Industries in which you should start your business

Green Tech

Utility is the centrepiece of the green tech industry. With awareness growing among consumers as to the environmental challenges faced by today’s society, the green tech businesses are almost instantly labelled as “trendy”. The magic trick is that they do not demonise consumption, but facilitate a smarter and more efficient way of using the resources we already have. Consequently, the consumers end up achieving, more or less, the same effect with respect to what they intended as to certain goods or services, at the same time being rewarded with an additional benefit of “helping the planet”. This is clearly the driving force of the so called “collaborative consumption”, where consumers share the already existent resources, paying less and unlocking the utility of under-used resources. Examples are vast; from the pioneer Airbnb, to Zipcar and Getable. Of course, the success of green tech businesses will be largely dependent on whether they actually stick to what they claim to be their core values.

Mobile Apps

It is expected that over 10 billion mobile Internet devices will be in use by the end of the coming year, with over 1 billion smartphones to be sold only in 2015. The growth of the industry has been tremendous so far and there is nothing in sight that would suggest that it will slow down any time soon. With consumers expecting more and more services and goods to be readily available with one click on their smartphone or tablet, large numbers of entrepreneurs enter into the race to recognise their demands. The barriers to entry are reasonably low, creating a bustling entrepreneurial environment, with an increasing number of smaller professional services firms offering to front their expenses to start-ups and make them back on sales. Ultimately, if you can find your niche, your business is limited only by your imagination. From event management apps (Dojo), to an app allowing you to see the quality of the air you are breathing (CleanSpace) and an app making your travelling much more convenient by showing you where you can go with a certain budget (Lucky Trip), the industry has many interesting newcomers that have already firmly established themselves as must-haves.

Online Education

With rocketing costs of higher education, people are keenly looking for alternative ways of gaining knowledge, skills and overall improving their employability. Online education platforms are not limited to offering university-like courses, but also increasingly present consumers with opportunities to attend professional workshops. The both academic and practical appeal of such platforms resonates with both young people planning their education and professionals looking for a career change or a move up the ladder in the corporate world. LinkedIn’s April announcement to purchase Lynda for $1.5 billion served as an eye-opener to many that online education is indeed a booming business. Clearly, traditional university education has more benefits than merely gaining knowledge and developing useful life-skills like networking, building long-lasting friendships and even, more so in the recent years than ever before, having access to an environment where successful businesses are created. Nonetheless, as even these benefits are becoming more available online through numerous types of social media platforms and employers slowly begin to give recognition to education gained on the Internet, the industry is expected to develop even faster. Successful examples include Coursera and 360training. 

Miłosz Palej

5 inspiring ideas for a healthy business

“The first social experience we have is being put to the breast or bottle. The social act of eating, 

is part of how we become human, as much as speaking and taking care of ourselves. Learning 

to eat is learning to become human.”

Richard Wilk

Over the centuries, we have developed various methods of preparing our meals. There is 

almost no special occasion without food on the table. Even in the corporate world, where, 

arguably, there is nothing more precious than time, people are gradually starting to pay more 

attention to the food they eat and it is becoming more apparent to them that there is more than 

one method of preparing their meals. Taking into account the growing importance of internet 

sales even (or especially) among small and medium businesses and people turning to the 

internet to explore or develop their culinary interests, various types of food-related enterprises 

are flourishing online.  

Maybe you are an author of a culinary blog or you could channel your interest into becoming 

one? Perhaps you like exploring different restaurants? Or, alternatively, you watch dedicated TV 

programmes and study culinary literature to learn how to prepare your meals in more 

extraordinary ways? You may develop each one of these traits and interests into a smartly 

working business. Below you will find 5 inspiring ideas for a food-related enterprise in the 21st 

century.

     1.       Home-cooked, healthy, heat-and-eat meals

There are two groups of people in the world; those who adore cooking and treasure every 

minute spent in the kitchen, combining different ingredients and those who don’t like cooking 

and generally consider the whole undertaking to be a waste of time.  Even among the first 

group, you will find people who simply just do not have the time to actually cultivate their 

culinary interest. That’s where you step in. Share your passion for preparing healthy meals with 

those that would like to eat this way but either do not want to waste their team for preparation or 

simply just do not have the requisite time. Equally, with sales in mind, catering for businesses in 

which employees have personalised diets could be an opportunity worth taking. 

   

  2.       Spices and ingredients

Culinary magic begins with ingredients and spices. Even nowadays, with wonderfully stocked 

supermarkets and little shops offering a variety of spices from different parts of the world, we 

are still missing out on so many of them. Explore them; study how and why they are used in 

different parts of the world, search especially for those that are still not particularly popular 

where you live. Create your own favourite combinations and share them with others.

