StartUp Roar Magazine issue03

to you by Buckworths Brought

issue 03 | Spring 2015 | quarterly ÂŁ5 where sold

BUSINESS An intro to Enterprise Apps

LEGAL Moving to the UK

FEATURE Coworking in London

LONDON buckworths.com

LISBON buckworths.pt

Corporate Law Firm of the Year UK 2014 Worldwide Financial Advisor Magazine

Corporate Lawyer of the Year UK 2015 M&A Today

Corporate Lawyer of the Year 2014 Lawyer Monthly

Financial Deal Maker of the Year 2014 Finance Monthly

Dear Reader Step 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-Jones Editor

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ROLL UP…

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CONTENTS

FEATURE Coworking - 17 Buckworths highlight their 6 favourite Coworking Spaces in London

LEGAL Managing Risk - 6 Identifying financial, legal and reputational risks with your business

TRAVEL Vida Cruises - 38 Taking your holidays on the water

Moving to the UK - 10 Tapping into the UK investment market Legal Structures - 14 An introduction to structures for a full-profit business Social Enterprise - 14 The pros and cons

BUSINESS Enterprise Apps - 24 Internal mobile motivation Smart Grant Scheme - 28 A taste of competition Service on Demand - 34 Living in the on-demand economy

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CONTACTS T. 00 44 20 7952 1721 E. editor@startuproar.co.uk W. www.startuproar.co.uk /startuproar @RoarStartup 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 reflect the opinions of Buckworths Limited. Any content of a legal or financial nature contained in this magazine is published by way of guidance only and shall not be deemed to constitute legal, accountancy, tax or financial advice. No content contained herein is intended to be, nor shall be interpreted as, a financial 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 specifically 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.

LEGAL

Setting up a Business 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.

matters to

do

consider

But

what

entrepreneurs when

other need

founding

a

new business?

Tax Regime Businesses operating in the UK benefit from a relatively straightforward 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 ÂŁ81,000 in any twelve month period.

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“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

Each business carries with it risks – some of these are financial, some legal and some reputational.

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

Not necessarily – the founder needs

periods, particularly where the goods

can be difficult to identify. This

to understand whether any of the

are ordered online. Whilst there

particularly occurs in business sectors

regulatory regime relating to arranging

are certain exclusions to these rules

where there is a regulatory regime in

and/or managing investments apply.

for certain types of goods, founders need to be sure whether or not these

place.

The

second

priority

of

an

exclusions apply.

For example, a founder wishing to

entrepreneur is to identify the legal

set up a business to source and find

regime applicable to his business. Even

Finally, founders must understand the

valuable old cars and then bring

with “vanilla” retail businesses, there

cost of doing business and must have a

together individuals to buy those

is a degree of complexity as regards

plan for ensuring that their business will

cars together might consider that this

the rules applicable to the sale of

either be profitable over time or will

is a business handling the purchase

goods. Consumers, for example, are

provide both founders and investors

and sale of cars. Unregulated, right?

entitled to return goods within certain

with a return on their investment.

6

LEGAL FINANCE

7

8

LEGAL Insurance

you can get out of the agreement if

agreement with a customer even if

need be.

they are refusing or are unable to pay. These issues can be resolved by

Insurance is essential for almost all businesses. Most will automatically

For many risks, you can exclude

setting out in your terms of business in

have public liability insurance and

liability. This would be applicable for

what circumstances you can terminate

employer’s liability insurance, each of

example in a tech business when you

your contract with a customer without

which is relatively standard. Services

would state that you are not liable if

being in breach of contract.

businesses will often have professional

your application, website or software

indemnity insurance which covers

goes offline for some reason (perhaps

negligent

advice,

due to a server failing). Similarly you

inventors

and

whilst

sellers

product

may

have

product liability insurance. In addition

Regulatory Regime

would generally exclude your liability for special types of damages.

