology such as unified communications can deliver immediate and on-going costsavings,” he says. Whether or not you opt for a cloud (pay monthly) or on-premise solution, you will no longer be paying for BT line rental at each site and calls between offices are free.

The system is completely locationindependent which means that you can save office space by introducing concepts such as hot-desking, so that colleagues have the option to work from home or out of the office. Even if your existing phone system works, there are still compelling reasons to upgrade. “With unified communications your business starts to save money from day one and also benefits from a whole raft of new features such as audio conferencing or call recording that would previously have incurred hefty annual charges translating in to thousands of pounds every year.”

Laying off staff is not an easy decision and should not be the first port of call. However, if times are tough, it may be worth looking towards hiring freelancers. Rieche believes that keeping staff costs under control is one of the most effective ways of saving money for SMEs. “Any staff recruitment is a serious financial commitment for any business.

Instead of making a hire, a small business owner could use temporary or freelance staff.”

There are approximately 1.72 million freelancers in the UK, in a variety of industries. This means that SMEs could hire someone by the day – or even hour – to do pretty much any function within their business. This offers significant savings to a small business and allows them to scale up or down the freelancer’s time, depending on how busy the business is at any given time. “If someone leaves the company, then it might not be necessary to replace them immediately. You could also evaluate what that person’s workload involved and if there is any spare capacity amongst other staff, it could be put to use,” says Rieche.

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Seek out freebies They say the best things in life are free. This rule generally doesn’t apply to the world of business but that shouldn’t stop you from accessing perfectly reliable services for no cost whatsoever. Simon Burckhardt, managing director of broadband telephone company, Vonage UK, says: “Small businesses are always looking to manage their costs, but few realise that there are many valuable services that can be accessed for free and are available through the cloud.” Storage options in the cloud offer a place to store important files and documents, as well as back-up for company data. “Typically, free allowance ranges between 2GB and 5GB. When backing up online, there are many software apps that will now do it automatically on a regular basis so that business owners do not need to worry about it,” says Burckhardt. Security is another concern for businesses and there is no shortage of good anti-virus software out there that are available for free.

Few realise that there are many free valuable services Simon Burckhardt, managing

director, Vonage, UK

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Simon Burckhardt, managing director, Vonage UK

Christoph Rieche,

CEO and co-founder, iwoca

Anthony Ainsworth, B2B and marketing director, E.ON UK

Mark Russell,

director of operations for UK and Ireland, Swyx

02/02/2015 19:32

FINANCE

4. Monitor your sales figures

Some businesses, such as those in production, will have an early indicator of business activity through incoming orders. This enables a manufacturer to anticipate future sales.

However many businesses, such as retailers, must monitor sales through the tills. Developing a picture of the sales and gross margins as early as possible, and comparing them with previous periods and your current forecast, gives a good indicator of performance. If they suggest an adverse position you must be prepared to act to correct it.

5. Keep costs under control

Running a business is hard work and comes with huge responsibility, especially when it comes to finances

CLIVE LEWIS ICAEW

W

hile you may employ a chartered accountant to look after many of the financial aspects of your business, as a business owner you must also take a responsible and pro-active approach.

The reward will be a business that is more under control and responds when you pull the right levers.

1. Know your tax liabilities and make sure you can pay them

Taxation is one of the main responsibilities of running a small business and this is where problems often arise.

You should always ask your accountant to prepare the annual accounts and calculate your tax liabilities as soon as possible after the year end, and plan to have the money available to pay the taxes when they fall due.

2. Have a basic understanding of your financial accounts

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It is vital you have a grasp of your business’s finances. Your accountant will have prepared the figures but you must be in a position to understand what it is that they are telling you: • Has the business increased in profitability?

• What factors have contributed to any improvement or deterioration?

• What do the figures tell you about future trends?

3. Put together a forecast

It’s important that you have a view of how the business will perform in the current year. This means putting together a forecast, which can be amended to reflect changing factors or new plans.

If you have no major changes planned, forecasting may be just a case of predicting what your turnover (or sales) will be. Assuming no significant increase in overheads, the forecast net profit will be easily calculable.

6. Manage your working capital

Buying and/or selling on credit clouds the cashflow picture. Sales on credit result in a debt which the customer may take weeks to pay. The cash will go into ‘debtors’ in your accounts, so having a system of chasing up debtors is essential.

Stock levels also need to be controlled and monitored so that excessive amounts of money are not tied up in stock.

7. Remember: cash is king

Monitoring cashflow is the other side of the coin. Business owners frequently record the bank balance at the month end and check it against the previous month’s figures.

Not anticipating adverse cash moments can result in having to ask your bank for a short-term facility, which will not inspire confidence.

8. Have a system for monitoring key performance indicators

The key indicators for most businesses are sales, costs and working capital. The cash position is a quick and vital mirror of these figures.

You need to monitor sales, working capital, stocks, and costs as frequently as you can. Having monthly or quarterly management accounts prepared will confirm the business’ progress and provide a check on the accuracy of the performance figures.

businessadviceservice.com

Keeping control of your finances

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Costs fall under two main headings; variable and fixed. Variable costs are mainly purchase of products which are for re-sale, and fixed costs are independent of any business activity and include rent, rates, energy, insurance and marketing. Monitor these expenses by looking in your periodic (monthly or quarterly) management accounts.

02/02/2015 19:34

TALK TO US ABOUT WHAT’S HOLDING YOUR BUSINESS BACK From cash flow and financing to tax and regulation, your business can now get expert advice from a local ICAEW Chartered Accountant to keep it moving forward.

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02/02/2015 15:57

going for growth

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02/02/2015 19:42

BUSINESS IS GREAT going global

PROFILE

NOW’S THE TIME TO SHINE Matthew Hancock Business and Enterprise Minister

Small businesses power our economic recovery, create jobs, export to new markets, regenerate parts of the UK and help to create innovative new products.

Making up 99% of all businesses in the UK, our small businesses employ more than 11 million people - and their entrepreneurial zeal is what makes Britain great. My parents ran a small business and their commitment, struggle and hard work have made me determined to fight for small business in government. We have a goal that is both simple and difficult: to make Britain the best place in the world to start and grow a successful business.

It’s vital the changes we make in Government are driven by understanding what makes small businesses tick. Businesses have told us what they need and we are aware of the challenges they face. As a result, we’ve simplified and strengthened a whole range of support services and funding streams that mean there’s never been a better time to run a business in the UK. From reducing regulations, creating financial incentives, developing skills and improving infrastructure, we believe the landscape can support all small business owners every day.

Accessing this support can be done quickly and easily on our one-stop-shop website hub, www.greatbusiness.gov.uk.

We’re on the side of the hard working heroes of our economy and on the side of small businesses across the UK. Our long term economic plan is delivering. We will help more people to start-up, build a business idea, hire more staff and work with us to grow a better Britain.

ON THE CASE

R

ob Law knew from the outset that his Trunki ride-on suitcases for children needed to be available around the world.

Part of this was ambition – “You can’t be number one globally without exporting” – but it was also a matter of preventing imitators from getting a foothold, the Bristol-based businessman explains.

“I was always aware that we would get copiers,” he says. “I wanted to expand as quickly as possible so that there would not be a virgin market where someone else could come in.” Protecting the brand from imitators has not always been easy – dealing with online markets such as Taobao and Alibaba has been “incredibly frustrating and difficult” – but he is pleased at a recent court decision in his favour.

Today around half of his sales are international but his first overseas order came as something of a surprise, not least because it arrived in his inbox before he actually had any trunks on hand. “Even before we had stock here in the UK, I released a press release to some design blogs, and to my delight the story was picked up by them all,” he said.

This generated an order from MOMA in New York as well as interest from a number of international distributors; more interest, in fact, than Law knew quite what to do with. “I wasn’t ready for it…so I talked to the UKTI and then went on a Passport to Export Programme. I came back from that

very clear about the fact that we wanted to work with distributors rather than agents.”

Finding the right distributors is critical, particularly in large markets. “One thing we have learnt over the years is that whoever you start with won’t be with you longterm…you go through phases of outgrowing the smaller guys.” This does not mean that bigger is always best for a fledgling business, which might not have the size to demand a large distributor’s full attention.

“We have had some really good success in smaller markets like Norway, which has the secondhighest Trunki ownership by population, because the distributor works really hard, whereas in Germany and France we have struggled.”

One factor there is that in the bigger markets distributors focus very closely on their niche – a toy distributor will only work with toy retailers, for instance, not airport shops or baby specialists. Law is in the process of reorganising parts of his export arrangements so that his team can manage some of it themselves. “We have just transitioned to supplying Amazon in the EU and USA directly,” he says. This means more margin, yes, but it also means that Trunki has more control over things like marketing; Law plans to invest much more in Amazon’s marketing engine than previous distributors did to ensure he is making the most of the huge export opportunities created by online retailers.

We have had some really good success in smaller markets like Norway

www.greatbusiness.gov.uk

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02/02/2015 20:57

Going global BUSINESS IS GREAT

Brush with greatness In 2007, hair colourist Shaun Pulfrey launched Tangle Teezer, a detangling hairbrush that he’d spent three years developing and refining. Eight years later, 17 brushes are sold a minute and 80% of those are sold overseas

“W Making exports child’s play Playdale has been making playground equipment for children in the UK since 1978 but four years ago the Lake District business decided it was time to start exporting, sales and marketing director, Barry Leahey tells Elite Business Q. Why did Playdale start exporting?

Between 2008 and 2011 there was a large government fund to develop play areas that created a bubble in the industry. We knew it would burst – we forecast that the industry would slow down by about 30% – but we employ 140 people and we are very aware that we feed them and their families. We wanted to continue to grow so that we could do that but the UK market is saturated and margins were only going one way. The answer was exporting.

UKTI’s website was on the first page.

The Passport to Export Programme was the signpost telling us where to go, what to read further and what to look into.

Q. How did you decide which countries to target?

We looked at industry statistics and went to the biggest markets. We also looked at things like who had money to spend, the population of children in various countries and where our ten biggest global competitors were. When they have gone somewhere first they have already established the market, so it makes sense for us to go in and get our niche, although we are also in other markets where there are very few competitors. We also looked at Google Analytics to see where people visiting our site were based.

Q. Is there anything you would have done differently with hindsight?

No, I think we’ve done quite well, although I would make fewer mistakes if I did it again. We always do our due diligence and try to minimise any mistakes, but [fear of making a mistake] should not stop you from going into a market.

Q. Did you get help or advice?

We googled “how to export” and the

Q. Where are you now?

We are in 24 countries now and will be in 40 in three years. Last year 19% of our turnover came from export but this is likely to grow because the specification process with manufacturing means there is quite a long ramp-up period.

Q. What sort of mistakes?

Once I was in Korea and washed my fingers in what I thought was the finger bowl, then saw the lady opposite drinking from it. It was soup. The UKTI does have a booklet on cultural issues; I’ve gone back and looked at it since and it does not say anything about soup bowls and finger bowls.

hen I left school at 16, I became a hairdresser. I’ve always wanted to do everything to the best of my ability. When I developed my own technique for detangling hair, I absolutely perfected it – I could detangle anything. But I realised it was something unique and special to me and I had to take that and simplify it into a tool.

“I started off in the British Library and assessed very quickly what kind of manufacturing method would be needed to create a tool that could get close to what I was doing. I built it from there and it ended up taking me three years, whilst I was also working four days a week in a London salon as a colourist.

“I spoke very early with some good patent attorneys and asked if it was patentable but we had to wait until the main structure of it was finished until they were able to say yes. I held off from filing the UK patent until the very last minute as if you file the UK one you have priority over the global patent – and you only have 12 months to file it. So financially it was the right move: you had to do it at the last minute. IP had cost me about £18,000 and I’d not sold one brush.

