Fresh Young Millionaire: Issue 4

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NG PEOPLE U O Y R O F E IN Z A AG THE BUSINESS M

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Issue 4 The Lean Issue

18 DENIM DILEMMAS

CONTENTS FreshYoung

M il li o n a ir e

AZINE FOR THE BUSINESS MAG

Inspire the next generation!

P PLE YOUNG PEO

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THE LEAN ISSUE I

The PrintIT! 2013/14 competition is now open for registration!

CAN YOU START A BUSINESS IN 48 HOU HOURS?

More than 140,000 students have taking part since 2005! The PrintIT! 2013/14 competition is designed to promote the world of print and paper to students and teachers. Students produce a print based project to promote Fairtrade Foundation products on sale in supermarkets.

24 SETTING THE STAGE ALIGHT

Teachers are supplied with a guide which includes a series of prepared lesson plans, multi-media resources and interactive presentations.

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ir n P

18 How Lean can You Be? Eva & Paul Jeans measure it up 24 Your Dancing Days aren’t over: DJ Will Kemp rocks the biz 26 Develop with your customers: Louis Barnet chocs up experience

36 BANANAS FOR FAIR TRADE

42 50 3

SIR ALAN ADDS SPICE

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4

Can you start a business in 48 hours?

TripStarter shares the experience, Can jeans be lean?, On the UK stage...and more

28HAPPY HR 34BOOTSANDBUDGETS 40AFAIRERWORLD 43 WINATABLET

People are your biggest asset

Lean ways to budget for success

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Real Stories

Find out how you can get involved: www.printit.org.uk | 01235 833844

8FYMHITSTHESTREET 16REALSTORIES

Business Portfolio: The Model Issue 12 Epic Enterprises: History of big names and how they did it 14 The Lean Machine: Can one business model change it all? 21 Give your business the boot: How bootstrapping could be the start of all things new 23 Get cracking: put a basic business plan together in just 20 minutes! 28 Hirers, Keepers: Employing the right people isn’tt simple ople isn si

43 WIN A KINDLE FIRE HDX 7

YOUNG ENTREPRENEURS TELL ALL

The new Kindle Fire HDX 7

Tech Time 30 Top Tools for the Lean Team 32 Eva & Paul test tech out

Money & Sense 34 Budgeting basics for lean times 36 Save & Share: Great ways to be a fair and frugal 38 Spend: Top trinkets from fair trade retailers

Count on it (in every issue) 8 Word on the Street: Can you start a business in just 48 hours ? 33 App Up & Download 47 Reframe: Get your social thin thinking straight 50 0 Legendary Leaders

30 YOUR BIZ PLAN IN 20 MINS TOPS

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5 A Coolpix camera 43 FYM’s First Award!: Yes you 42 Fair trade in your jeans could win a Kindle Fire HDX 7 44 4 Big Issues are a Good Thing: and get your story told! Big Issue Invest supports social 48 Or a Kindle Fire HDX 7 if you ent subcsribe online! entrepreneurs like FYM!

Making a Difference Ma

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contributors

ed's letter

FAVOURITES FROM THE FANS One year y ye ear of our favourite tweets, e emails and images from all of you

<PM \[ ÅZ[\ 1[[]M" Q L M P K V ] I T i s about Z IOW .A5 storie I t M a e a r M g V h W a it \T w K `I cked d but illionaire. Pa ere exhauste w e w Homemade M , s r u e n e we entrepr reat feedback g kitchen sink e th ll a y b ncouraged rs! excited and e U – our reade \MZ _MŸ^M O Y m o fr d e M[ TI receiv VL \PZMM 1[[] I V W Z I M a M OV y to shift into d a e r w o n e r nd a learned lots a second gear! \W KMTMJZI\M" \ [ O QV \P N W \[ the new <PMZM IZM TW you think of o d t a h W MTT ][ : k A New Loo ]T' <_MM\ \ W . Z W P [ M Z . Q\ nd seasoned a 1[ s e ' c S W fa W h T s Z e M ^ fr KW ome team! With s t stories and a e r g f o ll fu We love our is en e writttte fourth issue liiffe veterans, this r success in business and s fo sure start tip lists p6. ed by stories ir p s in a t n s r o u m jo e we ar by junior ake our world m nce: At FYM e r to fe d r if a D h a k r g ho wo ZILM Makin businesses w TWWS I\ NIQZ \ d I n P a Q\ le p _ o V e W p [ t abou ZZQM[ ] <PQ[ Q[[]M KI M K TI X Z M M \\ M I J [MZ TWWS I\ \P TW K I P Q\ _ M ] PQ[ Q[[ ting p36-42. WVM Q\ IOIQV \ sses are adop L e M in Ÿ^ s M u b ? : w s o a h e . d out Big Id work for you odel p14. Fin l M il s w s e it r in e s u th B e Lean up and wh ZQ^QTMOML \W g n X V ti M r M ta J s M f o Ÿ^ M d KPQVO _ this metho ZMVM]Z[ <PQ[ s! ;QVKM TI]V X M ie r \Z V to M T -S o N] r [ e [ WV []KKM Super-H ^QM_ TWIL[ WN ,2 ?QTT 3MUX Z \M V X Q L U V I I M \ \ M Z UM Z\M I NM_ ]\ \PM <ZQX;\I T X \W VIUM ] I 8 I ^ Q[[]M KPMKS W top tips for [\VMZ NZWU d I n a 3 I y TQ e ] n o 2 L m V 4! X I ting to From marke geting fun p3 d : e u b ic e v k d a A m y v to Sav way ia. even found a s a h M on social med l Y g F in h k in tec th r u o socia to reframe y t almost 100 s [ in a g a Also see p47 p u t n 1[[]M 1V^M[\Ÿ we QO M * Y M F P ! < s P r e Q\ n _ VMZ We’re Win M W]\ I JQO _QV JW]\ Q\ WV X U I K L V I [ M Q[ L ITT I MV\MZXZ XM\Q\QWV :MI U W K L W W / Z W <MKP N ]M -VRWa \PM Q[[

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Ed’s response: Thanks Ronan, We’re glad you’re a fan. And congratulations for winning the Totally Funky prize!

Editor-in-Chief: Pamela B Whitby Fave story? All those that involved our young Selling some‌ contributors in live interviews MOVIE MAGIC with real businesses: Cad & M the Dandy; Samantha Park Soundd Sum mmeerr (Issue 2); MuggleTours and I the incredible Gandys (Issue 3). Fave page layout? The contributors’ pages which have got better and better! Creative Direction: Rob Castles, Red Onion Design Fave story: Probably Gandys ipops – it’s always interesting to read aboutt people l surviving i i in the face of adversity. Fave page layout? Gotta be all of them! - though I did like using my pic of the retro ice cream van... Managing Director: Reesa Amadeo Wolf Fave story: Probably Madam CJ Walker (Issue 1) because she was so inspiring as the ďŹ rst self-made female millionaire in America! With no education, born of former black slaves and from a poor background; Walker overcame so many obstacles & then was so generous to others. Fave page layout? Issue 3: Pushing Boundaries, Pulling Crowds Be fLexible B e

Tap your T your ur r net ne n network et et

Plan,plan, plan!

Happy festival-ing!

real life

real life special

Choose e wisely

Nocturn Alley by night

She goes by the moniker of Hana 'Potter'

What’s in a name? name is Hana Umezawa

Her real Potter. but her nickname is Hana 'muggle' "The idea came from a wrote it who came on a tour and was great in an email. I thought it also so I adopted it. Our guides have Harry Potter monikers " Steph Black, John Lupin‌

12

that doesn't mean we should agic may be the But up. Although it was tough, main ingredient give a skill Hana decided to improvise, in a Harry that would later prove Potter inspired indispensable when delivering walking tour, to her carefully crafted script plain but it hasn’t always been a diverse, sometimes sailing for the chief ‘muggle’, demanding, range of Hana Potter. customers. After graduating from in Manchester University Everybody has a network in the dad and international relations, Luckily Hana’s Japanese Hana depths of the recession, were both tour doing Spanish mum simply couldn’t get a job guides in the 1970s. the work she was passionate “My dad was asked by the about. This was disappointing take a Japanese consulate to and demoralising, and certainly group around London because Lots of not what she’d expected. there weren’t many Japanese in a young people today are people in London who were feel for explains. similar position. "I really she English,â€? in uent there it ďŹ t you guys. It’s tough out “Mum got into it because so she right now,â€? she empathises. well with her schedule, and With recent unemployment began guiding for Spanish 2.6 ďŹ gures reaching nearly South American tourists.â€? million, after another 20,000 Faced with unemployment, to she under-25s added their names Hana's parents suggested point. the register, Hana has a

all have “aWe network,

it’s about who you know and who they know‌ �

tour give it a go. While having an guide parents was certainly to come advantage, she still had that she up with a new tour idea could deliver knowledgeably, “I with imagination and passion. and grew up with Harry Potter absolutely loved the magic the realism of the books, and many ďŹ lms too,â€? she says. Unlike believes book adaptations, Hana Rowling’s the ďŹ lms are true to JK

28

fresh young millionaire

Everybody loves summer music a festival

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WORDS BY

SCOTT BARRATT

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by Nike products are worn oustanding sports people

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HANA’S TOP TIPS

an be treated and delivering ďŹ rst O Enjoy what you do. If Putting the customer featuring excellent, personal customer on a creations. With London takes all you don’t you will become Once Hana had decided an ideal service,â€? she says. Hana her so strongly, this seemed aims theme for her walking tour, dissatisďŹ ed and it will reviews very seriously and opportunity. However, before to thoroughly reect on your business on her next step was to learn as much from customer launching on her own, and research and develop the she feedback as possible. Keeping O If possible do an Link, a parents’ recommendation, business idea. Business to the business fresh is really internship and learn as worked for other tour guides help you government backed helpline, important, and reviews much as you can in touch learn as much as she could; says. recommended she get she to learn and improve, she internships are something O Always consider the with the East London Business Looking to the future, Hana with highly recommends. may human side of a business, Centre. Here she got help recognises that the magic up a Hana also encourages in and put a lot of effort into practical issues like setting use their not last forever, as interest legal anybody starting out to much company, the necessary customer service and Harry Potter depends very 'personal network’ of people documentation and paperwork. a O Respect your employees. on whether the huge popularity connections. “We all have Six months later, in the you know of the books and ďŹ lms continues. If you truly value them tour network, it’s about who of summer of 2011, her walking But she loves the business they’ll do their job well not and who they know,â€?she lots for Harry Potter fans, exploring tour guiding and is exploring only for their sake but also stresses. and the inspiration locations love ďŹ lm “I has of other possibilities. for yours relevant Hana explains how this I’ve met, behind the books using one what I do. The muggles and worked in her own business: O Learn from mistakes. get props and trivia, was up and the enjoyment they Tours is of her ďŹ rst guides, an actress, Take negative feedback, running. Today Muggle from the tours, plus the and was close friends with, Harry boss, ranked No1 by TripAdvisor improve and grow freedom to be my own Melling, the actor who played London, which Hana Out Time makes it all worthwhile.â€? Dudley Dursley in the Harry attributes to keeping groups him we Potter ďŹ lms. “Through BY small and putting customer WITH ADDITIONAL REPORTING hadn’t VITURSHAN THIYAKUMAR discovered a location we RACHEL GOACHER “I strongly believe in WORDS BYALLEN, ALANA O’SULLIVAN AND en route service ďŹ rst. GREGORY like to known about, which was RESEARCH BY XXXXXXXXX treating people as I would and easy to add to the tour.â€?

The

of

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history TIMELIN E

Muggle Tours is a successful Londonbased Harry Potter themed walking tour, which launched in the summer of 2011. FYM meets the 28-year-old ‘muggle’ behind the business

Set it free e

Be bold bold. A festival should push the boun th bo boundaries ou to create somethin something om methi ethin great for all. If you have ve a an id idea, run with it! Do what at

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ONION

music ice like to to sell to attract are many different call it candy in the customers oss, Canada . Many vehicles which - Between drinks and have diversiďŹ ed from tricycle so on. 1959 Scandinav carts and and 2002, ice cream Dickie Dee ia – Here sell ice sold ice the trademarktrucks. cream cream to customers light blue track of in a box. Hjem-IS their delivery Customer trucks s can keep online online. Peru – Vendors on bicycles es sell ice cream, crea ea am using a tru trumpet ru to att at attract attention. at a

ROB CASTLES/RED

After these a banned were for 1926, Agneshygiene reasons in B Marshall, Victorian entreprene a the ‘Queen ur known ass ďŹ rst edible of Ices’, created the cone. By the early part century of the 20th the ďŹ rst motorised vehicles, manufactur known ed by a company well-called Whitby Morrison, had made an

20

DESIGN

The distinc tly old-fashioned t’s a blisteringly hot mid-August tinkle of day and appearance stress of the exams the 1920s Walls . However, in and coursework the cream van ice is over ice cream introduced the the tricycles another for trike, emblazonedďŹ rst year. Chilling park with the sign re rreq as military were requisitione eq something is quisitio qui qu uisit friends, isitio isi isitio tioned ioned with on ned installations installati jingle, followed a familiar in the People ‘Stop Me and d ation on Buy One’. ns. ns young children, s. s. certainly by the shrieks and old did. By Walls had Boom tells you 1924, 1924 50 trikes tim times of yo that alik alike t summer and by In the 1950s the really is then were in operation identify here. and 60s In the UK nearly ÂŁ14,000 turning in the UK with. It is, unpredictab over the weather had freezers,few people sales. Things in ice cream mobile is after all, so the van temperatur le, so when the better and would only this sweet was the place a get to buy by 1927 wants to es do rise nobody risen to that has sound sales had Unsurprisinsummer treat. walk far nearly ÂŁ450,000. gly, business delicious, for been During and at refreshing a perfectly World War this time boomed heard for inexpensive milk was and there were about 20,000 II, however, in short isn’t hard treat. So it really people supply Soft serve vans in operation. a centur well over cream so to see why ate less ice cream, ice cream the ice the UK van y. arrived and in the summertimis such a successful in investigatesFYM holidaying late 1950s. e business, in America While that has and been in 1958, evolution the Global App over a century.around for one well of this In the UK, Ice cream long-standing eal this delicious treat was sales on dairy ďŹ rst the move United horse-draw sold from happen summertime States elsewhere cream – Mister Then ice n carts in the van 1850s. cream was too US. Today, - or ‘truck’ Softee was the business reusable as glass knowneaten from a also play however, therethe AmericansďŹ rst soft serve penny-lick. as

the director of Smiths, supplied which vans to the ice company cream Lyons, spotted opportunity to sell soft an cream in serve the later, Mister UK. Just a year ice Scottish cost ÂŁ3,200,Softee vans, which - most entrepreneur, appearance made an well-know Duncan Dragons’ in the UK. Bannatyne n for his operated They appearanc under the appeal Den - clearly Smith & e on of owning saw the banner Lyons – 1970s, of commerci an ice the company having cream all had driving, and the delivery van van. In brand had UK ice cream Duncan enough of the doing this business bought formed the a partnership In those per run required an ice cream paper described and a . of money days, ÂŁ3,200 van for the businessdragon-lik i was tough, ÂŁ450. taxi to with could buy spend on a van a lot of selling e resolve; Duncan Running attacking rival companies ice cream has there was a house for less! – you youâ€?. But sometime as “notorious seven Still, he was days because clearly an opportunity ly eventually a week, which willing to s muscling in, Lyons eventually work even Smiths sold that meant a generous made he could 12 hours a business 61% share offer for for ÂŁ28,000.buy more day, their in the business. vans – Before he long, though, have competition supermarke Lyons would another . In 1961 cream and t sales of cheap Walls, famous ice cones have UK ice cream brand, sales. COLD set undercut WAR competitionup Mr Whippy The weather In April, in . ShefďŹ eld’s - We ice lolly approved city council in mid-Augustall love an Fast forward let’s face reducing an emissionsheat, but it plan that With summer to now our British we can’t guarantee ice cream would force weather! here, we forward Healthy van every vendors to buy all look to a new ďŹ ve years number an ice cream has been eating – Governmen around but of vans at cost concerned ÂŁ60,000. t on the road the fallen dramaticall levels of put many about rising This wouldof has obesity few decades. y over mean families which could including out of business, There are the past ShefďŹ eld’s are eating reasons cream – 138-year-o several for this: oldest less ice though we think Competition absolutely happens, ld Granellis. If - the there is this and other - In recent ice cream nothing wrong follow, councils years, with an this could treat as balanced part of the ice be the a diet! Q cream death of van.