Employment laws in the UK have become more employer-friendly in

to customer-facing insurance policies, some businesses may have directors

Sometimes, often for commercial

recent years. In most cases, employees

and officers liability insurance (D&O

reasons, you can only limit your risk.

are

insurance) which is designed to protect

You would generally match your

dismissal� until the expiry of two years

directors from liability if something

maximum liability to your insurance

from commencement of employment

goes wrong.

coverage. Finally, some risks cannot be

giving employers a wide discretion

limited. These risks include personal

to terminate the employment of

Getting the right insurance is important.

injury and death. For these risks, you

employees who are not performing or

Entrepreneurs should be careful to

must have insurance.

are not suitable for the business. There

review policy terms before purchase to ensure that it is suitable.

not

protected

from

“unfair

are some exceptions.

In order to require payment from a customer, you need to show that

The rules relating to the maintenance

you have demanded payment which

of companies are light touch and easy

is generally achieved by sending an

to satisfy. A company must file a return

invoice and that payment is due (i.e.

to Companies House each year along

Having an agreement with your

the payment period stated in your

with a copy of its accounts. A company

customer is important for several

terms of business has expired).

will make intra-year filings when it

Customer Terms

appoints or removes directors and

reasons: to limit your liability, to ensure that you can get paid for the goods or

Finally, in some circumstances, you

when it changes its share structure (for

services you sell and to ensure that

may not be able to terminate your

example, by issuing new shares).

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Foreign Companies 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

foreign entrepreneurs to the UK,

In this article, StartUp Roar explores

very well developed meaning

many of whom have experienced

how a foreign business can gain access

that entrepreneurs can access a

growth and success to a far

to the UK startup market.

range of support and advice. This

greater extent than their peers

has attracted a large number of

back home.

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LEGAL

s: 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

management; a branch; an office; a

requiring a valuation to be completed

factory; a workshop; an installation or

in the home jurisdiction and the value

structure for the exploration of natural

of the company to be reflected in the

resources; a mine, an oil or gas well, a

issued share capital of the new English

quarry or any other place of extraction

holding company.

of natural resources; or a building site or construction or installation

The result is that all the shareholders

project. Also, the foreign company

of the foreign company swap their

would usually register as an overseas

shares in the foreign entity for shares

company with the companies regulator

in the new English holding company.

in the UK (Companies House).

The foreign company becomes a wholly owned subsidiary of the English

A permanent establishment may also

holding company.

exist in the UK if there is a “dependent agent” in the UK. This is defined as “an

The second option is for the foreign

agent acting on behalf of the company

company to establish a “permanent

has and habitually exercises their

establishment” in the UK which

authority to do business on behalf of

requires the foreign company to have

the company”.

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

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The authority of the agent to conclude

Enterprise Investment Scheme (SEIS)

this scheme receive up to 30% of

contracts may be written, verbal or

which applies to the first £150,000

the amount invested by them back

implied (i.e. it is implicit by virtue of the

raised by the company and the

from HMRC as a deduction from

enterprise taking no active involvement

Enterprise Investment Scheme (EIS)

their income tax bills in the tax year

in the negotiation or conclusion of

which applies to the next £5,000,000

of investment, the year before or the

contracts).

raised each year. Companies seeking

year after. Investors must hold the

to raise investment under SEIS must

shares for three years after which, on

However, this specifically refers to

have started preparing for their trade

a sale of the shares, they benefit from

agents who conclude contracts with

within the period of 2 years prior to

a 0% rate of capital gains tax on any

customers.

the date of investment.

gain meaning that the gain is tax free.

business in the UK (for instance the

The pre-requisite for these schemes is

Companies can raise up to £5,000,000

rental agreement to obtain premises)

that the company taking the investment

per year under the EIS scheme and

will not fall within this definition.

must either be a UK company (i.e. for

investors can invest up to £1,000,000

a foreign business, investors invest into

per year

Contracts

concluded

for the purposes of establishing the

Registering a permanent establishment

its UK holding company) or, if a foreign

is often a more complex option than

company, it must have a permanent

These schemes have made startups

setting up a UK holding company

establishment in the UK.

very

when viewed from the perspective of

attractive

for

investment

with the result that London is

on-going compliance. Whether or not

Investors under the SEIS scheme

the number one place to raise

the foreign company has a permanent

receive up to 50% of the amount

investment in Europe.

establishment in the UK is a factual

invested by them back from the tax

question to be decided by the UK tax

authorities (HMRC) as a deduction

authorities, HM Revenue & Customs

from their income tax bills in the tax

(HMRC).

year of investment, the year before or the year after. Investors must hold the

Government Grants

Both of these options allow the

shares for three years after which, on a

There are a large number

company to take on investment from

sale of the shares, they benefit from a

of government grants for

UK investors claiming tax relief.