“I launched the Tangle Teezer in October 2007 at an international trade show for the hair industry at the Excel Centre in London. My business model was to access consumers via salons. I knew salons so I didn’t think that was ambitious. Going into Boots, that was ambitious. I never imagined it could be done.

“We went pretty global from the word go. We appeared on UK Dragons’ Den the same month that we launched and the show was aired simultaneously in Belgium and Holland. The phone would ring and some guy would ask to speak to the shipping department.

We had no such thing: it was just me back then and I was doing absolutely everything.

“We now make 800,000 products a month in our two factories in Whitney and Chesham – everything is made in the UK. We sell 17 brushes a minute and 80% of those go outside the UK. Our biggest market outside the UK is Germany, followed very closely by the US. We’re also in Mexico, Brazil, India, Japan and China and we’ve still got masses of room for growth. It’s just going to keep getting stronger and stronger.

“UKTI do an amazing job helping British businesses succeed abroad. They advised us a lot on exporting and how to get some early overseas clients.They helped us get a foot on the ladder and were so keen to come in and say, ‘we can help you with that’.

“Someone said to me: ‘did you set out to build a multi-million pound business?’ I said: ‘No. I set out to create a detangling hair brush.’ This year we’re signing off turnover of £22m.”

www.greatbusiness.gov.uk

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02/02/2015 20:57

BUSINESS IS GREAT FINANCE focus

PROFILE

naked truth

N

aked Wines has a simple ambition: it wants to be the best wine shop in the world. More interestingly, though, it is doing it without having an actual shop – at least, not as most people think of it.

For a start, the seven-year-old business calls its customers “angels”, because it is money they invest that supports winemakers to make wine just for them, says managing director Eamon Fitzgerald.

“We have 250,000 angels in the UK, US and Australia who invest £20 - $40 up front per month,” he says. “We invest that into small winemakers around the world, allowing them to focus on making great wine rather than worrying about marketing or how to sell it.” Customers can put their investment towards an order at any time, knowing that they are buying at wholesale prices, while Naked Wines reduces its own costs because financing growth with customer funding is cheaper than, say, taking out a bank loan.

In 2013, it took customer-funding to a new level by creating the Naked Wine Fine Wine Bond and offering members of the public the chance to invest £500 to £10,000 in return for a gross annual return of 7% paid yearly in cash – or 10% paid quarterly in wine credits – over three years. The bond, which was hugely oversubscribed, raised £5m, allowing the business to increase international expansion and to fund winemakers who wanted to make wine that needed to age for longer before being sold.

Fitzgerald advises other entrepreneurs to look at where traditional approaches within their own industry leave it ripe for disruption. “Look at what your competitors are doing, then make sure you do the opposite.

“Be naked. Be honest. Be open. Let customers talk to suppliers. Do that and you will gain their trust, which is the only way that you can truly crowd fund successfully. Just putting something up on a website will not build you an army of 250,000 angels.”

A select handful of those angels, dubbed archangels, are also involved in Naked Wines’ selection of new winemakers. “We send them on trips to wine tasting events and get them to pick our wines,” he says. Of course, Fitzgerald and his colleagues also play a part in doing due diligence.

“The vetting process for new wines is five of us sitting around the table on a Friday afternoon with at least 50 wines in front of us. We also look at things like the winemaker’s pedigree, who they have worked for, awards they have won and so on.”

Fitzgerald is confident that the business, backed by its customers, will continue to grow. “We are going to invest £70m in winemakers this year and there are some more gems maturing nicely that will come on this year from the fine wine bond,” he says. “The future is really exciting.”

Growing with GOUSTO In February 2012, James Carter and Timo Schmidt quit City jobs and put their life savings into launching Gousto, an online grocery delivery service, from Schmidt’s living room.

Today, barely three years later, the company employs more than 100 people and is backed by millions of pounds of investment, explains Schmidt, the CEO of Gousto

“C

onvincing friends and relatives to come on board isn’t easy – I think we asked about 20 people for

every one who said yes – and there is always some nervousness because if the business doesn’t succeed it could affect the relationship. One thing that really helped was the Enterprise Investment Scheme, which effectively means that investors get all the upside but only 35% of the downside; I’d recommend any entrepreneur to read up on it.

“That first tiny round of funding was enough for us to keep growing and, not long after, a group of business angels brought in the British Business Bank’s Angel CoFund and together they invested £250,000. We used this to do a huge amount of work developing and improving the product and investing in food technology, which in turn helped us

www.greatbusiness.gov.uk

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02/02/2015 19:43

FINANCE focus BUSINESS IS GREAT

Tailored for success

Maurice Sedwell, the Savile Row tailor makes bespoke English suits for customers around the world. Its owner, Andrew Ramroop, bought the company from his boss – its founder – in stages because he couldn’t raise the money to buy it outright all at once. Banks did not want to get involved but his customers were prepared to back him, he tells Elite Business Q. When did you start to think about buying the business?

In the 1980s, I knew that Mr Sedwell was trying to sell but could not find a buyer because it is such a unique business – it is not a high street brand. I thought it could be an opportunity.

Q. How did you pay for it?

When it came to funding, I did not have the money so the only way I could pay was to compromise 50% of my salary and to work two jobs. In 1982, I bought 9% of the shares. I kept doing that until 1988 – by which time I owned 45% of the business – but did not have any money to buy any more. I did not even have a position in the company as a director, so I thought to myself ‘I need to move out and start my own business’.

Q. When you mentioned this to Mr Sedwell he offered you the chance to buy another 45% – but how did you find the money?

I did not have much except my home to use as security, but still the bank would not lend me the money. Then one day I was chatting with a customer, this came up and he asked me how much I would need. I told him on Friday and by

to keep expanding rapidly.

“It also meant we were able to generate results that enabled us attract big venture capital investors – at the end of 2013 we raised $2 million in a funding round that was led by MMC Ventures with participation from the former Sky TV CEO Ian West – and expand the business even faster. We also received an offer on Dragons Den but rejected it as it didn’t match competing commitments we had received.

“Since then Gousto has exploded.

We’ve grown around 1,000% the last 12 months, which triggered more funding requirements so that we could automate the warehouse, professionalise the staff and continue investing in innovation and food quality. Last year we raised another

$10m or so with a big funding round backed by Unilever Ventures, as well as a couple of smaller ones.

“Having this financial backing has let us focus on serving our customers and building the company we want to create, but venture capital funding is not money for nothing. At the end of the day they want to be successful and they will hold you to that, so it is critical to select investors wisely and to maintain a good working relationship. You want them to back you and to be able to relate to you as a person, not just an investment; in my time as an investment banker I saw just how hard it is for businesses to restructure their investor base if things go wrong. Fortunately Gousto’s investors are very professional and supportive, and

Tuesday he had transferred me the money. He had so much confidence in my work that he decided to support me.

Q. What help did you get when you started expanding?

I was using all the income from the business to support it and there was no extra I could put into business growth, but then I got government support to cover 70% of the cost of developing a business plan, and I attended all the free training seminars that they offered. Having the plan was extremely helpful because it helped me to focus and meant that I could show investors the direction I was going in.

Q. The business grew so fast that you soon had to quadruple your floor space but 11 banks turned you down before another of your customers came on board. What is it like having clients as investors?

It is the most valuable form of investment. They know your product, they know your service and as an investor they bend over backwards to support you and to be ambassadors. Both of these investors are still my customers, and one’s son is as well.

I tremendously appreciate having them on board and as a team we will together build Gousto into a phenomenal success.

“Our first three years in business have been fantastic but it’s really just the beginning. Grocery shopping is shifting online and we are continuing to improve what we offer customers, so the growth we have seen so far will seem like nothing compared to what’s going to happen over the next five years. In five years, you’ll be able to eat Gousto whenever and wherever you want in the UK. Until then we’ll be restless in building up our data-driven supply chain and digital product experience to offer customers a second-to-none experience.

I couldn’t be more excited about our mission and this massive opportunity.”

www.greatbusiness.gov.uk

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02/02/2015 19:44

BUSINESS IS GREAT Lessons Learned

PROFILE

Accomodating customer needs

M

arcus Whittington was working in London, living in Plymouth and occasionally breaking the journey by staying with a friend in Bath when he realised he had fallen in love with the beautiful city, its elegant Georgian architecture and, rather more specifically, a woman who lived there.

The couple pooled their property experience, bought an apartment and set up a holiday rentals business. Now, three years later, Bath Boutiques Stays has a portfolio of half a dozen properties, including Jane Austen’s old home; employs 11 people; and brings about £3m of business into the city each year. “We are a small part of the jigsaw but with 100 businesses like ours these numbers really start to count,” Whittington says.

Some of the former police consultant’s flair for business might have been inherited – his father was an

entrepreneur who retired to the Cayman Islands after selling a company that, at its height, employed 150 people – but getting help through the government’s Growth Vouchers programme helped, too. “I thought I knew the beat but the more I learned the more I realised that I didn’t know,” Whittington says.

The programme helped pay for specialist coaching from sales and marketing consultant Alison Edgar, who helped the business push forwards by focusing on asking customers what they wanted rather simply telling them what the business could offer.

“It’s about listening to and understanding consumer needs properly,” says Whittington. “We were very busy talking about what we do and how we do it and why that’s important,

It’s about listening to and understanding consumer needs properly

06

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but we weren’t profiling consumers properly or discovering enough about them. Alison explained that if we focused on customer service, sales would come.”

This was borne out by results: paying attention to what customers want led to Bath Boutique Stays offering much more tailored packages, which have in turn resulted in increased interest in the business and much better reviews on sites like TripAdvisor, says Whittington, whose employees speak around 20 languages between them – something else that helps potential customers feel at home.

The business is expanding rapidly – Whittington has just purchased another property to add to the business’s portfolio, which is now worth about £5m – but financial success isn’t the goal that drives him. “What I want is to develop a brand that we are proud of, to be able to share that with visitors to the city and to create a stable platform for employment.

Any entrepreneur will tell you it’s not about the money, it’s about the journey.” www.greatbusiness.gov.uk

02/02/2015 19:44

lessons learned BUSINESS IS GREAT

Reading the signs Jo Stuart and Mark Evans founded Banners and Mash in 2012 to give small businesses and consumers access to the same ‘big print’ services as the high street titans. So far, so good: the company now works with councils and businesses up and down the country. But it was given a good shove in the right direction thanks to some helpful advice, explains Evans

“J

o and I used to work at a bigger company that sold big print items to the supermarkets and high-street retailers. We’d had the idea of using the internet to sell banners to small businesses and consumers but when the recession hit the appetite within the company to go down that route disappeared.

“The two of us decided to give it a go. There was definitely potential: there are a lot of very good printers in the country but they’re not always the easiest people to deal with. Someone will talk to us about what they’re trying to achieve and we’ll give them the options for that particular promotion.

“We have people in Leeds and Bradford, UK, as well as in Greece, India and Romania so we can get stuff done overnight if needed

www.greatbusiness.gov.uk

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because of the different time zones.

Some of the promo work can be last-minute and sometimes we need to turn things around really quickly.

“I have been largely cynical in the past of the government’s attempts to stimulate business but when we got involved with the Growth Voucher scheme my cynicism fell away pretty much immediately. It allowed us to do some work that we’d thought we’d do at one stage but we were able to bring that forward and accelerate things more quickly than our cashflow was set up to do at that time.

“We were introduced to Jonny Ross who helped us develop our Facebook and Twitter presence and our own website – the things that when you’re a lean start-up you don’t have much time to do. We just needed a bit of expert counsel on how to get stuff to work a little bit better altogether.

