startup roar magazine issue03
DESCRIPTION
Spring 2015 | Quarterly | Brought to you by Buckworths. StartUp Roar will bring you the latest happenings in the world of startups. Some of the coolest, most innovative and interesting startups will be showcased in our pages along with helpful background information and content from industry professionals. In addition, we aim to inform and educate entrepreneurs on relevant legal and finance matters ranging from incorporation to investment rounds.TRANSCRIPT
BUSINESSAn intro to Enterprise Apps
LEGALMoving to the UK
FEATURECoworking in London
issue 03 | Spring 2015 | quarterly£5 where sold
Brought to you by Buckworths
Corporate Law Firm of the Year UK 2014Worldwide Financial Advisor Magazine
Corporate Lawyer of the Year 2014Lawyer Monthly
Corporate Lawyer of the Year UK 2015 M&A Today
Financial Deal Maker of the Year 2014 Finance Monthly
LONDONbuckworths.com
LISBONbuckworths.pt
Dear ReaderStep right up, step right up and gather to see the newest, most impressive and truly tantalising spectacle your eyes ever did read. For in this quarter’s issue we have tamed the lion but kept the Roar, bringing you a big top full of startup extravagance (and all the other useful bits)!
In what seems like forever since our last performance piece (it was before the New Year), we are proud to present our latest circus themed edition. Here at StartUp Roar we have been busy scouting out the rising startup stars of 2015. The New Year not only offers resolutions but is also an extremely busy period for companies that are looking to expand, incorporate or seal investment before the end of the tax year in April ’15.
December’s issue focused on looking forward and at StartUp Roar we aim to honour that commitment by bringing you the latest and the greatest in the startupsphere! In this issue we cover the intricacies of setting up your own business (unfortunately, it’s not simply a case of baking a cake and selling willy-nilly), our favourite co-working spaces across London and making apps easy with Fliplet.
So take your seat, make yourself comfortable and enjoy the read – this is one show you cannot afford to miss!
Hamish Parker-JonesEditor
2
ROLL UP…
3
CONTACTS
T. 00 44 20 7952 1721
W. www.startuproar.co.uk
@RoarStartup
/startuproar
StartUp Roar
StartUp Roar is published by Buckworths Limited trading as “StartUp Roar”, 200 Aldersgate, St Paul’s, London EC1A 4HD.
All statements and opinions contained herein are those of the writers and content contributors and do not refl ect the opinions of Buckworths Limited. Any content of a legal or fi nancial nature contained in this magazine is published by way of guidance only and shall not be deemed to constitute legal, accountancy, tax or fi nancial advice. No content contained herein is intended to be, nor shall be interpreted as, a fi nancial promotion. No advertiser or subject of any articles is or shall be deemed to be making or communicating any inducement to engage in investment activity of any kind.
Buckworths Limited specifi cally disclaims any liability for losses, damages or other expenses incurred by any person as a result of reliance on any statement in this magazine.
Copyright 2015. All rights reserved.
No part of this magazine may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of Buckworths Limited.
CONTENTS
FEATURECoworking - 17Buckworths highlight their 6 favourite Coworking Spaces in London
LEGALManaging Risk - 6Identifying fi nancial, legal and reputational risks with your business
Moving to the UK - 10Tapping into the UK investment market
Legal Structures - 14An introduction to structures for a full-profi t business
Social Enterprise - 14The pros and cons
BUSINESSEnterprise Apps - 24Internal mobile motivation
Smart Grant Scheme - 28A taste of competition
Service on Demand - 34Living in the on-demand economy
TRAVELVida Cruises - 38Taking your holidays on the water
4
In the last edition of StartUp Roar, we discussed
legal structures available for use by for
profit businesses. Later in this edition,
the legal forms of social enterprises
are reviewed. But what other
matters do entrepreneurs need
to consider when founding a
new business?
Tax Regime
Businesses operating in the UK
benefit from a relatively straight-
forward tax regime with tax
payable on profits of the
business at 20%. Expenses
incurred in the course of
business may be deducted
from income to reduce the
taxable profit of the business.
VAT is generally chargeable at
20% of turnover (depending
on the nature of the goods
or services being sold and the
specific VAT scheme that the
company has opted for) and
businesses can usually offset VAT
they have paid out against VAT
they have collected. Businesses do
not have to register until their VATable
turnover has exceeded £81,000 in any
twelve month period.
Setting up a Business
LEGAL
5
Managing Risk
The first question founders should ask
is “Is my business legal?” One would
hope that the answer to this question
should be pretty obvious. However,
occasionally the legalities of a business
can be difficult to identify. This
particularly occurs in business sectors
where there is a regulatory regime in
place.
For example, a founder wishing to
set up a business to source and find
valuable old cars and then bring
together individuals to buy those
cars together might consider that this
is a business handling the purchase
and sale of cars. Unregulated, right?
“The first objective is to understand the risks associated with your business. Once the risks have been identified, those risks need to removed or reduced as far as possible.” Michael Buckworth, Buckworths
Not necessarily – the founder needs
to understand whether any of the
regulatory regime relating to arranging
and/or managing investments apply.
