Jul 26

3 Top tips for Start-ups

I was invited to join  John Darvall on his BBC Radio Bristol show to discuss if this was a good time to start a new business? Of course it is, but then I’m an optimist like most entrepreneurs!

After a bit of banter about starting up a new business, he asked me for 3 Top Tips, we sort of skated over them so I thought I’d repeat them here and extend a bit on the chat on-air.

Talk to someone!

By tychay Terry Chay

There are lots of people out there that want your business to success, more than want it to fail! Locally we’ve got the excellent BRAVE organisation that provide clear, simple advise to anyone thinking of starting their own business. Most cities will have their equivalents.

There are also loads, and loads, of business networkings and networking events. People do business with people (mostly), so get along to a couple and talk to other small business owners and company founders. It’ll help you understand the realities of being your own boss, as well as the perks.

There are also some great online resources like Start-up Donut and of course BusinessLink (though this will soon be a web repository of guidance notes).

You can also track down the many start-up schools, incubator facilities, seed-camps, etc that are all trying to assist you towards a successful business.

Strategic Intent

I’m not sure I quite got the right message over on-air about this. If, after talking to some impartial people, you are still passionate about starting a business, then sit down and work out why you want to be in business.

By Danielle Page

Are you looking to develop a nice little company that will keep you busy for 6 months a year leaving the rest of the time for skiing? Or are you looking to transform your industry? Or are you looking to build sufficient value to exit at £20m in 5 years with a minimum of 50% equity and no earn-out? Or are you looking to build a company that will grow ahead of inflation and still be here in 30 years time?

What is your strategic intent?

The other side to strategic intent is your risk profile. Are you willing to bet everything on one idea, or are you more cautious?

How risky can you afford to be? Work out how much money you have (redundancy payouts, savings, mortgage, etc), then work out how much you need each month to live and how you can minimise this (you don’t need to live in the dark eating value baked beans, but champagne & oysters are probably off the menu), then work out how long your money will last.

That should give you some idea on how risky your position is, and how quickly your business needs to be a success.

Plan your business

This is critical. You don’t need a 200 page, glossy book, but equally you need to be able to describe your business and what you’re trying to achive.

Describe your strategic intent (Mission, Vision, etc). If you don’t know why you’re in business, why should anyone care?

Describe your product / service. This is important but actually, less so than most people think. Is there any unique intellectual property (IP) that can be protected? Do you actually know how your going to make, store, distribute your product to markets? If its a service, what is it and what additional support do you need to deliver it?

Who are you going to sell to and why should they buy from you. Who is your market, where are they, what do they like, what don’t they like, why do you and your idea fill a burning need in their lives or businesses? Market Segmentation, this is good, do it.

Who else is out there? Just about any idea will have some competition. Either directly from other companies offering the same or similar solutions. If you have a one in a million idea, there are around 1,300 people with the same idea in China, 1,200 in India, 500 across the EU, and 300 in the USA. Of course they won’t all be thinking of launching a business, but one of those 3,300 people might.

Cashflow forecasting. Cash flow is king for a small business. You won’t be able to produce a detailed financial model of your business before it’s even trading, but you need to have some idea of the basic cash flow through the business and where your break even point is. What’s your burn rate (monthly cash spend) and runway (how long before you’ve spent all your savings)?

My reply about the Apprentice was wrong, their business plans weren’t rubbish because they didn’t have good advice; they were rubbish because they didn’t listen to that advice!

<Disclosure: I was introduced as being from the University of the West of England iNET (Innovation Networks) which is true, but I’m also on holiday and the original link was via here so link-love all round.>

Aug 06

Management vs Money – which is more important?

Montmartre

John Althouse Cohen, 2005

This is an age old problem for the company starting out (or indeed growing rapidly). Obviously a complete lack of top-notch people or abject poverty are both unlikely to lead to success.

But where should your focus be?

This recent piece from Startup Professionals Musing comes down pretty firmly on the people side of the argument. Even with all the caveats about being a US review of investing, the broad findings are valid here in the UK as anywhere else.

With that in mind what can you do?

Well you should get out and meet people that will either be those high quality people, or know them and can introduce you. Make yourself known to the local University incubator teams, go along to your local Open Coffee such as <shameless self-promotion>Open Coffee Bristol</ss-p>, try searching Google for <your town> entrepreneur / startup / etc.

Or go to one of the events specifically put on to help bring growing companies together with exactly the right kind of people to help the do even better.

One such event is the Angel News ‘Pitching for Management not Money’. <Disclosure; I promised Modwenna I’d help promote the event but there’s no financial return to me, and the tickets for this first event are free anyway!> The first of these events outside London (in partnership with Intramezzo and Boulevard) is taking place on Monday 28 Sept at the Smith & Williamson offices in Bristol. Sponsorship from Burges Salmon and Business Link means the tickets for both businesses and prospective executives are free.