“The reality of it is that when you’re running a business, and particularly a young business, your hands are full running the business and servicing customers – that’s the priority. And so even if you have the skill set yourself, you struggle to get to do things. So it’s a combination of somebody having that time that is not involved in the cut and thrust of the daily work, who also has experience of other businesses and how they’ve coped with certain situations as well as the fact they are able to just be fundamentally more objective than you can when you’re in the business yourself.

Raking in the dough The Northern Dough company sprang to life in 2011 when Amy and Chris Cheadle started selling their family bakery’s pizza dough. Getting advice on how to deal with the supermarkets was invaluable, as the Cheadles explain Q. Where did the idea for the Northern Dough Co come from?

Amy: We met at university just over ten years ago and as penniless students we had loads of cheap takeaways in the evenings and we used to talk about starting a business. It never came to anything and we went out and started our own careers; I worked in loyalty marketing for supermarkets and Chris went into business consultancy. It wasn’t until around about four years ago that we were sitting having a pizza we’d made ourselves from dough we’d stolen from Chris’s family bakery that we looked at each other and said this is a brilliant product and it doesn’t exist in the market. We decided to use my skills in supermarket marketing and loyalty and Chris’s business skills to take what was a food service product at the bakery and turn it into a brand.

Q. What was the turning point for the business?

Chris: In August 2011 what we decided to test the product so we took it to a local farmer’s market in Clitheroe. We estimated that if we’d sold one every two minutes, the stock would last us for the duration of the show which was six or seven hours. We sold out within an hour and a half.

Q. Have you received any advice to help you get off the blocks?

C: At the end of 2013, we decided we wanted to gather experience from someone else who’s been in the industry and the Growth

Accelerator scheme connected us with Paul James Gorman. For the past six or seven years, he’d dealt with a lot of the people we were trying to target as customers. His knowledge on the industry and specifically of being a supplier became of real value to us in trying to negotiate certain things like marketing plans with the supermarkets.

A: Paul also really helped us put a lot of structure behind what we were doing because, although we both had quite a lot of experience in corporate organisations, that was with big budgets and big infrastructure behind them. They’d have teams of hundreds of people able to fulfil a certain marketing objective, whereas now there was just two of us sitting in our home office trying to battle with about £3 of budget.

Q. What shape is the business in now?

C: We’re now in Waitrose, Ocado, Whole Foods Market, Booths Supermarkets, which are based in the northwest, and about 120 independent farm shops throughout the UK. In the past 12 months, we’ve increased our turnover 400%.

A: Production is still at the family bakery, which is fantastic. Northern Dough Co is an independent business from the bakery, we’re not affiliated, but they’re a supplier of ours.

It’s great to be able to give orders to our family business and also to support the local economy.

07

02/02/2015 19:44

“With tailored Government advice, I took my business to the next level” Andrew Ramroop OBE, CEO of Maurice Sedwell

Businesses can now get a range of bespoke advice from mentoring to exporting to finance.

To discover how Maurice Sedwell benefited from Government support and how you can too, visit greatbusiness.gov.uk/accelerate

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02/02/2015 13:50 19:46

SALES & MARKETING

The

personal touch W WORDS: JOSH RUSSELL

No two customers are alike, which is why providing personalised experiences is the key to keeping consumers

The personal touch.indd 1

e all like to be treated as individuals. That’s why the personalisation of customer experiences has increasingly become de rigueur, with data driving more and more tailored experiences across the web. But whilst personalisation of customer experiences has only recently worked its way to the top of many retailers’ agendas, it’s important to remember that it’s not, in of itself, a modern innovation.

“It’s not a new thing at all; it’s a very old thing,” says Adam Cleaver, founding partner at Collective London, the digital agency. “But it just feels like people are only to just waking up to the realisation that personalisation is a very powerful thing.”

Certainly there’s no shortage of evidence of the efficacy of personalisation, which has had a long heritage in the offline world. “We’ve been doing personalisation for years,” says Jason Nathan, global multichannel capability director at dunnhumby. For well over 20 years, the data analysis firm has been responsible for driving Tesco’s Clubcard scheme, which delivers personalised vouchers based around users’ shopping habits. “We have found with every retailer that we’ve worked with globally

that the redemption and engagement rates for those vouchers when they are targeted are many magnitudes of scale higher than a blanket set of offers,” he continues.

But what has led to the upsurge in attention that personalisation has been receiving? In part, it’s an inevitable reaction to the realities of modern commerce. Whilst the shift online has introduced myriad conveniences for retailers and consumers alike, the rigidity of the digital experience is a poor imitation of the offline world. “The internet can be quite anonymous and quite cold,” says Frederik Demets, solutions architect at Acquia, the unified platform for content, community and commerce. Using the picture one has built up of the customer to provide a more unique offering can help to counteract the customers’ feelings that they are just seen as a cash cow to be milked. “It creates that feeling you have when you go to the same store every week and they know your name and your preferences,” he says.

Personalisation can also act as a filter, cutting the amount of poorly targeted messages consumers are bombarded with. “There is too much noise in people’s digital lives,” says Nathan. Given the huge volume of marketing emails the average consumer receives and that, with the increase of promoted content, social media is going the same way, there’s no room for poorly targeted efforts. “You soon realise that is noise in your system,” he continues.

“But if it’s stuff that you actually want, you’re so much more likely to click on it for that immediate investment.”

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02/02/2015 19:36

SALES & MARKETING

52

However, to tailor your offering to a consumer’s needs, you need to get to know them. Whilst it may seem that in the modern age that we’re swimming in a sea of data, it’s worth appreciating the various sources of data that are available. Demets feels that there are three significant categories of data that can help drive personalisation: profile data, which focuses on profiling key categories of user, situational data, which is based on environmental factors like the weather or the date, and behavioural data, based on past user activity. “The key is to combine the three in a real-time manner so that we can actually use that as a basis for the best offers on the website,” explains Demets.

One area that businesses have traditionally struggled in, however, is drawing actionable conclusions from such a data-rich picture.

According to Branden Jenkins, GM of global retail at NetSuite, the cloud-based omnichannel software provider, the key is being able to pull together this data into a single channel. “Getting a single view of the customer is foundational; it’s primary,” he says. Being able to form a unified view of the

The personal touch.indd 2

Personalisation is not a new thing at all; it’s a very old thing Adam Cleaver, Collective London

customer is essential if companies are to offer a truly personalised experience. “When we have the single view of the consumer – all their transaction information across all of these channels, the social element, overall lifetime value – we’re better able to provide this personalised experience.”

Once you have built up a coherent picture of the customer, an online start-up can begin to deliver a more personalised experience. “What you can now do is learn much more about the path to purchase and the context in which someone is in,” says Nathan. An example he gives is if he buys a Frozen doll for his child; a retailer can use the information it has gathered on other users to infer products that he might also like. But there are also opportunities for personalisation when a user abandons a cart, where a carefully targeted offer can help win people over.

There’s no room for hunches when dealing with data, however; it’s vital to test the effect these efforts have. “You have to group your customers in segments – based on average lifetime value, demographic or a mixture of attributes – that you can do A/B testing

02/02/2015 19:36

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02/02/2015 16:07

SALES & MARKETING

Personalisation is a lifecycle; it’s not a one off Frederik Demets, Acquia

54

against,” says Jenkins. Comparing the impact of a personalisation effort against a control group can allow a business to see the effectiveness of these efforts in real time. But Acquia’s Demets stresses that testing is not an occasional effort but a continuous process of refinement. “Doing personalisation and AB testing is a lifecycle; it’s not a one off,” he says.

It’s hard to over-estimate the potential benefits this can have. “When a retailer can provide a more valued experience, they’ll build brand loyalty,” says Jenkins. Offering a personalised experience allows a more unique relationship to build between retailer and customer; customers are more likely to keep coming back if they feel a service is giving them value they can’t get elsewhere.

“Make sure that you continue making the conversation with the consumer after the actual purchase and you continue to build that loyalty,” he explains.

Given this potential, gradually more and more retailers are using their expertise in datadriven personalisation in the online world to boost their game on the high street. With stores like One Stop and Asda announcing they are rolling out beacon technology, which

The personal touch.indd 3

can send targeted notifications to shoppers mobiles, undoubtedly we are starting to see a more personalised experience in physical retail.

“The more you use data from online and pull that into the in-store environment, the more you can ensure what you’re talking to me about is relevant and interesting,” says Cleaver.

But not everybody is going to be happy with the idea of such comprehensive data profiles following them wherever they go. It’s fair to say there is a certain wariness amongst consumers about their data being used to drive targeted retail efforts. “There’s a fear of it being a dark art, that somehow retailers and marketers are going to use that data against you,” says Cleaver. “But personalisation should not be about ramming things down your throat.”

Instead the focus of personalisation, rather than being seen purely as an attempt to ramp up sales, should be on creating a better experience and offering the things one’s customers will actually want to be seeing.

“If you’re marketing to the right people, they’re open to the things that you’re selling them,” he continues. “The advertising is less intrusive because it’s relevant.”

And ultimately this light touch is what effective personalisation is all about. “Good personalisation should be like the referee in a football game; at the end of a game, a great referee is one that nobody talks about,” says Nathan. In the same way that only a bad referee tends to provoke a reaction, only bad or cynical personalisation tends to provoke a strong reaction. When done right, it should simply act to provide a more enjoyable experience for the consumer. “When that does happen, you don’t talk about it being data-driven personalisation,” he concludes.

“You just talk about ‘it’s great that this store knows what I like’.”

02/02/2015 19:37

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Name

Ben Kench

www.thebusinessbooster.co.uk www.thebusinessboosteracademy.co.uk www.benkench.com Business Booster.indd 1

02/02/2015 16:36

Media Faces

WORDS: RYAN MCCHRYSTAL, JOSH RUSSELL, JADE SAUNDERS

Behind every great start-up, there’s a great marketer. Taking a look at the brains behind the brands, we’ve decided to showcase the shining lights forging the future of the industry. Check out our list of the UK’s most hotly tipped mobile maestros and doyennes of digital

KATHRYN PARSONS co-founder, Decoded

Digital

Whilst her focus is less marketingorientated than most, there’s few that have contributed quite as much to the digital ecosystem as former Elite Business cover star Kathryn Parsons. Her start-up Decoded, which teaches people to code in a day, is utilised as much by tech giants like Google and Microsoft and creative agencies as it is by the average punter. The winner of the Veuve Clicquot New Generation Award has since replicated the formula in over 30 cities worldwide.

Media faces.indd 1

02/02/2015 19:38

SALES & MARKETING

Ben Priest founding partner and executive creative director, Adam & Eve DDB Creative There are few who have presided over quite as much exciting creative work as Priest. Having been in the creative industry for 25 years, he worked his way up from copywriter at Ogilvy & Mather before co-founding the multi-award winning Adam & Eve in 2008 with James Murphy, David Golding and Jon Forsyth. In addition to creating spots for SSE, Google and Virgin Atlantic, the agency has also been responsible for John Lewis’s christmas ads for many years, whipping the public into a penguin-fixated fervour over the yuletide period.

managing director, Echo Brand Design Creative / Digital Echo Brand Design was founded by the man behind the branding of the nation’s favourite hooped potato snack, Hula Hoops. Dormon’s team at Echo helped Carling promote the summery beverage of choice for health-conscious boozers, Carling Zest. Its client base includes Cow and Gate and Cobra and it was shortlisted for two Marketing Design Awards in 2014 for its work with Joe's Tea Co. Dormon is passionate about the purpose behind products. He sees himself as the ‘dad’ of the company and looks after his creative staff to ensure positive energy brings positive results.