0% rate of capital gains tax on any gain.

startups employing people

The gain is essentially tax free.

in the UK and/or doing something

innovative

in

Accessing finance in the UK

The tax reliefs for investors under SEIS world and significantly reduce the risk

The most popular grants

The UK has two extremely generous

for investors in early stage startups. It is

are

schemes for investors investing in

relatively easy for companies to qualify

Startups can be awarded up to

startup companies. Equity investors

for SEIS – the first step is to seek an

£250,000 to build and develop

(those purchasing shares) in young

advance assurance from HMRC that

their prototype. This money is

companies carrying on a “qualifying

the company qualifies.

not repayable. The grant requires

business”

(which

includes

their sector.

are some of the most generous in the

most

TSB

Smart

Grants.

“matched funding” meaning that

businesses other than property/real

EIS is the bigger scheme for companies

the company must raise investment

asset businesses and leasing of assets)

who have already raised money under

simultaneously with receipt of the

can claim relief on their investment

SEIS or who have exceeded the two

grant.

under

year limit on SEIS. Investors under

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two

schemes,

the

Seed

LEGAL

13

Social Enterprise Social

enterprises

can

be

interest

the CIC, the assets must be applied for

provident

the benefit of the community and not

structure or a specialist not-for-

society or a limited liability partnership.

to repay creditors. The CIC cannot

profit entity. There are pros and

Further, a charity can be operated

transfer any assets for less than market

cons of each approach.

through a number of structures.

value apart from to another CIC,

guarantee,

a

operated through a for-profit

company,

an

community industrial

other asset locked company or charity.

A social enterprise is a business

Sole

carried on for a social purpose. Social

unincorporated associations benefit

enterprises can be operated via a

from light touch regulation. However,

number of structures.

those responsible for running the

traders,

partnerships

and

business will be personally liable and The desire to pursue a social purpose

exposed to the full risks and liabilities

impacts on the structure, governance

of the business. For this reason, they

and use of profits. In the main, social

tend not to be practical structures

enterprises aim to benefit the social

for businesses operating in the public

purpose for which they were set up,

sphere and/or with significant liabilities.

rather than to maximize profits for their shareholders.

One of the most important things to consider when setting up a social

Common legal structures

enterprise is what legal structure

Community interest company (CIC):

to choose. It is vital to consider

CICs

which structure will offer the best

as a social enterprise structure for

protections for the social purpose,

businesses with a social purpose which

how the structure will impact on the

did not wish to become a charity. The

business’s ability to manage risk and

CIC structure requires the business

access finance, what tax breaks will be

to offer safeguards to protect its

available (if any) and how stakeholders

community purpose. This is done via

can be incentivised.

the imposition of an asset lock which is

were

originally

established

contained in the articles and operates A social enterprise can operate via one

to protect the community purpose.

of a number of legal structures. These

Except in limited circumstances, assets

include an unincorporated association,

cannot be distributed to the CIC’s

a company limited by shares or by

shareholders. Upon a winding up of

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LEGAL

15

CICs are much more flexible than

Limited company: businesses wishing

wider community other than its

charity structures and can offer limited

to provide the benefit of an asset lock

members) or a co-operative society

returns on investment to investors

without restricting the possibility of

(Co-op) (set up to benefit solely its

and reasonable remuneration for

operating the business as a for-profit

members). IPSs offer members an

directors. They are regulated by the

business can use a standard limited

equal stake and an equal say in the

CIC Regulator which offers a lighter

company structure and replicate the

management and pursuance of the

touch approach to regulation than

asset lock provision in the articles of

purpose for which the society was

the Charity Commission. The CIC

association. However, unlike CICs,

set up.