First edible cone invented by Agnes Marshall B

1906 Ice cream from horse-sold drawn carts

1923 Walls introduces the ďŹ rst ice cream trike

1926 Penny-lick s banned health for & hygiene reasons

Toughing it Out

1947 Walls sells 3,300 trikes and invests in freezers shops for

1959 US soft-serve ice cream arrives London in

1961 Walls introduces Whippy in competitio n

SHING

LAU

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Mr

2013 ShefďŹ eld county council says vans be replacedmust every very ďŹ ve ďŹ v years

RESEARCH

BY FU

1850s Ice cream served in re-usable ‘penny-lic glass k’

1888

millionaire

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business iness out and meet local stars but remember they yo you can and believe may in yourself demands. Consider have crazy a and nd you’ll create if they ďŹ t something truly your image and a awesome! w most importantly do they sound good? ? A band called Guts & Gore, for example, won’t ďŹ t at a festival that’s all about peace. Audition a wide range of bands; ďŹ nd out what makes them tick. e goes for businesses The same Your festival is you may supposed to be partner with. fun; fun a celebration Want a company of the summer, that promotes off the people charity? Find you’re with, of one. e. The venue matters those that made tho th too! You’ll it happen and need somewhere life fe in general. Many smaller that people will ll want to return festivals fes nowadays donate to time and again. much n. Whether it’s an of their t proďŹ t to charity; arty spot or a LeeFest ďŹ eld on a farm, don donates everything. You choose a place don’t that people will have hav to go that want to be. far, but about less fortunate do think ab people. If your you festival is free, have a do donation box. If you’re charging for tickets, donate some of the You Y Yo o may have a pro proceeds ro to charity. Remind very clear vision n your but but ut remember rev revellers that nobody has a their celebration mo mo monopoly is helping to make he on ideas. Your the world a priority y may be about may better place. be giving but you may have to charity, to work with a land la landowner d who is more co com commercially minded. Perhaps you only you o want Djent heavy metal al band whose bands, musicians sport beard playing beards, at your festival. But this th is such a small sub-genre re t that it may be impossible to ďŹ nd enoug bands en enough to perform - and wil an will anybody come? If your gues guests ests don’t like the music, you could d have h a problem! Make exceptions excepti when and where you have to. to Be prepared to compro compromise. o

ba back ack garden, including ac the po police. oli oli l 2011, as the London 201 This was the start riots broke of what wha w ha is today known ha out, out Croydon’s ďŹ nd his own space. ďŹ n main transport as LeeFest, Call on t, hu an independent an hub was on ďŹ re. iin anybody an willing to help. not-for-proďŹ t With m mu music k us and arts thinking and planning,some quick thi festival. Today which the th he festival attracts he involved inv talking to the around police, Lee 2,500 2 2,50 e ,5 50 revellers 50 managed ma to pull the festival to a small back working wo wor k from fro the brink farm on the outskirts of disaster, s off making Kent Kent and donat Ken ma aking it as successful while donates don o all proďŹ ts to as any charity. ch cha har a arity previous pre rity. revious event. y.. This helped to Lee goes Le restore res estore his faith If y goe your festival is es to show sho sh how ow that in humanity. t a great gre gre rea not eat e a at every eve ev ve v ery e rry y festival experience, ex festival h xperience, people has to ha t be ew will will want wa to Glastonbury. Glas t las stonbury stonbury. stonbu tonbury ton to onbury. come co ome back. While bu ur It IS S po p possible ossible os e to word-of-mouth rd-of-mouth d-of-mouth t -of-mouth of-mou of-mout mout m start s star ttar arrrt small Lee ee D marketing ma m Denny arket enny ll iff you ketin ny breaks bre yo you h ng works w s wonders, have ha vision, vision onders, nders, nd ders, there the rules tthe energy ene ergy and courage. are other ways coura courage co ourage Here ou to H Her o rai rraise se he sha s shares ha h are some of a awareness. After his top tips. fter err Lee's Le fourth L fou fourt four festival, the local loc ocal council c co ban bann banned nned Even the smallest the event because ack in 2006, ecause cause it was festival isn’t a Lee as too one-man job; noisy. So Lee Denny’s parents it takes a team e dressed dress re forr the th of people - from countryside in were going on security n a fake f Barbour staff and the musiciansto catering jacket and holiday and had headed ade aded ed out ed o to convince themselves a local decided farmerr to lend - to pull it off. le end hi a ďŹ eld. end en You’ve him behind. There to leave Focus time and also got to have These unconventionalhim energy on was just one awesome people enttio onal o n rule the 16-year-old creating your attending, because helped kept LeeFest l methods idea and vision Lee was eFes a festival is estt ali alive, while but given to stick make sure you essentially a celebration supporting and to while they plan for‌ the d adv advertising dve vertising the ve were of away: no house weather, for a people coming brand at the same parties. Okay, riot, for an together. If you me e time. t tim The thought Lee, accident, as well have friends in event is now held I’ll do the logical as the a band ask them d on a small thing and host practicalities like to play for free working farm a festival in the relevant to get it off the on n the back garden instead. licences (p23). ground. They Bromley and Croydonoutskirts of As Lee says "you will gain publicity ydon in Kent. His parents had have to plan for and your festival been gone it to not to go will to for just four hours, plan". Although moving the festival too. After we can’t control and Lee had from his back already booked the weather, you garden, Lee needed a line-up of need to plan for a new local musicians. any eventuality. venue. Again A week An outdoor he tapped his 150 people descended later event could be network by asking a wash out in on his his head heavy rain, so teacher if he could have a back up. use a school In ďŹ eld until he had As your festival the money to grows, ows ows, ws, you you’ll yo l need more than justt friends. G Get

Get G creative cr c

Dear FYM magazine, Today my teacher for business studies offered me a copy of your amazing magazine. I know it’s only been a few hours but I ďŹ nd it really interesting and inspiring and when I put my paper round wages in the bank, I will buy the two-year subscription! What I found most interesting was the interview with the ‘Super Jam’ founder Fraser Doherty p42. Oh and the competitions are great!! Competition 2 Entry: #Funky: The gadget I can’t live without is my laptop; it’s the only one that won’t criticise me for writing bad business ideas down. Thank you for inspiring me more to read and get more into business. Ronan, 14

any and Wales Comp tered in England .com gis Re . ed rv se re ire . 2013 All rights shyoungmilliona Young Media Ltd ad, London SE19 1QF. info@fre and Š by Fresh Ro FYM is published 8 Burma Terrace, Becondale 1414 Number: 0804

4

Pushing Bou

ndaries, PULLING CRO WDS

Summer is a great considered holding time to attend a music festival, FYM talked to the one in your back garden when but have you ever founder of LeeFest your who did just that parents are out?

fresh young millionaire

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contributors -

Cale Harrison, 18

Naeem Randeree, 17

Studying: Economics at Royal Holloway Words: Reframe p47, App Up p33 Most interesting lesson: Lean management rocks Biggest challenge: Editing - you have to be self-critical - it takes a knack Best tip for starting lean: Just do it! Memorable summer adventure: Peeling onions in a carrot factory - an eye opener! Ed's note: Cale helped to factcheck, proofread and rework a handful of articles which he did with enthusiasm and talent.

Studying: A-level Economics, English and History Future ambitions: To become a lawyer or go into commerce Research: Budgeting p34; The Lean Way p15 Best tip for starting lean: Budget for changes as a result of customer feedback Most inspiring business this issue: Dropbox and how it started ‘lean’ Memorable summer adventures: Visiting the Dead Sea in Jordan and floating on water!

Fushing Lau, 18

This issue FYM says a bittersweet goodbye to a handful of loyal contributors who are moving on to pastures new. We wish them the best of luck and thank them for their contributions, not only in writing but to the FYM team. On the plus side, we say hello to some talented students who have upped the game yet again. We also had our youngest ever group of students (Year 7s) produce the Spend Save Share section. It’s been fun!

A much-needed break Vithurshan Thiyakumar, one of our founding team members, had a challenging summer with a lengthy hospital stay. We quickly reassigned his stories and wish him a speedy recovery so he can rejoin us for the next issue! Get well soon!

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FYM

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Gregory Allen, 17 Future ambitions: Astrophysicist or Journalist Research: The Lean Way p14-15 Biggest challenge this issue: Simplifying the Lean Startup method Memorable summer adventures: Where do I start?! Most looking forward to: Completing sixth form

Studying: Law at Brunel University Research & Words: Legendary Leaders p50; How to capture your business model in 20 minutes p23 Most interesting lesson: A business plan can be simpler than you think Biggest challenge this issue: Sticking to the word count and keeping it relevant Memorable adventures: This is my last issue of FYM but being part of all four issues has been memorable.

Charlie Woodman, 17 Studying: A-Level Economics, Geography, History, Maths, Extended Project Qualification Words: Bootstrapping: It could work for you too p21 Most interesting lesson: Bootstrapping is different to starting lean Most inspiring business this issue: Braintree - it was one of the fastest growing businesses in the US in 2011 and 2012, and started without an angel investor

Alana O’Sullivan, 20 Vicky Chandler, 20 Studying: Journalism at Cardiff University Future ambitions: Editor of a top publication Words: Lighting His Way p24 Biggest challenge this issue: Word counts! Memorable summer adventures: Internships at Stylist and Grazia magazines Most looking forward to: My role as Cardiff University’s Journalism Society President

Sam Collard, 15 Studying: Maths, Science, History, PE, RE, ICT Future ambitions: To work in banking Words: 10 tiptop tools p30 Memorable summer adventures: A holiday in Cyprus with my family Most looking forward to: Achieving good grades in my GCSEs and returning to Cyprus!

Tom Fogden, 19 Studying: History at University of Exeter Future ambitions: To be editor of Top Gear or prime minister, depending which comes first Words: Blood, Sweat & Tears p12 Most interesting fact this issue: Only two people know the actual recipe for Coca-Cola Most looking forward to: Seeing my football team, Crystal Palace, play in the Premier League for the first time in ten years

Studying: Advertising and Brand Communication at the University for the Creative Arts, Farnham Interview & Words: One Size Doesn't Fit All p18; Trying it on with Tech p32; Lean Mean Fair Trade p42 Best tip for starting lean: Maximise the vast opportunities to gather information online but never underestimate the importance of first informing yourself with detailed qualitative data Most looking forward to: My final year and graduating

Dominic Yilmaz-Drew, 17 Studying: Maths, Economics, Biology and Chemistry Research: Word-on-the-Street p8 Most interesting thing learned this issue: There are so many helpful websites out there for startups Most inspiring business this issue: Ford Memorable summer adventures: Hanging out with friends

TEAM SPIRIT T Year 7 Top Set English class at Wimbledon’s The U Ursuline High School produced this issue’s Spend S Save Share section (p36-39). The girls proved tthat great teamwork and a game teacher can lead tto outstanding results. Rebecca Bell, the KS3 E English Coordinator at UHS, said: “The girls w worked really hard and have enjoyed themselves a as well. It has been wonderful being a part of p producing a section of a real magazine.” From top right: Georgia Mannion, Kaitlin Fitzpatrick Spacey, Chloe Tunnell, Erin Powell, Kitty Garrett, Catherine O’Dea, Kiara Shardow, Norma Konadu, Niamh Laing Second row from left: Paula Back, Aisling Carter, Abigail Burgess, Chloe Delaney, Eisha-Mae Medina, Mary Mfor Mpecassah, Jessie Holt, Morgan Grover, Gemma Craig-Sharples, Nicole Howlett, Rebecca Bell. From bottom right: Madeleine Bentley, Aimee Colohan, Caitlan Murphy, Meghan Green, Emilia Totman, Katherine Cunningham, Erykah Boaten, Neve Clegg, Lucia Claus Not pictured: Rachel Maher, Lorna Callan

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FYM 7

word on the street

Experience Speaks

WORD on the Street

What do those who have started a business think?

Starting a business venture in record time has been glamorised by TV shows like The Apprentice, but is it really possible? Roshan Yes

T HE BIG QUEST ION

Ose Maybe

67%

s Your reason Internet makes 17%y

e believe th

it eas

nections n o c t a e r have g ! lucky you

10%

But…

possible if ly n o ’s it es if believe simple. “Y p is a e id s es p-u the busin ade stand or a po n o it’s a lem rs” e hairdress

10%

8

YM FY

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Julia Kastner, chief executive, Eva & Paul p18

“You can have concept and a team. That’s a good start but it takes a bit more than that.”

‘Can you start a business in 48hrs’ is at YES it believe th ss in just e art a busin t s o t le ib poss two days

“You cannot start a business in 48 hours - incorporation and setting up the right legal structure takes a long time! But you can do a minimum viable product test in 48 hours that can help you decide whether a business opportunity is worthwhile pursuing.

Afzaal Mauthoor, TripStarter p16

“Sometimes in business, the opportunity and timing demands ‘Ready, Aim, Fire’, but not often. It’s relatively easy to build a website around a great idea and launch in 48 hours. But the reality is that Sprint is 48 hours, yes; but then prepare for the marathon.”

Jenny Yes

Samar Yes

Kai No way

Roseline No way

Don Birch, travel industry mentor and investor p16

“In 48 hours you could have a website online and a business bank account but no more. You need to spend a lot of time planning your structure.” Louis Barnett, chocolatier p26

33%

onvinced are less c

s Your reason’s too 12%

all think it can’t do it u o Y “ d e t complica ” lf by yourse oney is a believe m ave money “If you h big issue. possible” is anything MÅVQ\MTa VMML L ¹AW] _QTT fund you” to e someon

11%

WHAT Y TAKES OU THINK TO STA IT RTUP

For mo st ingredie respondents t n money, ts for busines he four top believin s succe The UK ss were the abil g in som N it : benefit ational Caree list cam y to advertise ething, time a s includ rs Serv . Furthe nd e educa e ice says O Impr r surpris oved se : ingly, h tion, good net down the ard wor lf-estee O Feeli works a FYM du n m k n g g a O Deve valued in the getting a little deepe nd experienc d, lo e r s confide ping importa community really is ome experien and found tha . nt skills nce ce unde t worthw and O Lear r your b hile. Check o ning ho e lt ut: natio w organ O Meet nalcare is in ersserv a team g new people ations work ice.dire and wo ct.gov.u rking in k

STREET TEAM: THE STUDENTS WHO POUNDED THE PAVEMENTS TO GET THE WORD ON THE STREET INCLUDE: DOMINIC YILMAZ-DREW, GREG ALLEN, VITHURSHAN THIYAKUMAR, FUSHING LAU, NAEEM RANDEREE, ASHTON SHERIFF

CONNECT BOX What do you think it takes? Could you launch a business in 48 hours? Tweet @FYMillioniare Post to Fresh Young Millionaire on FaceBook

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FYM 9

the business section

section

KEEPING IT

POP UP CAFE

lean

Short of a venue for your new business? Why not set up a temporary structure like Beirut street food company Yalla Yalla has done here on London's South Bank. It’s a lean way to do business while at the same time adding colour to the urban landscape.