Andrew Day

Gail Dudleston

digital creative director MRM Meteorite Mobile

CEO, twentysix Digital

Some people are born with a knack for creativity and Day is one of them. He spent his early days co-founding The Red Room and was the cameraman behind Duran Duran’s ‘Pop Trash’ US tour. MRM Meteorite harbours some of the best talent and snapped Day up as its creative director who holds big names in his little black book, including Shell, Mars and Channel 4. His four-year career with SapientNitro led to him bagging the Cannes Cyber Gold Lion and Eurobest Interactive award after he penned the award-winning Foot Locker ‘Sneakerpedia’ campaign.

Dudleston’s school nickname, Gale Force 12, precedes her as she hit the digital market like a storm. She was headhunted by CMW to lead the six strong creatives in Leeds, which later merged with London’s digital agency twentysix. Dudleston, who only hires the best talent, is now CEO of 110 employees in offices that span from New York to Singapore. With twentysix now an award winning full-service digital agency turning over £5.7m, she regularly treats all staff with pizza every payday.

NILS LEONARD chairman and chief creative officer, Grey Creative Under this game-changer's lead, Grey has seen the agency double in size and saw Grey as the only company in this neck of the woods to scoop up a British Comedy Award. Leonard was the brains behind Lucozade’s Yes campaign; the song held the Number One throne on the UK iTunes chart for four weeks. His recent works include Kiss for Vodafone, which was voted Marketing’s most romantic ad of all time and he melted the hearts of millions with his string of McVittie’s puppy adverts.

Media faces.indd 2

Nick Dormon

57

Andy Hewitt co-founder / solve The Interest Network Digital Hewitt has been carving firsts into the commercial and tech industry for 15 years, setting new boundaries while others play catch-up. Knowing what works in today’s changing world comes naturally to Hewitt, who co-founded The Interest Network in 2012 to tackle missed opportunities in the market. He creates clarity out of mess and has coined his latest product, Squirrel, the ‘shazam for things.’ Squirrel enables users to use their mobile to capture the products or places seen on their travels to later be recalled at a convenient time.

02/02/2015 19:38

Tarek Nseir

SALES & MARKETING

CEO, TH_NK Digital

Gellan Watt

Another familiar face for regular readers, Nseir is the entrepreneurial engine house behind TH_NK, the digital agency. Under his leadership, the company has created digital strategies for a range of high-profile clients ranging from Audi to Warner Brothers. Last year, its digital experience for Channel 4’s Utopia picked up a whole host of awards, securing a nomination for a BAFTA Television Craft Award and winning both the DADI Award Grand Prix and a BIMA Award.

MD and chief creative officer, Thinking Juice

Creative / Digital

The ad game is full of ideas, and nobody loves ideas more than Watt. His motto is to ‘never be ordinary’ and this extraordinary soul is self described as: part adman, part copywriter, part art director set a goal to launch an agency he would be proud of. Thinking Juice was named by RAR as 2014’s Most Effective Agency in the UK. He personally was named number 15 in the UK’s Marketing Power 100 – a feat he attributes to Mum’s votes.

James Kirkham global head of social and mobile, Leo Burnett / co-founder, Holler Social

Rob Shaw group CEO, Epiphany Search / social Even before taking up the helms of the Leeds and London-based search marketing agency Epiphany, Shaw had quite a few tech notches on his belt. He has managed services for some of the UK’s largest companies, including Tesco, O2 and Pets at Home.

At Epiphany, Shaw is responsible for the overall delivery of PPC, SEO and web development, ensuring the company delivers world-class services and results to its clients. Last year was a monumental year for Epiphany, having been acquired by Jaywing for £18m, while working with dozens of new colleagues and extending its relationship with key clients such as Waterstones.

58

There’s few people who understand how word spreads better than Kirkham. In 2001, he co-founded Holler, a digital engagement agency designed to get people talking about brands, which was voted Agency of the Year 2014 by BIMA. Its clients include Red Bull, Samsung and Sky. After Holler joined with Leo Burnett, Kirkham was appointed global head of social and mobile in 2013.

Mills and Sinx co-founders, ustwo Digital / MOBILE

Trine Pillay

Nadya Powell

We’ve got a bit of a twofer with Mills and Sinx – or Matt Miller and John Sinclair – who are such inseparable friends that they named their company ustwo. The digital product start-up is one of the most exciting to spring out of Shoreditch – developing apps and products for a range of clients, including Sony’s Media Apps and the user experience for Tesco Hudl. Mills and Sinx have also led the company into a profitable sideline in mobile gaming, including the much-lauded Monument Valley.

managing director / executive producer, B-Reel Creative

managing director, Lost Boys Social

Michael Litman

There’s few for whom the descriptor creative is quite so apt as B-Reel and Pillay is one of the shining lights of its London operations. Pillay’s background is extensive, having worked not only at Home Corp and Smuggler but also with directors such as Paul Weiland and the Academy Awardwinning Anthony Minghella at the Paul Weiland Film Company. Joining B-Reel in 2013, she is part of a similarly stellar company; the creative production house has won more awards than you can shake a stick at.

Media faces.indd 3

Certain people are like the keystone species of the marketing ecosystem; Powell fits into this category. Having cut her teeth at Grey Interactive and done a stint developing social and innovation strategies at Dare, Powell set up the US-based social agency MRY – branded here as Lost Boys. In terms of extra-curricular activity, Powell is a member of Tech London Advocates, a mentor at Wayra and has co-founded Innovation Social, an enterprise bringing together industry innovators from a wide range of agencies and brands. That’s some workload.

founder, Burst / Brandsonvine Social / Creative It’s always a pleasure to be in the presence of a true innovator. Having worked his way up through comms and digital advertising, Litman founded Burst in 2013. The world’s first specialist micro-content agency, Burst uses short-form video nuggets to promote brands like Microsoft, Samsung and Pepsico. Brandsonvine takes this concept further, creating branded six-second spots using Vine; after all, who has a whole 30 seconds to spare?

02/02/2015 19:38

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02/02/2015 27/01/2015 16:16 15:06

SALES & MARKETING

KING

An exciting, interactive website is a growing must for businesses in an online age.

Entrepreneurs share their successes, failures and tips on creating content

B

usinesses hope their websites will attract customers and drive their sales forward. They invest in design and branding and even optimise their HTML for search. Yet, unless they invest in a steady stream of high-quality content, they may struggle to grow their website traffic. But writing for the web is not as easy as it looks and it can be a time-consuming and thankless task.

Entrepreneurs who want successful websites need to create a content strategy, think about the editorial process and make sure they have people with the right skills for the job.

62

WORDS: Jon Card

Define your role

Content king.indd 1

The world is full of unfulfilled writers, determined to show off their flair for words.

Business journalists, such as yours truly, can testify to that. We’ve spent many an hour re-writing and editing the poorly constructed prose of CEOs and managing directors, whom no-one else had the courage to correct. Just because you think you have a book inside of you, it doesn’t mean you’re a born writer. But that’s not to say entrepreneurs shouldn’t be involved in content creation. On the contrary, they should be sharing their knowledge and expertise with their clients and networks. The key is to know your limits, take advice and, if a post is particularly long, ask someone to edit it.

James Watt is the co-founder of craft beer and pub business BrewDog. The company’s busy and interactive website is a core part of its marketing strategy. Watt is actively involved in its creation, but he allows his media team to manage it. “We have a small, in-house team who manage the creation of the majority of the content, but gain ideas and inspiration from across the company,” says Watt. “From brewers to bar managers, and even our own community; everyone has something to say about craft beer.”

02/02/2015 19:39

SALES & MARKETING

Create conversations

Staff should also be encouraged to get involved, as should your customer base. The BrewDog website facilitates a two-way conversation which boosts traffic and informs company strategy. “We have a very engaged craft beer army, who always share their thoughts and feedback via our website and our social media channels,” says Watt. “It is a hugely useful asset to be able to tap into. For example, when we are searching for new bar sites, we always turn to our community for suggestions. We are still a relatively small company, and having that network of craft beer fans on the ground recommending awesome new locations is pretty amazing.”

Have fun

The BrewDog example is that of a business enjoying itself, an enjoyment which has become infectious, affecting staff and customers alike. Watt says it’s more about showing off your personality and less about carefully constructed design. “You need to ensure that your personality and passion shines through. An all-singing, alldancing website means nothing if it doesn’t communicate what you and your business stands for,” he says. “Think about how your community will use your website and make that user experience as organic and enjoyable as possible.”

Be informative

Not all businesses can have the exuberance of a craft beer company, but that doesn’t mean they can’t be engaging and useful when creating content. David Bird, director at Online Mortgage Advisor, says he and his colleagues just aim to be helpful when creating content.

“We are not salesy at all,” says Bird. “We’d prefer to let our expertise shine through in a particular subject from the content we write.

The pages on our website are designed to contain useful information to help potential borrowers who are struggling. We don’t necessarily write to get the best traffic volumes, or to sell the most advertising.”

Optimise with care

There’s a lot of rubbish written about search engine optimisation (SEO), and more than a few businesses have fallen foul of Google by using prescribed against techniques. Bird says his business fell into this trap in the early days.

“We paid this outsourcer guy based in India to

Content king.indd 2

Think about how your community will use your website and make that user experience as organic and enjoyable as possible James Watt, BrewDog

‘SEO’ our website on the promise of number one rankings. I’m sure most small businesses and new websites have been approached with spam emails offering a similar thing,” he says. “We had some truly amazing results for a couple of months and then got completely penalised, pretty much disappearing from the results overnight.”

Indeed, the best way to approach SEO is to generate a solid base of organic search rankings, gained via the creation of relevant content and naturally earned links from followers and users. It’s an approach that Bird now recommends. “Having learned from that mistake, we now take care of all of our own marketing and content,” he says. “We try not to be too attached to the immediate outcome something might have on our search engine rankings.”

63

Don’t forget social media

A company’s website should be fully integrated with its social media channels. But similar to the advice on SEO, entrepreneurs should be wary of ‘social media gurus’ and definitely avoid quick fixes. Sites like Facebook and Twitter are, at heart, designed to be intuitive and user friendly – there are no golden rules, except to post relevant content on a regular basis. Some entrepreneurs do outsource this side of things but the most successful are those who stay close to the action.

Damian Clarkson, managing director of catering company The London Kitchen, says: “We work with a company called SocialSuperstore, who manage all our content.

The team of two there have been working with my business for over four years, so they really get what I’m trying to achieve. My staff send photos while they are at events and the guys from SocialSuperstore post them across all our social media channels almost as the events are happening. They produce at least one blog article a week and send out a monthly newsletter via email, Facebook and Twitter.”

However, Clarkson also says it’s important that your media team understand the nature of your business and industry before posting content for the world to see. “They are very careful to post only the best images, as well as making sure we only post things that have been signed off by clients,” he says. “We cater for a lot of society events and fashion events where privacy is a priority. They know I’m a stickler for attention to detail, so they triple check spelling on everything.”

02/02/2015 19:39

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PEOPLE

Open House

67

We speak to LGBT business figures to find out how they view the importance of inclusivity in the workplace

WORDS: JOSH RUSSELL

E

ven though attitudes have shifted significantly in recent times, it’s understandable that some are wary about being open about their sexuality, particularly when it comes to sharing in the workplace. But this can come at a significant cost. A recent study by OUTstanding, the not-for-profit professional network for LGBT executives, profiled 200 senior LGBT business figures and found that non-inclusive workplaces have a negative impact on both employees and the business as a whole.

According to the poll, 80% of respondents felt that LGBT professionals who could not openly be themselves would suffer from damaged confidence as a result. A further 86% believed the fear of ‘found out’ causes staff anxiety that could be prevented whilst another 86% felt that

this could leave them feeling isolated from their colleagues. Evidently, creating an inclusive workplace can go a long way to dismantling these barriers that prevent a harmonious and positive professional environment.

