Welcome

1. Welcome “Start a Business And Change the world???”. www.thebusinessbootcamp.org

2. Agenda • 11:00 Welcome and Introductions • 11:05: A new way to start a business – John Spindler • 11-30: Turning an idea into a business- The Minimum Viable Product Examples- Rob Fitzpatrick • 12.00 Business Canvas Model- ( Including Giff's exercise) – Rob Fitz-Patrick • 13:00 Lunch • 13:45 Lean Start-up Principles - Rob Fitz-Patrick • 14:50 What Next? – Road-mapping your start-up - Tips. • 15.00 Break • 15-15 Still Need Money – How to fund a runway using alternative finance such as crowd-funding, peer-to-peer lending, soft loans and seed investment – John Spindler • 16:00- Q&A • 16:30 Networking and finish www.thebusinessbootcamp.org

3. Start-up Growth pathways. Production/Earnings Investment www.thebusinessbootcamp.org

4. Going Self-employed vs Starting a Growth Business Self Employed need : Entrepreneurs need: Ateam A large market opportunity. A WOW Key Partners/ Early Evangelists. A solution/ offer customers will buy/use. A “Market Validated Business Model” that is both repeatable, predictable and scalable. Profits Resources and Investment ££££ • To turn a pre-acquired skill/know-how into a service • Portfolio (Evidence) • USP • Easy access to customers (i.e. contacts./ networks) • Self-Confidence • Basic business know-how • Relatively high profit margin’s • Cashflow www.thebusinessbootcamp.org

5. “There is an opportunity gap when the scope for growing income at a very fast rate is limited for those who have too little to invest , but expands dramatically for those who can invest a bit more.” Banjaree &Duflo- Poor Economics www.thebusinessbootcamp.org

6. Need a Business Model? “A business model describes how your company creates, delivers and captures value” Or in English: “A business model describes how your company will make money” www.thebusinessbootcamp.org

7. Traditional Start-Up Model Pre-Start Post- Start www.thebusinessbootcamp.org

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

9. Whose the Customer? www.thebusinessbootcamp.org

10. Do you know your customer? The Problem Solution? Do you know what their problem is? How important is it to the customer ?- £££ Why is it not being solved? Why are present solutions inadequate? Why now? – when does the problem become in need of a solution? www.thebusinessbootcamp.org

11. Value Proposition- The hypothesis • I intend to offer ( insert product/ service) to a ( insert name/type of customer) so that they will be able to (insert the benefit/value to the customer). www.thebusinessbootcamp.org

12. “In life a hypothesis that something is superior to something else cannot be scientifically proven but it can be demonstrated” Robert Hughes. www.thebusinessbootcamp.org

13. The competition- your customers perspective? • Incredible Ignorance • Dr Do nothing • Mr Do it myself • Superman ( What’s their kryptonite) • Boy in costume Who are you competing against for your customers attention? www.thebusinessbootcamp.org

14. Minimum Viable Product-MVP • Hypothesis- “Product- Customer Fit”- Customers will buy my product idea because…..? • Evidence- What can I do to disprove/ prove my hypothesis? • MVP- A product that will test the hypothesis with customers www.thebusinessbootcamp.org

15. Whose your “first” customer Customer- A person with a problem you can solve? Segment – A group of customers that you can… Reach Convince to “test & trail” your MVP Be you co-developers Be your Evangelizers - Lead on to more custom/ new customers. www.thebusinessbootcamp.org

16. Customer Relations- Where there is Love there is growth? Love = Growth Viral- Customers love you so they get at least one other person to use/ buy i.e. Facebook, Spotify Customer Acquisition- You pay £££ to market your product and the profit from the customers you gain is greater than the marketing costs??? (N.B. Margins often need to be high) Stickiness- Customers “love” you so they keeping coming back for moree.g. Apple- MacDonalds. www.thebusinessbootcamp.org

17. What is A Start-Up? “a start-up is an organization formed to search for a repeatable and scalable business model” • Steve Blank- “4 Steps to an Epiphany” “an organization dedicated to creating something new under conditions of extreme uncertainty”- Eric Reis- “Lean Start-up” www.thebusinessbootcamp.org

18. Part 2 Business Canvas Model www.thebusinessbootcamp.org

19. http://youtu.be/QoAOzMTLP5s?hd=1www.be.foundercentric.com www.thebusinessbootcamp.org