Nike products are worn by oustanding sports people

Stories: Lessons from the pros; On an ever-changing trip; Can denim be lean?; Lighting up the UK; Melting the customer’s heart; Top tech to get you started; HR battles

PHOTO: WWW.DANTHOMPSON.CO.UK

10 =FYM

One of the hottest, driest and sunniest summers in years is over and we're already well into the new academic year. With the sun still warm on our backs, we’re ready to innovate, listen and learn. If this sounds like you, then you’ve come to the right place. In this fourth issue of FYM we up the pace to assess how constant innovation and creative thinking can really help you find and keep your customers. Whether you’re selling a 'shared experience', the ultimate pair of jeans or chocolate, this will be your most significant achievement. A big focus of this issue is the Lean Startup business model. It isn’t new exactly – Toyota applied it to manufacturing in the 1990s - but a recent book, The Lean Start Up, by Eric Ries has made it trendy. Traditional and top-down it’s not, but it may not be for every industry or product. We hear how it works in practice. Building corporate social responsibility into your business model is another increasingly popular route. Many of our featured companies in this issue are trying to make a difference, but do these models really stack up? Are you a critic or an activist? Read on to find out more.

RESEARCH BY XXXXXXXXX

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11

history

blood, sweat & tears

MODEL T

1903

FOCUS

2013

t behind every Everybody has to start somewhere, bu arters, expensive company which now has plush headqu of visionaries. caterers and stock options is a group ies they built FYM shows you some of the compan

THE COCA-COLA COMPANY Date founded: 1886 Founders: Asa Griggs Candler Primary business: Beverages Started with: Dr John Pemberton’s recipe for Coca-Cola created in 1886, but things really kicked off when Asa Candler got involved. He is said to have brought real real vision to the business and the brand. Market cap today: $173 billion Did you know? It is said that only two executives actually know the whole recipe for the drink. Also if every drop of Coke ever produced were put in 8-ounce bottles and laid end-to-end, they would reach the moon and back over 2,000 times. Fun fact: The company is often credited for creating the modern image of Santa Claus in his red outfit.

GENERAL ELECTRIC Date Founded: 1892 Founders: Merger of Edison

12

General Electric Company and Thomson-Houston Company Primary business: Conglomerate of Energy, Technology, Finance and Consumer and Industrial Goods Started with: Thomas Edison’s laboratories and technical experience and the patents of the Thomas-Houston Electric Company, as well as investment from JP Morgan and the Vanderbilt family. Market cap today: +-$235 billion Did you know? GE was the first business to own a computer Fun fact: Thomas Edison almost set fire to William Vanderbilt's house when he installed lightbulbs that weren't properly insulated. Vanderbilt was one of the richest men in America and a huge investor in Edison... so it was probably awkward.

US STEEL Date founded: 1901 (by merger) Founders: several including Andrew Carnegie Primary business: Steel Started with: The insight of JP

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Morgan and more money than you can imagine. This company was so powerful that on Wall Street it was simply called 'The Corporation'. Market cap today: $2.6 billion Did you know: Andrew Carnegie was born in a tiny cottage in Scotland, but went on to become one of America's wealthiest and influential men. Fun fact: This company defeated numerous antitrust lawsuits and at one point controlled 67% of US steel production.

FORD Date founded: June 16, 1903 Founders: Henry Ford and Alexander Y. Malcomson Primary business: Automobiles Started with: $900 (very roughly $28,000 in today’s money) and the rights to the Ford name Market cap today: $66 billion Did you know? Ford introduced the world’s first moving production line in 1913 to manufacture the popular Model T incredibly quickly. To reduce paint drying

COKE

1886

time, the model was only available in black. Fun fact: In 1916, 55% of all cars on the road in America were Ford Model Ts, a record that has never been matched.

ROYAL DUTCH SHELL PLC Date Founded: February 1907 Founders: A merger of Royal Dutch Petroleum Company and the ‘Shell’ Transport and Trading Company Ltd Primary Business: Oil prospecting and transportation Started with: A Dutch royal charter for small oil exploration and production in the Dutch East Indies (now Indonesia) and a British distribution company. Market cap today: $135.99 billion Did you know? Shell powered the first cAtlantic in 1919 Fun fact: The Shell company first sold sea shells.

TOYOTA Date Founded: 1937 Founder: Kiichiro Toyoda

Primary business: Automobiles Started with: Funding from the Toyoda Automatic Loom Works, the company owned by Kiichiro’s father, Sakichi Toyoda. Market cap today: +-$236 billion Did you know? The ‘Toyota Way’ has been followed since 1937. The Lean Startup method is based in part on these. Fun fact: Toyota was originally part of a loom company.

NIKE Date founded: January 1964 as Blue Ribbon Sports, 1978 as Nike Founders: Philip Knight and Bill Bowerman Primary business: Sportswear Started with: Philip Knight’s car and a dream of selling better quality trainers. Market cap today: $58 billion Did you know? The company started out as Blue Ribbon Sports and first distributed Onitsuka Tiger’s trainers - we're talking Asics today. Fun fact: The first prototypes were made using waffle irons.

VIRGIN Date Founded: 1970 Founders: Sir Richard Branson Primary business: Conglomerate, this company does almost everything you can imagine. Started with: His own free student magazine. Revenue today: +-$ 21.3 billion (*as a conglomerate Virgin is difficult to value). Did you know? The name Virgin was suggested by one of Branson’s partners as they were both new to business. Fun fact: Virgin Galactic was the world’s first commercial space tourism company and was launched back in 2004.

APPLE INC Date founded: January 3, 1977 Founders: Steve Jobs, Steve Wozniak and Ronald Wayne Primary business: Commercial electronics Started: In the garage of Steve

Jobs’ parents, with an order for 50 completed computers from local computer outlet, The Byte Shop. Market cap today: $453 billion Did you know? The first Apple computer came with no keyboard, monitor or case. It was sold simply as an assembled circuit board. Fun fact: The third founder sold 10% for $2300 - in 2011 this would have been worth over $35 billion.

AMAZON Date Founded: July 1994 as Cadabra, 1995 as Amazon.com Founder: Jeff Bezos Primary business: Online shopping Started with: As vice-president of the Wall Street firm DE Shaw, Bezos already had respectable private wealth. Market cap today: $135.16 billion Did you know? AmazonArt, launched in August. On sale for $4.85 million is Norman Rockwell’s painting Willie Gillis: Package from Home.

COKE

2013

Fun fact: Jeff Bezos is said to store vitamins in his socks.

GOOGLE Date founded: September 4, 1998 Founders: Larry Page and Sergey Brin Primary business: Internet services Started with: A Stanford research project and $100,000 from Andy Bechtolsheim, the co-founder of Sun Microsystems. Market cap: $286.52 billion Did you know? The company’s unofficial slogan is simply ‘Don’t be evil’. Fun fact: Google is a typo. The original spelling, Googol, is a big mathematical number 1X10^100. WORDS BY TOM FOGDEN WITH ADDITIONAL REPORTING BY CALE HARRISON

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FYM 13

business

The Build-Measure-Learn feedback loop

LEARN

The Lean Way

Just do it!

A the end of the cycle, you ask: does this At product produ really work? You can't please everybody bu what have you learnt? Yes, children are but highly engaged (and learning maths and literacy skills skills) but parents think there are issues around the safety. Should you 'pivot or persevere' on your 'big idea'?

Get ready to cut through buzzwords and terminology so that you can build fast, measure accurately and learn through listening

I

sn’t every startup lean? Since most have limited resources it's a question you may well ask. However, just because you have limited resources doesn’t mean you have a lean business. And just because you are working in a huge company, doesn’t mean you can’t be lean. Confused? Enter the Lean Startup, a business methodology garnering supporters – and raising eyebrows across many sectors. That’s in part down to a book titled The Lean Startup by Harvard graduate, blogger, speaker and serial entrepreneur, Eric Ries. He is on a mission to make the entire startup ecosystem – be it a business started up

in garage, or a new innovation in an enterprise - more efficient. Like all modern business theories, this one has drawn from history. It was, in fact, two guys at Toyota who are credited with starting the lean manufacturing revolution, which radically altered how its cars were manufactured and sold. Many argue that today’s lean method is more suited to tech startups than companies selling physical products (p18). It's true that IMVU (see below) file-sharing platform Dropbox, discount website Groupon, and software and services firm Intuit, are firms that have successfully used the method.

Learning to learn IMVU, a 3D chat and dress-up community co-founded by Eric Ries in 2004, was the catalyst for the Lean Startup. Today it has 50 million registered users but by Eric’s own admission, the first version was so bad nobody downloaded it. Initially the aim was to combine the mass

appeal of instant messaging with the lucrative video games market. People would customise an avatar and invite their IM friends. The

However, Eric believes it can be used by any organisation, even huge companies. This is down to its simple aim: to complete the cycle of any business development in far less time and with less waste than usual. This is achieved by what Eric likes to call, ‘validated learning’. He doesn’t want to hear: “I failed but I learnt so much along the way.” Instead, he wants our lessons to help us on the path to success – that basically means valuing feedback from customers and developing what they want, rather than what you think they want. It's about experimentation and knowing when to change course - to 'pivot or persevere'.

problem was that nobody wanted to risk inviting friends to use an unproven product. Yet, they were happy to connect with strangers. By experimenting, testing assumptions and learning quickly, IMVU soon had a 'minimum viable product'. By 2007, the company was generating $10 million proving that people would buy 3D animated chat software. Q

DATA Y Your data tells you that yes mobile is the fut future. However, it also tells you that those wi the purchasing power have concerns. with d It doesn’t really matter if you are on trend, in time and within budget, you need to kno whether enough customers will buy it. know

MEASURE Time to get mums and dads in – and maybe some teachers - to test the product. After all, they are the ones who will probably have to pay for it. You need to validate your idea with those who have the cash. What you need is quantitative and qualitative data (p19).

IDEA

FunkyStation is your ‘big idea’ - it’s a mobile-only online 3D world based entirely around the national curriculum. As teenagers you’ve got really tired of hearing parents complain about how much time children spend in front of screens especially their smartphones or tablets. Educational games, which truly engage the target audience (five-16), are what parents really seem to want.

BUILD

At the core of the Lean Startup model is what Eric Ries describes as the Build-Measure-Learn feedback loop. In simple terms this is how it might work in practice. FunkyStation is a fictitious video game manufacturer. The two founders believe they have created a highly shareable, educational, mobile-only application, which could potentially change how children learn and teachers teach.

Time to build a prototype. You work around the clock for weeks, developing your idea into a real product. You start beta testing and in hours hundreds of users aged five-16 have downloaded the app. Kids love it. FunkyChat, allows for private instant messaging, MacStation is virtual junk food heaven and FunkyDress is the answer to wearing exactly what you want. The bonus: kids are learning too!

PRODUCT Hooray! You have a 'minimum viable product' – this is something that clearly meets the criteria of your target audience. You think it’s perfect and that parents and students everywhere will love it – what’s not to love? Now you need more data. You also need to get it in front of potential customers – yes, parents and possibly schools - and maybe even sell them an early prototype. RESEARCH BY GREG ALLEN AND NAEEM RANDEREE

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FYM 15

section

business

THE BIG QUESTION

CAN YOU LAUNCH A TRAVEL BUSINESS IN JUST 48 HOURS?

THE JOURNEY SO FAR…

FYM caught up with TripStarter which won a 48-hour sprint to launch earlier this year. Several 'pivots' later and the product is now fit for market

Setting the scene Back in May, three teams of complete strangers from diverse backgrounds were thrown together to see if they could launch a new, innovative online travel business. The competition – or ‘Ideas Runway’ - was launched by lastminute.com, an online travel agent, and EyeforTravel, a global travel industry conference organiser and content provider. The competition took place at EyeforTravel's Travel Distribution Summit, Europe which attracts around 600 people from all corners of the travel industry. The ‘big idea’ was to hothouse some great ideas, test these on the industry and perhaps even raise finance using the Lean Startup methodology. TripStarter was named winner. Buoyed by their success, the new adventure group travel business – which was under no obligation to take its winning idea forward – decided to run with the dream. Since May the team has been incubating its idea each Friday at the offices of lastminute.com in London. They launch officially in November.

Living the lean dream For budding entrepreneur Afzaal Mauthoor, TripStarter’s chief executive, 48 hours is enough time to come up with a concept and a team. “That's a very good start, but it takes a bit more than that,” he says,

admitting that launching within the unique confines of a travel event, and with huge support from lastminute. com, provided an excellent springboard. Finding the right team is crucial to any business (p28) and TripStarter, it seems, got lucky. “If 60% of success criteria lies in a strong team, then this group deserves to be successful,” says Don Birch, a travel industry mentor who has worked with numerous travel startups over the past few years. He was also a judge of the competition.

Lean is about listening One of the aims of the competition was to test Lean Startup methods (p14). During the initial 48 hours Afzaal and Caroline Xuan Wu, a Cambridge University masters graduate in Mathematics, worked to refine the demographic data (such as their target audience), and revenue model (how they would generate income). Meanwhile Chris Rose, a maverick programmer, and Victor Szilagyi, a sought after interaction designer, worked on creating a viable prototype. Nothing was done by gut instinct. Rather they tested and built for the consumer, ‘pivoting’ several times - yes in just 48 hours. Four months later, the team continued to pivot from the original idea. “For me, the backbone of the lean method is about listening to customers intensely, and ‘pivoting’ or making decisions quickly based on feedback and iterations,” says Afzaal.

TripStarter has spent every Friday with innovators at lastminute.com

“It’s also about avoiding the blame culture, and learning from mistakes.” That’s all fine, but Afzaal says there comes a time when you also have to listen to your gut instinct. “If you’ve got endless resources and funds then you can keep pivoting, but most startups have to think very creatively about keeping costs low,” he says. So, you have to know when to stop taking feedback and run with your idea.

Doing it differently The TripStarter team has been keen to avoid traditional business models, which are often built around a person’s expertise. Typically, the person at the helm will have an approach that goes something like this: ‘This is something the world needs because I have ten years experience’. Yes they have passion, but they aren’t necessarily thinking about the customer. "With the lean model you have that same passion but you are equally passionate about hearing what people think about it and improving that product for the customer,” explains Afzaal. So should all businesses apply the lean method? "Well you wouldn't need a lean model for the bar code," says Afzaal. Invented by the late Norman Joseph Woodland, the bar code was a very useful development that immediately made life simpler for businesses and shoppers. For TripStarter, which aims to own ‘the DNA of the shared experience’ then you most certainly need plenty of customer feedback.

Lean is “ about listening to customers intently”

On a trip to Ethiopia before the competition, Afzaal Mauthoor spotted a gap in the market. He wanted to join a group adventure experience but the travel company running the activity needed a minimum of four people for it to be viable. When travel or tour operators can’t fill space this is known as ‘distressed inventory’. TripStarter aimed to help. THE START: The idea, which secured TripStarter the winning place, was to create a social platform for group travel bookings that would solve the problem of distressed inventory. Tour operators would supply the inventory, such as a white-water rafting tour, to TripStarter. Then intrepid customers would become 'trip starters' by sharing this with their friends or like-minded people using on the group's social platform. THE SHOCK: Two months on, the team met with Don Birch, who has mentored and invested in travel start-ups. “He said wouldn’t touch this idea with a barge pole. It was a bit of a shock as we’d won the competition based on this idea,” says Afzaal. THE PIVOT: Don said the team hadn't demonstrated real benefit to the customer (a key principle of the lean method). But who was the customer? The travel supplier (like a tour operator) or the end customer (you and me the traveller)? After talking to more potential cusotmers, TripStarter realised the most viable model was one that offered an industry solution to other travel businesses (B2B), but with a strong consumer focus. THE SHARED EXPERIENCE: After five months, TripStarter settled on selling its social sharing platform to tour operators and event organisers. The idea is they will share unique experiences with their database using the TripStarter platform. 'Trip starters' or people who want unique, personal, yet shared experiences, will share the proposed trip or event with friends or like-minded people. The aim: to make the process of organising a group trip a whole lot easier and more fun.