One of the most interesting findings, however, was the number of respondents who felt that greater boardroom diversity is a key ingredient in creating an inclusive workplace. More than a quarter (27%) felt more openly LGBT executive role models would help other LGBT employees feel more comfortable being who they are, whilst 24% felt greater boardroom diversity would help LGBT employees progress higher in the company. In light of this, we decided to speak to senior LGBT business figures to ask them how they are helping to create stronger and more inclusive workplaces.

It’s understandable that some are wary about being open about their sexuality

Open house.indd 1

02/02/2015 19:40

Leading by example

68

Taking diversity further

Isabella Segal, Nyman Libson Paul

Mark Pearson, MyVoucherCodes

Companies don’t have to have all of the answers when it comes to being inclusive of LGBT employees. “To be honest with you, we didn’t have any experience whatsoever of dealing with inclusivity, so we were sailing in uncharted waters,” says Isabella Segal, a transgender partner at Nyman Libson Paul, an accountancy firm, and member of OUTstanding. But despite not having a clear roadmap for these things, when Segal came out in May 2013 she was amazed at how accepting people at work were. “I sent an email round to all of the staff saying that in a few weeks time I would be coming into work as Isabella,” she says. “Everybody just accepted it as the norm.”

Segal feels there are several benefits to running an inclusive workplace. Firstly, it enables the firm to attract a wider range of talent. “We’re fishing in a pool with lots of other firms to get quality people,” she says. “If they can see that we are inclusive as a firm, we can attract people with broader life experience.” But she also believes that when people don’t have to cover up who they are it can free up a lot of energy. “I spent over 30 years trying to hide the inner person,” she says. “But if you can be accepted then you’re going to feel better and if you feel better you’re going to be more productive.”

And Segal believes there can be a huge benefit to have leaders in the business who are out and open about their sexuality. “I’m fortunate that because I’m quite senior I got treated okay,” Segal says. “For younger people, it must be more difficult.” And this is why there being senior talent in companies who can lead by example can benefit employees; Segal agrees with the 99% of respondents in OUTstanding’s survey that being open about one’s sexuality in the workplace is rarely as traumatic as one might expect. “I would encourage people to come out because it isn’t as bad as you think it’s going to be,” she says.

Employees at MyVoucherCodes certainly don’t have difficulty being open about who they are.

“Aside from myself, 10% of our employees are openly gay,” says Mark Pearson, founder of the company. The voucher and discount provider has gone to great lengths to make sure its employees feel at home and Pearson is keen to stress this doesn’t stop at being open and accepting of just employees’ sexuality. “We have worked hard to create an inclusive and open environment, not just for LGBT but also for people of all lifestyles, backgrounds, religions and ethnic backgrounds,” he says.

This focus on inclusivity has had no end of benefits for the teams involved, allowing people to come together and form close-knit relationships based on who they really are. “It’s key for us that being friends with colleagues and teammates and feeling like every unique culture and lifestyle is acceptable,” explains Pearson. “It results in a happy team satisfied with the work they are doing.” This helps to add real cohesion amongst MyVoucherCodes teams that he feels can create real communities amongst individuals across teams. “We even organise social events and marketing activities based on our diverse backgrounds,” he continues.

And supporting inclusivity doesn’t just help boost employees’ morale. “MyVoucherCodes provides a wide range of products and services to all types of customer,” Pearson says. “Diverse teams understand their wants and needs and can communicate with the users much more effectively.” Above and beyond supporting employee wellbeing and opposing discriminatory attitudes, inclusion helps secure a diversity of attitude and inspiration that can only strengthen a company. “By having an open discussion with people who have distinctly different viewpoints and backgrounds, you can ensure great ideas come through.”

Open house.indd 2

It results in a happy team satisfied with the work they are doing Mark Pearson,

MyVoucherCodes

02/02/2015 19:41

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SMASHING IT

70

Women are breaking through the glass ceiling and proving their mettle in industries that have been typically associated with men

WORDS: Jade saunders

G

ender stereotypes have existed for centuries: women were expected to keep the family and home in order whilst men were the breadwinners.

Thankfully, seismic shifts in society have taken place and more women are in high-flying corporate jobs than ever before and many others have established their own businesses.

But we’re not quite there yet. In February 2011, Lord Davies passed a recommendation that all FTSE 100 boards should have a minimum of 25% female representation. Four years on, the number of women on FTSE 100 boards has risen from 12.5% to 20.7% and whilst this a sign things are moving in the right direction, many feel that it is not enough. For a start, we need more role models: research from an O2 study showed that 45% of women in the UK do not believe that women occupy enough senior positions in organisations. What’s more, there are certain industries that continue to be largely dominated by men with only a small minority of female role models. Is there any sign of change on the horizon that will make it easier for women to pursue careers in these areas? What is it that is holding women back from success in stereotypically male roles?

Standing out

Rashmi Dubé, director of Legatus Law, is a woman who has never let her gender hinder her achievements in a traditionally male-dominated industry. With 20 years of experience as a solicitor specialising in business and commercial law, she launched her own law firm in 2013. She recognises that certain sectors of law are predominately male dominated and points out that “even clients, all of whom run

Smashing it.indd 1

their own businesses, are mainly men.” She believes that confidence is key to success in any industry, male or female, and has often found that being the only female in a meeting or networking event was advantageous as her gender made her stand out. “They’ve only got one woman to remember – it’s much harder for me to remember all of them,” jokes Dubé.

Dubé refused to let her gender play a part in her success. “[No matter] how you look at things, we are all people. And if you take away the gender element, then it’s just a person that you are speaking to.” Dubé believes that the industry is changing because women are breaking through the social boundaries. “We are ignoring the wall and actually just walking through it but it does take confidence and it’s not that easy.”

We are ignoring the wall and actually just walking through it but it does take Confidence and it’s not that easy

02/02/2015 19:41

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02/02/2015 16:29

PEOPLE

Call for change

There have been calls for a reform around STEM subjects (science, technology, engineering and mathematics) after it was revealed levels of female participation remain worryingly low – it was described as a “matter of national embarrassment,” by Labour party leader Ed Miliband.

Compared with our EU counterparts, Britain has the lowest number of engineers; only 14% of engineering graduates and just 4% of registered engineers are women.

STEM workers are vital to the world’s innovation and Miliband’s pledge will see Labour working with schools to encourage young people to study STEM subjects and pursue careers in the industry.

Fujia Chen is the only female among all the co-founders and investors of Oxford Space Structures, the winner of the Sirius Programme, which saw 60 teams of graduate entrepreneurs set up their businesses in the UK. Upon receiving her PhD from Oxford University, she began her career as a materials engineer with Williams F1. She was the only female amongst over 600 male engineers during her two years there. She admits that at times she did feel isolated due to her gender. “It was sometimes a bit difficult when all my colleagues went on someone’s stag-do, it did make me feel a bit left out.” However, she was never subject to gender discrimination and, like Dubé, felt that her gender was an asset to her career in a predominately male industry.

“People seem to find it easier to remember me, compared to the less noticeable masses of men with a similar status as me,” says Chen. The number of women studying engineering and science is on the rise and Chen feels that STEM industries need more women. “It means companies can use a lot more talents [and,] more importantly, there will be more innovative products being developed specially for women.”

73

Changing perceptions

Picture a builder or a roofer; imagine them with their hard hats and steel toe-capped boots. Did you imagine a man or a woman? Women currently represent just 11% of the construction industry in the UK and only 2% of these women are on site working in manual labour jobs.

Marta de Sousa, founder of Lux Reality, is a property developer working in construction. She is no stranger to building sites and her DIY dexterity makes her a dab hand with power tools. However, she is one of the very few women in the construction industry leading an international property development company and working alongside her team on site. “It is a very maledominated world in all areas of the business from suppliers, to builders and engineers. I’m always the only woman on site and I rarely come across women trades people,” says de Sousa. She believes that gender plays a big role in how people are perceived and treated. Gaining

Smashing it.indd 2

Women currently represent just 11% of the construction industry in the UK and only 2% of these women are on site working manual labour jobs

02/02/2015 19:42

PEOPLE

74

respect and being recognised for one’s abilities as opposed to gender often takes time and de Sousa has been subject to catcalls as well as several attempts by tradesmen and suppliers to undermine her expertise and overcharge her. “What is frustrating is the feeling that I have to go the extra mile more than a man every time to prove that I know what I am talking about. The way I combat this gender stereotyping is by asserting myself on site and demonstrating my knowledge to anyone I employ,” she adds. Her struggles to gain respect from male counterparts despite her profound knowledge, show that perceptions of women in stereotypically male industries need to change. Women have landed jobs because they are capable, not to fill quotas.

According to Kate Lester, founder of Diamond Logistics, the logistics industry is finally changing for women. She proved herself in a highly male-dominated industry and has helped to shift the gender dynamic by creating one of the biggest logistics franchises in the UK. She started her career in logistics when she was 20 and was the only girl in a very male office and admits that it’s always been quite rough and tumble. The logistics industry attracts males as many of the proprietors and drivers are male and Lester has been subject to sexism in the past. “I’ve had my arse slapped in the office before; obviously that particular sub-contractor didn’t stay with us for very long. You repeatedly get people saying, ‘can I speak to the governor?’ and I say: ‘well, you are’.” However, those days are behind Lester – the industry is changing, she says. Half of her team at Diamond are female and Lester runs a very balanced office. She has also always demanded that everybody treats each other with the respect they deserve. “I’ve always found my sex to be a very positive

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I’ve had my arse slapped in the office before; obviously that particular sub contractor didn’t stay with us for very long Kate Lester, founder of Diamond Logistics

attribute because I genuinely believe that I run my business and my office very differently, it’s a very collaborative way or working and it’s very team driven.” Lester’s own business ethos could be adopted by other industries to encourage more women into roles.

Moving forward

Industries are fundamentally changing for women. These women have proven that gender was no obstacle in them achieving success.

Dubé, Chen and Lester all agree that being a female in predominately male workplaces made them stand out. Lester elaborates: “It’s a positive attribute because if anything it makes you slightly different; we are all trying to differentiate ourselves in this marketplace and if our gender does assist, then that’s beneficial.”

Whilst Davies’ board target will help to encourage more women to pursue senior positions, different approaches are required for each industry to promote women on talent rather than a number agenda. Schools need to do more to educate girls they can excel in STEM subjects and that they can pursue any career that they want to. Businesses need to address the needs of women avoiding male dominated industries and cater their recruitment approaches accordingly.

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02/02/2015 16:30

People

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THE POWER OF POSITIVE THINKING It’s all too easy to fall into negative patterns of thought, which is never good for business.

This month Lyndsey Simpson looks at ‘positive psychology’ and its implications in the workplace

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S

o we’re a little way into the new year now: those January gym goers have perhaps fallen by the wayside, the healthy eating plan is getting less stringent and our ‘only drink wine on weekends’ rule has grown to include Thursday (and the occasional Monday).

However, at the end of my last article I set you a new year’s resolution of a different kind: try to take yourself less seriously. I’m hoping that this has not only been a much more successful target to focus on for 2015 but has also been a fun one in the process. Reflecting on this, and some of the facts about the effects of something as simple as laughter that I included in last month’s feature, made me think about what we could all do in a broader sense to make for happier workplaces.

Now I don’t want you to think I’m some crazed entrepreneur that masquerades as a clown trying to make people laugh and be happy every minute of every day. Those who know me actually find me quite serious, focused and demanding. However, I do genuinely believe in the power of positivity and the impact that this has on productivity, satisfaction and results. So this month, I am exploring ‘positive psychology’ from an entrepreneur’s perspective, its uses in business and the implications it can have on individuals at work.

The term is attributed to a chap by the name of Martin Seligman, who developed this particular branch of psychology in 1998 whilst a professor at the University of Pennsylvania.