The second priority of an
entrepreneur is to identify the legal
regime applicable to his business. Even
with “vanilla” retail businesses, there
is a degree of complexity as regards
the rules applicable to the sale of
goods. Consumers, for example, are
entitled to return goods within certain
periods, particularly where the goods
are ordered online. Whilst there
are certain exclusions to these rules
for certain types of goods, founders
need to be sure whether or not these
exclusions apply.
Finally, founders must understand the
cost of doing business and must have a
plan for ensuring that their business will
either be profitable over time or will
provide both founders and investors
with a return on their investment.
Each business carries with it risks – some of these are financial, some
legal and some reputational.
6
FINANCE LEGAL
7
8
Insurance
Insurance is essential for almost all
businesses. Most will automatically
have public liability insurance and
employer’s liability insurance, each of
which is relatively standard. Services
businesses will often have professional
indemnity insurance which covers
negligent advice, whilst product
inventors and sellers may have
product liability insurance. In addition
to customer-facing insurance policies,
some businesses may have directors
and officers liability insurance (D&O
insurance) which is designed to protect
directors from liability if something
goes wrong.
Getting the right insurance is important.
Entrepreneurs should be careful to
review policy terms before purchase
to ensure that it is suitable.
Customer Terms
Having an agreement with your
customer is important for several
reasons: to limit your liability, to ensure
that you can get paid for the goods or
services you sell and to ensure that
you can get out of the agreement if
need be.
For many risks, you can exclude
liability. This would be applicable for
example in a tech business when you
would state that you are not liable if
your application, website or software
goes offline for some reason (perhaps
due to a server failing). Similarly you
would generally exclude your liability
for special types of damages.
Sometimes, often for commercial
reasons, you can only limit your risk.
LEGAL
You would generally match your
maximum liability to your insurance
coverage. Finally, some risks cannot be
limited. These risks include personal
injury and death. For these risks, you
must have insurance.
In order to require payment from
a customer, you need to show that
you have demanded payment which
is generally achieved by sending an
invoice and that payment is due (i.e.
the payment period stated in your
terms of business has expired).
Finally, in some circumstances, you
may not be able to terminate your
agreement with a customer even if
they are refusing or are unable to
pay. These issues can be resolved by
setting out in your terms of business in
what circumstances you can terminate
your contract with a customer without
being in breach of contract.
Regulatory Regime
Employment laws in the UK have
become more employer-friendly in
recent years. In most cases, employees
are not protected from “unfair
dismissal” until the expiry of two years
from commencement of employment
giving employers a wide discretion
to terminate the employment of
employees who are not performing or
are not suitable for the business. There
are some exceptions.
The rules relating to the maintenance
of companies are light touch and easy
to satisfy. A company must file a return
to Companies House each year along
with a copy of its accounts. A company
will make intra-year filings when it
appoints or removes directors and
when it changes its share structure (for
example, by issuing new shares).
9
Foreign Companies: Moving to the UK
The UK is a fantastic jurisdiction in which to operate a startup business. Businesses operating in the UK (whether UK or foreign business) are able to attract investment from UK investors who benefit from SEIS and EIS.
The UK startup community is
very well developed meaning
that entrepreneurs can access a
range of support and advice. This
has attracted a large number of
foreign entrepreneurs to the UK,
many of whom have experienced
growth and success to a far
greater extent than their peers
back home.
In this article, StartUp Roar explores
how a foreign business can gain access
to the UK startup market.
10
Foreign Companies: Moving to the UK
Entering the UK Market
In order to take advantage of SEIS
and EIS and government grants in
the UK, a foreign company needs to
either create a UK holding structure or
establish a permanent establishment
in the UK. Whilst there are complex
rules governing each approach, the
below summarises the requirements.
The first approach will require the
foreign company to create an English
holding company that sits above the
existing foreign compan(y/ies). This
is done by way of a “share for share
exchange”.
This is a tax neutral transaction
requiring a valuation to be completed
in the home jurisdiction and the value
of the company to be reflected in the
issued share capital of the new English
holding company.
The result is that all the shareholders
of the foreign company swap their
shares in the foreign entity for shares
in the new English holding company.
The foreign company becomes a
wholly owned subsidiary of the English
holding company.
The second option is for the foreign
company to establish a “permanent
establishment” in the UK which
requires the foreign company to have
a permanent office in the UK which
carries out a significant part of its
business from that office and employ
one or more persons in the UK. A
permanent office includes: a place of
management; a branch; an office; a
factory; a workshop; an installation or
structure for the exploration of natural
resources; a mine, an oil or gas well, a
quarry or any other place of extraction
of natural resources; or a building
site or construction or installation
project. Also, the foreign company
would usually register as an overseas
company with the companies regulator
in the UK (Companies House).
A permanent establishment may also
exist in the UK if there is a “dependent
agent” in the UK. This is defined as “an
agent acting on behalf of the company
has and habitually exercises their
authority to do business on behalf of
the company”.
LEGAL
11
The authority of the agent to conclude
contracts may be written, verbal or
implied (i.e. it is implicit by virtue of the
enterprise taking no active involvement
in the negotiation or conclusion of
contracts).
However, this specifically refers to
agents who conclude contracts with
customers. Contracts concluded
for the purposes of establishing the
business in the UK (for instance the
rental agreement to obtain premises)
will not fall within this definition.