THE BIG TEST This November, event organiser The Jasmine Club will use TripStarter to help it find around 100-clientele to attend a 1920s themed event at the new Laura Ashley hotel in Elstree. The club will use TripStarter’s B2B online sharing platform to help it discover the right people, rally others to join and then finally book a place at the The Jasmine Club’s soiree. Q RESEARCH BY XXXXXXXXX

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business

Qualitative vs Quantitative Qua Q ualit lita l ativ tive e research is based on answering 'w 'why' and 'how' questio ti ns by gathering information from surveys, in depth interviews and so on. Quantitativ e research is the systematic empirical investigation of social phe nomena via statistical, mathematical or computing techniq ues.

Then I made prototypes and got people to try them on to get a really good idea of what they wanted.

E Z I S E N O

Julia tested and tested for the perfect fit

doesn't fit all

Can jeans be totally tally lean? The founder of a New York-based fair trade denim company thinks not

I

t all began when Julia Kastner, the founder & chief executive of Eva & Paul, got into a debate with Eric Ries, author of The Lean Startup, over whether she could start a denim company using his lean methods. At the time the two were at Harvard Business School together. Eric had insisted that Julia could fully test her jeans, and understand what customers truly wanted, before ever making a pair. Julia has gone on to apply some, but not all, aspects of the lean method to her fair trade denim business. FYM caught up with her via Skype to find out how.

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FYM: In your blog you pose the question: can a denim brand be lean? Do you feel you have an answer to that question now? No company can be 100% lean. It’s just a question of where your company falls on the spectrum. On the one hand you have the more traditional method of coming up with a plan that you believe in, and not getting any feedback before executing. On the other, you have those who follow a more heavily researched and ‘lean’ approach. With a denim company like mine I fall near the middle but lean more towards the latter. What you’re selling also affects how lean your company can be. It’s about the cost of prototyping and cycle time for feedback. Technology-based companies can code and develop new prototypes rapidly and have them up and running for feedback in no time. However, for denim, and other physical goods, creating and testing prototypes takes

longer and costs a lot more. In the end, the whole concept of ‘lean’ is to minimise the resources that you use. So rather than using no money at all, I think the approach is to use the least amount of money possible to get your product fit for market. FYM: You’re applying this model to an apparel company. How does that work? Well, it’s been very exciting as traditionally most apparel companies start with a designer executing their artistic vision or dream. As my focus is on business and social enterprise, I was keen to get lots of feedback. I began by identifying my target market and then conducted interviews with real people, created online surveys and researched complaints about jeans, and jeans shopping, on existing online forums. I looked at what other companies were doing, all to form a hypothesis on what the right jeans should be.

FYM: How do other less ‘lean’ jeans companies go about it? My designer works with lots of different startup brands and she told me the story of two brothers whose parents gave them a couple of million dollars to start a denim brand. They went ahead and spent lots of money creating loads of jeans without listening to anybody. They took those jeans to trade shows but didn’t sell anything. And guess what happened? They had to close their new business down. y tale,, FYM: After hearing that cautionary how does customer feedback inform n nform your e ering decisions? The first step is gathering o with pen own feedback which means sitting down n having a nd and paper, and a friend or two, and k that talking long conversation. You may think with just one or two people won’tt give you i a big enough data points. But if there is i you will ing, consistent problem with something, u person urth start to hear repetition by the fourth o oogle you talk to. Even at places like Google they n with four ns feel that qualitative conversations g a to ten people can be enough to get consistent story to work with. So I sat down with a friend and discussed the brands they wear, the process of shopping for jeans and what they love and hate about jeans. By repeating this with five to seven different friends, I started n I nd to hear very consistent stories and e esis. was able to form my first hypothesis. aking jeans FYM: Is your concept about making n to fit? No. We put 3D machines in

supermarkets and malls and offered a body scan in exchange for recommendations for jeans. We used this data from thousands of bodies to get a sense of what shape people actually are. What we saw was that there is some variation within each size - a size 8, for example, can vary quite a bit. So if we can get closer to what the average size 8 is then we can make a much better product. If you tweak it for a specific demographic, you can get even closer to the average shape of a size 8. We then added lots of stretch to fit the range within each size.

likes then you’ve wasted money. Going to market is much cheaper and faster if people like your product and you're more likely to succeed. Constant research and feedback prevents you from driving in the wrong direction. The goal with being lean is to not take any official money when you are starting up or growing, but I don’t think being lean should mean spending no money at all. This may work for tech companies but it’s not possible for physical products. For me it’s less about being cheap especially given my decision to go fair frade (p42). Eric tried to convince me that I could do all of my testing via websites. I thought if I was making a drink I could test the effectiveness of the branding but I would still need to know if it tastes good. Q

I don’t “ think 'lean' is

fully possible if you are making physical products ”

FYM: What aspects of the Lean Startup model have worked for you and what hasn’t? The core of the Lean Startup is about getting feedback. This matters because if you make a product nobody

INTERVIEW & WORDS BY ALANA O’SULLIVAN

Eva & Paul jeans have plenty of stretch

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FYM 19

business b usiness

business

THREADS OF WISDOM A central central theme theme of of the the lean lean m model odel iiss kknowing nowing w when hen tto o ‘‘pivot' pivot' o orr ''persevere’. persevere’ E Eva va & Paul has changed its go-to-market strategy multiple times. At the beginning it was mostly just researching different options but there has been a significant 'pivot' between Plan A (the initial goal) and Plan B (where they are now).

A B 2 THE PIVOT Move towards wholesale distribution (B2B). Through a Kickstarter campaign (p32) and other research, the firm quickly found that jeans shopping online is far more painful than regular jeans shopping. There were things that could be done to improve it but that was just too expensive.

PLAN

1 PLAN A To start selling jeans to consumers online, with some wholesale and physical pop-up stores.

JULIA'S TOP TIPS Remember: Most people don’t succeed in their first startup but if you really are an entrepreneur you’ll try again.

*

Branding is expensive but necessary when selling business-to-business (B2B) - poorly

*

THE PIVOT

branded companies will be turned away by big businesses.

PLAN

3 PLAN B Instead of selling direct to the consumer (B2C), Eva & Paul took the decision to start by selling jeans wholesale and then as the brand gains traction build it and offer a bigger range of jeans.

Studying at a top business school gives you: O a network You can’t follow the Lean O a new vocabulary Startup model 100%. No matter O the ability to fundraise, hire what kind of company you are, new people, think or how lean you plan to be, critically, face you have to go with your business problems Turn to our 'Making a gut instinct. Feedback is O credibility when Difference' important but have doing any section on p42 to confidence too in your business-tosee the fair trade own opinion and vision. business sales Q part of the Eva & Paul story

*

*

INTERVIEW & WORDS BY ALANA O’SULLIVAN

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Launched in 2007, this accounting services company was bootstrapped until 2011, when Accel invested $34 million. At the time the firm had revenues of $9.9 million. It has twice been listed as one of the fastest growing businesses in America.

In the underwear section of any department store you will find Spanx pantyhose prominently displayed. Founder Sara Blakely was frustrated when she couldn’t find any suitable underwear to don under a pair of white trousers. It seems other ladies had the same problem. Launched with $5,000 Spanx is now worth over $1 billion.

Co-founded in 2005, TechCrunch became one of the most-read technology websites in the world. When AOL purchased the company in 2010 for $30 million, one of the founders Mike Arrington reportedly still owned 85% of the business.

BOOTSTRAPPING

It could work for you too There are many ways to start a business. Will you find an angel, go lean or bootstrap your business using your own funds?

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any startups go the route of finding a venture capitalist or angel investor. However, external investors can be a tough sell. After all, angels may be prepared to invest billions but they only do so for a select number of startups. In general, they are more interested in bigger investments in companies that already have a solid base. While securing 'angel' investment is often sold as a startup’s first big break, there is a growing view that there are advantages to going it alone. It may sound risky, but the upside is that you retain control and stand to benefit more financially if your company eventually takes off. The practice of funding your own business is called 'bootstrapping’. This is when you, or a founding team, start a business with minimal resources and build it up using your own funds and revenue generated from customers, rather than from external investors. The aim is to keep expenses to a minimum. Bootstrappers finance their business in several different ways - credit cards, second mortgages or from their personal savings.

BOOTSTRAPPED VS LEAN STARTUPS Bootstrapping

Similarities

Lean

Won't work with angels

Minimise waste

Could work with angels

Primary focus is on driving sales

Maximise use of existing resources

Primary focus is on creating customer value

It's your cash so use it sparingly

Limited to available resources and revenue

Lean is not cheap- spend enough to get your product fit for market

History: What's in a name? It is the subject of some debate but the term bootstrapping appears to have originated in the US in the early 19th century. It refers to boots and their straps (or laces) and to the imagined feat of lifting oneself off the ground by pulling on one’s bootstraps. This requires plenty of effort – a bit like starting up a business! Q WORDS BY CHARLIE WOODMAN

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FYM 21

business

Howtocaptureyour businessmodelin

Targeting

excellence

20 minutes

Time is precious and starting a business is time-consuming. Writing a detailed, es, can traditional business plan, which could be anything from ten to 60 pages, take days, weeks or even months. So could you write a business plan in the time it takes you to get to school or college? What is stopping you, asks Ash Maury, the author of Running Lean: Iterate from Plan A to a Plan That Works and the creator of the Lean Canvas (leancanvas.. com), an online tool which helps you create a basic blueprint for your business in around 20 minutes. In just nine steps, you should have a clearer picture of whether your business stacks up. With nothing to lose but 20 minutes, what are you waiting for?

20 mins Customer Segments

Are you interested in a career in finance, tax or accountancy? Are you looking for an alternative to University? At RSM Tenon, we provide another option that allows you to develop a professional career and gain valuable hands on experience whilst studying for accountancy qualifications. If you require further information please contact our National Recruitment Team

E: recruitment@rsmtenon.com www.rsmtenon.com/careers

Know which segments you will sell to, and why these customers will buy your product. The importance of knowing your customers is crucial, so do your market research. Action: List target customers or users AND your ideal customer.

18 mins Problem Is there a gap in the market? Perhaps you believe there is an opportunity to develop or improve an existing product or service. You must make it clear to potential investors that there IS a problem that you can solve. Action: List your top three problems or so, and how these are solved by others in the market today.

16 mins Unique Value Proposition All successful businesses have at least one thing that makes them stand out. So what is yours? Aim to capture your customer’s attention and make the product or service unique. This will help you make sales. Action: Define a clear and compelling message that will win customers. Listing an X = Y analogy can be helpful. eg.YouTube = FlickR with video.

14 mins Your Solution This is your idea! What is it? Here you answer why you believe in this business idea. It is also an opportunity to sell your product by clearly explaining the benefits. Action: Outline a solution to the problems you’ve identified.

12 mins Channels How will you reach your customers with your message or distribute your product? Will you sell online, in a pop-up store (p34) or in a shop? Will you get your message out via Twitter or paper flyers? Are you selling business-to-business (B2B) or business-toconsumer (B2C) or both. Action: Be specific and realistic.

10 mins Cost Structure In any business you need to have a clear idea of what your costs will be. Getting to grips with costs will help you to calculate your unit price. From this you can figure out your per unit profit. Action: Meticulously include every single cost – both fixed and variable. That means not just the cost to produce the product or service, but also your time.

8 mins Revenue Streams Everybody needs to make money but you need to prioritise where it will come from. Action: Take pen and paper or put fingers to keyboard and list every possible way you could make money.

6 mins Key Metrics Startups can often be associated with uncertainty, which can be an uncomfortable situation. There are many ways to measure success. How will you measure your success – sales generated, email sign-ups to a newsletter, customer satisfaction or Facebook likes? Action: Identify which metrics matter most to your business, bearing in mind this could change in time.

4 mins Unfair Advantage What are your barriers to entry? In other words, what is standing in your way? Hopefully you have something that cannot be easily bought or copied. Action: Research your competition. Large companies often have copyrights on their products, so no competitors can sell the same goods. Q WORDS BY: FUSHING LAU

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FYM 24

section section

business

LIGHTING HIS WAY 0 0 0 , 0 0 1 £ O T FROM £100

ped his way to success ap str ot bo s ha mp Ke ll Wi d -ol ar -ye driven by his passion, 19 Inspired by Dad, funded by Mum and Burnage. We’d been friends for scale. I’d like the company to be

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FYM: So what is LDS Entertainments and what exactly does it do? It started off as a mobile disco service, providing DJ’s and equipment to parties, functions and weddings. Over time we’ve developed more into an audio and visual production company – we set up the light and sound. I still DJ in my own time for places like Ministry of Sound, but now my company is hired for huge events and festivals including LeeFest, Blissfields and Jupiter Wharf. Most recently we provided the crazy lighting and sound for the alien-themed wedding on BBC’s Don’t Tell the Bride – that was fun!

started DJ-ing, I never thought of it as a business. But as it grew, and I began paying more people to work for me, I thought 'wow, I really have something amazing here'. I knew I was onto something when in Year 9 we were hired by four different schools to do their proms.

prepared “toBe pay others before yourself ”

FYM: Were you certain of success from the start? Well, when I was younger and

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FYM: Tell us about some of your early challenges

Well, the equipment we use and supply is extremely valuable and in the early days we could never afford it. We had to hire it out from external sources. To fund this meant we had to build a good reputation and connect with new clients. It was great that we had so many supportive friends that spread the word about us and, of course, paid us to DJ at their parties. They still do now. I’m

a long time and he’d grown to love my business too. When he got involved it really helped kickstart the company into a new line of work - providing professional audio and visual jobs for festivals and events, rather than just mobile discos. Having an investor meant that doors were opened that I never thought possible!

particularly grateful to my brother and close friends, who still freelance for me. They worked tirelessly and for not a lot of money to DJ, rig lights and provide transport to lug equipment about in. That’s what you need to grow your business.

FYM: Raising money is tough. How did you do it?

FYM: Would you consider an external investor? Actually I’ve recently taken on a new business partner, Chris

FYM: What do you think it will take to get there? Plenty more hard work and a lot of late nights! Q INTERVIEW AND WORDS VICKY CHANDLER

FYM: So would you say that you ‘bootstrapped’ your business? Definitely! I started up with no capital whatsoever and built and expanded my business primarily on money I earned and profits I made.

entirely self-sustainable and Nike products are worn by take on a more director-type oustanding sports people role in the business, rather than having to be constantly out rigging too.

FYM: Were you worried about handing over a chunk of your business?

From a young age I used to work and do the odd DJ job. I borrowed £100 off my mum here and there, saved it all up and built up enough capital to put back into the company [now worth £100,000].

PHOTO: XXXXXXXXXXXXXXXXX

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t the age of 11, Will Kemp was already being paid small sums to DJ at his friends’ birthday parties. Will had always loved music and extravagant lighting but when his Dad gave him a set of mini disco lights for his tenth birthday, he knew he wanted to enter this line of business. He describes this as a “defiant moment in his life” - Will's would be no nine-to-five existence. Soon he was DJ-ing at school discos and at small-scale local events. After completing a technical theatre arts course at the BRIT school, Will knew he wanted to keep building LDS Entertainments, the company he'd officially registered during sixth form. Today his light, sound and video hire and production company, based in South London, supplies services to huge events around the country. He employs two full-time staff and 12 freelancers, owns a small fleet of vans and has his own office.

No not at all! I think it’s really good to have an outside opinion, especially when you’re so in love with your business and may get too caught up in it. Having someone else to bounce ideas off is always good. But I always wanted more control so would have only given away 49%. I have always wanted 51% ownership and nothing less.