   3.       Juices, teas and coffees

Tired of the repetitive taste and limited choice of teas, coffees and juices that you are able to 

buy in a supermarket? Experiment and design your own healthy product. Follow the trends or 

ignore them; be mindful, however, about what your unique selling point is.

     4.       Food storage

Food requires special storage. In this busy world, yet one gradually yielding to the healthy 

eating trends, you can often find people who will prepare meals for themselves, which they then 

will take to work. There is still so much to do about food storage. Good-quality, environmentally-

friendly reusable containers, devices that will allow us to keep food fresh for longer; all of these 

will matter to that steadily growing group of potential customers. Equally, it is worth sparing a 

thought to the shapes in which the containers are currently produced; could these be made 

more convenient and easier to transport?

     5. Nutritionist, personal chef or catering services

Explore whether there is a service that you could offer with respect to these professions. 

Healthy, ad-hoc company catering, large-scale nutritionist services to corporations which, 

perhaps would like their employees to take better care of themselves, a network of personal 

chefs that could provide specialist meals to wealthy individuals, willing to stick to their diet? And 

all that controlled by an app. Think about it, you could have ideas and skills that, when utilised, 

could result in a fantastic business.

Monika Szablińska

How to fund your business without a bank loan

Raising investment to kick-start or expand your business is often a time-consuming process. You may wish to secure a bank loan, however, this route, although instinctively most obvious and attractive, may eventually turn out to be not easily available and rather troublesome. When considering different financing opportunities, it is worth bearing in mind that various alternative funding options are available and assess them against your particular circumstances and the objectives of your business. This article will discuss some of such alternatives, addressing their main qualities. Ultimately, it is in your capacity to choose the financing route most suitable to your business, but undergoing a decision-making process with an access to a wide pool of information can only facilitate a more informed decision.

Peer-to-Peer Business Loans

Also known as loan crowdfunding, peer-to-peer business lending is an accessible and relatively quick method of acquiring funds for your business. The primary advantage of using the services of P2P lending is that it is investors using a particular platform who decide whether your firm’s funding requirements are worth their interest. The context in which the lending takes place is one of people-driven finance, offering a fresh and increasingly business-friendly vehicle in the face of crumbling access to bank business loans. Inevitably, there are initial vetting and checking procedures that each registering business seeking funding needs to pass before being approved and put before the network of investors, however, once these are satisfied, the opportunities are vast. Additionally, the sole fact of your business receiving funding from a diverse crowd of investors serves as validation to your business idea. This confrontation, whether it is your first step into the business world or an idea for expansion, is perhaps not a guarantee of future success, but it definitely is a useful reality-check.

In the United Kingdom, one of the platforms that offer P2P lending is Funding Tree. It is regulated by the Financial Conduct Authority and there is no fee to join. Furthermore, unless a project meets 90% of its target, there is equally no fee payable. After you go through the initial checks, you can submit your pitch. Conveniently, the legal work is handled by Funding Tree and you are only asked to approve the legal documents sent your way after submission of the pitch. Once this is completed, your pitch, supplemented with the pre-approved legal paperwork, goes live. Fees range between 2% of the amount in question for 1-12 month loans to 3.75% for 37-60 month loans. If you intend to take a loan for a larger asset purchase, be prepared to pay 4.5% for a 12-36 month loan and 3.75% for a 37-60 month loan. It is worth noting that Funding Tree also offers equity crowdfunding, where investors contribute a certain amount of money to the business seeking funding in return for an equity share in such business. In that case, the fee applied is 4.5% of the aggregate sum raised.

Reward-based Crowdfunding

Another way to raise finance to fund your business idea is to make use of reward-based crowdfunding platforms. In this structure, in return for backing a project, backers receive a particular reward contingent upon the sum they commit with the appropriate rewards being set out at the beginning by the business submitting the project. Reward-based crowdfunding is an immensely efficient way of testing your product; without incurring debt and at negligible cost, it will allow you to see whether your business idea is capable of receiving the response you anticipate. Furthermore, provided that the project is successful, there is a lot to gain by word of mouth-marketing by satisfied customers and a clear opportunity to develop a loyal customer base. Often, funded businesses come back to crowdfunding platforms with new ideas, capitalising on the popularity among initial backers. Nonetheless, it is perhaps worth to mention that success in reward-based crowdfunding is largely dependent on how eye-catching your product description is and whether you can tell the story of your product in a sufficiently compelling manner. Not too infrequently, the quality of marketing materials in successful projects outweighs the quality of the product itself. Additionally, new backers are attracted by the traction of your project. Therefore, if you choose to follow the route of reward-based crowdfunding, it is crucial that you begin with creating an initial network of backers among family and friends, asking for further referrals.