Registering a permanent establishment
is often a more complex option than
setting up a UK holding company
when viewed from the perspective of
on-going compliance. Whether or not
the foreign company has a permanent
establishment in the UK is a factual
question to be decided by the UK tax
authorities, HM Revenue & Customs
(HMRC).
Both of these options allow the
company to take on investment from
UK investors claiming tax relief.
Accessing finance in the UK
The UK has two extremely generous
schemes for investors investing in
startup companies. Equity investors
(those purchasing shares) in young
companies carrying on a “qualifying
business” (which includes most
businesses other than property/real
asset businesses and leasing of assets)
can claim relief on their investment
under two schemes, the Seed
Enterprise Investment Scheme (SEIS)
which applies to the first £150,000
raised by the company and the
Enterprise Investment Scheme (EIS)
which applies to the next £5,000,000
raised each year. Companies seeking
to raise investment under SEIS must
have started preparing for their trade
within the period of 2 years prior to
the date of investment.
The pre-requisite for these schemes is
that the company taking the investment
must either be a UK company (i.e. for
a foreign business, investors invest into
its UK holding company) or, if a foreign
company, it must have a permanent
establishment in the UK.
Investors under the SEIS scheme
receive up to 50% of the amount
invested by them back from the tax
authorities (HMRC) as a deduction
from their income tax bills in the tax
year of investment, the year before or
the year after. Investors must hold the
shares for three years after which, on a
sale of the shares, they benefit from a
0% rate of capital gains tax on any gain.
The gain is essentially tax free.
The tax reliefs for investors under SEIS
are some of the most generous in the
world and significantly reduce the risk
for investors in early stage startups. It is
relatively easy for companies to qualify
for SEIS – the first step is to seek an
advance assurance from HMRC that
the company qualifies.
EIS is the bigger scheme for companies
who have already raised money under
SEIS or who have exceeded the two
year limit on SEIS. Investors under
this scheme receive up to 30% of
the amount invested by them back
from HMRC as a deduction from
their income tax bills in the tax year
of investment, the year before or the
year after. Investors must hold the
shares for three years after which, on
a sale of the shares, they benefit from
a 0% rate of capital gains tax on any
gain meaning that the gain is tax free.
Companies can raise up to £5,000,000
per year under the EIS scheme and
investors can invest up to £1,000,000
per year
These schemes have made startups
very attractive for investment
with the result that London is
the number one place to raise
investment in Europe.
G o v e r n m e n t Grants
There are a large number
of government grants for
startups employing people
in the UK and/or doing
something innovative in
their sector.
The most popular grants
are TSB Smart Grants.
Startups can be awarded up to
£250,000 to build and develop
their prototype. This money is
not repayable. The grant requires
“matched funding” meaning that
the company must raise investment
simultaneously with receipt of the
grant.
12
LEGAL
13
Social enterprises can be
operated through a for-profi t
structure or a specialist not-for-
profi t entity. There are pros and
cons of each approach.
A social enterprise is a business
carried on for a social purpose. Social
enterprises can be operated via a
number of structures.
The desire to pursue a social purpose
impacts on the structure, governance
and use of profi ts. In the main, social
enterprises aim to benefi t the social
purpose for which they were set up,
rather than to maximize profi ts for
their shareholders.
One of the most important things
to consider when setting up a social
enterprise is what legal structure
to choose. It is vital to consider
which structure will offer the best
protections for the social purpose,
how the structure will impact on the
business’s ability to manage risk and
access fi nance, what tax breaks will be
available (if any) and how stakeholders
can be incentivised.
A social enterprise can operate via one
of a number of legal structures. These
include an unincorporated association,
a company limited by shares or by
guarantee, a community interest
company, an industrial provident
society or a limited liability partnership.
Further, a charity can be operated
through a number of structures.
Sole traders, partnerships and
unincorporated associations benefi t
from light touch regulation. However,
those responsible for running the
business will be personally liable and
exposed to the full risks and liabilities
of the business. For this reason, they
tend not to be practical structures
for businesses operating in the public
sphere and/or with signifi cant liabilities.
Common legal structures
Community interest company (CIC):
CICs were originally established
as a social enterprise structure for
businesses with a social purpose which
did not wish to become a charity. The
CIC structure requires the business
to offer safeguards to protect its
community purpose. This is done via
the imposition of an asset lock which is
contained in the articles and operates
to protect the community purpose.
Except in limited circumstances, assets
cannot be distributed to the CIC’s
shareholders. Upon a winding up of
the CIC, the assets must be applied for
the benefi t of the community and not
to repay creditors. The CIC cannot
transfer any assets for less than market
value apart from to another CIC,
other asset locked company or charity.
Social Enterprise
14
LEGAL
15
CICs are much more flexible than
charity structures and can offer limited
returns on investment to investors
and reasonable remuneration for
directors. They are regulated by the
CIC Regulator which offers a lighter
touch approach to regulation than
the Charity Commission. The CIC
must satisfy a community interest
test both upon incorporation and
throughout the CIC’s lifespan.
The CIC must p r o v i d e
a community in terest
report each
year.
Limited company: businesses wishing
to provide the benefit of an asset lock
without restricting the possibility of
operating the business as a for-profit
business can use a standard limited
company structure and replicate the
asset lock provision in the articles of
association. However, unlike CICs,
the shareholders of such companies
can amend the articles to remove the
asset lock at any time. This gives added
flexibility but also potentially puts the
community interest being pursued
at risk.