20. Part 3 Lean Start up Basics www.thebusinessbootcamp.org

21. www.thebusinessbootcamp.org

22. Part 5 Still Need Money www.thebusinessbootcamp.org

23. Step1- Know the different types of finance available • Bootstrapping through Personal resources (time and money = sweat equity you are investing) • FFF- Family Friends & Fools – People who will give you funds with little questions asked including reward based crowd funders such as Peoplefundit. • Government Grants • Customers and Suppliers- “Build slowly at low risk by obtain credit from suppliers and growing business through profits from paying customers” • Loan providers- “Increase business growth ambitionsby increasing investment by taking out debt” • Banks ( Overdraft-unsecured and secured loans) • Community Finance Institutions ( Soft/ unsecured loans for riskier ventures) • Leasing Companies. • Invoice lenders (Factoring, invoice discounting) • New loan markets such as Market Invoice and Funding Circle. • Investors- • Private Investors- Business Angels such as Angel Capital • Venture Capitalist • Crowdcube • Government Backed Investment Funds Matching the right mix of sources to the right stage and type of finance is the key to successful fundraising www.thebusinessbootcamp.org

24. Step 2- Match the funding need to purpose? www.thebusinessbootcamp.org

25. Information: • Capital Enterprise What’s On in London- www.capitalenterprise.org/whats-on • Business Link - www.businesslink.gov.uk • Start- up Britain - http://www.startupbritain.org • British Library- www.bl.uk/bipc • HMRC Small Company Enterprise Centre- Source of advice and help http://www.hmrc.gov.uk/manuals/vcmmanual/VCM10050.htm • HMRC R& D Tax Credits www.ucl.ac.uk/advances/advances-news/hmrc • HMRC Guide & Support- http://capitalenterprise.org/guide-to-rd-tax-credits • British Business Angel Association: www.bbaa.org.uk • Guide to Early Stage Investment: http://www.paloalto.co.uk/about_us/Early_Stage_Investment_by_Alan_Gleeson.pdf • Guide to 100 offers for start-ups – www.capitalenterprise.org And if you have not checked them out please look at the latest schedule of advice and training events at : www.ngfc.org.uk . www.ngfc.org.uk

26. Need less than £10K to start? • Sources of Grants- www.j4b.co.uk • Competition funding £1000 issued to 10+ businesses per month- http://www.shell-livewire.org • Princes Trust http://www.princes-trust.org.uk/need_help/enterprise_programme.aspx • £3500 Enterprise Loans for Under 25’s- http://businessinyou.bis.gov.uk/start-up-loans/http://www.facebook.com/freethebusinessinyou • New Enterprise Allowance Scheme – Check who delivers the scheme in London by e-mailing Capital Enterprise. • Community Development Finance Associations- http://www.cdfa.org.uk - Also check out North London Community Finance • ELSBC Access to Finance – Business Plan support for those looking to raise up to £10K • Soft loans for Creative Businesses- http://www.creativeindustryfinance.org.uk/ www.thebusinessbootcamp.org

27. You can’t a business loan from a bank because? Banks only make a margin on loans of between 2-7% -so they can only afford very low default rates and this means they will not lend to a business or entrepreneur that is deemed “risky”. And you are deemed an unacceptable risk if: You have a bad credit history Failure rate in you business sector is high You have no confirmed customer invoices- no evidence of sales = no evidence you can re-pay the loan The business has no trading history – difficult to get a loan unless been trading for over 6 months You are unable to offer security to cover the bank if the business fails. Your customers are overseas –so there is a risk they cannot be legally forced to pay for goods ordered. What you want to do with the borrowed money is widely regarded as having a poor success rate e.g. Research and developing a new product and especially marketing. Banks like RBS are the best source of relatively cheap loans for trading businesses. www.thebusinessbootcamp.org

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

29. Funding Product Development: Tech Grants & Awards General • J4B- Portal for grant finding http://www.j4b.co.uk • Technology Strategy Board ( R&D Funding) - http://www.innovateuk.org - http://www.innovateuk.org/content/competition/grant-for-rd-single-business.ashx • Knowledge Transfer Networks- www.innovateuk.org • London European Enterprise Network- http://www.een-london.co.uk • E Funding for SME R&D - http://www.eurostars-eureka.eu/what.do • EU Funding for R&D collaborations: http://ec.europa.eu/research/participants/portal/page/calls • Knowledge Transfer Partnerships funding support- http://www.ktponline.org.uk/ktp-what-will-it-cost-my-business Translation/ Follow on research funds. • www.rdfunding.org.uk/bulletin/queries/Search.asp?TheCloseMonth=July&TheYear=2011. • http://www.rcuk.ac.uk/kei/ktportal/Pages/Followon.aspx • https://ktn.innovateuk.org/web/145175/overview • http://www.ahrc.ac.uk/FundingOpportunities/Pages/BrowseOpportunitiesOld.aspx • http://www.ahrc.ac.uk/Pages/default.aspx • http://www.theculturecapitalexchange.co.uk/ www.thebusinessbootcamp.org

