Elite Business Magazine June 2014

JUNE 2014

CALIFORNICATION

JUNE 2014

Serial entrepreneur David Richards always had his sights set on sunnier climes. He got his wish: San Francisco provided the ideal backdrop for the creation of WANdisco – his biggest hit yet £4.50

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CONTENTS

20

The Elite interview

WANdisco’s David Richards is chasing the big bucks in big data

07

CONTENTS

VOLUME 03 ISSUE 06 / 2014 11 12 14 17 18 98

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

Image courtesy of Wayra

28 One to watch

Purplebricks.com has finally taken property into the 21st Century

34 Full steam ahead

The accelerator movement has gathered pace in recent years

40 Picking the pockets of pals 08

Former workmates can be a handy source of investment

46 An eye to the future

Forecast like a pro with our five-step guide

48 Getting political

Clive Lewis puts forward a general election wish list for small businesses

50 Hot off the press

PR professionals offer their tips on how to get your voice heard

56 Cheap tricks

A well-executed publicity stunt can be a great catalyst for start-ups

34 60 Selfies for start-ups

Tapping into social media trends is a no-brainer for new businesses

64 Feeling good

It’s in an employer’s best interest to keep their team fit and healthy

69 Performance pitfalls

Former BBC HR boss Lucy Adams lays down the law on appraisals

73 Aging stars

Talk of talent shouldn’t be restricted to the younger generation

78 The hot list

80 Contents June.indd 2

60

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

86 Seeing is believing

82 Tales of Tech City

91 Through the mud

We hear why tech start-ups are continuing to flock to London

Facebook’s move into virtual reality is big business We get to the bottom of what new defamation law means for businesses

30/05/2014 17:55

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EDITOR’S letter VOLUME 03 ISSUE 06 / 2014

Scan this QR Code to register for Elite Business Magazine SALES Harrison Bloor – Senior Account Manager harrison.bloor@cemedia.co.uk Darren Smith – Account Manager darren.smith@cemedia.co.uk Samuel George – Account Manager samuel.george@cemedia.co.uk EDITORIAL Hannah Prevett – Editor hannah.prevett@cemedia.co.uk Adam Pescod – Web Editor adam.pescod@cemedia.co.uk Josh Russell – Feature Writer josh.russell@cemedia.co.uk Dara Jegede – Feature Writer dara.jeg@cemedia.co.uk Tom Davis – Intern tom.davis@cemedia.co.uk DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Dan Lecount – Web Development Manager dan@cemedia.co.uk CIRCULATION Malcolm Coleman – Circulation Manager malcolm.coleman@cemedia.co.uk ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk Colin Munday - Management Accountant colin.munday@cemedia.co.uk ADMINISTRATION Charlotte James – Administrator charlotte.james@cemedia.co.uk DIRECTOR Scott English – Managing Director scott.english@cemedia.co.uk

Circulation/subscription UK £40, EUROPE £60, REST OF WORLD £95 Circulation enquiries: CE Media Limited Elite Business Magazine is published 12 times a year by CE Media Solutions Limited, Victoria House, Victoria Road, Chelmsford, CM1 1JR Call: 0208 214 1068 Copyright 2014. All rights reserved No part of Elite Business may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor.

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

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

California dreamin’ I’ll let you into a secret: I love California. More specifically, I love San Francisco. Recently hosted in technology’s first city by Autodesk, a breathtakingly innovative company, I could not help but be imbued by a sense that anything is possible. As I sat in Battery, the private members club owned by Michael Birch, the founder of Bebo, and chatted with entrepreneurs and employees of some of the world’s most exciting internet companies, I finally began to grasp why so many of the UK’s bright young things flock across the Atlantic.

David Richards, chief executive of big data company WANdisco and this month’s cover star, was almost apologetic about his love for the US, and specifically, San Francisco. He needn’t feel guilty: the fact is Silicon Valley continues to be the place where many entrepreneurs’ dreams of fame and fortune are realised – and many more are shattered.

I can’t help but agree with Richards’ assertions that the UK government is missing a trick in its efforts to encourage an entrepreneurial mindset in this country. Creating office space around the start-up hot spots and rhetoric from the coalition about the importance of small business is all well and good, but where are the substantive infrastructural changes?

Why are there still no plans to build the elite education institutions that teach the latest in computer sciences and engineering?

London recently strengthened its claim to be Europe’s ‘silicon capital’ by attracting record numbers of foreign technology firms. A total of 90 overseas tech companies based themselves here last year, up from the previous high of 88 in 2012, according to figures from Mayor Boris Johnson’s inward investment agency. It’s great that we’re attracting foreign talent, but we also need to be growing our own. It’s time for less rhetoric, more reform.

11

HANNAH PREVETT EDITOR

cemedia.co.uk

Editor's Letter.indd 1

30/05/2014 17:56

CONTRIBUTORS Emilie Sandy Sandy unexpectedly found herself snapping a fellow photographer this month.

Prior to her inspired shoot of this month’s cover star, WANdisco founder David Richards, the pair chewed the fat about their camera-led adventures and love of a good Canon.

And another pleasant surprise greeted Sandy when her son Freddie took his very first steps. He’ll soon be bounding down the beaches of the Gower Peninsula in Wales where the Sandy clan spends its annual summer break.

Tom Davis

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Bringing a fresh eye to proceedings, Davis is chasing his magazine-writing dream after graduating from Staffordshire University. If you’re wondering about his photo, he’s penned us a fantastic piece this month on the weird and wonderful world of selfies, Vine and InstaVideo, looking at their feasibility as marketing tactics for start-ups. On top of his Elite Business commitments, Davis is also training for a 54-mile charity ride later this month. But given his lengthy commute, cycling to the office is a no-go.

Dara Jegede It’s with a heavy heart that we bid Jegede a fond farewell last month. Before heading off to pastures new, Jegede submitted a top-notch piece on the positive effects of company health and wellbeing wheezes. We suspect however that health and wellbeing took a backseat on Jegede’s subsequent jolly to Amsterdam, especially as she took a few trips to the Dutch capital’s famed coffee shop Bulldog. We can only speculate that the rest of the holiday was a bit of a haze.

Contributors June.indd 1

Dan Kirby Our tech man Kirby has been spending time training for a sprint triathlon recently – and this bike ride selfie proves he is taking the challenge very seriously. It was also his company Techdept’s 10th birthday on June 1, a feat that was celebrated by a doubling of office space and several high-profile new clients. But it hasn’t put paid to Kirby’s exploits as a superstar DJ. He still managed to chalk off a set at The Ivy and a homecoming gig at his local village hall.

30/05/2014 17:57

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NEWS & EVENTS

There are high expectations for the London economy as new forecasts from the Centre

for Economics and Business Research

(Cebr) show the capital growing faster than previously expected. The city’s economy is now expected to expand in real terms by 4.2% over 2014 and by 3.4% in 2015. On top of this, it is expected that the capital will account for almost a third of all UK growth in the next five years. Great news for those startups who have moved, or are planning on moving, to London.

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One of the greatest difficulties for an SME can be finding the right bank or even keeping faith in their existing one. Well, Business Banking Insight (BBI), a new website commissioned by the chancellor of the exchequer and launched last month, is out to change all of that. BBI aims to help small businesses make better banking decisions by looking at how well the UK’s

SMEs are being served by the banks and publicly showcasing the experiences of more than 5,000 businesses. The website ranks 74 bank brands using a mixture of percentage and five-star rating systems, the idea being to enhance the trust and transparency between both. A step in the right direction but it’ll probably take a while for trust be fully restored.

It’s good news for the service sector this month as it continues to feel the benefits of the economic upswing. According to the CBI’s latest quarterly Service Sector Survey, optimism has risen at the fastest rate since the survey started in 1998 and firms have continued to take on more staff, increasing expenditure on training in the process. “With a full year of growth under their belts, service sector firms are more upbeat than they have been for a long time,” said Katja Hall, deputy director-general at CBI. More of this please.

New research has found that small businesses are being left out in the cold by energy suppliers. A survey from the Federation of Small Businesses (FSB) revealed the extent to which SMEs feel unfairly treated by energy providers, with a staggering 81% of FSB members believing that energy firms do not care about their needs. The FSB is calling for energy suppliers to publish easily comparable prices, commit to not reintroducing rollover contracts and ensure customers who want to switch suppliers can easily do so. About time and all.

News June.indd 1

It appears that more and more graduates are following the entrepreneurial dream. Research conducted by online freelance marketplace PeoplePerHour has found that the number of recent graduates choosing to start their own business, rather than become employees, has almost doubled in the last 12 months. The study found the number of graduates registering as freelancers or micro-business owners within a year of finishing university had risen by 97%.

On that note, a young entrepreneur who took control of his family’s foundering business has won a national award and earned the title of – you guessed it – Young Entrepreneur of the Year. Henry Williams, who runs Williams Automobiles, was awarded the title at the FSB WorldPay UK Business Awards 2014.

Three other awards were also up for grabs with Lanwarne Landscapes winning Micro Business of the Year and Home Leisure Direct picking up the gong for Online Business of the Year.

The Business Innovation of the Year went to EquiFeast, the horse supplement manufacturer.

Talk about galloping to glory.

30/05/2014 17:57

Gil C / Shutterstock.com

NEWS & EVENTS

As if cornering the search engine market and going after a slice of the wearable technology pie wasn’t enough, Google has revealed its latest wheeze: self-driving cars. Yes, that’s right, after almost four years of testing, Google is set to start building its own brand of driverless cars. Thankfully for us pedestrians Google have heaped the safety measures onto their initial automobile. The original prototypes will be capped at 25mph and their sensors can detect objects out to a distance of more than two football fields in all directions.

Given the banks’ current position as public enemy number one for SMEs, an uplift in peer-to-peer lending should’t come as too much of a surprise. Nevertheless, it was still something of an eye-opener to learn of the actual size of the increase. According to figures published by AltFi Data, peer-to-peer lending has risen 50% to more than £1.5bn in just five years. If these rates continue, the total amount lent through peer-to-peer websites since 2005 will pass the £2.75bn mark by the end of the year – an astounding 175% growth.

Spotify is proof that even some of the best-loved entrepreneurial businesses struggle to monetise their nifty ideas. In the last 18 months, the music streaming service has doubled its paying subscribers to 10 million.

However, it’s still losing money. According to researchers PrivCo, the Stockholm-based company founded in 2008 has lost an estimated $200m thus far. They must be singing the blues at Spotify HQ.

UPCOMING EVENTS Business Junction – Networking Lunch June 12

Greens Restaurant & Oyster Bar, 36 Duke Street, St James’s, London, SW1Y 6DF

Thames Valley Expo June 12

Windsor Racecourse, Maidenhead Rd, Windsor, Berkshire SL4 5JJ

News June.indd 2

Things are on the up for Blighty’s SMEs but new research suggests that UK small businesses could be damaging their growth prospects by paying accountants who aren’t even qualified. The Association of Chartered Certified Accountants

(ACCA) is urging entrepreneurs to check professional qualifications and prevent the risk of exposure to unqualified accountants. The warning comes after research from cloud accounting software provider ClearBooks found that only 8% of small businesses considered an accountant’s qualifications when chosing one.

15

It seems like nobody is safe online and the rise in cybercrime is causing problems for some of the world’s biggest brands. eBay is just one of the latest US brands to be hit by hackers – not for the first time. And just before Christmas, Target, the retail firm, was also breached with almost 40 million customers having their credit and debit cards stolen. The knock-on effect for eBay is certainly rather telling.

According to a survey by YouGov, since the cyber attack was made public, a whopping 49% of adults said they will be less inclined to use the site in the future. Ouch.

Business Scene Reading June 17 Regus, 400 Thames Valley Park Drive, Thames Valley Park, Reading, RG6 1PT

Internet World June 17 – 19

ExCeL London, Royal Victoria Dock, 1 Western Gateway, London, E16 1XL

Business Junction – Networking Breakfast June 18 Aveqia London, 2 St. Bride Street , London, EC4A 4AD

Angels Den – London Crowdfunding Club June 18 Edwards Wildman, 69 Old Broad St, London, EC2M 1QS

Forgotten about Dre? Apple certainly hasn’t with the announcement of a deal to buy the rapper’s headphone and music-streaming company Beats. The deal is worth a whopping $3bn (£1.8bn) and is thought to be Apple’s heftiest acquisition to date. Beats was founded in 2008 by Dre along with music producer Jimmy Lovine – not your every day Silicon Valley start-up. Clearly, there’s entrepreneurial potential for all of us.

The Supper Club – Maximise Capital Value Master Class July 3 40 Portland Place, London, W1B 1NB

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

30/05/2014 17:58

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30/05/2014 19:42

TALKING POINT

Boom or bust?

Is the IPO boom healthy for British start-ups?

An exciting prospect for entrepreneurs The surge in IPO activity is undoubtedly healthy for the UK’s start-up community and for the UK technology scene in particular.

IPOs raise awareness of the UK as a highly attractive technology hub, incentivise the Theo Osborne creation of profitable exchanges beyond managing partner, NASDAQ and give hope to UK entrepreneurs Force Over Mass Capital whose goal remains to achieve a higher valuation on domestic public markets. From a technology perspective, going public enables companies to raise the capital necessary for extensive R&D phases, which are crucial to bolster further innovation.

Moreover, whether it’s on the AIM or the main market, listing in the UK draws competition out of NASDAQ and creates a more level global playing field. Fat Face’s decision to abandon its IPO in retail should be taken in context as one company in the high-street retail sector and not generalised to represent market conditions everywhere. In reality, there were 62 successful listings and £1.1bn of capital raised through IPOs in 2013 according to the head of AIM, Marcus Stuttard. Given that the UK’s deal volume has reached a three-year high of over £7bn, it’s unwise 17 to let a few anomalies colour a highly lucrative, promising and exciting prospect for entrepreneurs.

In short, British entrepreneurs who are focused on high-growth businesses should feel confident about listing on our public exchanges.

We need to get valuations under control

WORDS: ADAM PESCOD

T

he recent flurry of IPO activity in London has been dominating the business pages. With retailers and tech firms floating on the London Stock Exchange left, right and centre, it seems that companies are shaking off the shackles of recession and going all out for growth. It is certainly difficult to dispute that the market is looking rather buoyant and with investor confidence sky high, a wave of excitement is flowing through the City.

Nevertheless, Fat Face’s withdrawal from an IPO – along with the difficulties that have plagued the likes of Saga and Royal Mail since their flotation – have created some cause for alarm.

Especially where our cherished start-ups are concerned, what is to be made of the IPO boom? Could our most promising young firms be unwittingly encouraged to jump on the bandwagon too early?

Or is it exactly the catalyst they need to go full steam ahead and raise the cash needed to fuel growth?

As one would expect, people on the front line have opposing views on whether the rush of IPOs is a healthy thing for the UK’s start-up community. Here’s what a couple of them had to say.

Talking point.indd 1

The recent IPO boom has certainly proved one major fact: investor appetite for high-growth young businesses has (to some extent) returned. For those who are ready to go to Professor market, this can undoubtedly provide an Vikas Shah excellent exit for early investors, partial exits founder, Thought Strategy for founders and inspiration for the rest of the market that may want to follow in their footsteps. A buoyant IPO market is also a great signal to the rest of the world that we’re open for business.

My concern however stems from the valuations and multiples that many of these IPOs place on businesses that follow the route. While I would not go all-out and say we have a bubble, I think there is definitely some irrational exuberance in the valuations of new IPOs in the high-growth start-up space which invariably will rarely be met by performance figures moving forward. When that happens, people will start pulling money out and that’s dangerous. I really hope that we manage to get the valuations under control to allow these publicly quoted young businesses to become sustainable market participants.

The start-up scene globally is really hot at the moment and it’s important for the UK to retain a competitive edge in terms of funding.

This means angel/seed funding, venture capitalists, private equity and the public market will need to work to build sustainable conditions for their investees.

30/05/2014 18:03

BOOK REVIEWS

The Art of Conversation – Change your life with confident communication Judy Apps

Nicholas Lovell

T

18

he ability to converse properly is a useful trait for most of us but for an entrepreneur it’s close to essential.

Whether it's the bank manager, potential investors or prospective customers, it's important for business owners to be at their conversational best.

As the title of Apps’ book asserts, conversation is an art form, which, if perfected, can have a significant and positive bearing on the course of one’s life. And whilst many entrepreneurs may regard themselves as natural conversationalists, a dip into The Art of Conversation could help enhance a skill at which they may already believe themselves proficient. For those who have never read a book about conversation, it could be easy to become overwhelmed by the depth with which Apps approaches the subject. However, those with a genuine want to improve their skills and repertoire will find everything they need, and then some, in The Art of Conversation.