Industrial and provident society (IPS):
IPSs are societies which can take
the form of either a community
benefit society
( B e n c o m )
(set up to
benef i t
a
wider community other than its
members) or a co-operative society
(Co-op) (set up to benefit solely its
members). IPSs offer members an
equal stake and an equal say in the
management and pursuance of the
purpose for which the society was
set up.
Charities: a social enterprise can
become registered as a charity if it
has been set up for a purely charitable
purpose and it meets the stringent
requirements of charities legislation
(including falling within one of the
increasingly narrow classifications
of purpose and being operated for the
public benefit). There must be an asset
lock in place to ensure that all assets
are applied solely for the charitable
purpose. One of the biggest benefits
of becoming a registered charity is that
charities are entitled to a number of
very beneficial tax breaks.
Financing
Like for-profit businesses, social
enterprises can raise finance
from debt and equity
financing. Social enterprises
are also able to benefit from
targeted grants. Grant funding
is available to social enterprises
whatever the legal structure.
However, structures containing
an asset lock and/or restrictions
on investment returns and salaries
are often viewed as more suitable
for grant funding.
16
FEATURE
Top 6: Co-working SpacesLondon has a world class offering when it comes to office space, and particularly co-working spaces, for startups. This is our pick of the best – in no particular order.
What are Co-working spaces?
Co-working spaces offer fully serviced, shared working environments that unlike
most traditional offices, are not employed by a single organisation.
Often considered a haven amongst creative professionals and freelancers, co-
working spaces offer a sense of synergy amongst people who share the same
values, goals and mindsets. Designs are meticulously thought out in order to make
excellent use of space, optimise work flow and most importantly offer a sense of
genuine comfort that is often missing in standard office space.
17
Central WorkingCentral Working is one of the most established co-working spaces in the market. Shortlisted as one of the UK’s Top 100 Startups of 2012, Central Working currently operates in 4 locations in London (Bloomsbury, Whitechapel and 2 in Shoreditch) and one in Manchester.
Users can tailor the space to suit their individual or collective needs be that as a one-off drop in session, a permanent offi ce or a coworking area. With a curated membership of SME’s in clubs across London they provide the support, infrastructure and tools needed to create the connections, momentum and recognition for growth.
Aside from offering great coworking spaces, Central Working have partnered with some of the biggest names in the tech startup sector such as working with Google to create Google Campus and have helped Barclays to create The Escalator, the world’s number 1 startup accelerator.
They have had incredible success from the launch of Angry Birds in the UK, Hootsuite, the home to Microsoft Ventures in the UK, and hundreds of other businesses from all sectors - Not just tech businesses.
centralworking.com
Club Workspace – London BridgeWorkspace is one of the most established coworking businesses in the capital. With 10 locations spanning both sides of the Thames, the clubs are renowned for hosting some of the countries leading startups and creative SME’s.
However Workspace’s uses are not just limited to that of collaborative working, they also provide excellent event spaces that can be rented on a “one-off” basis. Here at StartUp Roar we are avid fans of Workspace’s multi-functionality and frequently host our seminars across their portfolio of sites. But, with a little bit of bias, we have managed to highlight our favourite club from the 10 spaces currently on offer – London Bridge.
Workspace London Bridge is a playful inviting space. It boasts a large circular lounge area affectionately named the “rotunda” in which you can prop yourself on a bean bag whilst chipping away at emails, or like us, utilise the space to create a small scale auditorium. It creates the perfect atmosphere of peaceful professional – and who doesn’t work better nestled into an oversized pillow stuffed with massaging beans!?
club.workspacegroup.co.uk
18
FEATURE
19
TOP 6 CO-WORKING SPACESin alphabetical order:
1. Central Working2. Club Workspace3. Innovation Warehouse4. Level 395. Techspace6. The Trampery
1
2020
2
6
3
4
5
FEATURE
To Canary Wharf
2121
Level 39Level39 is Europe’s largest technology accelerator space for fi nance, cyber-securities, retail and future cities technology companies. Occupying the entire 39th fl oor of the iconic One Canada Square building, Level39 was opened on 18th March 2013 by Boris Johnson, Mayor of London, and has quickly become an important part of Tech City- having hosted over 200 events, including hackathons, skunkworks and demo-days.
Level39 is a space for early-stage businesses that have potential for high-growth. Members are looking to create, test, market and deliver scalable world-class fi nancial, retail and future cities technology products and services. Level39 also plays host to innovation and accelerator programmes – these are short programmes that aim to boost a young company’s growth over a concentrated period of time.
Last, but by no means least, Level39 host many startup and investor events, publish an online blog and newsletter and have a coffee machine controlled by an iPad. And to top it all, their view over Canary Wharf and the rest of London is unparallelled
level39.co
Innovation WarehouseThe key to any successful startup is originality, breaking the mold to achieve something that has never before been accomplished. And what better way to nurture these budding enterprises than in an environment that celebrates being innovative?
Innovation Warehouse does just that. The space already boasts some of the capital’s fastest growing startups such as Touriocity - a platform that connects tourists with local expert guides - alongside a selection of angel investors who also occupy the space.