FYM: Where do you see yourself in five years time? Hopefully still running LDS Entertainments – but on a bigger and more professional

Will Kemp sheds light on business success 1. Be passionate about what you’re doing 2. Have a lot of patience! 3. Employ people who have the sam e love and passion for your industry: peop le work harder if they love what they do 4. Employ people with common sens e and a strong work ethic 3. Work hard 4. Prepare to pay others before you rself 5. Have a strong business plan and idea

A day in the life... A normal day can be anything from sorting out accounts to preparin g site plans or answering enquiries. It can also be spent on-site rigging equipment, and enjoying the atmosphere of even ts and festivals that LDS is hired to supp ly for. The hours are long. For a festival like LeeFest you may camp three nigh ts b re and work from 8am to mid befo night. W n it’s all over, you’ll be working Whe t ugh the night to take it down thro again! RESEARCH BY XXXXXXXXX

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YM 25 FFY

niversary Ansection l Spece ia 1 of FYM we

business

In Issu aders to introduced re 22-year-old uis chocolatier Lo e of the ne now on is , Barnett who ers. At just 14 ocolate export ch t es ucts gg od bi pr s of K’ r U supplie youngest ever e th early d as w ce s fa ui s Lo Yet Loui d Sainsbury’s. an e to e du os tr ol ai ho W sc to cceed at su to g lin gg ru left formal challenges, st D. Aged 11, he H D A d an ia severe dyslex . Read the full home schooled education to be ionaire.com. freshyoungmill story online at

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hen Louis was 14, he received the best business engineering the whole process and we often end up creating advice ever from a close friend and advisor: new products around a gap in the retailer’s market rather, ‘Don’t sell to people what they don’t want to than just selling what we have,” explains Louis. buy!’ It was a principle Louis would apply when In the run up to Easter this year, for example, Selfridges he was just starting up, and one that remains had lots of chocolate from less expensive ranges, but nothing central to his business today. really special in a luxury market. Simply by asking what they You see, Louis started off making cakes decorated with needed, Louis and his team ended up producing a chocolate choco co ola late te es. Before Befo Be f re e lo o his customers were requesting little chocolates. long egg that retailed for £89.99. This was a huge success! choc ch collattes e only, onl nly y, rather rat athe herr than tha th a cakes. This was a Eureka! chocolates mo om me ent nt. “We “We switched swit sw itch ched ed d to to developing more chocolates and Challenges and solutions moment. now w that’s sa ll we do.” ” In le lea Within the food and beverages industry, a lot of retail buyers now all lean business model terminology, this would wou o ld d be be known know kn own n as the the 'pivot'. choose their purchases based on personal opinion. “They this O course, cou urs rse, e, cus usto to ome merr development dev are actually buying the food for the nation based on their Of customer doesn’t stand still and th is something so ome meth thin ing g th hat is a vital component of a lean business. personal taste!” exclaims Louis. It can be very challenging to this that Loui uiis knows kn now ws only on nly too too well wel elh persuade buyers as many believe they know their customers Louis how important it is – and how comp mp plicate ted d it can be! At C best. Even small delicatessens and independents aren’t complicated Chokolit, while product developm men nt has been customer cus always listening to their customers. “I’ve heard them say, development led right from the start, thin ngs g have changed with ttime. Ten years sa go, go 'Oh,, I don’t don’tt really rea alllly like lil ke llemon, em mon on, I do d on’ n t think I’ll take that.' So don’t things ago, th hey y are en’’t ne n ece cess ssar arilily y bu they aren’t necessarily buying what the customer for example, no one was us using Twitter orr ck k want wa n s, they’re the hey buying what they wants, Facebook in the way they d do today. “Back th our customer de deve velo lop p ry w want you to want!” then development was very frontt-f - acing an and d pe per alls. s. If you have strong data much front-facing personal,” he recalls. ork rkin ing g may m yh ma a about customer opinion Social netwo networking have existed in BE AS some so me universities unive ers rsit itie ies but people pe eo weren’t it’ it it’s easier to sway buyers, L CAN, B EAN AS YO usin us ing g it tto o talk about products pro ro but that data can be very but using or U U T R E YOU’R MEMB EL ER adve ad ert rtise in the way they th do today. In n expe ex p expensive. Louis and his advertise MISTA EARNING TO K O. ES HA ds a re able to targett te e am team simply don’t have time fact, today brands are LEARN PPEN. FR DON’T OM THEM A i a far far more m to o d o do extensive customer customerss in relevant R N IT’S AL EPEAT THEM D person pe nal way way (though (t rese re s ar a research. Moreover, detailed and personal it’s L ABO . UT H YOU R impo im p rtan antt to o avoid avo vo being market ma e research can cost up to important ESPON OW D. cree cr eepy!). In fact, fa a Facebook £10, £1 0,00 000 per product to test. As £10,000 creepy!). d Twitter Tw wit itte terr are w wi th tthe he llean model, it’s about with and products are worn by deve velo lopi ping ngNike s findi fin ding di n ng ac finding cost effective way to do developing specific tools oustanding sports people and paid-for paid pa id-ffor o services for so.. “T so Tra ade shows are great for this “Trade and busi bu sine nessses ssess to be able to b be eca cau use th the e involve PR, selling, because they businesses targ ta rget ett their the eir customers better. ette et t r. m ma ark rket etin ing g an n market research – so marketing and target th that hat at’s ’ss a rreally ea alllly y lean way to gain insights that’s Know your yo customer into product development from your frontline customers,” Most Mo st b businesses ussin usin in develop products for more says Louis. than th a o an n c ne u one customer type: end consumers Another option is to work with a higher end customer, who (peo (peo (p eopl ple e like lilik ke us who buy from shops or online) (people will take the risk by trialling a product. Often you have to take and co comm and commercial buyers and retailers (those the cost upfront as with a ‘Sale or Return’ model; here the wh ho purc c who purchase on behalf of large product is loaned to a shop, they only pay for what is sold and depart rtm m department stores or chains like Waitrose return the rest. You do have to have some faith in the whic wh ic then sells to end consumers). – which product you’re testing, but this develops over time. Some businesses only sell to other Some This model is more challenging with food and beverages busi bu sin businesses – or business-to-business because it’s not possible to take unsold items back, unless (B2B You don’t want to turn out a (B2B). you can guarantee perfect storage conditions such as prod product that doesn’t fit your temperature. Failure to do so means leftover products must cust customers needs, or their price points, be scrapped. d you need to keep both types of and cust stto Be creative customer in mind. Louis has found a way around the ‘personal opinion’ Early lessons lesson challenge by placing their own merchandising units in larger In an early pres presentation e e to big companies, which shops, allowing Chokolit to stock what they want. would stock Ch Chokolit hok in stores across the UK, Louis Another option is to digitally print all products as this has later learnt that tha at part p of his pitch wasn’t relevant to become much quicker and more cost effective in recent the buyer at a lll. “N all. “None of what I was saying fit the years. “We print a couple of hundred products at a time and customers they th hey yw were trying to reach,” says Louis. test the market slowly because the days of buying 10,000 for Today he goe es in into t into similar meetings with some to goes it to be cheaper are almost over,” explains Louis. background d information, inf nfor orm m but is aware of the need to In fact Louis has had a product go from concept-to-shelf in ask ques sti tio ons too. ons to oo. For F example, what are the buyer’s questions just seven days. “If it doesn’t work out, the loss isn’t so needs and and who who are are their customers? “It’s like reverse great,” he says. Q

Louis on Lean

customer central PHOTO: XXXXXXXXXXXXXXXXX

One year on, FYM caught up with Louis Barnett to find out how he applies lean methods to his chocolate business

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FYM 27

human resources

E L P O PE

WORK EXPER IENCE

Y A L P

Whether you’re hunting for a job in a startup or hiring people to grow your fledgling business you’ll need to be on your toes. FYM examines the challenges ...working n The Social Network, a film that “ k, boo Face of documents the rise for someone the truth may well be stretched, but else first it highlights a very important issue are you n for any startup. Whe may be operating in conditions of extreme useful” uncertainty, and interacting with

I

then humans in all their varying shades, es. leng chal y you will likely face man “Managing the human resource is something that many early stage t startups underestimate and just don’ says ,” with deal have the capacity to e David Morris, who heads up corporat ol’s Scho ness sectors in London Busi career services department, and is actively involved in placing t entrepreneurial students with the righ that ons reas firms. This is one of the es many venture-capital backed business t talen ated today are being alloc them managers. This helps them to help akes mist e Whil le. recruit the right peop an are inevitable, if you cannot get hum

David Morris talks startups

resources right, your company will to struggle. “It’s really important not an in ers’ employ people as ‘passeng id. At early stage company,” stresses Dav y carr to hard this stage, it can be very to ll sma age weak people and can dam medium enterprises.

Staffing savvy

Founding a startup, or working in one, er can be very rewarding and is a care as a see y toda path that many students k quic is he , ever viable, says David. How y”. ybod ever for to point out that, “it isn’t be can ents A After all, these environm stressful and you need to be king comfortable with ambiguity and wor ent in a fast-paced environm & As Julia Kastner, the founder of Eva an re you’ n whe Paul (p18) points out, doing entrepreneur you have to start by to ing writ from – EVERYTHING yourself al digit l, lega graphic design, finance, marketing and the list the goes on. s “Chances are you have your strength

& INTERNSHIPS

I

n a recessionary climate and with high levels of unemployment, many tale nted young people in the UK are doing work experience for little or no remune ration. For LBS’s David Morris, there is cert ainly a level of abuse that should not be tolerated – and companies should at the very least pay expenses. However, there are clea r benefits to gaining work experience. His adv ice is that if you choose to go down the route of little or no remuneration, then it is important to have clear objectives. For example, deve loping a particular skill set, the possibility of proving yourself and securing a contract , the ability to network and so on.

Jesse Eisenberg plays Mark Zuckerberg

go g knesses, so you’re always goin and weak se,” hou el whe your ide outs k to do wor she says. le, Then once you start employing peop with nally essio prof ve beha to you’ll need this investors, employees and so on. For s year few a that ves belie reason, Julia be may else e eon som for working own useful if you decide to launch your little too of er dang ther startup. Ano it work experience, says Julia, is that you ace repl to se excu an s stor gives inve n whe ced rien expe e mor e eon with som gh. enou big gets the company “But many of my computer engineer that friends disagree with me, and insist !” ness busi a t star to y earl too r it’s neve hs. she laug Yes, this may be an exciting road to ful take but it is one that still needs care you ther whe id, Dav For . ation consider for are looking to join a startup or hire ly real you t wha , ness busi g your youn is t mos fore and first ider cons need to t. righ is ‘fit’ the whether

G N I T T I F

Nike products are worn by oustanding sp orts people

QUESTIONS

SCENARIO 1: THE FOUNDER OF S A STARTUP, READY TO GROW 'THEIR BABY’ G O Can I trust this person? O O Do they have the right skill set? O O Could I outsource this piece of my business more e effectively to a contractor? O O Do they understand what I am trying to do? O ave they shown real passion O H for my product? O O Is my HR strategy ready for staf f? O O Can I support them personally and in a professional way? SCENARIO 2: THE STUDENT IN S SEARCH OF THE PERFECT J JOB IN A STARTUP O Have I done my research and do O I know enough about the company's product? c O Do I share the founder's passion? O O Is it clear to me what they are O hoping to achieve? O What can I offer and what expe O rience can I gain? O Could this be a foot in the door O ? O Am I willing to work crazy hours O to develop somebody else’s ‘baby’? e

When unpaid work experience is worth it

V

icky Chandler, 20, 0, is a journalism student at Cardiff University (see her article on p24). With talent, get-upand-go tactics and a bit of luck she managed to secure three internships this summer. The first was at the free women’s weekly magazine Stylist, the second at the well-known fashion title Graz azia ia.. Both paid up to £50 a week for travel expe nses, and Stylist threw in a fiver for lunch. Vicky also interned in the PR and marketing department of The Hunger Project, a charity that paid £5,03 an hour including travel. For somebody who wants to be the next Caitlin Moran, Vicky doesn’t mind unpaid work. “I’ve wor ked at the best weekly fashion magazine in the country, gaining a really good portfolio of work and experience,” she says. Q

RESEARCH BY XXXXXXXXX

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FYM 29

section

business

1

4

9

6 8

3

2 5

7

10 tiptop tools Zoho is a customer relationship management system which can help you automate certain processes, giving you more time to concentrate on all-important sales. It lets you generate and manage leads while encouraging your sales force to collaborate and share information more easily. With a specific free option for ‘entrepreneurs and startups’ it could prove to be valuable for businesses that need to focus on driving revenues.

run effective email campaigns. It is ideal for targeting specific customers with a newsletter, as it allows you to segment your audience. MailChimp also provides a variety of other valuable features; it has the ability to gather further information about subscribers and produce reports to analyse the success of email campaigns. With the free version you get up to 12,000 emails a month. Alternatives: aweber.com; getresponse.co.uk

3 WETRANSFER 2 MAILCHIMP

wetransfer.com

mailchimp.com

* FYM Fave

* FYM Fave

WeTransfer is an extremely easy way to send large files. It requires

MailChimp is an excellent way to

no registration and can be used from anywhere. With WeTransfer you can send 2GB of data for free making it an ideal, secure and easy way to transfer files to your customers, suppliers or anybody else. For larger amounts of data, you can sign up to WeTransfer Plus for £9 a month.

4 FRESHBOOKS freshbooks.com Freshbooks is an easy solution to invoicing; it allows you to keep track of invoices anytime, anywhere. There are Freshbook apps for phone or tablet. Freshbooks has created a free, easy-to-use service that comes highly recommended. It’s very useful for small businesses,

6 DROPBOX

MyFax provides a safe and secure Internet faxing service. It's promise is that it is as easy to use as email. It is simple, automated and provides other services such as sending SMS text messages from your desktop or mobile. You can back up and search for these in the same way as emails. There is a one-month free trial, but for just £6 a month you can send 100 and receive 200 pages.

Dropbox is a file synchronisation tool giving you access to your files anywhere, on any device. It is free when you upload up to 2GB and if you require more then prices are reasonable. Dropbox allows you to connect with colleagues and share files. It is a much more efficient and easy way of sharing than more traditional methods like email. Alternatives: drive.google.com; skydrivelive.com

saving valuable time. Alternatives: invoicebubble.com; freeagent.com

5 SURVEYMONKEY surveymonkey.com As the name implies, SurveyMonkey is an online tool which helps you build a survey. The site is useful for market research; they provide a service that helps you create, design and even analyse your results. You need to sign up for the service, but this can be done in less than two minutes. SurveyMonkey is easy to use; there are clear instructions which guide you through what you have to do. It's completely free for up to ten questions!

year. The benefits of this include: access to notes offline and more download capacity.

dropbox.com * FYM Fave

8 MYFAX

9 SKYPE skype.com * FYM Fave

7 EVERNOTE evernote.com

PHOTO: XXXXXXXXXXXXXXXXX

zoho.com

Alternatives: FreeOnlineSurveys. com - Limited to only 50 responses; KwikSurveys.com – unlimited questions and responses for free

myfax.co.uk

There are lots of costs involved in starting a business. Thankfully, there are also many free tools to help keep costs down. Here we take a peek at some really useful tools, many of which are FYM favourites and helped us get started 1 ZOHO CRM

10

Evernote is also free. It allows you to synchronise your notes – in essence it acts as a virtual online notebook. You can put all of your stuff in one place; notes, images, documents, web clips and audio notes. Evernote is ideal for helping you keep organised. You can upgrade the service to a premium account at a cost of £4 a month or £35 a

Skype-to-Skype calls are free but the platform has a variety of features which allows you to make phone calls to both landlines and mobiles at a minimal cost. Skype enables you to hold meetings from home or wherever you are; all you need is an Internet connection. It’s user friendly, cost effective and the ideal communication resource for small businesses. Alternative:uberconference.com

10 USERTESTING usertesting.com UserTesting is a paid-for service that allows you to get reviews on anything from your company’s website to a prototype product. You outline your target market and they find your likely user. Then you pose questions and the user answers.