To say that Apps covers all bases would certainly be something of an understatement. First delving into the very meaning of conversation, she guides us through the importance of ‘connection’, the power of questions in conversation and that all-elusive matter: how to be a good listener.

Make no qualms about it: this is a long way from your run-of-the-mill how-to guide. If anything, it’s a mini-doctrine on conversation. But with her regular references to real-life examples and incredibly accessible tone, Apps leaves readers with the necessary confidence – and perhaps a little swagger – to become a venerable master of conversation. AP Publisher: Wiley Out: Now RRP: £10.99

The Curve – Turning followers into superfans

C

onventional wisdom says: if something’s available for free, there’s no way someone will pay money for it.

However, in an age dominated by freemium, crowdfunding and content marketing, it’s becoming clear this simply isn’t true.

The Curve is perhaps one of the most cogent analyses available on modern pricing strategy. Lovell’s central metaphor – that the idea of fixed value is a myth and that the price any consumer is willing to pay for a product or service sits on a curve – is simple to understand but has huge ramifications for businesses wanting to extend their reach. Using free products to first connect with consumers and customers is just the start of long journey that can turn a fleeting interest into a powerful, lifelong loyalty.

Kicking off with how Nine Inch Nails' Trent Reznor managed to make $1.6m in a week from an album he was giving away for free, The Curve packs in no end of examples, taking in adventure games maestro Tim Schafer’s superlative Kickstarter campaign, the explosion of freemium and in-app purchases and the ways in which manufacturing can adapt to the race-to-the-bottom introduced by 3D printing. This, the second edition, also comes with additional case studies, discussing how everyone – from Nescafé to wildlife photographers – are selling on a curve and demonstrating just why Lovell’s ideas are capturing everyone’s imagination. JR Publisher: Penguin Out: Now RRP: £9.99

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Book Reviews.indd 1

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LIVING THE DREAM

WORDS: HANNAH PREVETT PHOTOGRAPHY: EMILIE SANDY

Sheffield-born entrepreneur and founder of WANdisco David Richards was always cut out for life in Silicon Valley. But jointly headquartering his company in the UK and the US means he has the best of both worlds

the elite INTERVIEW

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estled on the plush sofa in his west London hotel room, David Richards, the CEO of WANdisco, clutches a nearempty takeaway coffee cup. The consumption of its caffeinated contents is the only nod to his hectic schedule: since stepping off a plane a couple of hours ago he’s already conducted an interview ahead of our meeting. The journey from San Francisco isn’t a short one – though he’s well-used to the commute these days.

Living in Silicon Valley with regular trips back to the UK to visit WANdisco’s Sheffield and Belfast offices, Richards lives a transatlantic life.

But winding up in California was no accident.

“I always wanted to move overseas. That sounds pretty bad, doesn’t it?” he muses.

Growing up in 1970s Sheffield, Richards was faced with the grim reality of the stagnating steel industry. “Sheffield didn’t make the transition from steel to something else and really suffered as a result,” he explains.

His family’s identity, like so many others’, was deeply entrenched in the steel industry. His father, grandfather and great-grandfather before him had all run steel companies. While he would ultimately follow in their entrepreneurial footsteps, he had set his sights beyond the furnaces and forges of the steel city.

“They had it so much better in the US than we did in the UK in the 1970s. I suppose I was quite jealous of the booming economy in the US: they had all the gadgets, huge houses, huge cars, huge refrigerators. Huge everything,” he admits.

And so the seed was sown. As Richards continued his education and became a young adult, his ambition to live on foreign shores never faltered. “Choosing a career and a career path that would take me in a provincial direction was not really on the cards,” he adds.

Having completed his A-levels at Tapton School, Sheffield, Richards decided he didn’t want to go to university. “I couldn’t really see the point in doing it,” he says, “I went to work at a bank, which was absolutely abysmal. I wasn’t cut out for anything like that.” With his tail between his legs, he returned to school to seek the counsel of Dave Jackson, his former head of sixth form. Jackson has form as a career coach: he also inspired Seb Coe to pursue athletics.

“I walked into his office and he said, ‘you hate this don’t you?’ I said, ‘yes’. He told me to go and do computing. He said I was naturally cut out for it, that there was a huge shortage of people in computing and that he thought I’d enjoy it,” Richards recalls. “And that was it. That was the moment I got into this.”

After graduating from the University of Huddersfield, Richards plumped to work at a start-up over one of the multi-nationals. “I

Elite Interview.indd 3

wanted to go and work at a start-up because I’d read all about things that were happening in the US. Microsoft and Bill Gates were just coming into prominence.”

An SAP consultant role at Druid Systems, a ten-person company in Surrey, provided Richards with exactly the kind of experience he’d been lusting after – within a year the fastgrowth company had floated on the London Stock Exchange.

Richards stayed for two years, before deciding to go it alone. “I figured I could do this myself and set up my own company,” he explains.

“That’s the first and last time I’ve ever worked for anybody.”

Whilst he was enjoying his computing career in the UK, Richards continued to draw comparisons between the UK’s fledgling tech start-up scene and the tectonic disruption in

Choosing a career and a career path that would take me in a provincial direction was not really on the cards

Silicon Valley. In 1998, after a year of running his consulting firm, Richards and his wife, Jane, decided to make the leap across the pond.

“I remember going to pick up a newspaper and reading about the Yahoo! IPO. There were so many things happening in the US that were not happening in the UK. The tech revolution was beginning and it was all in Silicon Valley and I just had to go there,” says Richards.

Before long, Richards was hacking an idea for a new business that would internet-enable SAP systems and enterprise systems, to enable them to do things like online auctions. Commonplace now, this was cutting-edge technology in 1999 when internet commerce was still in its formative years. “We raised $25m for Insevo with just a slide deck. They were crazy times,” said Richards.

“Every single one of our acquaintances and friends were doing the same thing. There was so much capital flying into start-ups at that time, many of which the VCs knew weren’t going to make it but it didn’t matter because the ones that did were going to be huge,” he continues.

But venture cash comes at a price, says Richards. “It could and should have been acquired for a lot more but the venture guys that

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the elite INTERVIEW

24

were in the business really interfered too much.

That was the last time I’d raise venture capital.”

The core team from Insevo immediately started a new business called Librados (Spanish for ‘the freed man’). “We were like wild animals,” he laughs. “It was amazing. We were just signing deals so quickly it was incredible.

The business was acquired by a company called Netmanage in less than 12 months and we all did supremely well out of it,” he recounts.

Just a few months later, Richards was at a drinks party when an unusual character caught his eye. “I was introduced to Dr Yeturu Aahlad at this cocktail party. He’s this 6ft 4 Indian guy, with inordinately long legs, who was wearing what I rudely described as hot pants and a t-shirt from a trade show. Nobody else was dressed like that in the room,” says Richards, adding: “of course, he’s a genius.”

Dr Aahlad had spent the previous five years solving a problem to do with active data replication – in other words, how to replicate data so it’s always available to whomever in an organisation needs it, wherever they are in the world, without any downtime. This leads to better collaboration.

Having founded the company, WANdisco, on the same premise that they didn’t want to take venture money, Richards, Aahlad and co had to build great, fuss-free products that required minimal support. “We grew much more slowly than we probably would have if we’d have raised venture capital because we couldn’t hire sales people,” the entrepreneur explains.

As the company eventually became more cash-intensive, the leadership team decided to IPO the business. “We listed in June 2012 on the AIM market of the London Stock Exchange. We did that because I knew all about the London market. My friends in the US hadn’t a clue what we were doing,” he laughs.

In the two years since, the business has undergone massive transformation, pivoting into the big data marketplace, helping companies search through vast amounts of data quickly and easily. WANdisco may not be the only business to change direction thanks to the big data revolution, enthuses Richards.

“The world is about to see many businesses pivot from what their classic business might be to realising that the most important asset they have is data. The ability to store, curate, manage and then query that data, has significant economic value.”

Some of the biggest companies in the world have already moved into this space. “I would actually say that Google isn’t really a search engine company; it’s a big data company.

Facebook is not a social media company; it’s

Elite Interview.indd 4

a big data company. Data is the new natural resource,” he adds.

WANdisco’s impressive roll-call of customers speaks for itself: Nokia, Cisco and Apple are all users of its software and it recently signed a deal with British Gas to replace the utility firm’s old database system. And in March the company announced it would be working with University of California’s Irvine Health (UCI Health) hospital, that hopes to use its technology to drastically cut the number deaths caused by medical error – a bigger killer in the US than AIDS, breast cancer and car accidents.

Whilst there is a global appetite for its wares, the US continues to dominate: 80% of WANdisco’s business comes from American companies. And just as its customers are geographically dispersed, so too are the company’s staff. Roughly half of the 175-strong workforce are in Silicon Valley, with the other half being split between WANdisco’s Sheffield and Belfast offices. Why Sheffield? “It’s very difficult to hire lots of java programmers in Silicon Valley,” he explains. “They cost a lot and there are companies like Google and Facebook who have significant presence in the Bay area.”

“We looked at the UK to see if we could make it work having a programming resource in the UK – not just a support centre but actually making products. And we could.

We’ve proved that it’s possible. And

Data is the new natural resource

you don’t necessarily need to do it in Silicon Roundabout. There are other parts of the UK, believe it or not, where tech is happening,” he exclaims.

It’s clear the Silicon Roundabout and Tech City tags irritate Richards. “The UK’s got this amazing knack of being so provincial and wanting to have a cluster of companies in this tiny, miniscule area,” he says. “The UK is small.

It’s smaller than California. We need to think about it as a whole because there are things happening all over the place – we don’t have to always have things in just one location.”

It’s clear for Richards where the blame for this parochial mindset lies. “Politicians love soundbites because they’re simple and can communicate with a lot of people very quickly,” he says. And he’s just as critical of their actions as their rhetoric. “They’re throwing up a bunch of offices and showing images of people on space hoppers wearing flip-flops, because that’s what software developers look like, right?”

What really prevents us from competing with the likes of Silicon Valley? The limitations set in place by archaic education system, argues Richards. “Look at Israel. 25 years ago, it was an arable economy but it gradually transformed itself into a tech economy with more billion dollar exits per capita than any other place in the world. How did they do it? They didn’t do it by saying, ‘everybody: out from the fields into those offices, start writing computer programs and create a billion-dollar company. That’s absolutely the most preposterous thing I’ve ever heard in my life. What they did is overhaul the education system.”

Given his acerbic criticism of the British education system, it’s no surprise that Richards and his wife have chosen to educate son Harry, 15, and daughter, Poppy, 14, in the US. California living seems to suit the entire family.

Richards recently built the family a house – and vineyard – in Diablo, Contra Costa County.

Not having much of a penchant for fast cars or yachts, this is the physical manifestation of Richards’ success.

But an entrepreneur has to be willing to speculate to accumulate, warns Richards. “The commitment isn’t just taking the risk that you might not get paid for three months, the commitment is for an elongated period of time. And it’s not just me as an entrepreneur taking that risk: it’s about my wife, my kids’ education. You have to be prepared to drag your family through it with you,” he says.

Entrepreneurialism certainly isn’t for the faint-hearted, he adds. “I refuse to give advice to people that say, ‘I’m going to wait and see if this works and then I’ll give up my job’. I won’t even talk to them. The people who are really prepared to make that commitment, to take a risk that might impair them economically; that’s my true definition of an entrepreneur.”

30/05/2014 18:20

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ONE TO WATCH

HOT PROPERTY

With the UK housing market in boom mode, 24/7 estate agency purplebricks.com could hardly have timed its launch any better

WORDS: ADAM PESCOD

T

he process of selling, buying and letting a property has been set in stone for as long as most people can remember.

And whilst it may be hassle-free for a select few, many would argue that the experience shouldn’t be as stressful as it often can be.

Granted, some deals fall through or are put on hold due to unforeseen circumstances but there are elements of the system that needlessly serve to complicate matters as far as some people are concerned.

The net result is that the buying and selling process often takes longer than it reasonably should. Contrarily though, the perceived interest of the agent is to push through a prospective deal as quick as possible in order to collect their commission.

Whilst websites like Rightmove and Zoopla have removed the need for window shopping – triggering a steady decline in the number of physical high-street agencies – calls for a proper shake-up of the industry have been rife.

Well, such calls may well have been answered loud and clear by purplebricks.com, the 24/7 online estate agency founded by brothers

Michael and Kenny Bruce in November 2011 and launched only a few short months ago in April 2014.

The pair sold their previous estate agency business Burchell Edwards to Connells after sensing it was time for a change, both for them and the industry as a whole. “I asked a team of people to establish whether or not we could offer a much better value proposition for customers within the Burchell Edwards brand,” says Michael Bruce. “Could we have a traditional model running alongside a cheaper model, which gave customers choice? But the actual difference between what you’d offer for £500 and what you’d offer for £5,000 was so minutely small that we couldn’t justify it within the same brand. That’s when we really fell out of love with the high street model and felt that we could offer a much better alternative, change the industry and at the same time, meet all the needs of customers.”

A large part of the initial groundwork was finding out exactly what these needs were. “We spoke to thousands of people who have sold or let their property to understand exactly what

ONE TO WATCH

they liked and disliked about the model,” says Bruce. “What became abundantly clear was that convenience and transparency were very important to people.”

The company’s name is also reflective of its focus on the customer, explains Bruce. “We asked a few people to come up with a colour that represented everything that we wanted for the brand,” explains Bruce. “We wanted people to feel confidence in the brand, we wanted people to feel that it’s got integrity and that it’s even, to some extent, regal. The top colour that people engaged with, believed in, trusted and found integrity with was purple.”

The internet is undoubtedly the company’s lifeblood. The Purplebricks site allows users to take control of a property transaction in ways that would never have before been imaginable.

Asking prices can be changed, house viewings arranged and offers accepted or rejected, all at the click of a button.

This means customers can engage with the process in their own time and at their own convenience. “What we have seen in the early stages is that 80% of our traffic occurs outside

yet ready to give their house over to a computer and wait and see. They still want that human interaction, they still want that engagement.”

And what exactly sets a Purplebricks property expert apart from your everyday estate agent? When answering this question, another aspect of the Purplebricks proposition cannot be ignored: the cost. Whilst estate agent fees can vary from 1% up to 2.5% of sale price – with the seller often left wondering what they’ve paid for – Purplebricks has pioneered a new flat-fee approach. Every seller pays £599 regardless of their property’s valuation, with prices for those looking to let starting at £75. “It was key for us to offer something

29

It was key for us to offer something that was affordable Michael Bruce, purplebricks.com

working hours,” Bruce says. “With our first sale, the property went on the market at 18.17, by 19.45 the first viewing was arranged, and within 48 hours the property was sold to the person who arranged the viewing. Over a third of our traffic is via mobile so people are engaging with the proposition at the time that suits them.”

Don’t be fooled though: Purplebricks isn’t strictly online-only. A local property expert is assigned to each deal to provide valuations, guide customers through the process and, if the need arises, negotiate. Meanwhile, central property experts are on-hand to provide round the clock advice and assistance. “Our research and knowledge of the sector told us quite clearly the customer was not yet ready to go entirely online,” explains Bruce. “They’re not

One to watch Purple Bricks.indd 2

30/05/2014 19:21

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ONE TO WATCH

that was affordable,” Bruce says. “We wanted to be a national brand and that means having a price that works in London as well as it does in Newcastle. We also wanted to offer a transparent fee, a fee that works and where everybody contributes to the cost.”

This goes a long way to ensuring that experts always have the customer, not their pockets, in mind. “The majority of the people that we have working for Purplebricks are probably some of the best people I’ve ever worked with,” enthuses Bruce. “They like our proposition because it enables them to get re-engaged with the customer and offer something that’s transparent, convenient and cost-effective.”

It’s been two and a half years in the making but it seems to have been well worth the wait for the Bruce brothers. The eZie software that forms the backbone of the online experience for Purplebricks customers certainly took some considerable legwork. Admirably, the entrepreneurs made the most of home-grown talent to help create the revolutionary software.

“We went around the world looking at who might build our software system and we concluded that actually the best place to build a

Company CV Name: purplebricks.com Founded by: Michael & Kenny Bruce Founded in: 2011 Team: 70+

software system was the UK because although it was going to be a simple-to-use system, it was going to be very intense and required tens of thousands of designs and lots of controls,” says Bruce.

On the financial front, the entrepreneurs put a fair bit of their own capital into the business, but their desire to totally transform a sector made additional investment and expertise essential. Thus far, Purplebricks has managed to attract investment from the likes of Paul Pindar, the former MD and CEO of Capita and Martin Bolland, the founder of Alchemy Partners. The founder of Wonga, Errol Damelin, has also got involved. “He is very interested in the new technology that is involved in our proposition,” Bruce comments.