Furthermore members are actively monitored and encouraged to push boundaries in order to truly grow and develop. Located on top of Smithfi eld Market in Farringdon, one of Europe’s largest dedicated startup spaces. Innovation Warehouse benefi ts from being right in the heart of one of the most forward thinking cultural hotspots in the world.
As well as holding regular events, Hackathons and Seminars, Innovation Warehouse also hosts an in-house cat making it the purr-fect place to hatch evil plans in the style of Blofeld.
innovationwarehouse.org
2222
FEATURE
TechspaceArguably, co-working spaces were originally conceived to help cater to the rapidly expanding tech startup community. With the launch of the app store, mobile technology (and quite frankly tech in general) ignited a technological revolution lead by a new wave of developers and forward thinkers – and their successes were life changing.
Fast-forward to present day and startups and SME’s are dominating London’s economic and business landscape, with the tech sector estimated to contribute £100bn to the UK economy. And what better way to harness all these creative juices than provide a space specifi cally designed to compliment these talented individuals?
Well cue Techspace – one of London’s most unique co-working spaces in that they cater almost exclusively to tech startups. Techspace currently operates from 3 locations in Bath Street, Great Eastern Street and Underwood Street. With a 100mb Internet connection, Sonos music system amongst a cluster of overly competitive ping pong players, Techspace provides a perfect fl exible co-working space in the heart of a thriving tech community.
techspace.london
The TramperyOne of the most unique and confi dently quirky co-working spaces in London belongs to The Trampery, a social enterprise that designs and operates spaces for entrepreneurship, creativity and innovation. The company currently boasts 4 locations across the capital including Old Street (in the heart of tech city), Shoreditch, Hackney Wick and London Fields.
The Trampery’s spaces encourage collaboration across multiple sectors including fashion, retail, tech, research, design, software and policy amongst countless others. This enables startups and SMEs to create effi cient and effective networks so that they really hit the ground running; you are bound to fi nd someone who compliments your aims, ambitions and passions.
Furthermore, members benefi t from shared knowledge in the form of the “Incubator Programme” which offers a series of events ranging from peer-peer learning, workshops, expert talks and meetups. This means that startups can openly share information with one another contributing to business growth and development for all budding members.
thetrampery.com
2323
Enterprise apps: Doing business in the mobile ageIt’s the era of the like, tweet
and favourite, where on-the-
go means breakfast in the left
hand, screen scrolling with the
right whilst your legs cycle away
during your 6am gym session. It’s
mobile efficiency at its greatest.
However, whilst business leaders
have harnessed the power of
portable communication with
an external audience, internal
interactions are still heavily
reliant on the limited capabilities
of email. Communications with
employees, particularly those
in the remote workforce, are
often restricted to email with a
resulting loss in productivity. So
how, in a world where revenue
derived from iphone apps alone
exceeds $50m, are businesses
struggling to tap into the full
potential of mobile technology
when it comes to employer-
employee interactions?
The “Tech” Problem:
With over one million apps available
on both the Apple and Android store,
it is clear that mobile is quite simply,
massive. Businesses produce and
publish upwards of 300 bespoke apps
per day which are released into the
public sphere and are purchased and
used by consumers. However the
vast majority of these apps produced
by businesses are aimed at their
customers, not their employees.
Apps are extremely complex to
build - unique in their coding - and
relatively expensive to produce. So,
until recently, many businesses viewed
apps aimed at the internal audience as
a drain on money and resources. But
the complexities associated with app
creation are being simplified all the
way down to consumer level, bringing
us enterprise apps.
Apps for Business:
With the rise in BYOD (bring your
own device to work) and a general
shift towards enterprise mobility, more
and more businesses have realised the
importance of making their solutions
accessible over a smartphone.
Enterprise apps are mobile applications
produced to specifically enhance how
a business and its employees operate,
increasing efficiency, productivity
(by 46%) and overall job satisfaction
(53% say it helps them do their jobs
better). It is estimated that 59% of
large enterprises intend to introduce
internal apps inside the next year, with
38% planning on developing 6 or
more. This huge expansion into
the enterprise app industry
is largely down to
tools such as Fliplet,
which enable tech
novices to create
bespoke mobile
apps using
p r e - c o d e d
t e m p l a t e s
with simplified
e d i t i n g
i n t e r f a c e s .
These mean
companies can
create centralised
information hubs that
have been specifically
designed to compliment
the employees with their
individual or collective work
needs. Good examples of business
areas where such apps could be
invaluable are marketing, HR and
finance. These apps also allow remote
workforces to access secure useful
information wherever they are,
estimated to have the capacity to
contribute to increased work time by
an average 240 extra hours per year
even when off duty.
24
BUSINESS
Enterprise apps: Doing business in the mobile age
How Can I Use Enterprise Apps for My Business?
There really is little limitations in
what enterprise apps have to
offer as they are typically
moulded to suit your
individual business needs.
One of the biggest advantages of
custom-built apps is the increase in
efficiency and productivity that they
offer. This ultimately brings about a
competitive advantage to enterprises
over other businesses that do not offer
similar tools to their employees and
customers.
Enterprise apps usually fall into one of
two categories: apps you deploy to
users outside of your company, and
apps you deploy only to users within
your company.