The thinking behind this concept is to use small yet significant interventions in an individual’s day-to-day thinking in order to create a more balanced, satisfied life. When applied to the business world, this can have astounding consequences.

02/02/2015 20:27

People

The positives of positive psychology

We’re all guilty of dramatising a diagnosis at one point or another, focusing on the negatives of a situation instead of the positives. Whether that’s travelling for two hours to find that your meeting is cancelled on arrival or that big piece of work you were expecting to pitch for this week has been put on hold for a month. The power of positive thinking aims to do the exact opposite of most people’s natural inclination – to see the positives these changes have afforded you rather than leap to the negatives. In high-performance sport, a positive mindset is credited with making a crucial 1% difference in achieving peak performance. Athletes have even reported reaching a mental state known as ‘flow’, whereby high levels of energy and concentration are complemented by intense enjoyment of the task. Using similar practices in a business environment has shown to create a much more autonomous workforce, reporting higher levels of job satisfaction.

Additionally, positive emotions have shown to increase creativity, stress management and decision-making abilities.

I do genuinely believe in the power of positivity Does it work?

Research says yes. Over 35 years of Gallup surveys have found that successful companies are the ones where employees believe they get to do what they do best every day - i.e. they play to their strengths. This is versus the stat that only one third of people actually play to their strengths. If you are not sure what your strengths are or are looking for a free and initial tool for your teams to test theirs, there is a free 15-minute online survey at http://www.viacharacter.org/ www/ which measures the 24 personality attributes so you can look at your top 5-10 personality strengths out of the 24 to compare with those around you or to help your own focus on developing your super-strengths.

Changing the way you think

The easiest and quickest way to start utilising the power of positive thinking is to play to your strengths. Not just your own, but the strengths of the marketplace and your workforce. Start turning your strengths into super-strengths rather than focusing on just improving your weaknesses which may just bring you up to everyone else’s average. Think about how this can translate to actions across your business.

For example, most companies’ performance management processes look at an individual’s strengths and weaknesses and performance over the previous period and then look forward with a development plan where they look to address their weaknesses. Instead, shift the forward focus to 90% looking at their key strengths and how they can be honed into super-strengths and only 10% addressing one key weakness/ development area.

Likewise, when positioning your company in the market, fall back to the USP marketing approach. Just sell on your super-strengths – your points of difference to everyone else; don’t compete on hygiene factors that every other competitor can also match you on. There are also some simple tasks you can use to start reformulating the way you, and your teams, think to begin harnessing the power of positive thinking. A great example of these can be found all over popular social media sites, such as the #100DaysOfHappy challenge on twitter. Those who chose to accept the challenge are required to find and publicise one thing (at least!) that made them happy that day. The aim of the challenge is that eventually these things, and this way of thinking will become habit, perhaps even innate. You could run a similar challenge internally in your company.

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Sticking to those pesky new year’s resolutions

So whether you’re trying to go to the gym every day, eat healthier or hoping to create the environment you always wanted for your organisation, try harnessing the power of positive thinking. List positives instead of negatives. Search for an individual’s strengths instead of their weaknesses.

Positive thinking leads to positive actions, which turn into positive habits and end up in positive results. Good luck and let me know how you get on at lyndsey@thecurvegroup. co.uk or via Twitter @lyndseydsimpson.

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02/02/2015 20:27

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02/02/2015 16:31

TECHNOLOGY

Whilst there’s always a slight post-New-Year’s lull, it doesn’t take long for the world of tech to get back up to speed and January provided plenty of new products to marvel at. Not only did we get the Consumer Electronics Show teasing out some of the best and brightest tech from the year ahead but Google also held its latest developer conference for Project Ara. Check out our abridged highlights of the month’s best tech

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Sony Walkman ZX2

WORDS: JOSH RUSSELL

Project Ara

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Hands up: Project Ara is a long way from commercial release but it’s definitely worth getting excited about well ahead of time.

Google’s speculative attempt to create a modular smartphone – in which functions like the camera or storage can be swapped out, upgraded or repaired to your heart’s content – Project Ara is possibly the most ambitious development in the smartphone space since the iPhone. Cutting waste, providing customisable smartphones and tackling the rapid obsolescence of modern devices is a noble aim but can Project Ara ever work as a commercial reality? All eyes are on Google’s test roll-out in Puerto Rico later this year.

Being able to access all of your music on the go is awesome. The fact that you often have to sacrifice audio quality for portability isn’t. This is something Sony aims to address. Packing a whopping 128GB hard drive, the Walkman ZX2 supports the full gamut of high-end and lossless compression formats including DSD, WAV, AIFF, FLAC and Apple Lossless.

It also upscales more compressed formats, making them sound extra tasty. The only drawback is it’s probably only an option for those who are really passionate about high-quality audio: retailing at £949, the ZX2 is just for the serious audiophile.

02/02/2015 19:44

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30/01/2015 20:18

TECHNOLOGY

Asus Zenwatch Stop the clocks. We’re officially calling time on ugly smartwatches. Asus’ ZenWatch may actually be a world-first as a smartwatch that’s attractive enough to appear on even the most fashion-conscious entrepreneur’s wrist. More than just a pretty face, the ZenWatch has a few nifty features that help it stand out, such as a forgot phone warning and an SOS that sends out an emergency message to loved ones if you’re in trouble. It’s not without flaws but a short battery life and slightly erratic trackers don’t mar what is otherwise an impressive smartwatch entry.

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Sesame Flow There’s no hiding that at Elite Business we’re suckers for anything that will give us better control of our devices, especially if it involves intuitiveness of gesture control or touch sensitivity. Flow offers the best of both worlds and combines a wide range of different methods of interfacing with your machine, allowing users to click, turn, swipe and wave to their hearts’ content. It’s built on an open platform that allows developers to programme custom shortcuts for their apps; its creators have already created shortcuts for a range of software from Photoshop and Illustrator to OS X and Linux.

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In certain professional environments, leaving one’s laptop unlocked is asking for trouble. However locking things up isn’t always at the front of mind when you pop to take a leak or top up your caffeine levels. Sesame is the natural solution. Chuck it in your pocket or put it on a keychain and every time you wander away from your Mac, it will automatically lock.

On your return, Sesame will unlock it without you having to press a key. You can also set it to perform other functions, from pausing your tunes to setting yourself as away on your apps. Clever stuff.

02/02/2015 19:44

TECHNOLOGY

Striking back

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Research shows more than half of UK businesses could be hacked in under an hour. Small businesses need to sufficiently protect themselves or risk losing everything

WORDS: Jade saunders

T

he recent hacking scandals at Sony, CENTCOM and eBay show that even the biggest companies, which invest millions on security, are susceptible to savvy hacker attacks. It’s not just companies cybercriminals come after: ‘the Snappening’ saw celebrities turn crimson-faced after intimate snaps were leaked for all to see. Small businesses often assume they will not be a desirable target but is it a risk worth taking?

Many small businesses work with larger companies and therefore act as a gateway to hacking larger firms. SMEs are also at a higher risk to cyber criminals because their budgets for security are generally much lower and this makes their valuable IP, trusted customer information and any patented innovations

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more accessible. As cybercriminals become solicitor at Slater & Gordon.

Security should be a top priority and every ever more sophisticated, small businesses employee within the company should be need to be aware of the security breaches their company might be subject to or face losing briefed on security risks to devise a breach everything in the event of a hack. How can you plan. Staff could be the weak link in a prevent and protect your business from digital company’s security and could be individual targets for hackers. Employees should learn thieves? how to spot malicious scam emails, protect any The first thing businesses of any size need to consider is that hacking is a real threat: devices brought from home and implement high-profile attacks in the past year have put strong passwords.

One of the easiest routes for a cyber criminal many businesses on red alert and as more is to enter your system or device is quite simply learnt about the nature of major hacks, the by guessing your password. Guessing a more up-to-date security protection will be for password can be as simple as 123 – literally businesses. Having the most recent security depending on as research from the nature of SplashData, an your IP and Having the most recent security online security firm has shown. Its content is crucial, depending on the nature of your astonishing data particularly for businesses about the worst IP and content is crucial passwords named handling customer data ’123456’ as the least secure, with ‘password’ coming in a close and confidential information. Under the Data Protection act, customer data must be kept safe second. Businesses need to make staff aware of their online presence and make sure that and secure, and in the case of a hack “if you passwords used for work devices and emails have no security options in place at all, you are different and cannot be easily guessed are liable,” warns David Cook, data security

02/02/2015 19:45

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02/02/2015 16:32

Technology

using personal information from social networks. Baby names and favourite colour are also a no-no.

Just as we love tweeting and instagramming about our dinner last night, hackers are also getting in on the social media act. Frequently, hackers mine information from social media and collect data about an individual by analysing their behaviour over a period of time to subtly breach their network. “For example, a hacker may collect data from social media profiles about the extra-curricular interests of an employee and then create a bespoke email from an authentic-appearing address with content that encourages the victim to click certain links when asked,” says Dr Laura Toogood, managing director of Private Clients at Digitalis Reputation. Cyber criminals are becoming increasingly cunning and by exploiting social engineering, can tailor hoax emails known as spear fishing, that will attract the target.This has occurred following the London Marathon, where hackers sent emails to employees congratulating them on their time and offering a free pair of trainers when clicking on a certain link. However, once the link was activated the hackers gained access to the internal systems of the organisation. “The email was so believable that there was a hit rate of over 50%,” says Toogood The rise of home-working and flexible working has also led to a number of holes in companies’ defences. Any device accessed from an employee’s home should be adequately protected with the latest security as well as a strong password in the case of theft. What’s more, devices used outside of the office for work should be used only on secure networks – i.e. in the staff member’s home, not the local

coffee shop. Attacks are often orchestrated by hackers waiting on open networks; once they have access to a person’s emails they can see when an invoice is due or a payment and set up a fake email that looks legitimate to provoke the person’s customer to pay without any hesitation. The money is then sent to third party bank accounts and customer information is shared on various networks. “Reclaiming money and losses from these often exotic bank accounts from places such as India, China and North Korea can be hard to recover when the emails appear to have been sent by you – it’s hard to prove it wasn’t,” warns Cook. This means that educating staff on using unsecure public networks and querying suspicious emails is vital.

The typical security breach tends to go unnoticed on average for a period of eight months with companies oblivious to intruders in their infrastructure. It is advised that businesses install a Security Information Event Management (SIEM) service, a big brother of sorts to watch over their infrastructure.

“SIEM is effectively a CCTV on your network.

Rather than you having to wait eight months to find out you have had a breach it actually tells you in real time that somebody is gaining access to your network that shouldn’t be there,” advises Daljit Paul, head of services at Network First. He also advises that customers employ ethical hackers to implement a vulnerability assessment on a company’s security. The UK and US have waged a cyber war against each other and penetrated each other’s national cyber defence strategies in a bid to prevent real hackers, vulnerability assessments give ethical hackers the chance to test a company’s security and point out any flaws.

The typical security breach tends to go unnoticed on average for a period of eight months

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23/12/2014 20:43

TECHNOLOGY

Driving the UK tech sector forward Neil Crockett, CEO of Digital Catapult, explains the areas we need to focus on if we are to build a world-beating tech economy

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here’s no question: this is an exciting time for emerging businesses across the UK. In the last year alone 24,000 new businesses have been formed, demonstrating how the country has become a hotbed for innovative start-ups. Frankly this passion for entrepreneurial ventures looks set to snowball in 2015, with half of UK 25 - 34-year-olds now dreaming of setting up their own business.

But, in order for start-ups and small businesses to grow, there are various requirements and support mechanisms that need to be in place. As such, when we look ahead to the coming year, there are two main trends that we foresee will play a big role in helping UK businesses to thrive and realise their potential. These trends are the rise of collaboration and the development of revolutionary testbeds.