It doesn’t stop there. As well as taking on the help of some established agencies in the

31

Our research told us quite clearly the customer was not yet ready to go entirely online Michael Bruce, purplebricks.com

marketing and media space, Purplebricks is fortunate to have a couple of Virgin veterans on its books. James Kydd, former MD of brand and marketing at Virgin Media, is the firm’s permanent advertising and marketing director whilst Will Whitehorn, former brand development and corporate affairs director for the Virgin Group and president of Virgin Galactic, joined the board a year ago. “We were interested in having some individuals in the business who had experience of growing and developing brands quickly,” Bruce explains.

He certainly has every reason to be happy with the personnel that have bought into the Purplebricks vision thus far. “We have managed to create a team of people who are actually interested in helping us make a difference in the sector.”

With 33,000 users signed up in the first four weeks and feedback overwhelmingly positive, it seems the sky’s the limit for Purplebricks.

Whilst the focus is currently on building the brand on these shores, Bruce is confident that he’s created something with worldwide appeal.

“The ambition is there,” he concludes.

One to watch Purple Bricks.indd 3

30/05/2014 19:21

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ANALYSIS

Gathering momentum Accelerator programmes have finally reached critical mass. But what is it that has made them such an indispensable part of the start-up ecosystem?

T

WORDS: JOSH RUSSELL

34

he insistent hype around accelerators means it’s easy to forget they are a phenomenon with a significant heritage. “The accelerator movement itself really span out of the university incubators,” explains Tristan Watson, programme manager of ignite100. He points to the mentoring of Hewlett Packard in the 1950s by Frederick Terman, then dean of engineering and provost at Stanford University, who encouraged students to branch out and start their own companies. This support would lead to the creation of the world’s biggest tech ecosystem and eventually earn him the moniker of ‘the father of Silicon Valley’.

Whilst accelerators might have their roots in these older incubators, they tend to focus less on long-term relationships and more on getting early-stage start-ups ready for business as quickly as possible. “Accelerators help start-ups to succeed, avoid common pitfalls and begin to build their business so it’s more ready to scale,” explains Ian Merricks, founder of Accelerator Academy. This is achieved by providing access to mentoring, workspace and seed capital, in exchange for a small amount of equity. “We take equity in these businesses and so our return is when the businesses are able to deliver on the success that they’re hoping for.”

The emergence of this modern form of accelerator has been a recent phenomenon. “It was organisations like Y Combinator in the States that, in the last ten years, really invented that model,” Watson explains. Launched in 2005, Y Combinator helped bring together best practice and mentoring to take the risk out of digital start-ups. “It had some very quick successes in terms of the number of successful companies leaving these programmes so investors round the world wanted to start backing and supporting accelerator programmes,” says Watson.

With Y Combinator seeding the likes of Dropbox, Disqus and Airbnb, it wasn’t long before other incubators joined the fray. Tech Stars followed hot on its tail in 2007 and Seedcamp became the first overseas accelerator when it set up in London the same year. Rapidly more began to arrive on the scene, both in the US, the UK and in many other countries around the world.

This boom in accelerators isn’t hard to explain. “It’s driven by the growth of start-ups generally,” comments Merricks.

Increasing economic instability, the reducing cost of producing technology and tax incentive schemes have seen the number of start-ups in the UK soar. “Those three things combined create a perfect storm, which is why we had 525,000 start-ups created last year alone,” he continues. “With these huge numbers, a system of support, infrastructure and an ecosystem springs up around it.”

However, quite how quickly the accelerator phenomenon has sprung up has taken a few people aback. “In some format or other, support for early stage businesses has been around for a considerable time,” says Simon Devonshire, director of Wayra Europe, the O2 Telefonica accelerator. But the raw clay these services are working with has changed radically, with the computing power, connectivity and virality most start-ups have access to having increased exponentially.

“What’s changed is the intensity with which they do what they do and of the environment in which they’re operating.”

It’s certainly true that more start-ups are joining accelerator schemes than ever before.

But what stage they’re really ready to join a programme is a matter of some debate, with more plumping for later stage start-ups as

ANALYSIS

Accelerators help start-ups to succeed, avoid common pitfalls and begin to build their business Ian Merricks, Accelerator Academy

Image courtesy of Wayra

the movement matures. “When accelerators started, they aimed for pretty early stage businesses,” says Peter van Sabben, global marketing manager of Startupbootcamp, the pan-European accelerator. “The start-up would have a product and a team of two or three people but its position wouldn’t have been validated yet.”

Admitting a change in perspective, Devonshire explains that in his early years at Wayra he preferred a relatively blank slate.

“Now I’m more pointed towards businesses that are a little longer established and have already created a minimum viable product with market validation,” he says. He says that although it can be harder to add value to more established start-ups, when one does identify key improvements it can significantly boost that enterprise’s chances of success. “Although it can be in many ways more challenging it’s arguably more rewarding.”

But for a start-up, deciding to join an accelerator isn’t just about identifying whether they’re ready. It’s also important to identify the programmes that are really going to help it boost its business. “It’s not about finding the best scheme: it’s about finding the one that’s right for them,” explains Watson. “Start-ups are always told that when taking investment, it’s as much about them finding the investor that’s right for them as it is the other way round. And it’s exactly the same with accelerator programmes.”

All of the accelerators advise carrying out the same due diligence with which one would approach any form of investment or financial agreement. “Take references from past alumni,” recommends Merricks. Accelerators will be happy to put start-ups in contact with past alumni to help them ascertain whether the programme is the right fit. “Some of the applicants will go and take up informal references or will go and hustle their way into speaking to alumni,” he says. “I actually really like that; it shows an entrepreneurial mindset.”

For start-ups that have secured a place on an accelerator scheme, things tend to follow a fairly set formula. The first period will be focused on spending time with a variety of mentors going over their business model. “The idea is to pull it all apart, see which bits are really interesting and then put it back together again,” Watson says. After this, start-ups will begin to work with specific mentors to grow and develop the business along these lines.

35

ANALYSIS

However, finding the right mentor isn’t Devonshire explains. “What they learn and get always so straightforward. “The problem with from their peer group is invariably the most some mentors is that just because something important aspect of all.” happened five or ten years ago in the industry Bundling a number of highly talented tech doesn’t mean it still happens today,” says teams into a co-working space doesn’t just van Sabben. Often finding the best fit in a serve the function of saving a bit of cash on mentor means accurately identifying how rent – allowing start-ups to rub shoulders much they’re going to be able to relate to the increases their ability to pick up best practice unique circumstances of your start-up. He from each other. “How to do growth hacking, continues: “We teach the start-ups to listen to create a business model canvas, talk to the mentors, find what they think is interesting potential clients,” van Sabben says. “That’s all about them but first have a look at what kind of stuff you can learn from your peers.” person they are.”

Cross-pollination doesn’t just come in the Devonshire thinks there’s nothing wrong form of ideas either. Often the accelerator with going for the big environment lays the names, if that’s going to ground for start-ups’ work for your start-up. “If first networks, providing you want Bill Gates, aim a potential basis for high because it might be collaboration and that we could put a call networking. “Some of in,” he says. But he caveats our past alumni still have this by explaining that the their offices here and best mentors aren’t always will become the clients the household names: at of companies that go one of Wayra’s mentor through the accelerator,” networking events a Watson explains. And, relatively unknown FTSE given that not every Simon Devonshire 100 executive blew the start-up will always start-ups away and was succeed, the collaborative picked by 11 teams. “Nobody had heard of him environment allows talent to be absorbed by and nor would I have expected them to,” he other enterprises. “Quite often you will find a says. “But what he talks about and how he talks really smart team whose idea didn’t work out about it was seen to be massively compelling by basically being headhunted by one of the more a large number of the companies.” established companies,” he continues.

But over-focusing on what mentors can Finally, when the start-ups have navigated offer risks missing one of the greatest assets their way through the programme and have at the start-ups’ disposal. “The thing that qualified, collaborated, coded and nigh-on is not commonly recognised until they’ve collapsed, the final culmination of all of their experienced acceleration is the biggest positive efforts is demo day. The start-ups are brought impact on their development is one another,” in front of an audience of investors, required

The biggest positive impact on start-ups’ development is one another

36

Tristan Watson,

programme manager, ignite100

Simon Devonshire,

director of Wayra Europe

Motoring ahead

CoCarShare - Wayra The idea for GoCarShare, the car-sharing platform, first popped into founder Drummond Gilbert’s head on a miserable wet day on the streets of west London. “I couldn’t help notice that all the cars had one person in and that everyone looked pretty unhappy,” he explains. “That’s where the opportunity for GoCarShare presented itself.”

However, whilst getting the initial idea off the ground was relatively straightforward, GoCarShare began to recognise it needed help rounding out its team and finding a route to monetisation. A place on the Wayra accelerator programme seemed like the perfect solution.

Analysis.indd 3

Once it had successfully got a place on the scheme, the hard work began, as Gilbert relays. “It was intense and at times very pressured, with fortnightly peer reviews and one-to-one sessions with the Wayra team.”

However, the experience was also an intensely enjoyable one, introducing them to mentors including Martha Lane Fox, the CEO of UBER, and an ex-Apple mobile app expert, as well as shaping the company as it is today. “It enabled us to pull a team together and we formed a board with senior experience from TfL, News International and major telcos,” he says. Additionally, the close relationship with O2 has led the corporation to license the app to help reduce their parking costs and cut carbon. He concludes: “It’s been very positive for us.”

30/05/2014 19:06

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ANALYSIS

On form

Image courtesy of Wayra

Formisimo - Seedcamp

38

Formisimo, the form analytics start-up, first sprang from a rather startling statistic that Al Mackin, the company’s co-founder, came across at a digital marketing conference: around 80% of users who begin to fill in a web form abandon it because of unnecessary complexity or errors. He explains: “Co-founder Tom New and I realised that there wasn’t an analytics solution on the market to help companies identify and address this issue, so in 2013 we developed Formisimo.”

It’s good for start-ups to have a proof of concept before entering into an accelerator programme and the Formisimo team certainly had that. “After a thorough testing phase, in which nearly 500 companies used the tool, Formisimo went to beta in May 2013,” Mackin says.

By January 2014, it had already effectively monetised and investment offers had begun to flood in, which inevitably stood the start-up in very good stead when it applied for a place on Seedcamp’s accelerator programme. Mackin says: “Formisimo was selected from a pool of more than a thousand applicants after an intensive fiveday mentoring programme.”

And whilst the start-up was hardly lacking in interest pre-acceleration, Seedcamp’s programme has had a pronounced effect on its profile. “It was an intense experience, but it has had a dramatic impact on us,” Mackin comments.

Getting mentoring from household names like Google, OneFineStay and MOO has put the enterprise in an excellent position to negotiate investment and continue to grow.

“It’s amazing how a few words from the right person at the right time can help your business take off.”

Analysis.indd 4

to deliver short pitches and actively court investment. “If I were to summarise everything we do, it’s making start-ups investor-ready – the test of that is to put them in front of a load of investors and get them to ask for investment,” says Devonshire. “That is the demo day.”

There are conflicting opinions about the efficacy of demo days.

Ignite100 has questioned whether the demo day offers the best deal for the investor in constraining their experience of the start-ups’ journeys to such a brief window and is currently trialling a different approach where investors are introduced into the programme much earlier through a series of investor lunches. Watson explains: “Investors are really happy to see a company grow, change, improve their numbers and then invest when it feels right for them, rather than just being introduced to them at the end.”

Some also feel that too much focus can be placed on delivering a polished pitch, rather than really making sure a start-up is genuinely investment ready. “Whilst there’s a role for some pitch practice, what I don’t like is accelerators that just focus on teaching entrepreneurs to say the right thing,” says Merricks. By way of contrast, he explains that Accelerator Academy focuses on helping start-ups really hone things like market fit and commercial traction so that they’re already prepared for anything an investor might throw at them. He continues: “At the end of the programme, the company is naturally ready for investment because they’ve got their research to support their business assumptions.”

However, it can’t be denied that going through investment rounds is a huge part of the start-up journey and building a familiarity with the standard pitching structure is going to be vital for any enterprise to be genuinely ready for sustained growth. Devonshire explains: “It’s the acid test: ‘can you succinctly, powerfully and in a compelling way articulate what your business is all about to the extent that somebody is going to want to invest in its growth?’”

But what’s the long-term goal? Is it all about finding a unicorn and having a stake in the next Facebook, Twitter or WhatsApp? “The opportunity that the digital economy represents is that of exponential growth,” comments Tristan Watson, ignite100 Devonshire. Whilst there are no guarantees, any start-up could potentially become the next big disruptor that will turn the tech space upside-down. “They all have a lot of potential for growth and scaleability and in some cases they have that multi-billion, exponential growth opportunity.”

Investors are really happy to see a company grow, change, improve

30/05/2014 19:07

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FINANCE

Friends 40

with benefits WORDS: ADAM PESCOD

As far as initial investment goes, a former employer or work colleague can be a useful first port of call for an entrepreneur. But is it the best approach for all business owners?

E

ntrepreneurs are rarely blessed with a pot of gold to help kicks things off. They may have devised a money-making idea but they could lack the financial clout to commercialise it all on their lonesome. Even if it means sacrificing a portion of one’s beloved business, seeking investment becomes a necessity.

Whilst the first question may be ‘how much?’ or indeed ‘why?’, attention eventually shifts to ‘who?’ Where does one turn for the money that is going to help propel their venture forward? It may be tempting for an entrepreneur to treat things on a ‘first come first served’ basis but there are inherent dangers in adopting this stance. Particularly when there’s equity at stake, it’s risky to leap before you look. It can reap significant rewards to assess what else an investor can bring Zia Hayat, Callsign to the table besides cash and whether they share the same vision and level of ambition for the company as its owner.

Former colleagues and employers may therefore be a sensible first contact for an investmenthungry entrepreneur. This is especially true if the ex-workmates have experience of building

a business from the ground-up. It’s something that Eric Partaker, co-founder of Chilango, the Mexican restaurant chain, can definitely relate to.

Partaker and his business partner Dan Houghton held executive roles at Skype before going in a totally new direction. Growing up in Chicago – which boasts the second largest population of Mexicans in the USA behind Los Angeles – the half-American, half-Norwegian entrepreneur fell in love with the cuisine.

And it was upon moving to the Norway office of McKinsey & Co, the management consultancy where he worked before Skype, that he had his brainwave. “That’s the moment the light bulb went off,” says Partaker. “When I was in Norway, there was no great Mexican food so I thought I should do something with that idea someday.”

Chilango now has seven outlets across central London, a city Partaker says was perfect for his venture. “The London restaurant scene is intensely competitive, which I relish,” he says.

Chilango’s first investor was Tom Spathis, a former colleague of Partaker from his McKinsey days. Not only could Spathis stump up the necessary cash but being a familiar face also had its perks.

“He was somebody whose opinion I trusted and that I looked up to when I was at McKinsey,” says Partaker. “He would be able to tell me if the idea was good or not and give me some feedback on where I was getting it wrong. It wasn’t simply him writing the cheque.”

Spathis was soon joined by Saul Klein, the pair’s former boss at Skype, founder of Seedcamp, the startup accelerator scheme, and partner at Index Ventures. As well as investing a chunk of his own money into Chilango, Klein introduced Partaker and Houghton to Mark Esiri and Tom Fleming at Venrex Investment

It was crucial for me to find people who could essentially mentor me as well as give substantial amounts of cash

Zia Hayat, founder, Callsign

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Management, which is now Chilango’s biggest and lead investor. Ambient Sound Investments, the founding engineers of Skype, were also bowled over by the ambition shown by their former colleagues and invested in the firm in spite of their technological bent. “The fact that they invested couldn’t better illustrate the benefit you get by being able to take advantage of a past working relationship,” says Partaker. “These guys couldn’t be further away from Mexican food and restaurants but they believed in us and what we were doing.”

Partaker suggests that securing investment would have been more challenging if they’d had to approach unknown VCs or private equity firms. “One of the massive benefits you get by going to people within your network is that you can ask ‘what do we need to do to make this a success?’ rather than ‘what do I need to say to you to convince you that we’ll be successful?’,” he says. “You are not having to sell yourself. You are just having to collaborate on the idea’s potential.”

Chilango has gone on to build a board of investors that reads like a Who’s Who? of the restaurant sector. Partakers says a large part of

Spicing things up: Eric Partaker & Dan Houghton, co-founders of Chilango

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You are not having to sell yourself.

You are just having to collaborate on the idea’s potential Eric Partaker, Chilango

this is down to “cold, hard networking” but 12 members of the board are nevertheless people with whom either himself or Houghton have had a past connection. This combination of industry expertise and longstanding relationships has put Chilango on course for great things and the obstacles that Partaker and Houghton have faced along the way have undoubtedly been overcome with less difficulty than they might otherwise have been. “If our investor relations had been based on cold hard cash without any passion or belief for our past experience, we would have found ourselves alone,” he says. “But it was because they’re based on something far deeper than that – an element of trust – that allowed us to weather those storms.”