Deploying apps to customers
Enterprise apps deployed
to customers can be
advantageous to businesses
as the app can be designed to
provide:
• A l w a y s -
on customer
service –
You can
provide
y o u r
25
customers with the answers they
need, whenever they need them.
Today’s customers expect to have
access to customer service on their
terms. And that means providing
them with options to access 24/7
support.
• A personalised service - Customer
expectations for service are rising
every day. Being able to meet
t h e s e
new needs often means providing
a type of personalized service that
goes above and beyond what your
competitors can deliver.
• Multichannel support – Today,
customers use various channels
to voice their opinions. Some opt
for the traditional communication
methods such as phone and email
and others seek to use social
media for a fast response to a
problem. Time is critical when
talking about customer care. With
an enterprise app, you can provide
faster customer support which will
be satisfying for the customer and
will save your company money.
• Intelligent customer service -
Predictive support is the next wave
in the customer service revolution.
Fix problems before they happen
and delight customers in the
process.
26
An enterprise app can be especially
useful if your business runs an online
platform. You can design an app
to collect data on consumer
behaviour, take care of server
maintenance and support and even
to provide information like response
time, uptime and error rates, giving
you an easy way to watch over your
website performance.
The
o u t c o m e
is that enterprise apps
will allow businesses to increase their
customer acquisition and retention
rates as it places the customer in
control, allowing users to interact with
a business however they wish to.
Deploying apps to employees
Enterprise apps can be designed to
optimize work tasks by providing
employees with instantaneous access
to the information they need to do
their jobs. Whether sitting in an airport
lounge or engaged in a meeting with
a client, employees can easily access
up-to-the-minute data on their mobile
device through enterprise apps
that are managed and
updated through
a centralized
enterprise app
store.
Fliplet have
ident i f ied
t h e
f o l l ow ing
f o r m a t s
as being
most popular
amongst clients
who distribute
apps to their
employees:
• Sales support
ensuring remote sales team always
have up-to-date information
facilitating cross-selling in business
with a lot of products/services
enabling interactive and visual
customer demos
• Content marketing
• Events (Internal and external)
• Product information
• Internal communications
(Employee handbooks,
Induction etc)
• Training (Self assessment,
quizzes etc)
• Reporting (to clients, senior
management and customers)
So for Startups?
Mobile technology is currently gaining
incredible momentum and huge
growth is predicted for the enterprise
app industry in the latter part of 2015.
Startups are in an advantageous
position when it comes to competing
with larger competitors in the mobile
sphere as enterprise apps can grow
organically alongside the company;
there is no need for mass integration.
This means that when the startup
becomes more established, they will
already be a step ahead of companies
that haven’t used mobile productivity
enhancements. This also makes for a
more productive workforce leading
to quicker expansion and company
success. Neither cost nor knowledge
need be a barrier to your startup
investing in enterprise app technology
as tools like Fliplet cut the cost and
time to use mobile for bespoke
services such as sales and workflow
improvement.
So hit the ground running and take
your business with you. There has
never been a better time to make your
business mobile.
BUSINESS
www.fliplet.com
27
What is the Smart Grant Scheme?
In the last edition of StartUp Roar, we introduced TSB Grants. This article written by Emma Lim of Buckworths outlines the Smart Grant Scheme (“Smart”). Smart is a competition run by the Technology Strategy Board (“TSB”) for small and medium sized enterprises (“SMEs”).
28
BUSINESS
The objective of the Smart Scheme is to encourage SMEs to engage in Research and Development (“R&D”) projects in the areas of science, engineering or technology from which new products, processes and services can emerge.
29
There are three types of
grant available under the
Smart scheme:
The Proof of Market grant is designed
to enable companies to assess
commercial viability through market
research and
testing. A maximum grant amount
of £25,000 is available and TSB will
fund up to 60% of an SME’s total
project costs.
The Proof of Concept grant allows
companies to explore the technical
feasibility and commercial potential
of a new technology, product or
process. A maximum grant amount
of £100,000 is available and TSB will
fund up to 60% of an SME’s total
project costs.
The Development
of Prototype grant
allows companies to
develop an innovative
technology, product
or process, has a
maximum grant
amount of £250,000
and will fund up to 35% of a Medium
enterprise’s costs or up to 45% of a
Small/Micro enterprise’s costs.
A Smart Grant will only make up a
proportion of the total project cost.
A company will have to match Smart
Grant funding with its own resources
and/or investment.
TSB requires a company to provide
evidence that it can obtain the
remainder of the funds to complete
the project. One of the key features
of a Smart Grant is that a business can
receive a grant from
Innovate UK and
also gain investment
under the Seed
Enterprise Investment
Scheme at the same time
and all eligible costs of the project,
30
however financed, can be claimed
as R&D tax credits against its
taxable profits, thus reducing
its corporation tax bill.
A company may also apply
for additional funding from other
public bodies provided that the total
percentage of funding from the public
sector amount does not exceed the
percentage amount claimed from TSB.
A company awarded a Smart Grant
is required to reclaim eligible costs
from TSB after such costs have been
incurred. This means that claims
can only be made for costs that (i)
are directly incurred as a result of
delivering the project (ii) have
been incurred during the
project period and (iii) are
capable or being audited.