Kickstarter has an unbeatable recognition as a crowdfunding site and thus allows for higher visibility of your project and the necessary traction you would want it to gain. The site, however, is aimed at creative projects and the approval is subject to a screening process. With respect to costs, Kickstarter charges 5% of all funds raised, with funds not collected from backers if the goal is not met. Additionally, there is a further 3-5% fee on transactions.

Indiegogo offers larger flexibility thank Kickstarter and is a more accessible option. There is no application process and, provided you choose flexible funding, you can keep the funds raised even if you do not meet the goal set. The fees are 5% of funds raised, with the transaction fees between 3-5%.

Angel Investors and Venture Capital

Pitching your business to an angel investor or a venture capital firm may be worth taking into consideration if you are ready to accept investment in return for equity. Angel investors will often be experienced entrepreneurs, willing to invest personal funds both into early-stage start-ups and already established businesses. Depending on the angel investor, they may be willing to add their vital skills to operating your business. Equally, considering their, often rich, entrepreneurial experience, angel investors could give you access to a wide network of contacts, which, in the long term, may prove invaluable to your business’s expansion. Making a good impression will inevitably depend on having a good grasp of the market you are willing to enter and a solid business strategy, supplemented by detailed projections. It is useful to consider such platforms as Angel Investment Network and Angels Den, which facilitate matching promising businesses with potential angel investors.

Venture capital (VC) firms raise funds from a variety of sources, including pension funds, corporations and wealthy individuals. The high-risk, high growth principle that drives the venture capital industry means that the objectives and priorities of VC firms and businesses they invest in are not always necessarily aligned. Furthermore, venture capital firms will generally, in addition to equity, require a seat on the managerial board and adopt a ‘hands-on’ approach to the business invested in. This, however, can have positive consequences, especially as result of the VC firm contributing unique expertise and exceptional managerial skills to the business. Nonetheless, VC funding will usually not be available for firms with more limited investment requirements. Balderton Capital and EC1 Capital are among the most prominent VC firms in the UK, with the latter holding open office hours every few weeks, when you can pitch your idea or talk about your company.

UK Government support

Finance and support offered by the government may serve as an interesting alternative to all the previously discussed funding options. If you are not seeking for financing at the level of or in excess of £1 million, you could consider applying for support Regional Growth Fund programmes. As result of such schemes, run by local or national organisations, you could be eligible for a grant or loan. In certain circumstances, and especially when rejected by high-street loan providers, this could be a viable option to pursue funding. It is definitely worth using the finance and support finder to find funding opportunities applicable to your business.

Miłosz Palej

4 ways to grow your business

     1.    Marketing and advertising

It is not particularly surprising that marketing and advertising are absolutely key in introducing your product or service to new customers. However, many businesses inaccurately assume that to make marketing worthwhile, you need to throw money at it. In fact, there are two efficient ways in which you can quickly attract customers, gain recognition in the relevant market and not cause your accountant all manner of grief in the process.

 

Customer referrals

Take a step back and think about your existing customers. A loyal and satisfied customer base is a fantastic starting point to create new revenue streams. Incentivise your customers to refer your product to friends and family or write online reviews. You will be directly engaging with your customers, while at the same time grasping an opportunity to attract new ones. In a world where internet presence of a business is unescapable, customer referrals are a really powerful tool; you would be surprised at how large an audience your product could reach that way.

Media presence

Media, including online newspapers and blogs, can offer you invaluable access to new customers and improve your brand recognition. For free. You don’t have to rely on paying high advertising fees, sponsoring your Facebook posts or using Google ads. Irrespective of what your business offers, there is a better and more effective way in. Your expertise has commercial value. Approach your local media or a professional newspaper read by your target audience and offer to write articles or to be a spokesperson when expert opinion is required. All it will cost you is your time and, through professional contribution, you can develop a stellar reputation for your business.

  

     2.    Be where your customers are and nurture them

Undeniably, incentivising schemes work and turning your customers into a sales force has numerous advantages. However, in the long term, you would want your customers to voluntarily serve as your brand’s most ardent advocates. Your focus should be on customer relationship management. For your customer base to identify with your business, you not only have to be able to understand their needs, but also comprehend why exactly they prefer your product to the products of your immediate competitors. A cost-effective way to gather such information is to be where your customers are on the web; whether it is forums or social media groups. Engage, create content and ask questions. This will allow you to offer tailored loyalty schemes, improve your product and gain confidence in the eyes of your target audience.