It’s a similar story for Zia Hayat, founder of Callsign, the personal identification app. “I needed something built that was solid from the ground-up from day one,” Hayat explains. “I built the first version of the platform, which has never seen the light of day because it was very badly written. I therefore needed to raise quite a lot of cash so that I could bring in the right people to build the platform.” Hayat was essentially seeking some experienced hands to ensure his venture didn’t sink before it sailed.

“It was crucial for me to find people who could essentially mentor me as well as give substantial amounts of cash,” he adds. “You need people who have been there and done it and also have got a bit of clout essentially.”

The first person Hayat spoke to about Callsign was Steve Dempsey, a former colleague from Accenture who, it’s safe to say, fitted the bill perfectly. He explains: “Steve was known at the time, and is still known, as being quite savvy when it comes to investing in start-ups and tech start-ups in particular.”

Hayat admits that securing the investment and services of Dempsey was far from a foregone conclusion but he is nonetheless grateful that his old pal decided to come on board. “I thought he may be sceptical because I knew from Accenture that he was quite a hard taskmaster,” Hayat says. “But when I sat down and explained what I thought this thing could do, he was sold on it quite quickly. It then just became a question of how much money he would plough in.” A friend of Hayat also managed to hook him up with an investor based on America’s West Coast and after a fleeting trip across the pond, the entrepreneur came back with another chunk of cash.

Hayat has since gone on to raise seed capital to the tune of $3m from Qualcomm, Deutsche Telecomm and Atlantic Bridge. Asked whether this would have been possible – at least in such a short timescale – without the initial support of familiar faces, Hayat is diplomatic. “That’s a very difficult question. I do believe in making your own luck,” he says. “If I put my Zia lens on I’d say ‘of course I would, I’d have gone and got someone else,’ but of course bringing those guys on board has massively helped accelerate the whole thing.”

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30/05/2014 19:58

Five-minute money masterclass

faultless A realistic forecast of revenue, profits and cash flow is a core component of most business plans, especially when the time for investment comes a calling. More than this however, regular forecasting just makes good business sense. If an entrepreneur doesn’t know how much money is entering and leaving the company coffers – and when – they could find themselves in hot water. How, then, can an entrepreneur make their forecasts are as foolproof as possible?

WORDS: ADAM PESCOD

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Don’t overestimate

Beware cashflow pitfalls

It’s only natural that a start-up will struggle to conjure up a concrete figure when it comes to future sales. However, it’s better to err on the side of caution instead of going totally overboard with the projections.

“You have to be realistic,” says Stephen Hay, co-founder and CFO of Bishopsgate Financial, the consultancy firm. “Quite often a company will be more nervous about contracting with a smaller company or startup so there may be more hurdles to jump to get there.”

Ultimately, there’s no point forecasting revenue that you know you aren’t likely to bring in any time soon. “You need to ensure your sales forecasts are achievable in relation to your costs and resources,” adds Peter Andrew, head of innovation at Alba Innovation Centre, the technology business incubator. “Using a good sales pipeline or funnel model will help you understand the sales journey from customer interest to payment and ultimately to accessing the cash.”

Cashflow is the biggest killer of start-ups. Therefore, it’s hard to overstate the importance of factoring into a forecast anything that could negatively, and unexpectedly, impact a company’s cash situation.

“One of the reasons many early stage companies fail is that they don’t keep an eye on this important barometer of a company’s health,” says Tim Fouracre, founder and CEO of Clear Books, the cloud accounting company. “Some cash flow items, such as VAT payments and rent, occur quarterly and can catch you out, so you just need to make sure you’re aware of them and how much they will be. Similarly, other major payouts can cause problems, such as corporation tax.” Allowing for any anomalies or sudden changes in circumstance can ultimately prevent a business taking a turn for the worse. Hay adds: “It pays to allow a margin for error to ensure that you don’t risk the whole business if targets are not hit or an unexpected surprise or two occurs.”

Forecasting ‘best case’ scenarios can lead to ‘worst case’ outcomes Stephen Hay, Bishopsgate Financial

Money masterclass.indd 1

Stephen Hay, cofounder and CFO, Bishopsgate Financial

Peter Andrew, head of innovation, Alba Innovation Centre

Tim Fouracre, founder and CEO, Clear Books

Philippe Gelis, cofounder & CEO, Kantox

30/05/2014 21:12

forecasting Check out the competition For the first-time entrepreneur, forecasting will seem like a whole new world, especially if they haven’t come from a finance background. And for those wary of forking out for even a part-time accountant in the early stages, it can be a daunting task indeed. However, it can often be handy to take a look at the figures of other firms in your sector, just to make sure you’ve got everything covered. “Every industry has key stats that can help you compare your figures, for example, gross margin,” explains Andrew. “This helps to see if your figures are comparable to your competitors. It is also useful to use company financial check sites like DueDil and Company Check which offer free financial information on limited companies, including latest accounts from Companies House.” Yet it’s still worth keeping your own business in mind – not others – when you get down to the specifics. “The forecast must fit your business needs and reflect the key information to you and any external stakeholders, especially if you need investment,” Andrew adds.

47

Assume the worst Pessimistic entrepreneurs are a pretty rare breed. In fact, entrepreneurialism and negativity don’t belong in the same bed at all.

However, as far as forecasting is concerned, following the ‘worst-case scenario’ model is generally a wise approach. “Credit control is essential, but it’s best to assume worst case when forecasting, as sometimes it is,” says Hay. “It may not always be as bad as that, but it only takes one or two months of not being paid to put immense pressure on a business.

Even when you are factoring or invoice discounting, credit control is essential as any long standing debtors will not be covered and that would result in an immediate cashflow problem.” In essence, Hay adds, “forecasting ‘best case’ scenarios can lead to ‘worst case’ outcomes.”

Keep a close eye on currency With the internet providing a marketplace for so many start-ups in this day and age, dealings with foreign customers and suppliers are quite commonplace from the outset. Small manufacturing businesses may also take advantage of cheaper labour costs in overseas territories, so throwing currency fluctuations into the forecasting mix comes highly recommended. “For any business trading internationally or dealing with foreign suppliers, an accurate forecast of future revenue, profits and cashflow will hinge on managing FX risk,” says Philippe Gelis, co-founder and CEO of Kantox, the foreign exchange firm. “Although these currency fluctuations are beyond your control as a business owner, establishing a coherent FX policy should be top of your list. It’s your job to make sure you understand your business’ ability to absorb a potentially large FX movement and plan accordingly.”

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30/05/2014 21:12

FINANCE

An election for enterprise?

Things may be on the up for the UK economy but key business issues remain with less than a year until the general election, says Clive Lewis, head of enterprise at the ICAEW

T

businessadviceservice.com

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he next general election is now less than a year away and each of the main political parties are starting to ramp up their campaigning efforts. Central to the messaging will be the state of the economy and how it is seen to be recovering by businesses and the general public. With that in mind, the latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM) seems to make for good reading for the Conservatives and the Liberal Democrats.

The report shows that more than 450,000 private sector jobs will be created within the next year – with SMEs seeing the highest increase in expected jobs growth. The UK economy is forecast to grow by 1.2% in Q2 2014, representing a significant milestone for the recovery and finally taking GDP above its pre-crisis peak in Q1 2008. This is great news for the UK as a whole but I imagine the chancellor will be especially pleased to see the economic recovery strengthening ahead of the next general election.

Businesses are also becoming more optimistic, leading to a second consecutive quarter of record growth. The business confidence index, the headline measure of the BCM based on a survey of 1,000 of our members, is now at +37.3. This is higher still than Q1 2014 which was a record quarter for confidence itself. As confidence begins to stabilise, businesses will become more willing to invest particularly as turnover and profit growth continue to accelerate.

The survey also shows that we can expect both domestic sales and export growth to pick up over the next twelve months – a further boost for the government. However out of the two, domestic sales growth will be the key driver. Such expectations have led to non-exporters being far more confident about the direction the economy is heading that exporters are.

We want to see long-term jobs emerge rather than a temporary fix to unemployment

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The good news isn’t limited to businesses though. Employees can also expect to see their salaries rise over the next year. This will be coupled with the anticipated cooling of interest rates through the same period, meaning 2014 could be the first year that consumers start to see the benefits of the economic recovery.

In sector-specific news, confidence in the property sector is also at a record high, something never before seen over the past decade. The property sector has also reported the highest capital investment growth and expectations of all sectors.

Despite the good news, the skills gap is expected to widen, especially in the construction and IT and communications sectors where skills for both management and non-management are still falling short of what’s needed in the market.

This skills gap is part of a much wider issue, with our research suggesting that business owners are worried that they will not be able to recruit employees with the right skills. The government has been moving in the right direction on apprenticeships and skills, but it isn’t happening fast enough for home-grown employees to fill the gap.

We want to see long-term jobs emerge rather than something that is simply a temporary fix to unemployment. One way this could be achieved is through employers investing in training to show a commitment to their workers, improve their productivity and improve the outlook for their businesses.

This quarter’s BCM confirms the increasing strength of the UK’s economic recovery. But in amongst the good news, there are two issues which could hold back the recovery.

The skills gap is widening and exports are still not rising fast enough. The government needs to make sure it addresses both of these quickly otherwise growth could be stifled, thus creating challenges for whichever party comes to power in May 2015.

30/05/2014 19:08

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03/08/2012 15:21 14:31 19/07/2012

SALES & MARKETING

Running your own PR can be a great way for your start-up to save money. Here’s our cut out and keep guide to launching your brand on a budget

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W

hen trying to get a start-up off the ground it can be tricky to grow profile whilst making the most efficient use of resources. Public relations (PR) is a vital part of getting the word out about your business but when you’re still working from your kitchen table it might not feel like the best time to take on an agency. Handling things yourself is certainly a good way of getting started but, as with all things worth doing, it’s worth doing right.

PR for

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WORDS: JOSH RUSSELL

Taking aim

One reason some PR efforts fail to even get out of the gate is because they don’t have a clear idea of who they actually want to reach. “If you fail to understand your target audience and the publications that they read, the rest of your PR plans will be fruitless,” explains Michele Bayliss, a PR consultant. “There is no point in targeting the FT if your target audience is more likely to be reading Practical Photography.”

Essentially, planning these sorts of efforts is about boxing clever. “Getting coverage is all very well but it’s not enough to ‘want a piece in TechCrunch’,” comments Sami McCabe, CEO of Clarity PR. Instead, an enterprise needs to know exactly what it wants to achieve with each piece of external communication, whether that’s attracting the attention of investors, courting new hires or expanding its client roster. “Every penny you spend on PR should be channelled into delivering specific business objectives.”

30/05/2014 19:08

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SALES & MARKETING

Making the headlines

52

So you know who you want to reach, the outlets you’re approaching and what you’re aiming to get out of it: what next? It’s time to start hitting up the hacks. “Find out what you need to do to get news and articles in these publications,” recommends Debbie Kelly, director of Republic Relations. “Put together an Excel document to keep track of which journalists and publications you’ve talked to.”

A huge part of communicating with journalists will involve crafting press releases for their perusal and, whilst this can seem intimidating to the newcomer, it’s easy enough if you keep it simple. “Hone your message and make sure it’s concise, clear and brief,” Bayliss says. The thrust of your offering should be something someone can take in at a glance. She continues: “If you cannot sum up your message in a few sentences, it’s too complicated – if the journalist won’t read it nor will the readers.”

Of course, simplicity alone ain’t gonna cut it: an enterprise needs to be able to stand out from the crowd. “If a business is the first to be doing or selling something or is just the best at what it does, this automatically puts it in a stronger position,” comments Shannon Haigh, head of PR at 10 Yetis, the PR agency. “Journalists are inundated with pitches every hour of every day, so the first thing they want to find out is what sets you apart from competitors.”

But it’s important to remember that you’re talking to people who have almost certainly heard it all before so, even if you think you’re sitting on the next Snapchat, not every reporter is going to bite. “Many start-ups have a product which they consider revolutionary,” comments Kieran Kent, managing director at Propeller, the B2B PR agency. “However, just because you have a new product, that doesn’t mean that a journalist will want to write about you.”

Feeling content

One of the most important things about getting your brand out to the press and the public is realising it’s not all about you. “The biggest mistake people make is to solely talk about their own business,” Kent says. Fortunately there is another way: if there’s anything a journo or Joe Public loves, it’s free content.

He continues: “In such a growing content era, it’s become necessary for spokespeople to have opinions on wider industry issues.”

Whilst getting a big spread in a national might not be realistic for a start-up with a low profile, content outlets like the Guardian Professional Networks can offer a great chance to associate your name with a big media brand. “You just need an insider’s knowledge of your industry, a timely theme, some colourful opinions and an ability to string written words together,” explains

Helen Down, PR Consultant at Treacle PR. “If you’ve got these qualities in the bag, it [...] can really help to get the PR ball rolling.”

Another great way to get your name on everybody’s tongues is to get on the blogging bandwagon. “A company blog is a fantastic resource for sharing your story and news,” comments Cathy White, account manager at Albion Drive. “Regular updates as you grow can be a great platform for a journalist on the prowl and it’s an easy way to send a link through Twitter and direct them back to your site.”

The social club

Social media has allowed start-ups to effectively compete with internationals that have huge PR budgets at their disposal for the first time.

Most audience demographics are going to have

Every penny you spend on PR should be channelled into delivering specific business objectives Sami McCabe, Clarity PR

PR in practice.indd 2

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SALES & MARKETING

Journalists are inundated with pitches so the first thing they want to find out is what sets you apart Shannon Haigh, 10 Yetis

54

their own preferred social tools and picking the right channels again depends on who you want to reach. “You will need to decide what works best for your audience,” Kelly says. “For example a young target audience will almost certainly call for an Instagram presence.”

But it’s not just members of the public who can easily be reached through social networking.

“Social media such as Twitter [is a great way] to meet journalists,” comments White. Social networks offer a much more direct route to a journalist’s in-tray than older mediums like email. “A quick tweet following an article relevant to you, with a simple ‘You may find this interesting…’ or ‘Did you know that…’ can be great way of introducing yourself.”

And it’s not just a one-way street: networks like Twitter offer excellent insights into the sorts of briefs publications are currently exploring. “Follow ‘#journorequest’ to see what writers and editors are looking for,” says Haigh. This will allow you to offer targeted advice to their readers and mean that you’re much more likely to get some column inches than if you’re just spamming magazines and newspapers with your company bio.

Most important when dealing with social media though is not biting off more than you can chew: focus on delivering quality not quantity. “Turn on the social channels in a linear fashion as you gain bandwidth,” says Sam Howard, PR consultant and founder of The Comms Crowd, the communications agency.

“They are all hungry beasties and need feeding. It’s much better to have a few channels that are well run and content rich than half a dozen channels that are neglected most of the time.”

PRo tips From his experience working with clients like Blackberry, 118 118 and Swiftcover, Joshua Van Raalte, chief executive of Brazil, believes there are three factors that really get people to sit up and pay attention to your PR:

Legitimacy

Legitimacy is vital to prove that the business has the correct foundations in place.

Journalists are bombarded every day with new start-up ideas and concepts and unfortunately few of them go on to be written about. They ask tough, often cynical questions, and need to see proof points. This means experienced management, strong financial backing, a fully researched concept, a tangible sales strategy and a clear understanding of market demand.

Surprisingly, too many start-ups don’t have many of these points covered.

Authenticity

Authenticity could emanate from the initial concept, the inspiration for the business or the research and development behind the technology. It’s what a business can uniquely claim as their own, and of course can also be a valuable IP asset if it’s eligible for a copyright, patent or trademark.

Human interest

The more people your business is relevant to, the more powerful the PR potential. As an example, last year we launched Kite Patch, a soon-to-be-launched patch which is worn on clothing and prevents malaria infections. Our campaign drove potential financial supporters to a crowdfunding site with the aim of raising $75,000 for the next stage of development.

Kite’s potential benefits to society captured the human element of the innovation, and as a result, the company raised over $550,000 – more than seven times’ what was originally

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01/05/2014 23:50

ATTENTION! ATTENTION! Publicity stunts sometimes backfire but with sufficient thought and preparation – and not much investment – they can propel a start-up to new heights

I WORDS: ADAM PESCOD

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t was hard not to be mesmerised by Felix Baumgartner’s jump of a lifetime last year. The Austrian skydiver’s leap from space was watched live by a record-breaking 8 million people on YouTube and was the headline story on major news networks across the globe. However, whilst many tuned in for the purpose of seeing one man’s fulfilment of a lifelong dream, the event could also reasonably be labelled ‘the greatest publicity stunt of all time’. After all, its official title was Red Bull Stratos, signifying the identity of the stunt’s sponsor; the international energy drinks giant.