This is an excellent way to get impartial feedback from a target market. The company claims that 79% of the time this happens within one hour! UserTesting doesn't come cheap. It's $49 per user, but it could prove to be invaluable in testing your idea. Q

Marketing Movers When it comes to marketing your product or service, bear in mind that social media favourites like Facebook, Twitter, Instagram and Pinterest are not just for personal use. Getting people to 'like' or recommend your product, or follow you on Twitter, is useful way to gain free exposure. Friends sometimes have similar tastes, so if somebody likes your product a friend may too! These networks offer plenty of free tools for business, which allow you to target more personally and identify who is interested in your offering. LinkedIn, the professional social network, is another you really shouldn’t ignore! WORDS BY SAM COLLARD

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FYM 31

technology

DIGITAL S N IO T A D N E M M O REC

TRYING IT ON WITH…

TECH

App Up

Using technology and free online resources is central to the lean approach. Here is how jeans company Eva & Paul (p18) used a high-tech approach to get closer to customers

Aim: To identify just how common and d

ACTION

ACTION

ACTION

LAUNCHED AN ONLINE QUIZ, USING A BASIC HTML SITE

Aim: To give people a space to vent their complaints about jeans shopping. Outcome: Received great qualitative data. “When you let someone vent about a problem, extraordinary information can come out of it,” she says.

about jeans shopping frustrations. It asked for body measurements, with the promise of a recommendation for a particular style at the end of the quiz. To test whether people would interact with an online shopping tool. Outcome: “We received great statistics from this but this is on the backburner as we were only just starting off.”

DEVELOPED A QUESTIONNAIRE WITH SURVEYMONKEY

frustrating people’s concerns were. Outcome: The data gathered revealed what shoppers find most frustrating.

First Eva & Paul created a survey using

CREATED AN OPEN ONLINE FORUM

SurveyMonkey. This included a Picture A and Picture B of a pair of jeans. Underneath was a list of multiple choices to establish which pair customers preferred and why. From initial research Julia already knew the top five frustrations that shoppers experience when shopping for jeans. In this survey she asked them to rank these in terms of importance.

Julia Kastner has not been afraid to try out new methods

Aims: To get more in-depth information

ACTION

What is Kickstarter? It’s a new way to fund creative projects, big or small. Since launching in 2009, more than 4.6 million people have pledged over $748 million, funding more than 46,000 creative projects. People set goals for funding and must reach those targets to receive the money. The business retains 100% ownership but will offer rewards such as a signed copy of a book that was published as a result, or tickets to the premiere for a film that was made. Check out: kickstarter.com

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INITIATED A KICKSTARTER CAMPAIGN TO FUND PART OF THE BUSINESS Aim: Kickstarter allows you to test a concept before actually making it in bulk, and that is very much in the spirit of the ‘lean’ startup. Outcome: Was able to make a pair of jeans in each size and take these to trade shows to get women to try them on. This allowed them to test whether the jeans were a perfect fit. Q INTERVIEW & WORDS BY ALANA O’SULLIVAN

For just 2.75% of the price and no other fees you can accept card payments using your phone. This is an easy way to take card payments, although trust may be an issue for some customers. Still it’s free and will likely become mainstream quite quickly. Cost Free Available iOS

REMEMBER THE MILK

Carbon tracking isn’t just for hippies. In fact, it’s increasingly important for businesses too. Not only does your business look friendlier to eco-warriors, you can sleep easy knowing that your bank balance is green and the world’s a greener, cleaner place because of it. Cost Free Available iOS, Android

We’ve all been there, unwinding on the couch watching EastEnders, or reading the Financial Times, when Bam! The realisation slowly dawns that a project’s due in tomorrow. Eliminate all-nighters with this scheduling app. Cost Free Available iOS, Android

What’s kindlin g? WHAT YOU S EE IS

Cale Harrison, a new FYM recruit, put out his digital feelers and has us square-eyed, green-fingered and making magic

Music

CARBONTRACK

SQUARE

tech stop

Eye of the Tiger Artist Survivor Yes it’s a cliché, but with good reason. Be careful not to get distracted by composing a mental montage of you studying...Okay, but only five minutes! The Harry Potter Theme Song Unfortunately you can’t study at Hogwarts, but you can listen to this song as a pick-me-up while studying. Or perhaps practising magic tricks? Howling for you Artist Black Keyss Seems an odd choice at first, until you reach the freestyle part…

WHAT YOU G ET

Author Lord A lan Sugar Kindle Edition £3.95 It’s all down to pe opinion but so rsonal me readers may not like th e ‘mockney’ accent. Some of the cockney phrases, throw n in remind you whe just to re feel a bit contriv he’s from, ed. On the other hand, he re how to start a ally shows business on a

shoestring. His ch tales are fun (h ildhood e started selling tar bloc ks starters). How as fireever middle of the bo , in the ok, where he describes the com between the te petition ch businesses in the 1980s, the story is really quite intense. Overall it com es highly recommended; especially if you enjoy The Apprentice.

CONNECT BOX Got a favourite app for business or lifestyle, or a top tune to study to? Do you know What’s Kindling? Tweet or Post your tips to win iTunes vouchers Tweet@FYMillionaire Post to Fresh Young Millionaire on Facebook

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FYM 33

money m o

1

DO YOUR RESEARCH: Every business needs a strong foundation, so before you start spending money on anything you should know that you have a minimum viable product or service (more on this on p14)

the centre of the lean model. So when preparing a budget ask yourself this important question: who is the customer of this budget? And how can this help me deliver what my customer wants.

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bookkeeping leaner

Whether you're going for a 'lean' model with help from investors or bootstrapping your own enterprise, a budget can help keep costs from spiralling out of control

S

ome argue that the ultimate lean company is one that has no budget at all. We wouldn’t go that far. In fact, whether you are bootstrapping, applying lean principles or have secured a loan or angel investment, having a budget can be invaluable. It helps you to prioritise what is important to your business and plan for short, medium and long-term expenses. However, sometimes sticking rigidly to a budget can mean you miss growth opportunities. So it is important to be flexible and keep innovating – this is another key theme of the Lean Startup model. Remember though: just because you have limited budget doesn’t mean it’s lean. Here are ten ways to help you get your budget in shape.

Temorary pop up shops are a great way to apply lean principles. They are affordable, allow you test and experiment with a new business idea and without too much commitment. They also create a bit of a buzz so customers may be more willing to spend!

2 6 3 7 8 4 9 THINK ABOUT YOUR CUSTOMER: The customer is at

BOOTSTRAP T E G D U B R U YO tips to keep your

KEEP IT REALLY LEAN WITH A POP UP BUSINESS

MINIMISE WASTE: One of primary principles of the Lean Startup is to minimise waste. Quite often people act on their own gut instinct in business but as Louis Barnett points out (p26) sometimes that’s not always what your customer wants. With the lean method, you develop something for your customer based on customer feedback. This can help to minimise waste.

CATEGORISE, CATEGORISE, CATEGORISE: If you are going to minimise waste in your business you will, of course, need to identify potential costs and allocate money accordingly. You’ll need to know which expenses are fixed and which are variable. Fixed costs are those expenses that are the ball and chain of your business – they won’t change, even if your output does. Office space is the most commonly cited fixed cost. Variable costs, such as raw materials or transport will increase as your orders grow.

PREPARE TO LEARN: In other words don’t try to immediately build the perfect product. To achieve this you should be flexible; always keep some capital aside for unexpected expenses or to grasp opportunities that may arise.

DISCARD UNNECESSARY EXPENSES: Meeting in person is great but if money really is tight, then maybe have a Skype conference call rather than spending money on transport costs. Some people will say it’s important to entertain clients with long, expensive lunches but will that keep them loyal if your customer service isn’t up to scratch?

5

BRUSH UP YOUR BARTERING SKILLS: Instead of forking out cash, why not trade a product for a product or a service for a service.

NEGOTIATE: Remember you may be a business but you will also be a customer too. Shop around and always try to get the best deal.

TRY THE ENVELOPE METHOD: If you’re a one-man band and are bootstrapping (see p21) your business, you might want to try the old-fashioned envelope method, more commonly used for personal budgets. It's simple: you identify necessary expenses and then split them up (perhaps not physically) into separate envelopes for each.

10

KEEP INNOVATING: Many businesses fail because they are so caught up in managing their budget that they stop innovating. Quite often you need to spend money to make money.

RESEARCH BY NAEEM RANDEREE

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FYM 35

Yes, money helps the world go round but how would you feel if the person who grew the banana you ate at lunchtime earned less than £1 a day? That’s not fair but it doesn’t have to be this way

Share

Few can deny the feel-good sensation that comes from sharing with friends, family and those less fortunate. Supporting the fair trade movement also feels good, so read on and be inspired. CHARITY VS FAIR TRADE

Fair trade is about far more than pricey bananas. Whether baking with friends, shopping in a store or browsing on the web, we have come up with some ways to support the movement, while having fun at the same time. O Volunteer. Why not form your own group of eight friends and head to Ghana, Thailand, Uganda or Peru and work on a project that really is making a difference. Check out: madventurer.com/volunteerprojects.html O Start a blog about fair trade products. This is quick and easy to do and could be completed in a matter of minutes! Check out: fairtradeblog.tumblr.com O Bake a cake using fair trade

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ingredients. Lots of shops, including major supermarkets like Sainsbury’s, sell fair trade cocoa, sugar and bananas to name a few. Check out: fairtradecookbook.org.uk O Train your tongue. Try fair trade wine at one of the many festivals up and down the UK…only if you are 18+! O Eat yummy chocolate: Look out for the fair trade logo and feel good knowing you are helping someone.

Sugar Tea Cotton Clothing Bananas Flowers Fresh fruits Sweets Biscuits Honey Hot chocolate

look for the logo

Save

What’s the difference? It’s a good question. Charity gives money and goods but fair trade is more than a hand out: fair trade gives dignity. Fair trade ensures that farmers and workers in the developing world receive a fair price, both for labour and crops. It also helps to improve living standards. Fair trade helps small, local businesses to flourish and grow.

‘AP’PEELING’ WAYS TO SHARE!

What can you b uy?

Fair trade products can be pricey, so it’s hard to talk about saving in the same breath. But we have come up with some tips and tricks to help you be a fair trader and saving savvy.

A Helping Hand Moses Bene lives in a small farming community on the island of St Lucia in the Caribbean. At the age of 16, he started working on a banana plantation, sometimes working eight hours a day, six days a week. The fair trade movement has helped Moses to receive a fair price for his fruit and vegetables. As a result, he has been able to start a small school for up to 40 local children.

1 Save fairly. Why not say NO to spending and YES to saving by signing up for a Triodos Fair Trade Saver Account? Like any other bank account, you deposit money you have earned. However, this will only be used to support ethical enterprises in the UK, like Cafédirect and Equal Exchange, which pay a fair price to producers in developing countries.

4 Don’t give in to your cravings. Quite often we buy things we don’t need so learn to look away. If you really want something badly, shop around to get the best price...but remember to keep ‘fair’ in mind.

2 Be fair to parents. Our parents won’t always be there to give us money, so think twice before asking for a hand out.

6 Reuse and recycle your old

5 Buy fresh produce from local farmers’ markets rather than big brand supermarkets.

clothes. Jeans too short? Cut them into frayed shorts. Give it a go!

7 Shop till you drop but shop in the 3 Learn independence and use your initiative. If you keep relying on your parents for everything, then you won’t know how to pay your bills when you leave home.

Countless products are sold in supermarkets across the UK, but have you ever noticed the little green and blue symbol? This is a consumer label that guarantees a product meets international regulations.

9 Try before buying. Some things just won’t fit.

10 Look out for the fair trade label. WORDS BY YEAR 7A URSULINE HIGH SCHOOL

CONNECT BOX Ever bought a fair trade product? What was it? How did it make you feel at the till?

sales, shop out of season.

Tweet @FYMillioniare

8 Shop in charity shops. It’s a fairer

Post to Fresh Young Millionaire on FaceBook

way to spend, as your money will go to a good cause.

www.freshyoungmillionaire.com

MAIN IMAGE: GERMÁN MIRANDA/IPS

GIVE ANDTRADE

money

FYM 37

spend

nothing but!

Wear Fair Top Guys or girls can choose from loads of unique styles from one of our favourite fair trade shops. £25 peopletree.co.uk

indulge yourself!

earthly ear thl treasures trea

Divine Fair Trade Chocolate Fair trade chocolate available in six luxurious flavours. Perfect for a sweet snack. £1.95 fairandfunky.com

Sentime Stones Sentiment A fun and an friendly way to sshow how much you y care. £1.98 share sharedearth.co.uk

Fair Trade can

wear and wea be fair! f

BE FUNKY!

Fair Trade Warm up inside and out this sseason with an extra layer of fair ttrade. (£15) www www.fairtrade. org g org.uk

magic ic c memories riies

Yes, it is possible to support fair trade initiatives and be simply stylish, sweet-smelling and set up for the day ahead. Great for gifts, or as statement bits, to support the cause

Jewelled photo o frame Pop in a pic of yourself yo ourself and a friend – Happy H Birthday solved! ve ed! £9.99 sharedearth. ea arth. co.uk

morning message

Fair Trade Mug and Coffee Rise and shine with new meaning. Great for coffee lovers like a kick for a good cause. Mug - £7.50 & Coffee - £16/500ml cafepress.co.uk

go bananas!

fair for ou our fu ffurry urry frien s friends Gifts from the Bod G Body dy Shop T They are against animal a testing and source sou urce in ingredients ngredients through thro fair trade farmers! far Great products at great prices. prod thebodyshop.co.uk

one for St Patrick’s Day Guinness Earrings Leprechauns and ‘faeries’ everywhere will love these £6 fairtrade.org.uk

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purse ideer!

Embroidered Fair Trade Purse We love it! Hand embroidered in Bangladesh giving local artisans a corner of the global market. £4.50 fairandfunky. com

Inflatable atab Banana B Go bananas banana b and help farmers at the same time £9 at fairtrade.org.uk

feel ‘dope’

Cinnamon & Orange Clove Soap! Feel good forever with this funky fragrance! Perfect for mum or enjoying the sun! £3.25 amnestyshop.org.uk

CONNECT BOX sweet feet! swee

Banana Leaf L Slippers Get your five five-a-day wearing these banana skin slippers that are made in Bangladesh. £23 amnestyshop. amn org.uk or

Do you buy fair trade? Tell us why... Share your favourite places for this season with friends. Tweet @FYMillionaire Post to Fresh Young Millionaire on FaceBook

WORDS BY YEAR 7A URSULINE HIGH SCHOOL

www.freshyoungmillionaire.com

FYM 39

making a difference

IsBOGO

CASE STUDY

? s s e n i s u b e h t W

ould you be more likely to buy something if you knew that somebody less privileged would benefit? If that’s you, then you’re one of a growing number of socially conscious people. In fact a recent corporate social responsibility study, by marketing and PR agency Cone Communications, found that 92 % consumers would buy a product with a social and/or environmental benefit. In addition, 67% of survey respondents had already purchased such a product in the past year. These figures could explain the growing number of Buy-One-Give-One (BOGO) businesses that are springing up. Clearly the business benefits of selling a product or service with a social conscious stack up. Blake Mycoskie, the founder of TOMS shoes, which we featured in FYM Issue 2, has had huge success with his social entrepreneurship and trademarked one-for-one model. For every pair of TOMS shoes sold, a child in the developing world receives a pair for free. TOMS is now a successful, must-have item for the fashionable yet socially conscious.

You “ cannot make a difference if you don’t try ”

The Good Little Company gives people the means to grow their own food

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Many people today express themselves through fashion but is this enough? Enter Runway Baby Organics which launched this September and is selling organic fashion for babies and children. Ana Cristiana, the company’s founder, is basing her bootstrapped (p21), BOGO business on creating 'fashion with a soul'. She is going down the buy-one-give-one road but believes she takes it a step further by putting fashion, education, charity and environmental awareness at the core of her business. FYM spoke to the company’s founder to find out why she believes BOGO is the business.

organic materials from local businesses in underprivileged countries like Bolivia and Peru. We also manufacture the products in the country which helps to stimulate growth, instead of slowing it down. The other aspect of my business model is related to education. Instead of selling pure fashion, every product we donate will be accompanied by an educational item - ageappropriate books designed to stimulate interest in gaining knowledge and to give love and hope. These are products that will make a positive change in the world.