If you’re not already registered with Angel News there are a couple of links below to sign up for this event, hope to see you there.
http://www.designcity.co.uk/invites/p4mnm_280910_comp_bris.html
http://www.designcity.co.uk/invites/p4mnm_280910_aud_bris.html

Jan 12

Fresh coffee & Opportunities

Uploaded on October 23, 2006 by Hamed Saber

Well it’s been quiet externally for jbsh the last couple of months but there’s been plenty going on. This post is a cross-post from Open Coffee Bristol where we welcomed in the New Year this morning.

Well 2010 kicked off in the UK with snow, ice, sub-zero temperatures and general chaos as public services ground to a halt.

But not Open Coffee and the entrepreneurs of Bristol.

Fortified by the best coffee that the Boston Tea Party on Park Street has to offer we gathered on their first floor to catch up after the break and discuss the future. By the end Steve Cayzer (HP Labs, LinkedIn), Rupert Russell (Carmen Data, LinkedIn), Helen Davies (For Effect, website), Sam Machin (Orange, personal website), Nigel Legg (Katugas Social Media, website) and Andy (who surname I’ve unforgivable forgotten, sorry).

Conversation covered the various tax implications of company car ownership, developing new brand images for the new year (and the difficulty finding a good printers these days), online marketing for small tourism companies and the challenge of getting good geo-location data, and that was just at my end of the tables!

The general opinion was that while the weather and economic climate might be a bit inclement (or just down right awful) there was business to be done and opportunities to be exploited. Business cards were swapped and a couple of new collaborations initiated.

So the New Year is off to a great start and looks to get better.

Look forward to seeing you at the next Open Coffee Bristol on Tues, 26 Jan from 8.30am in The Boston Teaparty on Park St.

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Jun 17

Entrepreneur Gardening

This is a re-post from the Open Coffee Bristol blog.

postbear, 16 January 2009

postbear, 16 January 2009

This morning’s Open Coffee Club meeting took place in the very pleasant surroundings of The Boston Tea Party‘s garden. A lovely summer’s morning complemented the positive ideas being discussed in the light of HP Lab’s partial pull out of their Bristol facility.

Stephen Maudsley was first after me but headed up to the first floor before I could catch him, meanwhile Dave Simpson from Engine House Solutions (holding site) arrived and we began chatting while Stephen explored the upper reaches of TBTP. I first met Dave at the Bristol leg of the FOWA tour, where he was launching his web development and software company.

StephenM soon found us and we began talking about the start-up scene and different requirements of growing companies for executive support as well as cash. Around then Steve Cayzer arrived and we began to discuss his ideas for launching a new venture based on some of his research into environmental computing and ways to underpin the low carbon economy.

A quick flurry introduced Brian Dorricott with his newly launched Meteorical, Andrew Wray from Bristol University’s enterprise support team, Andy Seaborne (also thinking about launching an enterprise semantic knowledge application) and Nadya Anscombe (freelance science & technology journalist). Introductions, connections, business opportunities and much coffee ensued.

Thanks to all for a great morning of stimulating discussions and opportunities to be explored.

The next Open Coffee is the Demo Session, Tues 30 June at eOffice, please sign up on Eventbrite (http://opencoffeedemo30june.eventbrite.com) so we’ve some idea on numbers.

If you have a company / product / service that you’ve developed (or are thinking about) and would like constructive comments & ideas, please sign up as a presenter and we’d love to help contribute to your success.

Apr 07

Banks lending again!

Uploaded on May 3, 2007 by reway2007

Uploaded on May 3, 2007 by reway2007

<this is a cross-post from http://www.opencoffeebristol.org/>

That was the experience reported from this morning’s OpenCoffee and another reported positive feedback that more would follow. Of course this is bank lending so low risk, but at least it is funding to underwrite growth and expansion needs. Both reports were of the positive impact that the Enterprise Finance Guarantee is finally having for smaller businesses.

Elsewhere we had a couple of new faces with Brian Dorricott (ByNetWorks) and Ian Grimley (Roxburgh Milkins), well new to me, they came to the last OpenCoffee but I was in Plymouth that week. Along with the regulars we did a pretty good job of taking over the upper section of Starbucks.

Peter mentioned one of his clients was having some challenges with an old website that they’d had a “mate” set up and had since had a falling out. Within minutes Sam had his Macbook out and was sorting through how to change the Nominet & hosting set-up, Ian was providing legal commentary and everyone else was chipping in with business / technical thoughts. I think Peter just about kept up taking notes! :)

Nigel and I had a couple of good discussions about business developments and various grant awards that are available.

It was great to catch up with Brian again. After a successful entrepreneurial career of his own, he joined SWAIN for a spell before leaving to return to angel investing in his own right. Ever the entrepreneur we had a good discussion about his venturing experiences and a development idea he’s working on, and a business development / funding project I’m working on.

A great start to the day and lots of buzz around the tables.

The next OpenCoffee Bristol is a company demo session at SETsquared, courtesy of Nick Sturge on Tuesday, 21 April from 8.30am.

Please do book so we have some idea of numbers, and especially if you want to present your business / innovation, what you’re up to & what support / ideas you’re looking for.

http://opencoffeebristol21april2009.eventbrite.com/