Granted, a stunt of this magnitude is way beyond the reach – and budget – of your humble start-up. It’s an extreme example that doesn’t help ease the mindset of brands that are looking to grab their first little slice of market share at a comparatively low expense.

“If you’re a start-up, you’re obviously counting

the pennies so you want something that raises your profile but doesn’t cost the earth,” says Francis Ingham, director general of the Public Relations Consultants Association (PRCA).

Fortunately though, there are many ways that a publicity stunt can be kind to the company coffers and at the same time propel a brand to the next level. James Watt, co-founder of BrewDog, the brewer and pub operator, can relate to this better than most. Although the quality of its produce has gone a long way to ensuring the company’s commercial success thus far, BrewDog has won plaudits (and attracted controversy) for its mission to shake up an age-old industry; a mission in which publicity stunts have played a prominent part.

“People assume you need massive budgets to make a big impact but it isn’t true,” says Watt. “With the right idea and execution, small can be epic. For example we hosted the

SALES & MARKETING

57

Sending in the tanks world’s smallest protest with a single dwarf and a placard to campaign against an alcohol law banning two-thirds of a pint measures.

The cost was minimal but the execution was brilliant and we ended up changing a 300-yearold alcohol law. It’s always going to be tough being a start-up but you shouldn’t let your size constrain your ideas.”

If there’s another lesson that BrewDog’s approach can teach other start-ups when it comes to publicity stunts, it’s that the brand must be at their core. BrewDog’s stunts succeed because they speak volumes about what the brand stands for: disrupting an industry and challenging the norm. Eyebrows would likely be raised if an ethical skincare product were to engage in similar stunt activity to the brash Scottish brewer.

“People think that publicity stunts are done for publicity stunts’ sake but really the

People assume you need massive budgets to make a big impact but it isn’t true James Watt, BrewDog

successful publicity stunts aren’t the ones that generate coverage; they’re the ones that generate business growth and are born from a brand identity rather than from one bold idea,” says Alex Myers, director of Manifest London, the marketing and communications agency.

“The question a start-up needs to ask itself is ‘can any other brand do this?’ If the answer is yes, don’t do it. It has to be a stunt that amplifies and magnifies what the brand does rather than what the category does.”

And a large part of what defines a brand is the very people it is trying to target. The same rules therefore apply for publicity stunts as they do for a traditional advertising campaign. “You have got to keep mindful of your audience,” Chloe Buchanan, head of PR at Adams Creative, the PR and marketing agency. “It’s great doing stunts but you need to ask yourself if it will actually influence the right people and the right demographic.” She adds that acquiring the services of a good photographer is essential. “It’s all about having someone who has that creative eye.”

The amount of planning that a publicity stunt requires cannot be overlooked. If it’s not treated as a means to an end and fails to attract the attention of the press and public alike, it could take a brand backwards instead

James Watt sheds light on one of BrewDog’s most commercially successful stunts to-date: the launch of Equity for Punks III, its innovative crowdfunding scheme: When we launched Equity for Punks III in June 2013 we drove a tank to the Bank of England with an army of super fans in tow.

We wanted to do a big launch that demonstrated our alternative approach to business and financing; that we were leading a revolution by taking the control from the banks and putting it back in the hands of the people.

On the day of launch we had thousands of people tweet and share images of the tank and we raised £1m in the first 24 hours; the scheme went on to raise £4.25m.

We could have just announced that we were running the crowdfunding scheme again, but where is the fun in that? I doubt we would have had such an epic response if we hadn’t launched with a bang.

SALES & MARKETING

The question a start-up needs to ask itself is ‘can any other brand do this?’

If the answer is yes, don’t do it.

Alex Myers, Manifest London

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of forwards. Ingham cites Advantage SA, a media company in Australia, as an example of how publicity stunts can have the opposite effect to what was intended. The firm sent 55 goldfish in bowls to media agencies, along with the words ‘Be the big fish in a small pond and come test the water’, in a bid to promote South Australia as a good place to advertise.

Whilst they were also supplied with six months’ worth of food for the fish, most didn’t survive the delivery process, leaving a bad taste in the mouth of recipients and numerous other parties. “They got terrible publicity on the back of it and were criticised, quite correctly, by lots of animal welfare charities,” says Ingham. “It backfired on them.”

In an age where social is everything, stunts that can be shared on all platforms will also benefit the brand and make life easier for a publisher as well. “Giving journalists something that they don’t have to research or analyse, but that still provides them with content, can work for both them and the startup,” adds Ingham. He reserves particular praise for confused.com in this regard. The car insurance company celebrated the 50th anniversary of bubble wrap by covering a whole street in the material and renaming in Accident Avenue. “It worked because it played to their message about safety on the road and it provided compelling content and photographs,” he says. “But they did get permission from the people on the road and local authority before they did it.”

Striking up a strong relationship with authorities and the general public where they actively engage with a stunt can bring significant rewards. Indeed, part of the reason that guerrilla activity and flash mobs are now less common is the risk of fines and potentially damaging legal action. “Flash mobs started illegally and a lot of train stations cottoned on to the fact that they could actually make a bit of money out of it,” says Buchanan. “The investment isn’t worth it for SMEs. They are better off doing smaller stunt activity that can be quite cheap, doesn’t require too much man power, is really well thought-through and brings a good return on investment.”

Contrary to popular belief, not all publicity is good publicity – a lesson that start-ups would be foolish to ignore.

Shock tactics Alex Myers, director at Manifest London, reveals how a single stunt threw Morphsuits into the public consciousness: Morphsuits hasn’t always had huge marketing budgets but what it does have is a community of fans that automatically generates content. Last year at Halloween we ran something with them called Fright Mob. We created the scariest Morphsuits ever and to promote it, we asked people on Twitter and Facebook to tell us who they felt we should go and frighten. We turned up with a gang of Morphsuits and cameras to wherever that friend was and basically

scared the hell out of them.

The reason it worked was that we used the activity to generate video content, which we posted online, and we knew that within the community that Morphsuits has – it has 1.2 million fans on Facebook – we’d be able to turn this into a viral story. Sky News invited the founders of Morphsuits on to talk about how they’d created this global phenomenon and the Met Police even issued a warning against conducting Fright Mobs in busy areas.

I think that’s where a stunt can become cyclical and have a snowball effect – as long as you have got the colonel of the idea right and it’s something no other brand can do.

Publicity stunts: what not to do 1 Break the law – it’s easily done, especially with health and safety aspects 2 Be gratuitously offensive – it might gain you coverage but it won’t gain you customers

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3 Ignore your own staff – they need to be kept in the loop 4 Forget what the end goal is – the headline and the article are just a means to an end, not the end in itself

5 Do something that’s contrary to how you want your business to be seen – if you want to be a high-end purveyor of fine goods, a tacky stunt that gets covered in the Daily Star won’t help

Francis Ingham,

director general of the Public Relations Consultants Association

30/05/2014 19:09

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30/05/2014 17:53

SALES & MARKETING

six seconds of fame SMEs must welcome new forms of visual marketing and social media with open arms or risk being left behind

C WORDS: TOM DAVIS

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Insta-success.indd 1

harles Darwin once theorised “it is not the strongest of the species that survives, nor the most intelligent (...)

It is the one that is most adaptable to change.”

It’s a saying that could define the successes or failures of today’s smallest and biggest brands.

In a world where social media is dictating our lives, it has never been so important for our small businesses to keep up with the zeitgeist or risk being left behind.

As new social media platforms and trends have developed, so has an attention deficit disorder amongst us all. Consumers no longer want to watch long promotional videos or read in-depth content. Quick, concise and quirky marketing techniques are the only way to capture the audience before they move on to the next shiny object, which is a mere mouse click away.

Fortunately for brands, there are plenty of social media formats and trends that they can take advantage of to make their marketing campaigns engaging and fun, whilst still reaching out to a huge audience. Platforms such as Vine, InstaVideo and Snapchat have helped to transform the marketing world, while trends such as selfies are so ingrained into our society that it would be foolish for businesses not to take advantage.

“The whole lesson that came from Twitter is how do we speak in a concise manner and how do we get across a concise message?” explains Rachel Adams, social media manager at O2.

“Things such as Vine and InstaVideo really help businesses shape their proposition and what they’re trying to say by forcing them to say it in a short space of time.”

And while the ‘cool’ status of these hip new technologies may have given social media marketing a boost, the stats speak for themselves: Cisco expects that by 2017 video will account for 69% of consumer internet traffic, more than four times as much as regular web browsing and email. We’ve also seen how effective selfies are –

30/05/2014 19:10

SALES & MARKETING

A+C Studios

A+C Studios

so popular the word was added to the Oxford To get the best from Vine and InstaVideo English Dictionary last year. And let’s not A+C believes they must be fun and engaging, a forget the no make-up selfie hashtag that raised lucid change from the promotional marketing more than £8m in just six days for Cancer of yesteryear. “The way social media really Research UK. With HTC reporting that over works is that you’re producing content that 51% of people in the UK have taken a selfie, people want to watch and ideally people are there’s clearly an opportunity for businesses to going to share,” says Richards. “If we create capitalise on such social media trends. something that we laugh at, hopefully our But with lower budgets and smaller audiences audience is going to laugh at it and the friends there is a question whether this is really of our audience are going to laugh at it. The something that’s feasible for SMEs to pursue. whole point for us is to get people associating A+C Studios, an animation company, has used cool and funny with A+C Studios.”

Vine successfully to help market its brand, and Nevertheless these campaigns still need to be have just started publishing a new series of fun thought out. It’s all well and good uploading InstaVideos to explain what the company is all a funny video, but consumers must be able about. “I think it’s feasible,” says Dan Richards, to relate the video to your brand. Knowing director of A+C Studios. “If your audience and you do a TV commercial you tapping into relevant need a big film crew lots of discussions is important expensive equipment and to running a successful lots of permission. But to do visual campaign. Simon a Vine or InstaVideo, all you Baldwin, consultant need is a mobile phone. It only at Destination CMS, takes a few minutes to set up has used successful the shot and post it online.” selfie campaigns to It really is as easy as one, encourage a more two, three. Technology has interactive relationship evened the playing field for between retailers and Simon Baldwin, big businesses and small consumers. “The trick Destination CMS businesses. Tapping into is to understand your these platforms and trends takes no time at audience and the message you’re trying to get all. Starting a selfie campaign is as simple out – don’t just put out content for content’s as uploading a photo and a hash tag, while sake,” says Baldwin. “If you are putting things starting a Vine or InstaVideo campaign just out that have a relevance to your audience then takes a few well thought out shots before your campaign will work because they will editing, something easily done on a tablet or like it, they will become advocates, they will mobile with just a few clicks. become loyal and your messages will definitely These social trends all have a common trait: get shared.” they appeal to a broad and young audience.

Many SMEs may be dubious about starting This means that brands must not only think such a campaign but its ease of use really about how to promote themselves but also how does make it worth it. “I don’t really think to make a quirky and entertaining campaign that there’s a business that couldn’t benefit,” that will be able to get the most possible shares. concludes Richards.

The trick is to understand your audience and the message you’re trying to get out

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Dan Richards,

director, A+C Studios

Simon Baldwin,

consultant, Destination CMS

Rachel Adams, social media manager, O2

30/05/2014 19:10

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N O G N I R I F S R E D N I ALL CYL A free gym membership may tick the employee benefit box but companies must go beyond CSR guidelines if they are to move the needle on employee wellbeing 64

WORDS: DARA JEGEDE

A

s employment rights regulations go, the UK framework, compared to other states, is not too shoddy.

Most employers adhere to legal obligations in keeping the workplace safe for their employees.

But as many workers will attest, the stresses that come with working life go beyond the periphery of HR’s health and safety remit and more still needs to be done to ensure that employees are physically fit and able to handle the day-to-day churn.

For those unconvinced, a recent report by the CBI – Getting Better: Workplace Health as a Business Issue – indicated that employee absence is burning an estimated £14bn fiscal hole in the economy. A stark reality perhaps, but the good news is the problem is not without a solution: companies must shift their focus to positive health management rather than managing the consequences of absence.

At Quintiles, the medical research company, employee health management is just another manifestation of the company’s core values.

“What we do is bring people and knowledge together for a healthier world,” explains Jacqui Riches, employee health manager at Quintiles, the pharmaceutical research firm. “We need to look after ourselves if we’re going to do that well for our clients.”

Though not all companies operate in the health and medical realm, no business is exempt from the duty of care they owe to their employees. All employers are required to meet statutory requirements, and there are clear

guidelines and recommendations on things like health and safety and introducing flexible working policies. However, going beyond the letter of the law to discuss wellness poses some difficulty because it is a highly personal and subjective matter which involves individual lifestyle choices and areas that are the beyond the control of a business.

SMEs also have to deal with the categorical constraint on resources. “It always comes down to budgets,” explains Tricia Kalloo, CEO of Wellness International, the health and wellbeing services provider. “In managing employee wellbeing, we must bring it back to a simple thing and that’s a company’s corporate social responsibility, its ethics and morals.”

Elliot Hurst, director of health consulting at AXA, the insurance services provider, says that there is no legal compulsion on the part of employer to act but it comes down to a moral compulsion and the impact of inaction on the business. “It’s a question of ‘if we don’t help our people get to a better stage of health, then who will?’” he says. “But increasingly you act because if you don’t there might be an adverse impact on your competitiveness, profitability and customer satisfaction and retention.”

Like a well-oiled engine, any business needs its components firing on all cylinders in order to continually perform at its full potential but beyond this, having a wellness strategy can demonstrate positive corporate citizenship both within the company and in the market.

Moreover, it can help enhance or soften the

PEOPLE

perceptions of a brand.

“There is an element here that says ‘we can differentiate ourselves as a business because we attract and retain the very best talent,” elaborates Hurst. “Going to the local allotment and tidying up or doing something for a local charity is not only good for our brand in the local community, it also gets the people together as a team all doing something constructive and positive outside the workplace.”

Demonstrating some care for employees clearly has its advantages beyond bolstering business performance but the starting point is to assess what is already in place and map out what you want to accomplish.

Hurst takes AXA clients through a health audit process. “We bring together the various disparate parts of their business and the information within the business that pertains to health,” he explains. “It’s a combination of looking at things like absent statistics, data on staff turnover and looking at potential hotspots or parts where people are particularly engaged or otherwise.”

But in cases where there is no baseline data

Top tips for a successful health and wellbeing programme Sponsor it at the top – Hurst emphasises having senior advocacy for the programme within the business Keep it going – “Companies need to understand, when they create their health and wellbeing strategies, how to implement it but equally, and more importantly, how to sustain it,” comments Kalloo. “Make sure it is liveable and affordable.

Monitor participation – “Collecting aggregate results from initiatives helps to tailor further programming to suit employees’ needs to make sure that you offer them the right things,” says Riches.

Follow health trends – “Whether in the psychological, cancer or diet and exercise arena, align your health calendar with what charities and public health bodies are doing at any given point during the year,” Hurst says. “Make use of other free and regularly available accessible information. Support is out there.”

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PEOPLE

to understand the company’s health and wellness position, Riches advises starting with a simple survey or an online health and wellbeing assessment on which to base some wellness programming, ensuring managerial and leadership involvement throughout the process.

Kalloo adds that employee involvement can assist in shaping a costeffective programme. “Health and wellbeing programmes do not need to be exorbitant,” advises Kalloo. “You can create initiatives that are low-cost and driven by the employees.”

Even once progress is underway, companies must bear in mind that there will be a group that is difficult to motivate. “Sometimes people do not engage because of fear of coming up against the ‘fit bunnies’ or just being timid,” comments Kalloo. “To get those bums off of seats you need to make sure that your programme involves a wide array of activities and is not focused only on the gym.”

Hurst agrees. “A successful health and wellbeing programme needs to be as far reaching as possible,” he says. “It doesn’t have to be expensive but it can be impactful. Ensure that whatever you do is highly visible and is well-marketed.”

John Styring, founder and CEO of Igloo Books, the children’s book publisher, also believes variety is key. “A lot of fitness is actually free,” he says. “And it doesn’t cost a lot to provide people with one piece of fruit on a Monday. Somebody might start eating more fruit and then buy it themselves throughout the week.”

A small change can make a big difference. Healthy, happy employees are more productive employees. Suffice to say, implementing a wellbeing programme can be a welcome shot in the arm for small businesses.

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Health and wellbeing programmes do not need to be exorbitant Tricia Kalloo, Wellness International

Guy Blaskey

John Styring

Jacqui Riches

Our company and our food are about healthy nutrition; everyone in the office has to understand that both from a dog and human point of view.

Everyone at lunch time is free to do what they want, whether that’s going to the gym or taking the company dog out for 10k runs. We have showers so people don’t have to go to a gym to run and they’re able to clean up and carry on with work.