30. Funding the Runway Accelerators : Training & Mentoring programmes that provide fast-track to seed funding for Scalable new businesses • Lean Camp : http://leanca.mp - http://be.foundercentric.com/ • Start-Up Weekend: http://london.startupweekend.org • Launch 48: http://launch48.com • Tech Hub : http://www.techhub.com– Google Campus- http://www.campuslondon.com/ • The Business Bootcamps- www.thebusinessbootcamp.org • Y-combinator- http://ycombinator.com/ • Tech Stars- http://www.techstars.com/ • Seed Camp: http://www.seedcamp.com • Springboard- http://springboard.com/- http://www.f6s.com/profile/1961#programs/ajax-application • Student Start-ups- http://studentupstarts.com • Accelerator Academy- http://acceleratoracademy.com • Wayra- http://wayra.org/en/wayra • Euclid Opportunities- ( Fin Tech Only) http://euclidopportunities.com/ • Innovation Warehouse- http://www.theiw.org • Hubventurelabs - http://hubwestminster.net/hubventurelabs • Dreamstake- http://www.dreamstake.net/ • Green Accelerator- http://bertiinvestments.com/berti-green-accelerator/ www.thebusinessbootcamp.org

31. Crowdfunders Crowd funding Platforms- Reward based Crowdfunding platforms- will help you to raise funding to build a proto-type and market test a great idea or product.- • www.kickstarter.com (USA) • www.indiegogo.com (USA) • www.peoplefund.it • www.sponsume.com • www.pleasefund.us • www.wefund.com • www.pozible.com • www.crowdfunder.co.uk Equity/ investment Crowd funding platforms: • www.crowdcube.com • www.seedrs.com www.thebusinessbootcamp.org

32. Business Angels Angel Investment - £100-500K Seed Investment • NESTA - www.nesta.org.uk/investments • British Business Angel Association- www.bbaa.org.uk • Capital 4 Enterprise- http://www.capitalforenterprise.gov.uk/portfolio • Angel Co-Fund- http://www.angelcofund.co.uk/ Capital Enterprise top 10 Angels in London • London Business Angels: http://www.lbangels.co.uk • Oxford Early Investments- http://www.oxei.co.uk/about.php • Envestors- www.envestors.co.uk • Finance South East- www.thefsegroup.com • Angels Den- www.angelsden.com • Venture Director- www.venturedirector.com-www.boundarycapital.com • Start-up Funding Club- http://www.startupfundingclub.com/ • E100- London Business School - http://www.london.edu/facultyandresearch/subjectareas/strategyandentrepreneurship/enterprise100.html • #1 seed- www.number1seed.co.uk • Keiretsu Forum- http://www.keiretsuforum.com For an alternative list check out-http://www.designcity.co.uk/angelnews/edition_94.htm#article1 www.thebusinessbootcamp.org

33. SEIS- Tax breaks to encourage investment in start-ups Seed Enterprise Investment Scheme-SEIS is a tax break launched in April 2012 for UK tax payers to encourage them to buy shares in start-up companies registered in the UK The Facts: • SEIS investors can input £100,000 in a single tax year rising to a maximum £150,000 over two or more tax years in to a single company • Investors cannot control the company receiving their capital • Investors pick up 50% tax relief in the tax year the investment is made, regardless of their marginal rate. • In the 2012-13 tax year, tax payers can roll any chargeable gain in the tax year in to a SEIS with a full capital gains tax exemption (another 28%) • The business must be a start-up company -registered in the UK within 2 years of claim. • The company must not employ more than 25 workers. • The company must have assets of less than £200,000. • The company has to trade in an approved sector – generally not in finance or investment, for example, a property company raise capital as a SEIS. www.thebusinessbootcamp.org

34. Step 4: So remember –What’s important when seeking finance • The quality and “connections” of the management team • The size of the business opportunity/ funding need • The scope for building a sustainable competitive advantage • The level of risk/ security. • And the timeliness of the proposal Will determine the attractiveness of your business to investors, lenders and funders • The ability of the entrepreneur to negotiate well and of the team to execute the business plan convincingly- Will determine the type, price and quality of the deal that can be achieved www.thebusinessbootcamp.org

35. Recommended Slide-deck www.thebusinessbootcamp.org

36. Part 6 Q &A www.thebusinessbootcamp.org

37. The End www.capitalenterprise.org www.thebusinessbootcamp.org