Collaboration by default

It should be clear that the UK has some of the best digital talent in the world. Innovators are blazing trails across all aspects of the industry, from the academic community to start-up clusters, from SMEs to large businesses. What’s less apparent is the collaboration between these groups. Great ideas are being built and worked on across the UK but often these communities can be protective of their knowledge and won’t work with outside sources.

One symptom of this is the lack of effective data sharing. From website analytics and consumer behaviour insights to public datasets and operational statistics, data is a vital catalyst for innovation and growth. Sharing

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and making data liquid is the key to unlocking the vast data equity that lies untapped in the UK economy. This is true of what we call ‘open data’ but even more so when it comes to large and small companies across the economy sharing more difficult data such as personal data, closed organisational data, creative content and data that has rights attached.

Unfortunately, small businesses – and indeed many large companies outside the digital sector – often lack the resources to gather and curate even openly available data.

However, this is starting to change with a collaborative approach to overcoming common hurdles beginning to arise. There are resources available that provide advice and creative space for new businesses as well as connecting like-minded organisations to collaborate for the benefit of both parties. Large enterprises have the experience and wider market insights that can turn an entrepreneur into a leading business force. Similarly, start-ups have some of the brightest ideas and are a fountain of tech creativity – something enterprises are keen to help develop. Then there are academic and research institutions, which all have a similarly vital role to play.

As these different groups come together a natural intensity is created, work is completed faster and ideas are shared. When collaboration continues and successful projects emerge, a natural snowball effect is created.

Following on from the developments seen in 2014, we expect to see more people collaborate, overcome challenges and add products to the market in 2015.

Great ideas are being built and worked on across the UK

02/02/2015 19:46

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monetised by international businesses – especially from Another aspect of collaboration between countries whose business and public sector communities organisations is sharing facilities in order to develop are focused on bringing their very best to the global IOT competition. In short, we need to ensure we are not simply the technology of the future. The UK is currently a consumer of the IOT revolution but a global leader. making headway when it comes to the internet of things (IOT) revolution; this is in spite of the The value of the UK’s developments being made in countries such as Keeping up with the UK digital economy Korea, Singapore and China. From healthcare apps The UK’s digital economy is already one of the strongest and IOT through to gaming and big data, the UK is markets in the world, valued at more than £100bn. What on the cusp of something great. makes the UK’s digital landscape so strong is creativity; What we will see in 2015, in both the business we have businesses of all sizes doing brilliant things and community and government, is the recognition that we need to invest in developing the kind of technology that could truly change the world we new platforms where businesses and academics can not only address the live in. common challenges facing IOT but also create new IOT products and In order to remain a global leader in innovation and ground-breaking services and rigorously test them in real-world scenarios. technology, this creativity and entrepreneurial passion needs to be These large-scale IOT test beds and their integration with our world harnessed and supported through industry-wide collaboration and also class research capabilities will allow people to test products. This is not a concerted effort to fuse our world class creativity into all parts of our like developing apps – it’s a combination of devices, communications, digital economy. The truth is that a world class data scientist needs to be middleware and user behaviour that needs real life large testbeds to be many things; not just a data expert but also an interpreter of business properly ready for market. IOT will happen in legacy environments, needs and a story teller who catches the imagination of the audience where we need to test and develop interoperability, user acceptance and Entrepreneurs and emerging businesses have a huge part to play in new economic models. the future of the UK economy. In order to help these businesses to If we do not link the power of the UK together we will carry on grow, we must utilise the vast range of information, skills, facilities and developing great ideas, design and IP that will be harvested and knowledge available to ultimately drive the UK forward.

The emergence of internet of things testbeds

£100bn

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02/02/2015 19:46

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02/02/2015 16:33

LEGAL

The Modern Slavery Bill is a welcome move by all. For UK businesses, it brings additional responsibilities and demands greater transparency of supply chains

Breaking the chain

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WORDS: Ryan McChrystal

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ritish slavery was supposedly made history with the Slavery Abolition Act 1833. So why then in November last year did it emerge that between 10,000 and 13,000 victims could be trapped in the UK? These figures were higher than previously feared and their announcement coincided with the passing of the Modern Slavery Bill through the House of Lords. The bill aims to give law enforcement agencies increased powers to tackle offenders, provide harder punishments and better support victims. It is due to become law sometime before the general election in May. According to John Deane, head of business advisory services at Slater & Gordon UK, the law firm, the bill has implications for businesses.

“Human trafficking and the exploitation of vulnerable adults and children is associated with competitive pressures to distribute lowcost goods and service in the UK.” He says the bill creates new criminal offences for those engaging in slavery, servitude, forced labour and human trafficking. "There are stiff sentences including life imprisonment as well as civil law controls aimed at slavery and trafficking prevention." This includes the creation of an Independent Anti-Slavery Commissioner to encourage the prevention of slavery through good practice and the prosecution of offences.

The bill takes a victim-centred approach and will particularly affect those businesses that engage with supply chains. "An offence is committed if someone is held in a position of slavery or servitude or is being required to perform forced or compulsory labour," says Deane.

"The assessment of the commission of an offence is far reaching. For example those engaging in labour relationships do not have to know that a person is held in such a position because they ought reasonably to have known the facts. Businesses at the top of supply chains can commit offences because of what happens at the bottom."

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There are stiff sentences including life imprisonment

02/02/2015 19:47

LEGAL

A warm welcome for the Modern Slavery Bill Ian Baxter, founder and chairman, Baxter Freight

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Exploitation of a victim under section two can take place anywhere in the world

Also, if it can be established that recruitment was with a view to a person being exploited and a person in a business either knew or ought to have known that another in their supply chain was likely to exploit a person then an offence may be committed. “Exploitation of a victim under section two can take place anywhere in the world so businesses should be extra cautious,” says Deane.

The main way the bill monitors supply chains is the transparency clauses under section 52. This requires commercial businesses over a certain size to publish an annual report detailing the steps they have taken to ensure that slavery and human trafficking is not taking place within any of their supply chains and also any part of its own business.

The affected business turnover threshold has not yet been set but the requirement is unlikely to apply to small businesses, at least not from the outset. Business that cross the reporting threshold will be required to publish a 'steps taken' report each year either on its website or, if there is no website, in hard copy.

Businesses will have a key responsibility in detecting and reducing the occurrences of slavery through their supply chains and there will be pressure on businesses to cooperate to eradicate slavery. As a minimum, Deane advises businesses to: • Ensure that they are fully aware of their reporting obligations under the bill so that they are fully prepared once it is enacted.

• Immediately begin to review supply contracts and the policies and practices of their contractors and sub-contractors in their supply chain, identifying areas for improvement.

• Look at other protective measures such as the introduction of antislavery clauses in to relevant contracts.

• Recognise that the duties upon a business to report are enforceable by the Secretary of State.

• Recognise that inadequate reporting or worse still a failure to report will likely result in significant reputational damage, financial losses and disruption to supply chains.

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It’s unbelievable that, according to the United Nations, there are more people trapped in slavery today than ever before. The idea that British companies and consumers are in any way connected to this is very worrying. Therefore I warmly welcome the Modern Slavery Bill’s aim to create greater transparency in supply chains and to strengthen enforcement against traffickers.

The transparency element of the legislation will likely focus on larger businesses, perhaps with a turnover of about £60m, so Baxter Freight would not have a specific disclosure requirement for now. However, this legislation will start a conversation among our customers and suppliers and I’ve no doubt we will have to provide information as part of this process. The vast majority of the freight we handle is within the European Union and therefore I’d like to think our own supplier base is very sound but it won’t be long until everybody is asking the question of all their suppliers throughout the world. I hope the line of questioning will be more specific than "do you use slaves?" For example, it is important for British consumers to know that suppliers offer employees a basic level of wages, proper rest breaks and the right of representation in their workplace. If companies don’t dig a bit deeper they will never get to the bottom of whether forced labour is being used.

A specific issue for logistics is that many trafficked people arrive in the UK having been smuggled on-board vehicles. This is very hard for transport companies to completely eradicate but trucks coming to the UK from abroad should be able to demonstrate they are part of the Home Office scheme on this topic. This ensures that there are sufficient checks in place to minimise the risk.

02/02/2015 19:47

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QUOTING REF. ELITEOFFERLT2 *Limited to new subscribers at UK addresses only. Please allow 28 days for delivery. Overseas mail: Europe £60; rest of world £95.

Offer closes 28.02.15

NO MATTER YOUR MARKET, WE’VE GOT IT COVERED promotional merchandise

BRAND

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classifieds Bookkeeping

Accountancy

We provide bookkeeping using xero, kashflow, sage, freeagent, quickbooks and clearbooks.

We provide vat returns, profit & loss reports, payroll and credit control etc to businesses from only £50pm.

We are an award winning business, with over 20 bookkeepers around the UK. We work with over 150 clients across 100 industries and over 100 accountants on our clients’ behalf.

t: 02031 372 878 e: mandy@cloudbookkeeping.co.uk w: www.cloudbookkeeping.co.uk

ICAEW’s Business Advice Service offers a free, straightforward discussion with an ICAEW Chartered Accountant.

There’s no obligation after your first free session, just practical thinking to help your business succeed.

We specialise in cloud bookkeeping and online business systems that will help streamline your business to improve efficiency and make more money. From the taxing issues of bookkeeping and filing VAT returns, to the pressured and meticulous payroll process, we see the big business opportunities in even the smallest operations. We provide powerful online business systems that link seamlessly with Xero to cut down on data input, increase productivity, and leave you to continue doing what you love.

t: +44 (0)20 7920 3561 e: bas@icaew.com w: www.businessadviceservice.com

t: 01242 650 606 e: info@rybo.co.uk w: www.rybo.co.uk

Branding

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Business Coaching

Specialising in marketing communications, 1st Transnational operate a quick and highly accurate translation service to international companies. With a strong team able to assist with legal, financial, medical and technical work in a variety of industries across multiple languages.

With a completely confidential service and personal liability insurance, 1st Transnational are the translation experts you can trust. All services can be viewed on the website or for further information call on 020 7329 5003 and speak to one of the expert advisors.

Providers of transcription services which offer the speedy and reliable end result businesses of all sizes require.

Take Note Typing offer a professional transcription service to help quickly and efficiently compile a written report from audio. There are three different levels of service; a full transcription with every false start and repetition, a summary transcript which incorporates all key points but omits non relevant spoken words and a ‘notes and quotes’ service whereby the majority is summarised.

t: 020 7329 5003 e: translations@1sttransnational.com w: www.1sttransnational.com

t: 0207 928 1048 e: bookings@takenotetyping.com w: www.takenotetyping.com

Commercial Finance

In the new financial world beyond the ‘credit crunch’ many businesses are faced with fewer funding options. At White Rose Finance we manage senior level relationships with over 250 alternative lenders.

Our range of funding services: Construction & Development Finance; Commercial Mortgages & Commercial Property Acquisition or Re-finance; Trading Business Acquisition & Re-finance; Asset Finance; Leasing & HP; Factoring & Cash flow Support; Business Loans – Secured & Unsecured; Short Term Bridging Loans; Enterprise Scheme (EFGS) Loans; Regional Grant Funding.

Contact: Patrick Shirley t: 08455 197 825 e: pshirley@whiterosefinance.com w: www.wrf-shirley.co.uk Energy

Bespoke Coaching Programmes designed to help our clients to focus on achieving their personal, professional and business goals. Use the Power of Focus to achieve your entrepreneurial goals and enhance your business performance.

For your free initial coaching session please call Raj Nahar.

Data Interpretation

CONVERT YOUR PAPER FILES DIGITISE THOSE IMPORTANT BOOKS CAPTURE THOSE MARKETING FORMS

t: 07455 284 284 e: mail@nhr-business-coaching.com w: www.nhr-business-coaching.com E-Marketing

Need help talking to your customers?