We’ve done Tough Mudder together and we sign up for a lot of races together.

Some companies might look at time away from the desk as a negative but it can be fantastic thinking time.

We’ve also just signed up for the Cycle to Work scheme, which works out well financially for both employees and employers and it gives everyone a chance to exercise on their way to work.

The important thing is putting employee health and wellbeing pretty high up the agenda. We have a starter pack so when anyone joins the business they understand all the different things that we do and the events we run. For example, we have a sports day in the summer.

We have Free Fruit Mondays where we provide free fruits for our employees and we have a small team of people who run together. We aim to give people access to fitness activities that perhaps they wouldn’t always do if they don’t have people to play football with, for example.

We’ve got a couple of dogs and we’re fortunate to be in a rural environment so people can go and walk the dogs at lunch time. Just getting out in the countryside starts to introduce people to a healthier way of living.

Healthy U, Healthy Q is Quintiles’ wellness programme which we offer as part of a wider employee health management service. All new starters are issued with a branded Healthy U, Healthy Q pedometer to encourage them to get moving more and be aware that each and every step count.

Our physical activity reimbursement programme allows our employees at any location to be reimbursed for being physically active and to try new activities to suit their lifestyle.

We have onsite classes such as yoga, Zumba, tai-chi, meditation and dance classes at our larger office sites and we have wireless outside so people can have meetings in the fresh air. It’s all about breaking up the day and getting away from the desk.

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Quintiles

30/05/2014 19:11

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30/05/2014 20:23

PEOPLE

Faint appraisal Staff appraisals are generally considered a key part of performance management.

But Lucy Adams, former HR director of the BBC, tells us why she feels they’re simply no longer fit for purpose

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T

he annual appraisal has been a firm fixture on enterprises’ calendars for decades and has become a staple in any manager or HR professional’s toolkit. But this isn’t to say there aren’t plenty of people who feel that there are significant flaws in the appraisal system. Speaking at an event this April, Lucy Adams, former HR director of the BBC and director of Lucy Adams Associates, the leadership resilience consultancy, decried the bog-standard annual appraisal, saying: “I want to explode the myths that appraisals work: they don’t.”

Certainly a bold statement but if our current method of reviewing staff isn’t up to scratch, what are our options? We caught up with Adams herself to get the lowdown on how we can improve our approach to appraisals.

Right off the bat, Adams is keen to clarify that it isn’t the fundamental principle of appraising staff performance that she feels is failing. “I don’t have an issue with many of the elements that can be part of an appraisal if it’s

Faint appraisal.indd 1

done well,” she says. But, unfortunately, the way appraisals are implemented often prevents this, she argues.

Inevitably, as an enterprise scales from start-up to SME, observing and encouraging staff becomes more structured. “Organisations tend to look at a process solution because it is easy to apply, it is important that they are consistent and they want to make sure that they can monitor and measure what’s happening,” Adams says. However, because of this structured approach, appraisals are often implemented on an annual basis and, for her, this is where things start to become ineffective.

There’s always the syndrome where the employee feels they’ve been short-changed Lucy Adams, Lucy Adams Associates

“Changing behaviour is really hard,” Adams comments. “Research shows that one of the ways you can increase the chances of success is deal with the behaviour that you want changing at the point where the behaviour is being exhibited.” Explaining by way of an analogy, she says that if someone saw their child was having problems on their bike, they would help them straight away. “Waiting for six months to have an annual review with them to actually help is just absurd.”

But it’s more than just a question of immediacy. Often appraisals will be held at the same time of year, with the idea that this will create greater efficiencies, but of course the opposite is often true. “Everybody’s trying to do it at the same time,” Adams says. “You’ve got issues of privacy, room booking, taking people out of the business.” It becomes such a significant organisational challenge that many managers will simply be focused on getting through it, rather than concentrating on how to provide the best feedback.

30/05/2014 19:11

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01/11/2013 00:48

PEOPLE

There’s also a danger that the irregular appraisal structure can become something of a crutch that discourages people from tackling things head on. When one knows an appraisal is looming in a few months’ time, it can be easier to file a problem away rather than dealing with the situation when a response can have the most impact. “Managers think they can put it on a back burner and think ‘I’ll deal with it then’,” Adams explains. “But by that stage it’s actually too late.”

Another problem with stalling until there’s an appraisal is that often many things can get left by the wayside. Whilst the expectation is that managers will be making comprehensive notes on employee performance, this is rarely something that happens when individuals are wrestling with day-to-day business concerns.

Adams says: “What will often happen is that the manager will give feedback on something that just happened as opposed to giving a more balanced reflection.”

From an employee’s perspective, this can be hugely dispiriting and call into question the value of even participating in appraisals. of our brain’s resources are rushing to avoid Inevitably, an employee’s own performance or resist the threat,” she explains. “Conversely, and future career development is going to the parts of our brain that actively encourage matter more to them than to someone who engagement, openness, curiosity and problemis simultaneously handling dozens of similar solving shut down.” reviews. “It’s going to be more important to the So, in light of all of the problems with annual employee to have that detailed conversation appraisals, what’s the alternative? than it is going to be for the manager,” Adams Inevitably having more regular feedback is explains. “There’s always the syndrome where going to be vital. To this end, many businesses the employee feels they’ve been are trying to provide short-changed.” managers with the skills However, there is a deeper they need to much more factor at work that can prevent effectively offer support an appraisal session being useful and feedback to employees for an employee. Often the sheer in the day-to-day working pressure of having an entire environment. “What year’s worth of professional work they’re typically moving assessed can derail any attempt towards is looking at the to make positive headway. coaching capabilities of their Lucy Adams, Lucy Adams makes reference managers, developing skills Adams Associates to research led by the for their managers where NeuroLeadership Institute that they’re more able to coach explains our psychological reaction to threats people whilst they’re working alongside them,” to our status, certainty, autonomy or our sense says Adams. of fairness – all things that potentially can be Another vital area is learning more about challenged in an appraisal environment. When employees. Whilst there is a massive trend these things come under threat – as when we towards understanding and tailoring responses are placed under physical threat – our bodies to customers through data and algorithms, kick into a fight, flight or freeze response. “All an enterprise’s knowledge of its own staff

Take away the paperwork and focus on the conversation

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often pales in comparison. “It’s important to know your individual team members,” Adams explains. “How they like to learn, how they like to grow, how they respond to threats and awards and then apply that in a more individualistic, tailored way.”

But Adam’s last piece of advice is perhaps the most radical step of all. “Remove all paperwork from the equation,” she says.

Whilst there will be a strong knee-jerk reaction from those whose management style is very process-driven, very few employees actually need a paper trail to keep track of their own professional objectives. And over-focusing on which box an employee should go in or what grade they’ve received often misses a more nuanced picture of their performance. As Adams explains: “Take away the paperwork and focus on the conversation.”

Essentially, making appraisals more effective comes down to making them a more natural reflection of the way an enterprise works and embedding employee feedback within the natural rhythms of the business. “The conversation that you have over the coffee machine, standing over somebody working on a joint presentation,” Adams concludes. “Go with existing behaviours in the workplace and make the most of them.”

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PEOPLE

The trouble with talent is… the question of age The word ‘talent’ shouldn’t be preserved for the younger generation. The over-55s have a lot to offer too, argues Lyndsey Simpson

C

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an you be ‘talent’ and over 55? Or is being seen as talent the preserve of ‘up and coming’ youngsters? Why is this subject such a taboo? We are, after all, getting older every day rather than younger, so why aren’t we able to just talk about this topic openly and rationally?

A significant proportion of the businesses that I co-own are in recruitment. Our teams are asked every hour of every day to find talent.

None of our customers would ever say they don’t want us to present any older candidates when presented with this talent brief but, in reality, this is where actions speak louder than words in terms of which candidates are interviewed and selected. Is the subject avoided because we are all afraid of being cast as ageist or being sued for breaching the Age Discrimination Act? Perhaps. Or do we carry an unconscious bias that talented people are by definition hungry, ambitious and on the way up? Is there an invisible age line that is crossed after which they cease to be termed as talent but are instead experienced, a safe pair of hands or a technical expert?

As I’m sure we are all aware, the national retirement age is getting higher and higher and with equal rights comes women retiring at the same age as men. But we are an ageing population. 10 million people in the UK are currently aged over 65. By 2030, it will be 15.5 million and by 2050, 19 million. Now, if our population was growing at the same rate, there would be no issue, but it’s not. Fertility rates are continuing to drop so there are less

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30/05/2014 19:13

PEOPLE

We should stop focusing on how mental and physical age affect talent and instead look at one’s state of mind

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children replacing the working population and going by current trends, by 2030 there will be a shortage of 2 million workers in the UK aged 16-65. Unless we are going to lower the working age and send children to work at 13 in the future, there is only one direction we’ll be going and that’s older.

So, with the backdrop set, let’s get back to answering the all-important important question: does age affect ‘talent’?

It’s no secret that as we grow older we all start to feel the effects of age a little more, both mentally and physically. This can begin to have a serious detrimental effect on how we perform in a professional capacity regardless of whether it’s our body or mind letting us down.

With the ever-changing face of technology

and increasing use of social media within business, there is a never-ending supply of things to learn. As a result it is all too easy to fall ‘behind the times’ and find ourselves a little out of touch. Equally, our body is not a machine, thus with each passing decade levels of energy start to diminish just at a time when we are expecting our people to work longer and harder than ever before.

Clearly though, there are people who buck this trend and keep themselves physically and mentally fit and put in extra effort to keep up with the pace of change. In my business, The Curve Group, one of our most energetic, engaged, driven, high-performers is a nimble 62. She has no intention of retiring anytime soon and I wouldn’t hesitate in rating her as ‘talent’. However, she will also openly admit that before she joined us, she worked for a large corporate that in effect ‘put her out to pasture’ in her 50s to a back office role and stopped developing and promoting her within the organisation.

Of course, there is an increasingly growing opinion that age does not affect talent at all.

Wisdom, experience, charisma – these are all characteristics that for the large part can only come from age and from developing yourself over a large period of time. It is these points that would indicate that age only ever affects talent in a positive manner and as a result should be harnessed and utilised.

If I looked at our recruitment for the banking sector pre-2008, I can’t think of a single candidate over 50 that was selected for any role. Talent was very much defined by age in the industry and the banks craved those coming up through the ranks with new ideas, innovation, pace and ambition. Fast forward six years and we now place as many people over 50 as under into the banks. Talent is generally defined as those people who possess good judgement, humility and experience of operating in booms and busts.

Now, sitting on the fence is never a comfortable place to be and you will be pleased to know, it’s a place I never occupy.

In my personal opinion, talent is not automatically negatively impacted by age and yes, you can be talent and over 55! We should stop focusing on how mental and physical age affect talent and instead look at one’s state of mind. A truly talented individual will never stop wanting to develop themselves personally, and more importantly they will never want to deliver anything but their best.

I’d like to employ that sort of person every day please.

30/05/2014 19:13

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30/05/2014 20:01

TECHNOLOGY

Tzukuri

WORDS: JOSH RUSSELL

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After our focus last month on big-ticket smartphones, we got to thinking: who were we to ignore all the humbler tech that has made our professional lives so rich? What about the unpresuming printer? The simple spectacle? By way of reparation, we’ve turned our eye this month to those innovators reinventing our favourite accessories and accoutrements

Tzukuri – the sunglasses with an in-built solar-powered iBeacon – are a perfect demonstration of how wearable technology solves problems without needing to be intrusive. Accidentally leave these stylish shades in a bar and they’ll ping you, reminding you where you left them. They’re also smart enough to know when you’re at home or work so you won’t get a message every time you take them off your head. And as it works on an iBeacon, there’s no need to keep the app open in the background and constantly waste precious phone juice in the process.

The One One of the principles of minimalist design is cutting back all that is superfluous to create truly iconic items reduced solely to their necessary elements. Komono has taken this to an extreme with its watch The One. Not only does it scoff at the usual swarm of complications that timepieces are plastered with but it has done away with both second and minute hands, leaving a face that is pointedly uncluttered.

The hot list.indd 1

30/05/2014 19:14

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TECHNOLOGY

Lunecase Given almost every piece of tech we use kicks out a huge quantity of electromagnetic waves as a by-product, finding ways to put this wastage to good use is a worthwhile endeavour indeed. Lunecase is one of the most novel uses we’ve seen: powered purely by the EM waves emitted by your phone, this smart case picks up incoming message and call signals before your phone has even woken from its slumber, letting you see whether you’ve got love ahead of time without unsightly connections or battery drain.

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LIX LIX isn’t the first product to position itself as a 3D printing pen but it most definitely is the smallest and most compact. For those more at home with graphite than graphics software, LIX allows creative types to doodle freehand in thin air, building up 3D structures and artworks without needing to spend hours sat behind a monitor. And the results are really rather impressive, both in terms of versatility and strength, something evidently shared by its supporters: at the time of writing, it had almost amassed 25 times’ its Kickstarter goal, drawing in more than £730,000 of backing.

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Pocket Printer Need to print A0 blueprints without tracking down a room-sized industrial printer or whip up a contract in a coffee shop? This little droid from ZUtA Labs will work his way across a page of any size and get your docs run up no matter where you are. Having just successfully completed its Kickstarter pitch, the first model of Pocket Printer should be getting sped up and shrunk down before its commercial release, meaning its only going to get quicker and cuter from here on out.

30/05/2014 19:14

sponsored TECHNOLOGY

SHOWCASE

Giant Interactive Tablets The Giant iTab is a large touch screen solution designed to take advantage of today’s rapidly growing world of digital presentation, engagement and e-commerce. Building on the revolution in smart phone and tablet technology it quickly engages the customer and, by having the same functionality, this cutting edge technology delivers a more positive user experience, enhancing the brand while conveying the message perfectly. By re-

“Building on the revolution in smart phone and tablet technology it quickly engages the customer”

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using existing content, users are able to bring together all their marketing and promotional elements into one seamless multi-channel platform – a true breakthrough for advertisers, sponsors and content creators wishing to get their message across in a totally seamless and cohesive way.

Touch2view have just been ‘shortlisted’ for a Mobile Innovations Award having supplied a Giant iTab (set up as a Giant iPhone) as an added presentation tool and customer engagement facility used for showcasing the mobile loyalty app from software partner TagPoints, on-site at the Swan Shopping Centre in Eastleigh. Results achieved in excess of 190% for Visitor Sign-ups and over 300% for adding more Facebook and twitter followers.

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30/05/2014 20:32

TECHNOLOGY

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London calling There’s currently no shortage of international entrepreneurs bringing their start-ups to Silicon Roundabout. We look at why tech companies from around the globe are flocking to Tech City

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f you’ve spent much time kicking around Shoreditch, you’ll know if there’s one thing east London loves more than hipsters it’s tech start-ups. Not only is Silicon Roundabout the residence of homegrown heroes like MOO and Mind Candy but it has drawn in many an international behemoth, including Google, Facebook and Amazon. Given its increasing desirability as a location for foreign start-ups to launch, we ask three start-ups why Tech City is the place to be.

30/05/2014 19:16

TECHNOLOGY

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The start-up Klappo

Massimiliano Del Vita, co-founder & CEO of Klappo, the data platform for food ingredients, certainly isn’t lacking in globetrotter credentials. The entrepreneur has spent the last 15 years working in various countries across the globe, from his home country of Italy, through Sweden and a four-year stint in China, to his current home in the UK. So when he came to launch Klappo, he had plenty of places to choose from.

Del Vita felt his homeland wouldn’t have been the right place to launch an ambitious tech start-up. “I come from a place that I love: Italy is a great country,” he says. But he believes that the country has several key issues that make it a tougher environment in which to grow a business than nations like the UK. “The bureaucracy in Italy does not help young entrepreneurs to succeed,” he explains. “There are also a lot of issues around ability to access funds and money.”

For a fledgling tech firm with its eyes on the global market, it felt like a no-brainer to start up in London. “We wanted to have a more international reach,” Del Vita explains. Given all of the international businesses operating out of the city, this made London an excellent choice and when the young start-up began to look where in the city would best suit its needs it seemed like it was a bit of a no-brainer.

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“We wanted to be able to share, to collaborate and access other people, experience and opportunities,” he says. “Our first choice was Silicon Roundabout.”

And it definitely seems to have been the right choice for the enterprise. “So far it’s been really amazing, both because of the accessibility to money and funds but also the laws and regulations that help and sustain young entrepreneurs,” says Del Vita.

Not only has working in Tech City placed Klappo right in the backyard of some very large businesses but it is having such a vibrant start-up ecosystem on its doorstep that has proven so valuable.

“We’ve also been participating in a lot of these meetups and events where you can network with people,” Del Vita comments.