     3.    Diversify and develop new products

Currently, the phrase ‘innovate or die’ is more relevant than ever. You can gain an instant edge by introducing new products to your marketplace. Nonetheless, getting access to capital can be quite tricky without a clear strategy and a careful risk assessment. It is not too difficult to commit a false start due to an incomplete or rushed market research. Many sources of funding will require you to submit a detailed business plan to explain precisely how and to whom you will offer your product and how you will make money on it to avoid such scenarios. You can put together a business plan yourself, however, with opportunities for substantial investment or loan on the line, it is probably better to turn to a professional for advice.

     4.    Your business is your team; people work for people

Customer loyalty is immensely significant, but the loyalty of your employees is at least equally important. Remember that efficiency and results are not only improved by deadlines and brainstorming sessions aiming at boosting productivity, but, primarily, through the working environment you create in your business. Don’t forget; enthusiasm is contagious. You can achieve a great deal by leading by example and presenting to your employees a clear vision of where your business is going. Additionally, the growth of your business will be contingent upon the trust you endow your employees with. If you haven’t already, learn to delegate and be confident that everyone can do their job. Distrust is an obstacle to growth and can kill any enterprise.

Miłosz Palej

Be independent. Start your own business!

It’s just another manic Monday

The alarm clock rings. You are now glad you remembered to set it on the previous night. Or, are 

you? 

You are late for the bus. Again. And, as on every week day, you don’t even remember the taste of 

that morning coffee you had moments ago when you are already rushing through the equally 

busy crowd to make it to work on time. On top of all that, you haven’t slept well in ages. Tough.

You have a stable job. It is not like you despise it, it is fine. But nothing more than that. It makes 

you feel safe. And that, unquestionably, is important. Nonetheless, you have realised something 

quite recently. You start feeling uncomfortable. Something is missing in that repetitive, 

everyday routine. Perhaps it is finally time to turn over a new leaf? At least twice a year we have 

an idea that could become a million-dollar business. Why not start working on one? It is your 

call.

5 reasons to start your own startup:

      1.       Becoming an expert

It takes around 2000 hours to become a specialist in any field. Although it may seem like a lot, it 

is not as much as you think. This could be roughly translated to c. 1 year of work - 8 hours per 

day, Monday to Friday. Bear in mind, however, that this work needs to be productive, thus it is 

essential that you motivate yourself to keep yourself involved and interested. 

If you do feel that discomfort in your current workplace, you need work that will constantly give 

you opportunities to challenge yourself and get better. Working for someone else, prioritising 

their objectives and the needs of the company over your own does not allow you to focus on 

your development, at least not as much as you want to. To become a real expert, you need to 

know how to transform the conditions around you so as to make them advantageous to your 

business. Substantial expertise allows you to experiment, to draw on your broad experience and 

to challenge the established products, and thus provide alternative or novel solutions to 

everyday problems. 

      2.       Making more money

Once you are your own boss, you start making decisions on your own and becoming more 

responsible when it comes to spending money. Conversely, you also learn what it means to 

invest and to sometimes lose something to gain something in exchange. It is you who decides 

how much to charge for the service or product you provide and how much time to spend 

completing it. Consequently, you are more motivated to become better in what you do because 

you know it will, ultimately, benefit you and your business. You now can fully utilise your 

potential with no need to answer to anyone. Pursue this opportunity and you will never look 

back.

      3.       Independence

Obviously, your first thought will be “Isn’t it risky to just leave everything else and start doing 

something on your own?”.  You will probably then think that it all just may be a waste of time and 

put your money, social life, family and friends in jeopardy, disrupting your everyday stability. 

But think about it from a different perspective; being employed by a company on salaried job is 

great but neither does it give you assurance that it will last forever, nor does allow you to take 

full advantage of your skills. We live in a fast-changing world. There is no guarantee that the 

company which hired you today will keep you on until you decide to retire. Be independent. 

With enough motivation and belief in your skills, you will quickly discover the endless benefits 

that this lifestyle change comes with.

   

   4.       Ownership

We tend to approach things differently if we can call them our own. We instinctively want them 

to be better and do not mind investing money in our own business. If developing a product, 

there is always that thought at the back of our heads that we want to leave some sort of legacy 

behind us, we want to be proud of what we are creating. You may have a significant role to play 

at your current company, but once you start to lead your own business, you will realise that you 

care about things like never before and your motivation doubles.

      5.      Wellbeing

Each one of us is unique. Every one of us has different skills, abilities and needs. And it may be 

true, that what for one is a life-changing opportunity, will not work out equally well for 

someone else. Nonetheless, if you feel that entrepreneurial spirit in yourself, if you constantly 

catch yourself at thinking about pursuing your own business, then it is highly likely that you will 

be better off on your own. Creating a startup is like creating a solution to a problem. You know 

the answer while others still do not have it. Finding the best place to grow and explore your 

potential means cultivating your passion and getting the most out of your life.

Monika Szablińska