Chillifish provides marketing solutions across traditional and online media to help you communicate your message consistently.

From brochures, adverts and direct mail campaigns to websites and email marketing campaigns, we create intelligent, effective and innovative communication solutions that make your brand shout louder.

Whatever your requirements, big or small, call us today.

t: 0755 751 6996 e: info@abergower.com w: www.abergower.com Franchise Opportunity

As a leading name in the renewable energy industry, SolarTech are renowned for their expert design, installation and maintenance of renewable energy systems. Offering a professional and personal approach, the SolarTech team design renewable energy solutions that are specifically constructed to suit the needs of individual customers, providing bespoke solutions that are both sustainable and cost effective.

With a large workforce comprising of highly skilled installation engineers, all of whom are CRB checked and fully trained in their specialist areas, SolarTech operate across the UK.

Set up your own home based bookkeeping practice with an award winning bookkeeping franchise. Join over 20 franchisees offering bookkeeping to businesses using cloud software such as xero, kashflow and sage. We provide vat returns, profit & loss, payroll and credit control etc from only £50pm.

No qualifications are needed as full training is given. Franchise fee £15,000 plus vat.

t: 0845 838 2477 e: info@solartech.org.uk w: www.solartech.org.uk

t: 02031 372 878 e: mandy@cloudbookkeeping.co.uk w: www.cloudbookkeeping.co.uk

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Unlock Your Business

t: 01305 250055 e: info@chillifish.com w: www.chillifish.com Hardware & Software

Offering a wide range of computer equipment and repair services to meet your business needs and maintain full function.

Fierce PC are specialists in the computer industry with years of experience in providing businesses with bespoke built PCs designed to meet clients’ specifications. A wide range of customisations are available, allowing Fierce PCs’ expert system builders to deliver custom computers which work efficiently for your business. A trusted repair service is also available for existing models to restore full function.

t: 01706 214 233 e: sales@fiercepc.co.uk w: www.fiercepc.co.uk

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classifieds Insurance

Offering professional indemnity insurance policies for businesses in a quick, easy and stress free manner.

Cavendish Munro are an established indemnity insurance broker with head offices in The City, London’s centre for insurance. The client is always put first with Cavendish Munro and a suitable policy is provided based upon individual requirements and circumstance.

Whilst professional indemnity insurance is vital for all businesses, the process of acquiring it shouldn’t be; which is a key goal for Cavendish Munro. The aim is to keep this process as simple and straightforward as possible, therefore avoiding the use of complex, industry related jargon and offering clear forms to fill in to purchase the required insurance quickly and hassle free.

t: 020 7264 0545 e: enquiries@cavendishmunro.com w: www.cavendishmunro.com

Invoice Factoring

IT Support

The Credit Management Bureau’s mission is to save you money and help you grow by getting you on the right commercial funding package to suit your business. We find you the right specialist commercial funding providers who will get you the best package tailored to your needs. Be it Invoice Factoring, Discounting, or any other type of asset based finance, we can get the right people in front of you; including your own personal business manager.

Call us today to arrange your free business funding review.

Atkins Solutions Ltd provides quality, but personal IT Services around the UK and World. We make sure that you get a quality, personal and professional service 24 hours a day. Atkins Solutions Ltd offers a consultancy service that brings a new approach to a client’s IT system, exploring the range of solutions available to contribute to a business’s success.

t: 01684 569262 e: factoring@creditmanagement.biz w: www.creditmanagement.biz

t: 01274 669512 e: info@atkins-solutions.co.uk w: www.atkins-solutions.co.uk Logistics

FLEXIBLE, ALWAYS-ON, COST-EFFECTIVE, RESPONSIVE IT: • Secure, high-uptime colocation data centres • Server, cloud and DR infrastructure capacity • Highly reliable Internet access and Ethernet leased lines • Expert advice and management with 24/7 support

Providing a comprehensive selection of IT and telecommunication solutions which are bespoke to each company’s needs.

The IT Group-UK offer a range of services in the field of IT and telecommunications with experts in electronics and electrical engineering. Working with companies including law firms and accountants, IT Group-UK provide a consultancy service to assist with all aspects of IT including design, planning, business process reviews and data recovery.

Why not contact us for a consultation on your next project?

t: 020 33 68 68 48 e: sales@connetu.com w: www.connetu.com Marketing

t: 0845 226 0331 e: enquiries@itgroup-uk.com w: www.itgroup-uk.com Printing

Providing bespoke promotional items for your company, allowing you to take control of marketing campaigns and provide branded items for customers.

Boasting over 20 years of experience in the industry, Promotional Plus offer the highest quality products that are available for you to design to suit your business. Some of the branded products stocked include stationery, key rings, banners and stands, watches, crystal ware and much more. These products can be branded with the option to use your company colours, logo or any other images you wish.

Offering a wide range of printing services from envelopes through to display stands to meet your business needs.

A long established, family run business, Envoprint offer a reliable and quick printing service to companies within the commercial sector. From envelopes to display stands, point of sale displays and presentation boxes, you’ll find a cost effective service that sees you supplied with products of the very highest quality. From the company’s formation in 1990, their skill set and services have extended over the years from specialist trade envelope printers to now be able to meet an abundance of printing and display needs.

t: 01380 715470 e: sales@promotionalgifts.com w: www.promotionalgifts.com

t: 01246 561 506 e: keith@envoprint.co.uk w: www.envoprint.co.uk

Social Media

Website Consultancy

Wouldn’t it be great if you knew why visitors were leaving your website?

Overwhelmed by the noise on social media?

SOCIALSIFT cuts through the clutter and decodes the complex social media conversation.

Decode the Noise t: 020 7202 7480 e: h.richards@socialsift.co.uk w: socialsift.co.uk

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Why they weren’t contacting you, buying your products/services, downloading that free e-Book you wrote!

If your website could do all that then marketing it would be a breeze, right?

Well that’s possible. As a consultancy we don’t build websites, we review and identify problems with the one you already have to help support your marketing strategy.

How awesome would that be, to turn your website so it not only attracted visitors but turned them into customers.

Karen Peters t: 020 3701 7843

e: info@therightsite.net w: www.therightsite.net

Established 14 years ago, SHS Handling Solutions offer a huge range of handling and workplace products. As recognised suppliers of high quality materials, the company offer an unrivalled approach to customer service, always going the extra mile to source the specific products, even if they’re not currently available on the website.

Providing endless solutions for the workplace, SHS Handling offer a fast and efficient delivery service across the UK as well as providing on-site servicing for a range of products.

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t: 01280 825740 w: www.shshandlingsolutions.com Promotional items

Fob keyrings make it easier for your customers to contact you.

Go to our website to request our FREE sample pack, so you can see for yourself how effective these can be. www.fobkeyrings.co.uk We offer FREE artwork, printed double sided, in full colour, with FREE delivery. x250 fob keyrings only £59 x500 fob keyrings only £95 x1000 fob keyrings only £145 An affordable way to stay in front of your customers.

Go online now and request our FREE sample pack.

t: 0777 6287 501 e: info@fobkeyrings.co.uk w: www.fobkeyrings.co.uk Web Design

Specialists in website design, e-commerce websites, iOS UI design, CMS’s, branding and web app design for start-ups, SME’s and large corporations We create website design solutions from initial research & concepts through to development and build, working together with you to craft the perfect solution. With over 15 years experience working with clients such as Fujitsu, Geocel and more, we have the expertise you need.

Contact us today. We’re easy to talk to and great to work with!

t: 0845 3631162 e: info@kc-webdesign.co.uk w: kc-webdesign.co.uk

02/02/2015 18:51

Get inspired by the many faces of entrepreneurship At Elite Business, we’re passionate about championing new business. Providing fresh perspectives and representing disruptive solutions, we’re interested in the new generation of business that is helping to drive Britain forward.

Every issue covers up-to-the-minute content and presents a unique angle on the things enterprises need to know. We also gather the best and brightest voices in the community to share their experience. Whether it’s Holly Tucker conquering e-commerce with notonthehighstreet.com or Richard Moross revolutionising the print industry with moo.com, we profile the individuals reinventing enterprise.

LEVI ROOTS, Reggae Reggae Sauce

KATHRYN PARSONS DECODED

PIERS LINNEY, Outsourcery

Mark & Mo Constantine, Lush

Martin Dickie & James Watt, BREWDOG

No matter your market, we’ve got it covered

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DAVID RICHARDS, WANdisco

HOLLY TUCKER, NOTONTHEHIGHSTREET.COM

Clive Lucking, Fourfront Group

THEA GREEN, NAILS INC JACQUELINE GOLD, ANN SUMMERS RENAUD VISAGE, eventbrite

Receive 12 issues of the UK’s best new magazine for entrepreneurs for only £20* Subscribe to the print edition and enjoy free access to the digital edition every month.

Call us today on: 01245 707 516 or visit: elitebusinessmagazine.co.uk/subscription QUOTING REF. ELITEOFFERLT2 *Limited to new subscribers at UK addresses only. Please allow 28 days for delivery. Overseas mail: Europe £60; rest of world £95. Offer closes 28.02.15

096EliteBusiness0215.pdf 2

02/02/2015 16:46

the START-UP DIARies

Bootstrapping your way to success Sarah McVittie, co-founder, Dressipi

Capital doesn’t always beat control over your business; Sarah McVittie explains why organic was always the best way to grow

dressipi.com

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f you believe what you read in the news about businesses like Uber and Shazam, the life of a start-up entrepreneur is all about securing lots of money from venture capitalists and then conquering the world. The truth for most of us is very different. While it makes perfect sense for certain types of businesses who need to scale very quickly to pursue large amounts of funding from VCs, there is another path to help grow a successful business from a standing start. It’s the path we have chosen at Dressipi: bootstrapping.

This term bootstrapping refers to businesses that focus on building their products and services using the minimum of financial resources. Essentially it means that we’ve taken the decision to raise only the money we absolutely need to develop Dressipi and try to be as capital efficient as possible whilst we are proving out the business model. We keep our team tight, our central costs low and rely on word of mouth, reputation and good oldfashioned shoe leather – which seems fitting for a fashion business – to spread the word about what we do.

As strategies for growing a start-up go it’s not particularly glamorous (we certainly can’t afford a slide for our new office) and it’s definitely not easy. But we do passionately believe it’s the right strategy for us in the longer term. Companies with lots of VC funding do have some big advantages. They can buy their way into the right events, pay developers lavishly, sponsor conferences, pay for advertising. Additionally, they also get the signal boost of being the

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business that raised X million to change an industry. If they’ve had a big funding round, the assumption is that you have to take them seriously.

But there are downsides that convinced us it wasn’t the right approach for us. Highly capitalised start-ups can end up giving away control over the direction of their business and, depending on the VC, can end up being driven by their fund’s requirements rather than what is necessarily right for the business. Being in a particularly nascent industry, we felt it was important to really understand where we delivered the most value before we started taking large amounts of cash. When it came down to it, we wanted the control that comes of owning a bigger share of the Dressipi. We wanted to be able to decide for ourselves, when the time was right, whether we should grow organically or take on a series-A investment. So we plumped for selfdetermination over spending power.

I won’t pretend that it hasn’t been really hard sometimes. Relying on direct approaches to retailers to build our sales pipeline, rather than a softer mix of sponsorship, conference appearances and roundtable dinners means I’m sure there are a few retailers who are convinced I’m a stalker. We’ve hustled hard, worked hard, succeeded in some places and in others we’ve been knocked back and learned not to take it personally. Along the way we’ve built a product and a list of customers of which we can be truly proud. What’s more we can say we did it ourselves – which is certainly more satisfying than an office with a slide.

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