Several of these connections have led to longterm collaborations with people, resulting in Klappo and other enterprises either swapping work quid pro quo or hiring each other’s talent for specific tasks. He explains: “It’s actually very effective.”

But Del Vita doesn’t believe his business would be the only one to benefit from what Silicon Roundabout can offer. There is a huge curiousity amongst his fellow entrepreneurs on the continent about the potential Tech City has for start-ups. “Every time I go back to Italy I tell my friends,” he says. “I’m actively an evangelist of London and the tech scene here.”

It’s been really amazing, both because of the accessibility to money and funds but also the laws and regulations that help and sustain young entrepreneurs

Massimiliano Del Vita, co-founder & CEO, Klappo

30/05/2014 19:16

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02/05/2014 00:59

TECHNOLOGY

The mover Freespee

Freespee, the ad tech company, began its journey in co-founder and CEO Carl Holmquist’s home country of Sweden. During his work in telecoms software, a client he was meeting complained about the fact that, while they could track their customers’ purchasing journeys online, the second they decided to complete their purchase over the phone the tracking pathway effectively ended. Holmquist immediately rang up his future co-founder.

“I asked ‘can’t we solve this problem?’ and he said ‘yes we can’,” he recalls. “That is the day we started.”

But before long it became clear it needed to extend its reach. “Our main customer audience is online marketers and London is basically the marketing hub of Europe,” Holmquist explains. Inevitably this meant that once the start-up was up and running, some presence in the city would have been fundamental.

But Freespee wasn’t content with just having a sales office abroad. Holmquist continues: “Instead we chose to make it a bigger move and establish London as our global headquarters.”

This decision wasn’t just about being on the doorsteps of their customers. “In east London we would get access to world-class talent,” says Holmquist. Whilst Sweden hardly has a paucity of talent, exec-level hires with a

knowledge of building a global growth strategy aren’t necessarily ten-a-penny. He elaborates: “It has been really valuable to us to come here and get connected to that talent source.”

Being based in Tech City has had huge ramifications for Freespee. “One of the main positive effects is the attitude of the sharing generation,” comments Holmquist. Working in one of the area’s co-working spaces allowed the company to not only share knowledge and talent with other start-ups but also gain access to valuable contacts. “Many of our first customers in the UK come from the coworking space or people our neighbours knew that needed our service.”

However, he does feel that enterprises need to be established and have some backing before they relocate. “You can’t bootstrap as a foreigner in London,” Holmquist says. Things like drafting UK option schemes and the high costs of recruiting locally can’t be easily afforded on a shoestring and this means an ambitious foreign business risks hampering its growth if it makes the jump too soon. “As long as you’re well-funded, London can be a great city,” he says. “And once you’re here, you’re able to grow faster than you could do in most other markets in Europe.”

The second home Knewton

David Liu, COO,

Knewton

We’re already finding Tech City to be a great location for establishing a presence in Europe

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Unlike our two other enterprises, Knewton, the adaptive learning start-up, wasn’t looking for a new home. Founded in New York in 2008, the company already had healthy revenue and strong roots in the States but after six years of operating, it realised that it was time to capitalise on the rapid growth it was seeing in European markets. David Liu, the firm’s chief operating officer, explains: “Having raised $51m at the end of last year, we decided that now was the time to develop a stronger presence here to support our partners in Europe and beyond.”

Despite its comfortable position, finding the right fit for its second location was absolutely vital. “Since Knewton was founded, we’ve worked hard to foster a culture of creativity and innovation, maintaining our start-up mentality despite the company’s high growth,” comments Liu. “It was important for us to maintain that same Knewton culture wherever we set up our first international office, and Tech City is the perfect fit.”

Carl Holmquist,

co-founder & CEO, Freespee

In east London we get access to world-class talent 85

Trying to launch a new office was something of a daunting prospect, particularly because the initial team was comprised solely of relocated Knewton staff. Getting to grips with an unfamiliar city is never easy at the best of times, let alone when one is making decisions involving significant financial investment. Fortunately, the enterprise had a little help from a friend: Tech City UK, the organisation championing the area and supporting its start-ups.

“Tech City UK was a vital resource in easing the transfer,” Liu explains. “Their team provided us with a great deal of advice and guidance when it came to setting up our second office, including helping us find our office space in a great location surrounded by fantastic restaurants and coffee shops.”

In part because of this help, Knewton’s expansion has surpassed its expectations. Liu comments: “We’ve only been in London for a few months now, but we’re already finding Tech City to be a great location for establishing a presence in Europe and helping to grow our international business.”

Not only has the location given Knewton access to the highest quality of talent but it has placed the company at the heart of a community of edtech start-ups. “It’s been really exciting and inspiring for the team to be surrounded by other companies that are also trying to make the world a better place,” Liu says.

There are no doubts in Liu’s mind that east London was the right choice to establish a second international location. “Tech City is a great place to set up shop,” he says. “We’ve found it to be a supportive and inspiring community and we’re really happy to be a part of the burgeoning London tech scene.”

30/05/2014 19:16

TECHNOLOGY

Causing a rift Barone Firenze / Shutterstock.com

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Facebook’s purchase of Oculus Rift, the virtual reality firm, could be a game-changer for the social media giant. But it will also help brands engage their audience like never before, says Dan Kirby

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f you’ve been following recent tech news you’d be excused for thinking you’d gone back to the 1990s. Everyone’s talking about virtual reality again. No, they haven’t announced a remake of The Lawnmower Man (for anyone under 35, google it). It’s just that everyone’s favourite social network made another billion dollar deal. In March, Facebook bought a virtual reality platform called Oculus Rift for a cool £2bn.

But why? What have baby photos, Buzzfeed lists, and cat videos got to do with a technology platform which was originally picked up by hardcore video-gamers?

Well, it seems as if Mark Zuckerberg has made a bet on the future, a future where ‘virtual’ and ‘real’ blend, where you don’t need to be there – to be there.

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What is Oculus Rift?

Oculus, which is still yet to be commercially released, was created by a 19-year-old hacker called Palmer Luckey. It was facilitated by the growth of the mobile phone industry, which radically brought down the costs of HD smallsize screens and gyroscopic sensors. By using these components, Luckey managed to vastly reduce latency (the time gap between moving your head and the visuals moving) to a matter of milliseconds.

The result? The user feels less disorientated.

This was traditionally the big hurdle for virtual reality, where all previous efforts were more sluggish and therefore both less convincing and less enjoyable.

The Oculus headset is basically a mask – kind of like an iPad strapped to your face. The latest

version has 1080p – high definition image quality – per eye, and positional tracking (ie where your head’s actual position in space is translated to the virtual environment rather than just direction and tilt).

While initially picked up by the video games industry, the headset is not a console like PlayStation or X-Box. It can plug into any PC platform. Yet despite lots of interest from the gamer community, it has no large user base.

This is where Facebook can help.

How could it be used?

What the Oculus Rift experience gives gamers is an experience that they can’t get anywhere else. It’s immersive, exciting and transportive.

Yet isn’t that what you want to get from

30/05/2014 19:17

HP Ad Place RHP.indd 1

30/05/2014 20:33

TECHNOLOGY

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sports, entertainment and retail? And it’s what brands try to do in their marketing and events.

Gaming, while the lead application today, is only the thin end of the wedge.

What Oculus does brilliantly is translate your physical perspective somewhere different – somewhere the wearer cannot get in real life.

The most literal example of this is the ‘gender swap’ experiment where you can experience what it’s like to change genders.

But imagine the potential for education: a classroom biology lesson where you can enter a bee hive. Or look over the shoulder of the best brain surgeon in the world as they do their day job. In fact David Attenborough is already working on a series filmed for Oculus Rift called Conquest of the Skies, which will show you the jungles of Borneo by using a special 360° camera rig.

You could attend exclusive catwalk shows

It seems as if Mark Zuckerberg has made a bet on the future, a future where ‘virtual’ and ‘real’ blend

as they happen (and then buy the clothes), explore a region of Spain before you booked your holiday, or watch the match from the manager’s viewpoint. For fans it’s a winner – O2 and the England rugby team have created an Oculus experience called Wear the Rose where you are actually able to play alongside the team.

Training for rare but critical events like emergency first aid for your child, or attending disaster (or war) zones could be explored safely and highly realistically – better preparing people for the worst.

And how about pulling up a chair with your friends on the other side of the world? Let’s call it Face-to-Facebook.

But isn’t this all a bit futuristic?

You would be excused for rolling your eyeballs at this point, thinking that all this stuff may well happen but in some distant future. Like jet packs.

However, my company Techdept was the first enterprise in the UK to use the Oculus Rift platform for marketing. And we did this in October last year – to help sell flights to European ski resorts.

It all came about while collaborating with WDMP, the direct response and relationship marketing agency. We were helping its client

Monarch Airlines – which in 2012 had entered the ski market for the first time – to build their profile with independent skiers.

The campaign concept was a Monarch Mountain – it was a virtual geographical location which could act as a gateway to real ski destinations, resort information and booking details. Initially, the focus was on a 360 degree photosphere app, which you can still see at mountain.monarch.co.uk. Check it out on your phone or tablet – you can tilt and move it around!

Yet this project coincided with research and development we were doing with Oculus Rift, and we thought ‘why not build a virtual mountain’? We could literally recreate the adrenaline rush of the slopes.

So we created a ‘ski jump’ game to feature at Monarch’s presence at the Ski and Snowboard Show in Manchester and London. It allowed players to literally jump off the edge of a cliff – with the winner being the one who landed closest to a target at the base of the mountain.

We even hacked a Wii Fit with Balance Board to allow players to move the skis with their body movements.

Research had shown Monarch’s target customers were digitally savvy and curious to try new things – and indeed over 2,000 people played the game over the eight days of the event. What we loved was the fact that the winner in Manchester was a four-year-old girl.

And we’re very proud that it’s a finalist in the 2014 UK Digital Experience Awards.

So what happens next?

Using your head: Techdept utilised Oculus Rift to create a ski jump game for Monarch Airlines

Tech Dept.indd 2

Like all emerging technologies, Oculus Rift is still being understood – both by developers and the world at large. And while some of the applications are futuristic, at Techdept we already have direct experience of how this platform can be used to engage, entertain and market a brand.

What’s without doubt is the world of virtual reality is a brave new world, and within it will be massive opportunity for start-ups and entrepreneurs to create content and applications that imagine its full potential.

As Mark Zuckerberg said when he acquired the business: “Strategically we want to start building the next major computing platform that will come after mobile.”

Either that, or in 20 years’ time we’ll be looking at those headsets and rolling our eyeballs at how naïve we were.

30/05/2014 19:26

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WORDS: ADAM PESCOD

LEGAL

With reputation such a powerful force in business, it’s little wonder that recent changes to defamation law have caught the eye of entrepreneurs. But how has the legislative overhaul really affected the business owner's ability to defend their company's good name?

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What’s the damage?

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efending one’s reputation to the hilt is undoubtedly a core part of many entrepreneurs’ DNA. And should one ever feel their reputation, or indeed their company’s, is taking a battering through no fault of their own, defamation law provides some fairly handy protection.

However, the legislation governing personal and corporate reputation has recently had a facelift or – as some people may argue – fairly minor surgery. It ultimately depends what side of the fence you sit on.

Whilst the media has broadly welcomed the Defamation Act 2013 for its rebalancing of freedom of expression with the right (of claimants) to a good reputation, it has had a significant bearing on the challenge that claimants – business owners included – now have in bringing a successful defamation claim.

The headline amendment is the new ‘serious harm threshold’. It outlines that “a statement is not defamatory unless its publication has caused or is likely to cause serious harm to the reputation of the claimant.” And when it comes to companies, the new Act states that “harm to the reputation of a body that trades for profit is not ‘serious

30/05/2014 18:57

LEGAL

harm’ unless it has caused or is likely to cause the body serious financial loss.” It’s relatively easy to appreciate the reason for these sweeping changes: to avoid trivial claims in regard of statements that don’t actually cause any reputational damage and waste precious court time in the process.

The challenge as far as a business owner is concerned is how one goes about proving that ‘serious financial loss’ has occurred, or is likely to occur, as a result of an alleged defamatory statement. Indeed, there isn’t even a solid definition in place yet, thus making the task all the more taxing. “As far as I am aware, there isn’t any case law yet to determine what constitutes serious financial loss,” says Jeremy Clarke-Williams, senior principal lawyer for commercial litigation, media libel

they felt that what had been published was going to cause them serious financial loss.”

Naturally, a defamatory claim against a company may also hit the reputation of the founder or senior figures in the business, and vice versa. Yet aside from the serious financial loss threshold in the case of corporate claims, there are similar considerations to be made before taking legal action. “You always start with the basics,” says Clarke-Williams. “You look at the words complained of, what they mean, you assess what damage they have caused or are likely to have caused, and then you look at the merits and prospects of success of bringing a claim. That’s not just the legal prospects of success, but the commercial prospects of success. Is it such a serious libel that, even though the person responsible has

Defamation Act 2013 is a section covering online content. It states that website operators cannot be held liable for content posted by external users, provided users are easily identifiable and the operator follows a procedure allowing a complainant to make direct contact with the user or author. Whilst this will probably bring a sigh of relief for businesses in the publishing and marketing spaces, the internet remains a rather complex beast for companies whose name may have been dragged through the mud in a highprofile publication.

News has never travelled faster than it does now and Clarke-Williams believes this limits how far a business owner can really push things for the purposes of defending the good name of their enterprise. “You have to be realistic. You are not going to be able to clean the internet of everything you don’t like so

As a business owner, you just have to be vigilant and you have got to pick your battles very carefully

& defamation at Slater & Gordon, the law firm. “One would assume that the courts will want to look at any loss of custom or sales, and possibly goodwill. You can imagine that the goodwill associated to the name of, for example, Mars or Heinz would be of huge value. If that suffers as a result of defamatory publication, it would clearly have a financial impact.”

Clarke-Williams adds, however, that most business owners will generally have money on their mind in circumstances of defamatory publication. In that regard, the Defamation Act 2013 doesn’t signify a fundamental shifting of the status quo. “I don’t think it will make much difference to the position of business owners because I don’t think many business owners or companies would have pursued a claim unless

What's the damage.indd 2

got no money, you still need to do something about it?”

Of course, it’s not just broadcast or written words that can cause damage but libel cases are understandably more common than those for slander. “I would be very reluctant to bring a slander claim,” Clarke-Williams adds. “You need witnesses who overheard the defamatory allegations being made, who are able to remember, as closely as possible, what was said and then are also prepared to be witnesses in a court case, which may ultimately result in them having to stand up and be cross-examined at a trial.” He adds that any damages awarded may also be very modest if only a small number of people were privy to the allegation.

A welcome and timely addition to the

you have to concentrate on the targets that are actually going to do damage to your business or to you as an individual.”

Social media has also come under scrutiny of late but the judgment in the muchpublicised case involving Sally Bercow and Lord McAlpine made it clear that defamation law does extend to Twitter, Facebook et al.

Businesses would therefore be wise to keep a close eye on what’s being tweeted or posted under their name, just in case it could be construed as an attempt to unlawfully discredit a competitor.

And whilst juries have more or less now been removed from libel cases – technically making the legal process shorter and cheaper for all involved – Clarke-Williams advises businesses, especially those with smaller pockets, to give things due consideration before going in all guns blazing.

“A libel claim is quite a big thing,” he concludes. “It occupies quite a lot of headspace for the people involved, it can get expensive if it doesn’t settle quickly, it can be timeconsuming, so if you’re going to get involved, you need to make sure that it’s over an issue that’s pretty fundamental. As a business owner, you just have to be vigilant and you have got to pick your battles very carefully.”

30/05/2014 18:57

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

Our accounting professionals can complement the efforts of your staff, provide an additional level of expertise and help accomplish a separation of duties to enhance internal control.

At Expert Accounting & Finance we provide a range of services, including: • Annual Accounts Preparation • Business Advice & Strategy • Corporation Tax Returns • Business Support and Outsourcing • Personal Tax Planning • Retirement Planning, Saving • Corporate Finance Advice and Reducing Inheritance Tax

The most cost effective & easy to use online accounting software for small business owners • Brand new intuitive interface • Makes doing your books easy • Automates payments & receipts • Send invoices whilst on the go • Remotely control all your finances • Save time and money • Monthly subscriptions from £7.95

t: 079 123 50144 e: behnaz.rayati@expertacc.com w: www.expertacc.com

t: 0845 450 7304 e: info@liquidaccounts.com w: www.liquidaccounts.com

Business Coaching

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Mindfulness for Business Transform your day to day life!

Reduce stress, improve health, promote wellbeing, and enhance focus.