Eligibility
The Smart Scheme is only available
for UK SMEs. Smart defines an SME
as a business that has a turnover of no
more than €50 million, a balance
sheet total of no more
than €43 million
and not more
than 250
employees. Smart encourages
applications from pre start-ups, start-
ups and small and medium-sized
businesses undertaking R&D providing
they meet the SME requirement. The
SME status of a business
can affect the
BUSINESS
31
32
amount of grant that can be claimed.
If an application relates to a software
project, eligibility for the grant will
rely upon whether the technical
development that the project produces
is a “step” change in how computers
are programmed or used. However,
the scheme is unable to support
projects that lead to incremental
development, increased functionality
or general improvements in efficiency,
no matter how much merit there may
be to such a development.
Timeframe
There are 6 rounds of Smart Grants
each year. TSB take up to 1 month
after the relevant round has closed to
review the application.
Smart grants are a fantastic opportunity
for innovative businesses to take
advantage of Government funding.
In conjunction with SEIS, they make
businesses hugely attractive to
investors. and should be considered as
a viable and valuable source of finance
for all innovative startups.
For more infomation visit:
interact.innovateuk.org
BUSINESS
33
Providing service on demand
34
Providing service on demand
Whether or not you have heard
of the “on-demand economy”, if
you have ever used a smartphone
application to ring up a driver
or to get a handy-man to clean
up your house then you know
what it is – a speedy and
efficient way of connecting
with individuals who can
attend to your needs as and
when you need them.
The rise of the on-demand economy
can be attributed, in part, to the
pairing of the workforce with a
smartphone. A large number of tech
startups have taken advantage of this
boom by creating systems that match
time-starved urban professionals
with independent contractors, thus
supplying labour and services on
demand. The tech giant Uber is one
such company.
A ride-hailing service, Uber is one of
the highest-valued technology startups
to emerge in recent years. The value of
Uber lies in the fact that it takes out all
the stress of travel and gets you where
you want to go. On demand. You no
longer have to stand anxiously in line
at a taxi rank, or to wave awkwardly
on a street corner attempting to hail
a taxi. One click on your smartphone
and you can see how soon a car will
arrive and how much it will cost to take
you to your destination.
Valued at $40bn (£25.5bn), Uber is
such a phenomenal success that many
other companies have adopted their
business model and are “Uberising”
industries such as retail, healthcare and
personal services. Arun Sundararajan,
a professor at New York University’s
business school who has studied the
rise of the on-demand economy
comments that “These services are
successful because they are tapping
into people’s available time more
efficiently ... You could say that people
are monetizing their own downtime.”
Along the same lines is “Henchman”,
an app that will bring you anything you
want delivered to you in 60 minutes.
Whether it is medicine from the
pharmacy, red wine for your Friday
night in, that Gourmet Burger from
your favourite restaurant or just a
MacDonald’s, a Henchman will deliver
to your address.
Henchman have created an easy
to use mobile platform that uses
location-based technology to find
where you are. The user tells the
app what he wants and presses “get it
now”. Henchman currently operates
within zones 1-2 of central London
including Fulham, Soho, Marylebone,
Westminster and Notting Hill.
Following an overwhelmingly positive
response (just check out some of the
comments on their twitter handle @
henchmanapp), the business is looking
to grow and expand into the wider
London boroughs so even those in
zones 3-4 can benefit from dropped-
off Ibuprofen. In the same way as Uber
allows registered mini cab drivers
to log into the app and do a pick up,
perhaps between pre-booked jobs,
Henchman has the potential to allow
pre-approved drivers with a vehicle
to make a few drop offs in their
downtime.
Along similar lines is Health Vine, an
innovative business in the health space.
Through Health Vine, users can submit
questions about health and welfare to
verified health professionals. Users can
also book a paid-for online appointment
with a health care professional of their
choosing to discuss issues of concern.
At a basic level this could be an online
visit to a private GP using Skype; at
a more complex level this may be
specific advice on complex issues for
which standard accessible healthcare
provision may not be suitable.
Health Vine allows health professionals
to contribute and monetise some
BUSINESS
35
of their free time. However, Health
Vine’s model is more than simply an
“Uber for healthcare”. Health Vine
have combined the service provision
by health professionals with a social
element allowing health professionals
and users to share experiences,
tips and information to the wider
Health Vine community. Health Vine
are creating a database of valuable
experience and information about
medical conditions that in time will
provide users with context as well as
specific medical advice.
One of the fascinating insights that
businesses in the on demand economy
may be able to provide is the profile of
user who requires the almost instant
gratification provided by on demand
services. Are users younger more tech
savvy people, or have the benefits of on
demand been picked up by the older
generation, so called “silver surfers”?
Does the on demand economy serve
a particular socio-economic group or
are its benefits utilised by people from
a range of economic backgrounds?
Most providers of on demand
services through technology amass
huge quantities of data about their
users, their usage of services and a
number of other personal and generic
characteristics. This information can
(and is) used to analyse trends and to
better understand what drives people
to require services on demand. What is
clear is that the concept of on demand
has impacted all areas of service
provision including those services
that are not (and cannot truly be)
on demand. Increasingly consumers
want instant gratification and service
providers are constantly
innovating to try to
provide the quick
response that meets the
on demand requirement
without impacting on
their ability to operate their
business.
A potential risk with the current
trend of developments in this area is
that the on demand economy ceases
to be about maximising the usage
of down time and becomes about
providing all services on demand.