must satisfy a community interest

the shareholders of such companies

test both upon incorporation and

can amend the articles to remove the

Charities: a social enterprise can

throughout

the

lifespan.

asset lock at any time. This gives added

become registered as a charity if it

The

must

provide

flexibility but also potentially puts the

has been set up for a purely charitable

interest

community interest being pursued

purpose and it meets the stringent

at risk.

requirements of charities legislation

a

CIC

community

report

each

CIC’s

year.

(including falling within one of the Industrial and provident society (IPS):

increasingly

narrow

classifications

IPSs are societies which can take

of
purpose and being operated for the

the form of either a community

public benefit). There must be an asset

benefit

society

lock in place to ensure that all assets

(Bencom)

are applied solely for the charitable

(set up to

purpose. One of the biggest benefits

benefit

of becoming a registered charity is that

a

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.

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FEATURE

Top 6: Co-working Spaces London has a world What are Co-working spaces? class offering when Co-working spaces offer fully serviced, shared working environments that unlike it comes to office most traditional offices, are not employed by a single organisation. space, and particularly Often considered a haven amongst creative professionals and freelancers, coco-working spaces, working spaces offer a sense of synergy amongst people who share the same for startups. This is 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 our pick of the best – genuine comfort that is often missing in standard office space. in no particular order.

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Central Working Central 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 office 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

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Club Workspace – London Bridge Workspace 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

FEATURE

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1

TOP 6 CO-WORKING SPACES in alphabetical order: 1.

2.

3.

4.

5.

6.

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Central Working Club Workspace Innovation Warehouse Level 39 Techspace The Trampery

FEATURE 6

5

3

2

4 To Canary Wharf

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Level 39

Innovation Warehouse

Level39 is Europe’s largest technology accelerator space for finance, cyber-securities, retail and future cities technology companies.

Occupying the entire 39th floor 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.

The 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?

Level39 is a space for early-stage businesses that have potential for highgrowth. Members are looking to create, test, market and deliver scalable worldclass financial, 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

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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 Smithfield Market in Farringdon, one of Europe’s largest dedicated startup spaces.

Innovation Warehouse benefits 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

FEATURE Techspace

The Trampery

Arguably, 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.

One of the most unique and confidently 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.

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 specifically 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 flexible co-working space in the heart of a thriving tech community.

techspace.london

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 efficient and effective networks so that they really hit the ground running; you are bound to find someone who compliments your aims, ambitions and passions.

Furthermore, members benefit from shared knowledge in the form of the “Incubator Programme” which offers a series of events ranging from peerpeer 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

23

Enterprise apps: Doing business in th It’s the era of the like, tweet

per day which are released into the

large enterprises intend to introduce

and favourite, where on-the-

public sphere and are purchased and

internal apps inside the next year, with

go means breakfast in the left

used by consumers. However the

38% planning on developing 6 or

hand, screen scrolling with the

vast majority of these apps produced

more. This huge expansion into

right whilst your legs cycle away

by businesses are aimed at their

the enterprise app industry

during your 6am gym session. It’s

customers, not their employees.

is largely down to

mobile efficiency at its greatest.

Apps are extremely complex to

tools such as Fliplet,

However, whilst business leaders

build - unique in their coding - and

which enable tech

have harnessed the power of

relatively expensive to produce. So,

novices to create

portable communication with

until recently, many businesses viewed

bespoke mobile

an external audience, internal

apps aimed at the internal audience as

apps

interactions

heavily

a drain on money and resources. But

pre-coded

reliant on the limited capabilities

the complexities associated with app

templates

of email. Communications with

creation are being simplified all the

with simplified

employees,

way down to consumer level, bringing

e d i t i n g

us enterprise apps.

interfaces.