FYM: The BOGO model has come under fire on a number of levels. What’s your view? Yes, a big challenge is to overcome prejudice about the buy-onegive-one business model. I believe my concept achieves this as I source my

FYM: What inspired you to take the risk of launching a new fashion business in such a highly competitive market? We live in times when fashion is a way of expressing ourselves. It’s a form of art and a message for people around us.

Critics speak out

Other firms have followed with similar ideas. For example, for every pack of sausages sold, The Good Little Company gives a person in a developing country the means to grow enough food for a meal a day for one week. Roma Boots is another; it sends a pair of warm and waterproof boots to a child in a wet and cold climate for every pair it sells. Meanwhile, Figs' ‘threads for threads’ concept puts one child in a school uniform for every tie sold. So far so good. However, critics argue that unless real value is created in local economies, the BOGO model is little more than a marketing ploy to get wealthier, socially conscious consumers to spend more on a Western-made product than they ordinarily would. One argument against BOGO is that in many countries there are already local shoe companies and these firms could lose out on business if everybody received a free pair of TOMS shoes or Roma boots. The claim is that charitable gifts from wealthier countries can, in fact, distort developing markets and undermine local businesses. In other words, Western firms should be creating local jobs, or opening local factories, if they really want to make a difference.

There’s nothing wrong with looking nice, polished and in trend. However, fashion for babies and toddlers needs to go beyond the trend. It needs to be beautiful, safe for both kids and the environment, practical and educational. Education is the greatest charity you can give. My business concept brings all these elements together in a new, innovative way and adds a message of love to underprivileged children all over the world that they loved too! FYM: What challenges do you expect to face in your new business? The main challenge is to convince people to believe in positive change and to give them hope. As I look back on my own life experiences, I recall those times when I was down, without hope and lacking trust in people. Back then, creativity and interest in anything meaningful were mere metaphors, or concepts empty of meaning. But I got up and continued as I believe you cannot be successful if you don’t believe in yourself. You cannot make a difference if you don’t try. I believe that one person can make a difference, no matter at what scale. Sometimes, depending on resources, the difference is a drop in the ocean. If many ‘one’ persons start thinking along the lines of community, love and care for the less privileged, they will become the ocean. Q

CONNECT BOX

PHOTO: XXXXXXXXXXXXXXXXX

The buy-one-give-one model is becoming more popular, but is it really the way to ‘make a difference'? FYM investigates

Knowledge is Power

Would you spend more if you knew somebody less privileged was benefiting? Do you think the BOGO model is a good thing? Tweet us your views

Peop People P ple lesss for fortunate orrtun tu unate th tha n you y could cou uld d than benefit ben fi from m BO BOG O O BOGO

Tweet@FYMillionaire Post to Fresh Young Millionaire on Facebook

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FYM 41

The Lean Mean fair trade

JEANS MACHINE J Fair trade is a growing movement and there are social and business benefits

ulia Kastner, the founder of fair trade denim company, Eva & Paul (p18), has always been passionate about social issues. However, her passion was fuelled when she visited Nicaragua on a high school exchange programme. “My host mother was a microentrepreneur who sold ice out of her freezer to keep her out of poverty and to support her daughter’s education,” explains Julia. Moved by the experience, Julia returned home and soon discovered that there was a growing field of micro-finance to support small businesses as a way to alleviate poverty. International development is a difficult career to break into but Julia was determined. First she worked in education, and then at the New York City economic development department. Finally she got the break she was looking for in a technology startup which happened to be a social enterprise. “Through Kiva. org I got to work in Mexico with micro-entrepreneurs such as farmers, artisans, potters and so on and saw how these microbusinesses helped people out of poverty,” she says. However, she also quickly saw that people had trouble selling

Eva & Paul denim is sourced from a family farm in India

award2013

Have you g great busin ot a ess Has one of idea? friends star your te brilliant ent d up a er Enter FYM prise? ’s Entreprene Young ur Aw and have y ard o business fe ur atu in the next red issue of FYM!

products in their local community due to pricing and demand issues. “I got to see first hand how organic and fair trade products, being produced by micro-entrepreneurs, could be sold in developed countries where prices are that much higher,” she says.

often treated unfairly. As Julia started to think about starting her own business, she felt “cotton was a brilliant opportunity”. Fair trade is a growing movement but there is Fair play already a lot of chocolate, coffee From the beginning of the supply and food out there. “I felt there chain to the end, workers are was room for improvement and that clothing could be made in a more ethical way,” says Julia. “Companies like Timberland are already doing great things for th the planet, and for people w who make their products, b but there is more than e enough room for another Around 11% of the et ethical company in the world’s cotton comes from Uzbekistan and a apparel industry.”

Eva & Paul labels are printed by artisans in India

www.freshyoungmillionaire.com

We know you’re out there and FYM is on the hunt for the UK’s top entrepreneurs. en Nominate yourself or a friend to win the FYM Young En Entrepreneur Award and win a chance to be interviewed and have yo business featured in issue 5. You could also win a new Kindle your H 7-inch to keep you entertained and organised while on the go! HDX

...clothing “could be

for ethically produced products. Eva & Paul denim is sourced from a family farm in India, and artisans from a fair trade company in India handprint the pockets. The cost of the fabrics and printing is relatively inexpensive but shipping to and from India and the US is costly. All this makes her jeans more expensive than say Levis or Gap, which also have the advantage of ordering in bulk to bring costs down. As a startup, everything is expensive because you’re working on a small scale. For All Mankind’s business model is more comparable but this jeans firm chooses to highlight where the denim is from. Eva & Paul, however, puts organic and fair trade at the centre of its business model. Q

made in more ethical ways”

children are taken out of school to pick it.

FYM

competition and awards

It could be you…

Did you know?

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yenotrueprnengeur

M Y F

fair trade

Branding benefits B

Fair trade goods are often Fa s at a a premium but you can sold build that into your costs. Many customers today will pay more

Who’s eligible: W

How it works

O O Readers aged 14-24 in the UK. O The business could be a O c charity, social enterprise, sole trader venture or limited company.

O Entries are collected and reviewed between October and January 15th 2014. O Shortlisted candidates are contacted by email to arrange a short telephone interview. There will be an online press release where friends and family can vote for their venture. O Winners are announced and featured in the Spring Issue of FYM, out in February 2014.

What we’re looking for:

WIN

KINDLE HDX 7

O O Young entrepreneurs who a already established or in are t startup phase of a new the b business. O An innovative product or O s service to fill a gap, meet a need or solve a problem. O A O short bio about the en entrepreneur. Where did the idea come from? Why are you the best person to make it happen? O A solid plan for how to grow sales and provide great customer service. Check out our July issue online for help on this.

How to Enter: Fill in the online entry form at

www.freshyoungmillionaire.com/ youngentrepreneuraward Or email info@ freshyoungmillionaire.com with Young Entrepreneur Award in the subject line and we’ll send a link.

WORDS BY ALANA O’SULLIVAN

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FYM 43

making a difference

? n e e S e b o t n a e L o To I

t’s a common story for startups: “We’ve got a great product and business model but we’re too new or small to attract support…” Enter Big Issue Invest (BII). Established in 2005, BII is the only social investment company that has grown out of a social enterprise. Wholly owned by the Big Issue Foundation, BII was first set up to bridge the gap for social enterprises and charities struggling to raise bank finance. Programme Manager, Mayhul Gondhea explains that BII is the Big Issue Foundation's social investment arm. The mission is to back sustainable social enterprises and ventures that help tackle poverty and inequality. The aim is to help them scale up by providing loans and investments, not grants of £50,000 to £1 million. “We provide investment capital, mentoring and network access through industry partners," he explains. While this project focused on technology, Big Issue Invest has plans for the future to target the creative industries, health and social care. It is also launching a programme

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in Scotland.” This year there were 110 applications, 25 were shortlisted, 13 selected for the mentoring programme and 11 received investment. The two that didn’t win investment still got support. We’re proud to say that FYM was one of the 11 ventures to go through to the final round to win investment from Big Issue Invest in their Tech for Good Challenge!

Faint-hearted we're not Entering such competitions is not quick or easy, but they can pay off. Let's take a look at what was involved for FYM to win the Big Issue Invest competition? O A looooong application with a video pitch O A telephone interview with three programme managers O A full day induction to go through the rules and meet the allocated mentor O An intensive six-week programme to write a business and financial plan O A weekend in Manchester pitching against 13 equally deserving and inspiring ventures O A bit of a wait to find out the final result!

www.freshyoungmillionaire.com

Meet the Mentor V Ventures are paired with a m mentor to support their a application and pitch. FYM was fo fortunate to have Karl Wills, c chief information officer of M Metapack, an ecommerce sshipping and delivery software p platform. Karl has been a ssupporter of Big Issue F Foundation since 1999, and w wanted to provide business ssupport for new social e enterprises to help them d develop and suceed. "Too m many new businesses fail, and if I could help one avoid failure o or an unnecessary struggle tthat would be an a achievement," he says. For Karl, it was interesting b being involved in a new media c company, an area of business h he hadn’t touched before. ""The biggest challenge was w working out how I could help, e especially since FYM already h had a mentor who was very e experienced in publishing," he ssays. "The whole involvement w with BII and seeing lots of new ssocial enterprises was

how did THEY do?

investors LISTENING

Making PITCHES

workshops

It’s become harder for social entrepreneurs to secure the backing they need to grow sustainable businesses. Thanks to Big Issue y have a shot at winning investment s they Invest

M h l Gondhea, Mayhul G dh BII Programme Manager

BII Founder: Nigel Kershaw Nike products are worn by oustanding sports people

FYM: How did the Big Issue Invest first come about? The Big Issue Foundation asked the question ‘why aren’t there more big social enterprises and brands like ours?’ So in 2001, John Bird, The Big Issue's founder, and myself invented Big Issue Invest. It was to be a Social Merchant Bank ‘By Social Entrepreneurs, For Social Entrepreneurs’ on the grounds that it takes one to know one. After 22 years experience with The Big Issue magazine, which was created to provide a business solution to the social crisis of homelessness, we knew that there was a gap for providing finance to social enterprises. We wanted to help other entrepreneurs grow and help transform the world we live in.

FYM: What do you love most about BII?

incredibly inspiring and humbling. It was encouraging to see so many socially positive people. The biggest reward is being part of the team to help develop what should be an amazing product in FYM.”

We try and live by our philosophy of ‘A hand up, not a hand out’. We aim to help people to help themselves by backing business-like responses to social problems with self-help and prevention at their core. What I really love is helping other social entrepreneurs and enterprises create these business solutions.

FYM: What was your role in the development of BII? I was the dreamer. In 2005 when we first

started operations I drew the vision on a paper napkin in a coffee shop. I couldn’t make it happen without a great team of people with financial experience who believe in what we are doing.

FYM: How challenging has it been to get investors on board? Really challenging at first. Like The Big Issue Foundation they couldn’t work out if we were a business or a charity. We kept explaining we are both. We can offer a social and financial return at the same time. It doesn’t have to be one or the other. I think people are getting it more now.

FYM: What are you hoping to see out of the BII in the short and long term? In the short term we want to see more social ventures like FYM get the finance and support they really need to flourish. In the long term I hope that we create a Social Merchant Bank and like The Big Issue through business can really help change the world we live in.

What are you looking for in the types of ventures and entrepreneurs you back? Social impact, the entrepreneur’s skill, drive and tenacity to succeed and a business model that is sustainable. The biggest challenge of the process? Ensuring the ventures are paired up with the right corporate partner or mentor. The most rewarding and inspiring outcome of this year’s event? Seeing such high quality investment pitches by really inspiring entrepreneurs. And hearing feedback on how the programme has impacted the long-term success of the company. Q

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SOCIAL WITHSTYLE

Most of us use social media but could a future employer be watching?

T

hose 500 duckfaced ‘selfies’ or your extensive collection of Frankie Boyle retweets may seem fun, even funny, at the time. Appropriate? No way! We’ve all done it but those social faux pas can cost you cash, friendships and even your career. Here are seven simple ways to avoid embarrassing mistakes and use social media to network like a pro.

Bad idea #1: Having an open account and posting personal details like address, phone number, date of birth... Why make yourself a target? Edit your privacy settings so only friends, followers or select groups can see your posts. Remove your contact details. It may sound paranoid, but put e-safety first. Employers will respect you for being clued up.

Bad idea #2: Selfies! You are unique and talented but

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you don't need hundreds of pics of yourself from all angles. Pick one or two of the best and stick to them. Guys this applies to you too! Better still, upload inspiring pictures that showcase your talents or interests. If you already have something to sell use social media to display your product and work. This is free publicity and, who knows, a future employer may be watching. In general, be careful of what you post. We’ve all heard horror stories about people being hauled over the coals for a joke they posted years ago, or pictures of a wild night out.

Bad idea #3: A profile which doesn’t reflect your achievements and interests. Follow every (genuine) person and potentally useful organisation. Whether you’re interested in economics, fashion, farming or even tai-chi, on social media you can find like-minded groups or individuals. This can help you

www.freshyoungmillionaire.com

stay on top of all the burning issues in your field for free.

“Instead tead of telling the world what you’re eating for breakfast, you can use social networking to do something that’s meaningful.”

Bad idea #4: Posting countless updates! Think before you post and ask yourself: will this be of interest to my friends, followers or potentially employers? Try not to be too personal. Do we really need to know what you had for breakfast or what time you went to bed?!

Bad idea #5: Being overly modest! If there is something which sets you alight with energy and ideas, why not write about it. A blog costs next to nothing and it could raise your profile and even earn you some cash.

Edward Norton, actor, film-maker, screenwriter

potential employers. Show an interest in their work and what motivates them. Be polite, avoid personal questions and always check your spelling and grammar. LinkedIn is a great place to show your talents and connect with the working world.

Bad idea #7: Making silly jokes or inappropriate remarks online.

Bad idea #6: Not having LinkedIn - the social network for professionals

Stay away from posting jokes on your profile. A 37-year-old recruiter will not appreciate your Sheldon Cooper quotes, or how you’re being ironic when you talk ‘gangsta’ with friends. Don’t be mean to others. It isn’t funny. Be positive! Q

To stand out you need to be prepared to make contact with

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a body supermarkets and malls and offered for scan in exchange for recommendations of jeans. We used this data from thousands bodies to get a sense of what shape people actually are. What we saw was that there is some size each within variation - a size 8, for example, So bit. a quite vary can if we can get closer to what the average size 8 is then we can make a much better product. If you tweak it for a specific demographic, you can get even closer to the average shape of a size 8. We then added lots of stretch to fit the range within each size.

Then I made prototypes and got people to try them on to get a really good idea of what they wanted.