Returning to Uber, the huge success of
their platform has lead drivers to work
solely for Uber. For drivers who may
be reliant on demand whether or not
they operate through Uber, this may
not represent a significant alteration
in their risk. But for other service
providers, a move wholesale to serve
consumers on demand can have a very
significant impact on their business.
Take your hairdresser as an example.
Historically the local hairdresser
probably relied on regular clients who
either rebooked each month for their
hair cut or rang a day or two before
to book, confident that they could
be fitted in. The hairdresser knew
(probably weeks in advance) exactly
how busy he would be and how much
revenue would be generated in respect
of any particular working day. He
could also predict with a fair degree of
accuracy when Mrs. Bloggs would be
in for her monthly colour or when Mr.
Smith would book for his fortnightly
cut. The on demand economy may
have initially provided benefits in that it
allowed him to fill up empty time with
addit ional
appointments.
Some on demand
leads may have
generated regular clients
(though significant research has
suggested that on demand customers
tend to be focussed on immediate
service in priority to brand recognition
and loyalty). Over time however, the
risk is that the hairdresser becomes
swamped by on demand customers
who potentially displace the regular
customers. Mrs. Bloggs who is used to
be able to ring a day or two before
her appointment now finds that the
hairdresser is booked up. She books
elsewhere and discovers that “Blow
and Go” down the street are just as
good and revolutionise her hairdo.
She starts going there instead.
Over time, our hairdresser may be
hugely successful with on demand
customers, but in the process he has
lost his regular clients and now has few
bookings made in advance. He has
no guaranteed workflow lined up in
36
advance and no ability to predict his
future cashflows with any degree
of certainty. Essentially his business
model has changed and operating risks
have increased.
Monetising un-used time makes good
business sense. Whilst on demand
may increase short and long term
revenues, it may also significantly
increase operating risks and may
require a greater expenditure on
marketing and advertising to ensure
that the consumers with a lower
degree of brand loyalty know and use
the service provider.
So, in
the long run, will
exposure to the on
demand economy
be simply about
m a x i m i s i n g
downtime or
will on demand
become a basic
non-negotiable
b u s i n e s s
mantra? Only
time will tell.
BUSINESS
37
VIDA CRUISES
Whether you’re a seasoned sailor or a nautical newbie, sea cruises offer endless entertainment, unparalleled panoramic views and fl exibility that the modern day traveller treasures. So here at StartUp Roar we explore 2015’s hottest vacation trend with rapidly expanding startup Vida Cruises, and learn how these swashbuckling cruise specialists can offer you an unforgettable land-sea retreat.
Living la Vida Loca:
With its founder having personally
been on hundreds of cruises, Vida
is able to offer its customers a much
greater insight as to what to expect
on board, provide extensive advice
on where to visit at docking ports and
most importantly, where to get the
best ice cream!
The company promotes cruises all
across the globe whilst offering tailored
advice to suit its customer’s individual
needs. So whether you are looking
for family fun, a romantic retreat or
some simple self-indulgence, you’re
guaranteed to fi nd the perfect cruise.
Cruises by the Crew:
We’ve all had those frustrating customer service interactions; you’re asking
the question but it remains unanswered. Not because your question is overly
diffi cult. And certainly not because you’ve called the wrong number! Rather
the advisor is uninformed, disengaged and quite frankly couldn’t care less
about the business let alone the customers’ actual needs.
Well, when parting with your cash for a holiday, as a customer you want the
best customer experience.
Vida Cruises operates from a place of wholesomeness, honesty and hands-
on experience. Company director Tiago Cesar, has worked on-board cruise
ships for over 12 years and offers a unique insight into what truly makes each
cruise special alongside unrivalled local knowledge of destinations all over the
world. Through this ‘life on-deck’ mantra, Vida Cruises are able to offer the
ultimate advice and deals for its customers – they certainly know the docks
from the harbours!
38
VIDA CRUISES TRAVEL
39
So by now if like us you’re
thinking “when do we leave?”,
we’ve selected two of the
most exciting cruises for 2015
departing from UK based ports.
P&O Britannia:
Britannia was the newest and largest
member of the P&O fleet when she
launched in March 2015. Designed
exclusively for British holidaymakers,
she offers 15 decks of fantastic
entertainment, leisure, and dining
facilities. Britannia will include many
popular P&O features such as the
Oasis Spa and The Crow’s Nest, plus
great new innovations including The
Cookery Club, The Limelight Club
and The Studio.
Anthem of the Seas:
Taking cruises to a whole new
level, Anthem of the Seas boasts an
incredible range of ground breaking
features that are new to the cruising
world. One that particularly stands out
is the brand new North Star. Elevating
guests 300 feet above sea level, this
jewel-shaped capsule offers some
breathtaking views of the surrounding
area and is an entirely new concept
for the Royal Caribbean fleet. Other
firsts include the complete redesign of
the staterooms, with inner cabins now
boasting the first virtual balconies at
sea. But with all these state-of-the-art
features, there’s still tonnes of room
for all the favourites of the RC fleet,
including the FlowRider, Rock Wall and
the Vitality Spa. All of this, plus some
incredible dining options and the best
in cruise entertainment.
A Couple of Current Cruises:
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TRAVEL
obtain your free ticket at www.buckworths.com
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