are

still

particularly

those

in the remote workforce, are

using

often restricted to email with a

These

resulting loss in productivity. So

companies

how, in a world where revenue

Apps for Business:

derived from iphone apps alone

create

mean can

centralised

information hubs that

exceeds $50m, are businesses

With the rise in BYOD (bring your

have been specifically

struggling to tap into the full

own device to work) and a general

designed to compliment

potential of mobile technology

shift towards enterprise mobility, more

the employees with their

when it comes to employer-

and more businesses have realised the

individual or collective work

employee interactions?

importance of making their solutions

needs. Good examples of business

accessible over a smartphone.

areas where such apps could be

The “Tech” Problem:

invaluable are marketing, HR and Enterprise apps are mobile applications

finance. These apps also allow remote

produced to specifically enhance how

workforces to access secure useful

With over one million apps available

a business and its employees operate,

information

on both the Apple and Android store,

increasing

productivity

estimated to have the capacity to

it is clear that mobile is quite simply,

(by 46%) and overall job satisfaction

contribute to increased work time by

massive. Businesses produce and

(53% say it helps them do their jobs

an average 240 extra hours per year

publish upwards of 300 bespoke apps

better). It is estimated that 59% of

even when off duty.

24

efficiency,

wherever

they

are,

BUSINESS

he 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

Enterprise apps usually fall into one of

custom-built apps is the increase in

two categories: apps you deploy to

efficiency and productivity that they

users outside of your company, and

offer. This ultimately brings about a

apps you deploy only to users within

competitive advantage to enterprises

your company.

over other businesses that do not offer similar tools to their employees and customers.

Deploying apps to customers Enterprise to

apps customers

deployed can

be

advantageous to businesses as the app can be designed to provide: •

Alwayson

customer service You

– can

provide your

25

customers with the answers they

new needs often means providing

media for a fast response to a

need, whenever they need them.

a type of personalized service that

problem. Time is critical when

Today’s customers expect to have

goes above and beyond what your

talking about customer care. With

access to customer service on their

competitors can deliver.

an enterprise app, you can provide

terms. And that means providing

• Multichannel support – Today,

faster customer support which will

them with options to access 24/7

customers use various channels

be satisfying for the customer and

support.

to voice their opinions. Some opt

will save your company money.

• A personalised service - Customer

for the traditional communication

• Intelligent customer service -

expectations for service are rising

methods such as phone and email

Predictive support is the next wave

every day. Being able to meet

and others seek to use social

in the customer service revolution.

these

Fix problems before they happen and delight customers in the process.

26

BUSINESS An enterprise app can be especially useful if your business runs an online platform. You can design an app to

collect

behaviour,

data take

on care

consumer 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.

Deploying apps to employees

• Internal communications (Employee handbooks, Induction etc)

Enterprise apps can be designed to optimize work tasks by providing employees with instantaneous access to the information they need to do lounge or engaged in a meeting with up-to-the-minute data on their mobile device through enterprise apps that are managed and updated

through

a

centralized enterprise app store.

identified t

h

e

following formats as

being

most popular amongst clients who apps

distribute to

their

employees: • Sales support ensuring remote sales team always

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.

• Reporting (to clients, senior management and customers)

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

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

Fliplet have

outcome

quizzes etc)

their jobs. Whether sitting in an airport a client, employees can easily access

The

• Training (Self assessment,

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.

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

grant

available

types under

of

testing. A maximum grant amount

and will fund up to 35% of a Medium

the

of £25,000 is available and TSB will

enterprise’s costs or up to 45% of a

fund up to 60% of an SME’s total

Small/Micro enterprise’s costs.

Smart scheme:

project costs.

The Proof of Market grant is designed to

enable

companies

assess

The Proof of Concept grant allows

proportion of the total project cost.

commercial viability through market

companies to explore the technical

A company will have to match Smart

feasibility and commercial potential

Grant funding with its own resources

of a new technology, product or

and/or investment.

research

to

A Smart Grant will only make up a

and

process. A maximum grant amount of £100,000 is available and TSB will

TSB requires a company to provide

fund up to 60% of an SME’s total

evidence that it can obtain the

project costs.

remainder of the funds to complete the project. One of the key features

The of

Development Prototype

grant

receive a grant from

allows companies to

Innovate

develop an innovative

also gain investment

technology,

under

product

UK the

and Seed

or process, has a

Enterprise Investment

maximum

Scheme at the same time

grant

amount of £250,000

30

of a Smart Grant is that a business can

and all eligible costs of the project,

BUSINESS 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.