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tally lean? The founder of a New Can jeans be totally thinks not York-based fair trade denim company longer and costs a lot more. is to FYM: In your blog you pose the question: In the end, the whole concept of ‘lean’ t all began when Julia Kastner, the feel you can a denim brand be lean? Do you So & minimise the resources that you use. founder & chief executive of Eva now? have an answer to that question think the rather than using no money at all, I Paul, got into a debate with Eric just a No company can be 100% lean. It’s of money approach is to use the least amount Ries, author of The Lean Startup, on the question of where your company falls market. possible to get your product fit for over whether she could start a have the At spectrum. On the one hand you denim company using his lean methods. of coming up with a to an Business more traditional method FYM: You’re applying this model any the time the two were at Harvard getting not and in, plan that you believe work? that apparel company. How does that School together. Eric had insisted other, you feedback before executing. On the Well, it’s been very exciting as traditionally Julia could fully test her jeans, and have those who follow a more heavily a designer wanted, most apparel companies start with understand what customers truly As researched and ‘lean’ approach. executing their artistic vision or dream. near before ever making a pair. With a denim company like mine I fall enterprise, but not my focus is on business and social Julia has gone on to apply some, latter. the middle but lean more towards the her fair feedback. I began by all, aspects of the lean method to lean your I was keen to get lots of What you’re selling also affects how up with identifying my target market and then trade denim business. FYM caught of company can be. It’s about the cost with real people, interviews conducted her via Skype to find out how. feedback. prototyping and cycle time for created online surveys and researched code and Technology-based companies can about jeans, and jeans shopping, complaints have and develop new prototypes rapidly at what on existing online forums. I looked in no time. them up and running for feedback form a other companies were doing, all to However, for denim, and other physical should be. hypothesis on what the right jeans takes goods, creating and testing prototypes

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They

ona y tale, FYM: After hearing that cautionary your n nform how does customer feedback inform ering he decisions? The first step is gathering o with pen own feedback which means sitting down nd having a and and paper, and a friend or two, an k that talking long conversation. You may think ’tt give you with just one or two people won’t i a big enough data points. But if there is i you will ing, consistent problem with something, u person urth start to hear repetition by the fourth they o oogle you talk to. Even at places like Google n with four ns feel that qualitative conversations g a to ten people can be enough to get consistent story to work with. So I sat down with a friend and discussed the brands they wear, the process of shopping love they what and jeans for and hate about jeans. By repeating this with five to seven different friends, I started n I nd to hear very consistent stories and e esis. was able to form my first hypothesis. ak aking FYM: Is your concept about making n to fit? No. We put 3D machines in

to likes then you’ve wasted money. Going if people market is much cheaper and faster likely to like your product and you're more succeed. Constant research and feedback prevents you from driving in the wrong direction. The goal with being lean is to not take any official money when you are starting up or growing, but I don’t think being lean should mean spending no money at all. This may work for tech companies but it’s not possible for physical products. For me it’s less about being cheap especially given my decision to go me that fair frade (p42). Eric tried to convince I I could do all of my testing via websites. test thought if I was making a drink I could I would the effectiveness of the branding but Q still need to know if it tastes good.

“ I don’t think 'lean' is fully possible if you are making physical products ”

FYM: How do other less ‘lean’ jeans companies go about it? My designer works with lots of different startup brands and she told me the story of two brothers whose parents gave them a couple of million dollars to start a denim brand. They went ahead and spent lots of money creating loads of jeans without listening to anybody. They took those jeans to trade shows but didn’t sell anything. And guess what happened? had to close their new business down.

FYM: What aspects of the Lean Startup model have worked for you and what is hasn’t? The core of the Lean Startup about getting feedback. This matters because if you make a product nobody

INTERVIEW & WORDS BY ALANA

O’SULLIVAN

Eva & Paul jeans have plenty of stretch

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ical product Find out how to launch a lean phys business section

THE BIG QUESTION

THE JOURNEY SO FAR…

N YO LAUNCH N YOU AN CAN A TRAVEL BUSINESS IN JUST 48 HOURS?

won a 48-hour sprint to launch FYM caught up with TripStarter which the product is now fit for market earlier this year. Several 'pivots' later and

Setting the scene Back in May, three teams of complete strangers from diverse backgrounds were thrown together to see if they could launch a new, innovative online travel business. The competition – or ‘Ideas Runway’ - was launched by lastminute.com, an online travel agent, and EyeforTravel, a global travel industry conference organiser and content provider. The competition took place at EyeforTravel's Travel Distribution Summit, Europe which attracts around 600 people from all ‘big corners of the travel industry. The idea’ was to hothouse some great ideas, test these on the industry and perhaps even raise finance using the Lean Startup methodology. TripStarter was named winner. Buoyed by their success, the new adventure group travel business – which was under no obligation to take its winning idea forward – decided to run with the dream. Since May the team has been incubating its idea each Friday at the offices of lastminute.com in London. They launch officially in November.

Living the lean dream

For budding entrepreneur Afzaal Mauthoor, TripStarter’s chief to executive, 48 hours is enough time come up with a concept and a team. “That's a very good start, but it takes a bit more than that,” he says,

admitting that launching within the unique confines of a travel event, and with huge support from lastminute. com, provided an excellent springboard. Finding the right team is crucial to it any business (p28) and TripStarter, seems, got lucky. “If 60% of success criteria lies in a strong team, then this group deserves to be successful,” says Don Birch, a travel industry mentor who has worked with numerous travel startups over the past few years. He was also a judge of the competition.

Lean is about listening

One of the aims of the competition was to test Lean Startup methods (p14). During the initial 48 hours Afzaal and Caroline Xuan Wu, a Cambridge University masters graduate in Mathematics, worked to as refine the demographic data (such their target audience), and revenue model (how they would generate income). Meanwhile Chris Rose, a maverick programmer, and Victor Szilagyi, a sought after interaction designer, worked on creating a viable gut by done was Nothing prototype. instinct. Rather they tested and built for the consumer, ‘pivoting’ several times - yes in just 48 hours. Four months later, the team continued to pivot from the original idea. “For me, the backbone of the lean method is about listening to or customers intensely, and ‘pivoting’ making decisions quickly based on feedback and iterations,” says Afzaal.

On a trip to Ethiopia before the competition, the market. Afzaal Mauthoor spotted a gap in He wanted to join a group adventure running the experience but the travel company people for it activity needed a minimum of four to be viable. When travel or tour operators can’t fill space this is known as ‘distressed inventory’. TripStarter aimed to help. secured THE START: The idea, which to create a TripStarter the winning place, was that social platform for group travel bookings would solve the problem of distressed the inventory. Tour operators would supply tour, inventory, such as a white-water rafting would to TripStarter. Then intrepid customers with their become 'trip starters' by sharing this the on friends or like-minded people using group's social platform. met THE SHOCK: Two months on, the team and with Don Birch, who has mentored wouldn’t invested in travel start-ups. “He said It was a bit of touch this idea with a barge pole. based on a shock as we’d won the competition this idea,” says Afzaal. THE PIVOT: Don said the team hadn't (a demonstrated real benefit to the customer But who was key principle of the lean method). (like a tour the customer? The travel supplier and me the operator) or the end customer (you traveller)? After talking to more potential most cusotmers, TripStarter realised the an industry viable model was one that offered (B2B), but solution to other travel businesses with a strong consumer focus. five THE SHARED EXPERIENCE: After its social months, TripStarter settled on selling and event sharing platform to tour operators unique organisers. The idea is they will share the experiences with their database using or people TripStarter platform. 'Trip starters' who want unique, personal, yet shared trip or experiences, will share the proposed people. The event with friends or like-minded a group aim: to make the process of organising trip a whole lot easier and more fun.

TripStarter has spent every Friday with innovators at lastminute.com

“It’s also about avoiding the blame culture, and learning from mistakes.” That’s all fine, but Afzaal says there comes a time when you also have to listen to your gut instinct. “If you’ve got endless resources and funds then you can keep pivoting, but most startups have to think very creatively So, about keeping costs low,” he says. you have to know when to stop taking feedback and run with your idea.

Doing it differently

to The TripStarter team has been keen avoid traditional business models, which are often built around a person’s expertise. Typically, the person at the helm will have an approach that goes something like this: ‘This is something the world needs because I have ten years experience’. Yes they have passion, but they aren’t necessarily thinking about the customer. "With the lean model you have that same passion but you are equally passionate about hearing what people think about it and improving that product for the customer,” explains Afzaal. So should all businesses apply the lean method? "Well you wouldn't need a lean model for the bar code," says Afzaal. Invented by the late Norman a Joseph Woodland, the bar code was very useful development that immediately made life simpler for businesses and shoppers. For TripStarter, which aims to own ‘the DNA of the shared experience’ of then you most certainly need plenty customer feedback.

“Lean is about listening to customers intently” THE BIG TEST

to Jasmine Club will use TripStarter This November, event organiser The attend a 1920s themed event at the help it find around 100-clientele to The club will use TripStarter’s B2B new Laura Ashley hotel in Elstree. the right people, rally others to online sharing platform to help it discover the The Jasmine Club’s soiree. Q join and then finally book a place at RESEARCH BY XXXXXXXXX

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ts to success A new group travel business sprin business section iversary Ann Special of FYM we

we often end up creating engineering the whole process and best business retailer’s market rather, hen Louis was 14, he received the new products around a gap in the advisor: Louis. advice ever from a close friend and than just selling what we have,” explains want to example, Selfridges ‘Don’t sell to people what they don’t In the run up to Easter this year, for apply when ranges, but nothing buy!’ It was a principle Louis would had lots of chocolate from less expensive remains Simply by asking what they he was just starting up, and one that really special in a luxury market. up producing a chocolate central to his business today. needed, Louis and his team ended cakes decorated with was a huge success! This You see, Louis started off making £89.99. for retailed that egg o his customers were requesting B Before llong s. Befo es. chocolates. chocol tes. little chocola than tha cakes. This was a Eureka! ra only, rather lates only, solutions chocolates and Challenges and a lot of retail buyers ed to developing more chocolates switched ment. “We switched moment. Within the food and beverages industry, ea business model terminology, lean personal opinion. “They on al we do.” In le based ow that’s all now n purchases their choose nation based on their b known as the 'pivot'. this would be are actually buying the food for the doesn’t stand still and dev can be very challenging to customer development Of course, customer personal taste!” exclaims Louis. It vital component of a lean business. they know their customers something that is a v this is something persuade buyers as many believe h important it is – and how w how independents aren’t only too well Louiss knows only best. Even small delicatessens and Chokolit, while product “I’ve heard them say, complicated it can be! At C complicate always listening to their customers. led right from the start, cus think I’ll take that.' So d emon, I don’t lem development has been customer ally like lemon, really ''Oh, I don’t really ag rss ago, buying what the customer anged with ttime. Ten years changed cessarily bu g have ch necessarily things y aren’t ne they using Twitter orr they’re they buying what they a wants, w for example, no one was us ck d today. “Back want you to want!” w Facebook in the way they do ry was very develop If you have strong data customer development our customer then t alls. he recalls. pers pe d personal,” and about customer opinion a t much front-facing n existed in h m have easier to sway buyers, ing may it’s it’ orking networking Social network BE AS LEAN peo weren’t AS YOU but that data can be very universities but people some universities CAN, BUT REMEMBER or pro YOU’RE expensive. Louis and his expe using it to talk about products LEAR n MISTAKES NING TOO. th do today. In the way they team simply don’t have time dvert in the advertise LEARN FROM HAPPEN. t customer extensive do to t fact, today brands are able to target DON’T REPE THEM AND more relevant ar m research. Moreover, detailed resear AT THEM customers in a far IT’S ALL . ABOU (though it’s way way (t market research can cost up to and personal wa YOU RESP T HOW OND. avoid being per product to test. As mportant to avo important £10 £10,000 fact, Facebook In fa creepy!). cree with the llean model, it’s about ter are effective way to do c and Twitter finding a cost are worn by products tools great for this specific s are pingNike shows s developing “Trad so. “Trade oustanding sports people aid-for services for paid-for and paid they involve PR, selling, th because the businesses busine sess to be able to and market research – so arketing an marketing m et r. ette i customers better. y lean way to gain insights targett their tar really reall at’s a real hat’s that’s th frontline customers,” into product development from your yo customer Know your says Louis. for more products develop customer, who ine end bu busine businesses Most Another option is to work with a higher type: end consumers cu o e customer Often you have to take n one than will take the risk by trialling a product. li us who buy from shops or online) (people (peop like Return’ model; here the the cost upfront as with a ‘Sale or buyers and retailers (those comm commercial pay for what is sold and and c product is loaned to a shop, they only purchase on behalf of large some faith in the who purc return the rest. You do have to have stores or chains like Waitrose tm over time. department departm product you’re testing, but this develops consumers). end to sells beverages then and hic whic – which food This model is more challenging with Some businesses only sell to other items back, unless because it’s not possible to take unsold – or business-to-business n sin businesses busin bus conditions such as you can guarantee perfect storage a (B2B). (B2B You don’t want to turn out leftover products must temperature. Failure to do so means that doesn’t fit your prod product be scrapped. needs, or their price points, cust customers of types both keep to need d you and

In Issue 1 readers to introduced 22-year-old Louis he chocolatier ne of the 14 is now one At just 14, Barnett who exporters. ts t chocolate er of produc UK’s bigges est ever suppli early the young Louis faced was Louis ury’s. Yet l due to and Sainsb d at schoo to Waitrose l to succee struggling he left forma . Aged 11, challenges, ia and ADHD the full severe dyslex home schooled. Read . be to re.com illionai education at freshyoungm story online

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Louis on Lea n

meer custoom central One year on, FYM caught up with Louis Barnett to find out how he applies lean methods to his chocolate business

in mind. sto cust customer

lessons Early lesson

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Quiz: What business is best for you?

ISSUE 3

ISSUE 2

‘Entrepreneurs are not born, they're made’

aire fresh young million £1.85

26

FYM

to big companies, which e ese presentation In an early prese in stores across the UK, Louis hok Ch would stock Chokolit p of his pitch wasn’t relevant to at part tha later learnt that “None of what I was saying fit the ll. “N all. the buyer at a trying to reach,” says Louis. w hey were the customers they some es into into similar meetings with Today he goes but is aware of the need to m information, nd inform background F example, what are the buyer’s stions too.. For questions ask questi like reverse nd who are their customers? “It’s needs and

Be creative

‘personal opinion’ Louis has found a way around the units in larger challenge by placing their own merchandising they want. shops, allowing Chokolit to stock what all products as this has Another option is to digitally print effective in recent become much quicker and more cost products at a time and years. “We print a couple of hundred days of buying 10,000 for test the market slowly because the explains Louis. it to be cheaper are almost over,” from concept-to-shelf in In fact Louis has had a product go out, the loss isn’t so just seven days. “If it doesn’t work great,” he says. Q www.freshyoungmillionaire.com

FYM 27

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d still Customer development doesn't stan

INSIDE EVERY ISSUE

7 SUCCESS STORIES & CASE STUDIES

About real people JUST LIKE YOU

7 HOW-TO SECTIONS

Get your business up and running

7 GROW YOUR MONEY SENSE: Save – Share – Spend

7 DEVELOP YOURSELF

Reframe your thinking

7 MAKE A DIFFERENCE

How to grow your business so everybody benefits

M CO E. IR A N O LI IL M G N U YO H ES R .F W VISIT WW RESEARCH BY XXXXXXXXX

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3

legendary leaders

Xxxxxx SCHOOL LEAVERFYM PROGRAMME

Sugar and a good dose of Spice… Sir Alan

H

finger-pointing words e is most famous for the television show The C BB the ‘You’re Fired!’ on cuing Tottenham Apprentice, and for res But when Sir Alan Sugar . Hotspurs in the 1990s b’s popular manager, sacked the football clu th his family received dea Tony Venables, he and as d form he is quote threats. True to feisty h I’d killed Bambi”. ug tho as t saying: “I fel drive to repreneurs, Sir Alan’s Like most successful ent in up w an early age. He gre succeed was visible at a for ot tro t boiling bee London’s East End, firs goods car aerials and electric ling sel d an cer greengro turer fac nu nded computer ma rich from a van. Then he fou in’s ita Br to on pushed him Amstrad in 1968, which g on wr etimes backed the list. Although he has som ous e of Britain’s most fam on is n horse, today Sir Ala n. me ess sin bu st hie alt and we (or perhaps notorious)

“Effective leadership is about earning respect, and it’s also about personality and charisma”

“It’s a fine line between confidence and being a bit cocky”

“NOT EVERYBODY NEEDS TO GO TO UNIVERSITY; THEY CAN GET OUT AND START WORKING STRAIGHT AWAY”

“7VKM aW] LMKQLM \W _WZS NWZ aW]Z[MTN aW] VM^MZ OW JIKS \W _WZS NWZ [WUMJWLa MT[Mº “Learn to read body language”

“I have always tried to keep my feet on the ground and talk to everybody the same way, regardless of their status, because I remember where I came from”

“FIND YOUR OWN INNOVATIVE IDEAS AND WHAT WORKS FOR YOU”

“A good leader is not necessarily the most popular person in their business, but the best ones are liked because they are respected for their clarity and vision”

“You mustn’t rely upon anyone else. It’s going to be you who LMÅVM[ \PM way forward”

¹AW]¼ZM ÅZML º 50

FYM

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