Book now for this eight week online course with Julie Walsh our life coach Special May Offer Only £99 - VALID UNTIL 31st May (Usual price £199) Book Now at www.businesshelpforyou.co.uk and receive a 2-hour practical skills workshop Free (Workshops are in Essex)

e: support@businesshelpforyou.co.uk w: www.businesshelpforyou.co.uk Close Security Protection

Business Opportunity

INTENSIVE ETIQUETTE CLASSES FOR CHILDREN 7-13 YEARS One to one coaching • Class environment Our intensive Etiquette Training System has been specifically designed for teaching etiquette classes to children. It includes the use of interactive games, role-play and theory whilst keeping it fun, in order to help your children discover and focus on what is regarded as important social behaviour, when reacting socially with their peers and families during the course of everyday living.

Please contact Miss Taryn Jahme

Want a second income you can bank on? Join the Club! ✔ No stock to carry ✔ Products that everyone uses, every day ✔ Up-front bonuses ✔ Full or part time ✔ On-going commission ✔ Full training and support – free of charge ✔ British PLC, listed Make money by helping people save money!

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t: 07956 348 085 e:info@secondincome.me w: www.secondincome.me

Creative Design

Crawford Gill Associates is a close protection and specialist security consultancy based in the prestigious heart of central London.

We take pride in being able to supply some of the world’s most elite protection specialists to discerning clients globally.

We offer all encompassing bespoke security solutions from personal protection details and residential estate security packages to special event security planning and high value asset logistics.

Blooodyweb is a team of web and app developers/designers that believes in a quality service delivered in a short period of time. There is a misunderstanding in this business and a lot of people is getting ripped off nowadays, we bring real and fair rates and are totally transparent in our procedures.

t: 0800 689 0718 e: enquiries@crawfordgillassociates.com w: crawfordgillassociates.com

t: 02075 110022 e: mark@bloodyweb.co.uk

We are a multifaceted graphic design consultancy dedicated to delivering strategic and innovative solutions that help you and your business stand out from the crowd.

We service our clients with the confidence of knowing that we are good at what we do: We help our clients achieve their goals – we help to bring out their greatness!

t: +44 020 3561 6995 e: info@creativeharmony.co.uk w: www.creativeharmony.co.uk

ShootfortheMoon Providing bespoke products and services in time and budget..so you can lead the way in style..! and remember We won’t be beaten on PRICE and QUALITY...

Our dedicated team of professionals can provide solutions for just everything from web design to 2D/3D animation, online marketing, and much more.

Today online presence is a key to success for every business, if you think so and want your bespoke web site that can be found by search engines…Call The Experts

t: 01913 385777 e: info@mediaexpertsbiz.co.uk w: www.mediaexpertsbiz.co.uk

Classifieds June.indd 1

Design

All-in-one help with everything from business cards to social media.

Plan B Images is run by Birgitte Lydum, who has 15 years' experience in print and online media. She takes the hot air out of graphic design, while offering sound and friendly advice.

ShootfortheMoon Design is a small company experienced in producing beautiful digital, print, brand and web designs. With lots of happy clients spanning the globe, our dedicated team can help with everything from design and technical expertise, to social media and marketing advice.

Get in touch for a no obligation chat.

t: 07939 123 218 e: b@planbimages.com w: planbimages.com

t: +44 (0)7850 449634 e: tim@shootforthemoondesign.com w: shootforthemoondesign.com

30/05/2014 20:43

classifieds Food and Gifts

First impressions count when it comes to defining your business online, great web design is essential and we know that every business is different that’s why Wingmen only offer tailor made bespoke websites. We’re not in the habit of selling features you don’t need or want in different sized packages.

We build exactly what you need, when you need it.  Logo and Branding  Web Design & Development  Digital Marketing

 Search Engine Optimisation  Ecommerce consultation  Printing

t: 0800 999 0300 or 0208 543 5529 e: hello@wng.mn w: wng.mn

We are the Greenest green grocers around! We are fruit and veg delivery specialists that use electric vehicles, providing natural goodness to homes and offices across london but with out the nasty emissions.

We aim to deliver high quality produce and not just fruit and veg. We can also deliver lots of other nutritious goodies and aim to kick start that healthy lifestyle!

t: 0845 539 0279 e: info@fruit4london.co.uk w: fruit4london.co.uk

Graphic Design

t: +44 (0) 789 112 5564 e: info@ldn-design.com

NEED A NEW WEBSITE? GET FREE SEO WORTH £240!

Normally we see web designers build great looking sites but there’s something missing; there’s no combine marketing. We at Webb Synergy believe in connecting various energies into one powerful creation which is YOUR WEB BUSINESS not a “website”. There are millions of websites stagnating all over the web however, we will create your web business that gets you more visibility and conversions.

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

Kirsty Grant D.Hyp, PDCBHyp, MBSCH

Get a FREE £240 SEO service today - when you sign up for a website.

t: 07930 624 903 e: tourae@webbsynergy.com w: WebbSynergy.com

t: 07411 004694 e: info@pioneerhrandtrainingconsultancyltd.co.uk w: pioneerhrandtrainingconsultancyltd.co.uk

Helping you to achieve your goals.

t: 07909 777114 e: kirsty@kirstygrant.co.uk w: kirstygrant.co.uk

t: 0203 015 4942 e: arudhran@macronetit.com m: +44 74469 00028 w: macronetit.com

Clinical and cognitive behavioural hypnotherapy can help with issues such as: • Phobias • Sleep issues • Weight control

• Self-confidence • Public speaking • IBS

Conveniently located in EC2 & E18, see website for more information or contact Kirsty Grant to discuss confidentially and without obligation.

Nutrition

Hart Brown has a well established and respected commercial team providing legal services to an expanding and diverse range of businesses in the South East. With experience in dealing with all business issues from buying and selling a business or commercial property, to restructuring and employment issues, Hart Brown has the expertise to find the best solution for your business. To find out how we can help you, call us today!

t: 01483 887766 e: commercial@hartbrown.co.uk w: www.hartbrown.co.uk Outdoor Advertising

For advice and assistance call us today!

Vivasoya drinking yoghurt is wholesome and health-supporting. It is fully processed using natural fermentation to remove protease inhibitors, phytic acid and other anti-nutrients in soya beans. United Nations Food and Agriculture Departments are supporting the consumption of foods processed this way for its health benefits.

Billboard Connection will provide your business with a complete solution for all your outdoor advertising needs - From Design to display - We can manage every aspect of your outdoor advertising campaign. Because we deal with All of outdoor companies, we are able to offer you more choice at competitive prices Consider the advantages of including Outdoor advertising in your next Campaign: OUTDOOR ADVERTISING....• CANT BE TURNED OFF• WORKS DAY AND NIGHT • IS BIG BOLD AND COLOURFUL • QUICKLY BUILDS BRAND AWARENESS • LOWEST COST PER THOUSAND

t: 01708 784000 e: office@mplaw.co.uk w: www.mplaw.co.uk

t: 07956 392339 e: imms-nutrition@vivasoya.com w: www.vivasoya.com

t: 0800 002 9224 e: fmbabson@billboardconnection.com w: www.billboardconnection.com

Mullis & Peake LLP Solicitors are one of the South East's largest and most respected law firms, with a team of specialists providing up-to-date, professional legal advice on all that matters to people and companies.

Specialising in Employment, Legal Disputes, Partnerships and Commercial Property including Developments

Classifieds June.indd 2

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Legal Services

Macronet Solutions Limited is a professional IT firm which focus on latest customers’ needs on networking, software management, web-designing / Web-Development and CRM [Customer relationship management]. Using highly talented staff and technical support team it emphasis technology to deliver a wide-range of IT solutions and IT services persistent on network design, web design, cloud computing and management. We adopt and use latest software’s and services for our clients which allows them to choose tomorrow’s trends and technologies as per their requirement and get ahead of other competitors. Thus Macronet is proven well in providing services in a short period of time.

Is something holding you back from reaching your full potential?

Pioneer HR and Training Consultancy Ltd has been set up to provide quality and cost-effective outsourced HR solutions to SMEs. We offer following bespoke HR services to suit your specific business needs: • Complete HR outsourcing • Disciplinary and Grievance • Employee engagement • HR policy and procedure manuals • Health and Safety • Recruitment and Selection • Staff Training • Employee handbook and Employment Contract

IT Support

Hypnotheraphy

• Smoking cessation • Stress • Anxiety

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

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

HR

ldn-design is a UK based website design company which offers affordable solutions to help you create your dream website.

We are professional WIX website designers. We love working with our clients creating User-Friendly websites & offering superb Advertising solutions at unbeatable prices. Whatever size your business is we can help you build an online presence with our packages that start from £65.

Member of The British Society of Clinical Hypnosis

Franchise Opportunity

Vivasoya, foods for a healthier world

30/05/2014 20:55

classifieds Print Management

Recruitment

We are a young, creative, print management company, providing effective print media solutions, cost saving prices, excellent customer service and of course fantastic print. It’s what we’ve always done and we’ll always continue to do. We work with both local and international clients producing such items as: • Business Stationary • Magazines • Leaflets/Flyers • Catalogues • Brochures • Point of Sale • Books • Exhibition Graphics

t: 02920 025739 e: sales@theprintmanagementstudio.com w: www.theprintmanagementstudio.com

Software Development

Affordable Recruitment Services Anchor Ambition specialises in the recruitment of:  Accountants and other Financial staff  Legal staff  Office Executives including Administration, PA and Secretarial staff

We believe in placing people first and we operate on this motto. We guarantee you a personalised affordable service that involves getting to know about your business and the ideal candidate you are looking for.

Keycode Consultancy is a small London based software development company that creates mobile (iOS, iPhone, iPad) cloud, desktop and web applications for small to medium size businesses. We are the understanding software developers with the keycode to unlock your business potential because we excel in what we do best and can also work from small budgets of £2,000.

Call us to find out more about our current promotions.

t: 0844 807 3087 e: info@anchorambition.com m: 0774 880 3087 w: www.anchorambition.com

t: 0208 509 3767 e: kevin@keycodeconsultancy.com m: 0758 604 1399 w: www.keycodeconsultancy.com

Web Design

Established in 2007 and based in Maidstone, LG Web Design specialise in creating visually stunning HTML5 websites for small to medium businesses in Kent, London and the South East of England.

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Whether you're looking to re-brand, or get your very first website, LG Web Design can act as your one-stop-shop; from designing your website, to getting you listed on Google; we do it all!

Book your free consultation today.

t: 0800 2343 893 e: info@lgweb.co.uk w: www.lgwebdesign.co.uk

Open 9am - 7pm 7 days a week

’Simple, Smart and Beautiful’… it works!

Dynamic, eye-catching and individual; it’s yours. Your website, your hosting, your management choice. Desogned individually, a package to suit you and your business at a price you can afford.

What make us different from the rest?

We listen, we learn, we develop your company… ’Simple, Smart and Beautiful’ way… According to your specifications. We offer advise, availability and authentic experience, from the first phone call you make to providing after care… we’re here, because we care about your business.

t: 0116 269 3421 e: info@themeakinsco.co.uk w: themeakinsco.co.uk

GET INSPIRED BY SOME OF THE UK’S MOST SUCCESSFUL ENTREPRENEURS Elite Business is the UK’s fastest-growing title for entrepreneurs, start-ups and growing businesses in the UK. A 100-page, highquality magazine, it’s packed with engaging content including interviews with the hottest start-ups around, hints and tips to help aspiring entrepreneurs and columns from those in the know.

You know that you need a modern and professional website for your business, but somehow it’s still a “work in progress”. Does this sound familiar?

For £500 you can finally have that gorgeous website that looks amazing on mobiles and tablets.

Don’t worry if you have a deadline, fast turnarounds are no problem.

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30/05/2014 20:43

GET INSPIRED BY SOME OF THE UK’S MOST SUCCESSFUL ENTREPRENEURS

Receive 6 issues of the UK’s best new franchise magazine for entrepreneurs for only £20* Elite Franchise is the UK’s fastest-growing title for entrepreneurs, start-ups and growing franchise businesses in the UK. A high-quality magazine, it’s packed with engaging content including interviews with the hottest franchises around, hints and tips to help aspiring entrepreneurs and columns from those in the know.

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Franchise Subscribe.indd 1

30/05/2014 20:52

the START-UP DIARies

Funny business Humour on the job can help team bonding – and can even provide fertile ground for ideas to flourish Donna Kelly, co-founder, Dressipi

were moving to Amazon web server technology EC2. But that was nothing to do with Shoreditch and fashionland, they assured the style team.

• Or the moment when our developers mentioned going to Ruby Manor, the tech conference for Ruby programmers, as opposed to a weekend spa break or anything to do with Dorothy’s glittery red shoes from the Wizard of Oz which were a much-copied shoe trend that season.

Categorical errors

dressipi.com

O

dd couples make the best teams.

Perhaps it’s something to do with the ‘opposites attract’ principle, but in our experience if you really want to solve a knotty problem it’s a good idea to put two people with a contrasting view together. That’s exactly what we did when we were first creating Dressipi. We teamed each of our software developers with a stylist, with the idea that this was the quickest way for us to improve the way our service worked. The ‘Beauty and the Geek’ principle, as we called it, meant that whenever our algorithm made an unsuitable recommendation during testing, the stylist would be able to capture it, explain what didn’t work and work with the developer to suggest an alternative.

All this meant we could iterate on our launch product very quickly indeed, which is exactly what you need as a start-up. But what it also gave our team was a crash course in speaking another person’s professional language. Each profession has its own jargon, and nowhere is this more pronounced than in fashion and software development. Both are occasionally guilty of using words in a way that’s totally baffling to outsiders. But even though it was occasionally a challenge for our beauties and geeks to make themselves understood, the ironic

Start-up diary.indd 1

It’s a good idea to put two people with a contrasting view together crossovers and parallel inferred meanings of the fashion/tech jargon meant we can sometimes sound like a very entertaining comic sketch.

And there’s no better way to bond in the office than over a good laugh.

Here are a few of our favourites from four years of bridging the gap between technology and fashion.

Animal magic

• It’s become an in-house joke now that when developers spoke about MongoDB they were not talking about a beloved dog but rather the open source database.

• There was the time a member of the technology team genuinely thought ‘animal print’ meant lots of pictures of animals on an item of clothing.

Location-based services

• Our technology team once announced we

• What’s the difference between a jumpsuit and a playsuit? This was the topic of hot debate among our technology team one afternoon.

Our stylists were delighted, until they realised they were talking about the kind of jumpsuits they’d seen in Top Gun. • Tech term ‘elastic search’ has nothing to do with the waistbands of dresses.

• It’s hard enough for the fashion industry to differentiate between the ever-expanding string of main collections, pre-collections, you name it. So it’s not surprising that our developers asked: “Is it autumn/winter or autumn and winter or a/w and when does it become spring and summer or both?”

Brand recognition

• Then there was the day one of our stylists had to explain to our developers that it was Jimmy Choos not Jimmy’s Shoes.

• A developer question once overheard in the office: “Why is this Mulberry bag called a ‘Hobo’? I mean what exactly is a Hobo bag?”

This actually resulted in a fashion blog post explaining the origins of the hobo bag.

And finally, there was the quip that changed our business. One of our stylists who came from a background in fashion journalism announced that her “fashion cupboard had become an algorithm”. The idea that a piece of software could replace a cupboard full of clothes got us thinking whether that was possible. Fast forward to last year and we launched our outfit builder, which automatically builds whole outfits around specific pieces of clothing on our site. Bingo.

30/05/2014 18:58

Business stationery needn’t be stationary

Want to get things moving? Start by designing a customised pack of premium Business Cards from MOO. We’ll give you £5 off your first order when you spend £25!

To claim your discount, just visit moo.com/elitebusiness

Dell recommends Windows.

For me, Glasgow 2014 is about more than managing a complex infrastructure.

Dell is our trusted partner, helping with a multiplicity of moving parts; from everyday laptops to customised solutions.

Brian Nourse, Chief Information Officer for Glasgow 2014

The Dell Latitude 7000, pre-installed with Windows 8, has been reimagined to be all about you. Put what matters most right on your Start screen, and get instant access to your people, apps, sites and more, so you can spend less time searching and more time doing.

Some features require Windows 8.1. Update available through Windows Store. Internet access required; fees may apply

Glasgow 2014. Powered by Dell, from laptops to the data centre.

See how at Dell.co.uk/Glasgow2014 #TeamDell Dell Products, Registered in Ireland. Reg. No. 191034 c/o P.O. Box 69, Bracknell, Berkshire RG12 1RD. Microsoft®, Windows®, Windows® Small Business Server, Windows® Server, Microsoft® Office 2013, Windows® 7 and Windows 8 are trademarks or registered trademarks of Microsoft Corporation in the United States and/or other countries. Dell and the Dell Logo are trademarks of Dell Inc. ©2014 Dell Inc. All rights reserved.