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 â‚Ź50 million, a balance sheet total of no more

employees.

Smart

encourages

applications from pre start-ups, startups and small and medium-sized businesses undertaking R&D providing they meet the SME requirement. The SME status of a business can affect the

than â‚Ź43 million and not more than 250

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.

31

32

BUSINESS

amount of grant that can be claimed.

If an application relates to a software

or general improvements in efficiency,

Smart grants are a fantastic opportunity

no matter how much merit there may

for innovative businesses to take

be to such a development.

advantage of Government funding.

project, eligibility for the grant will

In conjunction with SEIS, they make

rely upon whether the technical

businesses

development that the project produces

Timeframe

is a “step� change in how computers

hugely

attractive

to

investors. and should be considered as a viable and valuable source of finance

are programmed or used. However,

There are 6 rounds of Smart Grants

for all innovative startups.

the scheme is unable to support

each year. TSB take up to 1 month

projects that lead to incremental

after the relevant round has closed to

For

development, increased functionality

review the application.

interact.innovateuk.org

more

infomation

visit:

33

Providing service o

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BUSINESS

on demand Whether or not you have heard

arrive and how much it will cost to take

including Fulham, Soho, Marylebone,

of the “on-demand economy”, if

you to your destination.

Westminster

you have ever used a smartphone

and

Notting

Hill.

Following an overwhelmingly positive

application to ring up a driver

Valued at $40bn (£25.5bn), Uber is

response (just check out some of the

or to get a handy-man to clean

such a phenomenal success that many

comments on their twitter handle @

up your house then you know

other companies have adopted their

henchmanapp), the business is looking

what it is – a speedy and

business model and are “Uberising”

to grow and expand into the wider

efficient way of connecting

industries such as retail, healthcare and

London boroughs so even those in

with individuals who can

personal services. Arun Sundararajan,

zones 3-4 can benefit from dropped-

attend to your needs as and

a professor at New York University’s

off Ibuprofen. In the same way as Uber

business school who has studied the

allows registered mini cab drivers

rise of the on-demand economy

to log into the app and do a pick up,

The rise of the on-demand economy

comments that “These services are

perhaps between pre-booked jobs,

can be attributed, in part, to the

successful because they are tapping

Henchman has the potential to allow

pairing of the workforce with a

into people’s available time more

pre-approved drivers with a vehicle

smartphone. A large number of tech

efficiently ... You could say that people

to make a few drop offs in their

startups have taken advantage of this

are monetizing their own downtime.”

downtime.

professionals

Along the same lines is “Henchman”,

Along similar lines is Health Vine, an

with independent contractors, thus

an app that will bring you anything you

innovative business in the health space.

supplying labour and services on

want delivered to you in 60 minutes.

Through Health Vine, users can submit

demand. The tech giant Uber is one

Whether it is medicine from the

questions about health and welfare to

such company.

pharmacy, red wine for your Friday

verified health professionals. Users can

night in, that Gourmet Burger from

also book a paid-for online appointment

A ride-hailing service, Uber is one of

your favourite restaurant or just a

with a health care professional of their

the highest-valued technology startups

MacDonald’s, a Henchman will deliver

choosing to discuss issues of concern.

to emerge in recent years. The value of

to your address.

At a basic level this could be an online

when you need them.

boom by creating systems that match time-starved

urban

Uber lies in the fact that it takes out all

visit to a private GP using Skype; at

the stress of travel and gets you where

Henchman have created an easy

a more complex level this may be

you want to go. On demand. You no

to use mobile platform that uses

specific advice on complex issues for

longer have to stand anxiously in line

location-based technology to find

which standard accessible healthcare

at a taxi rank, or to wave awkwardly

where you are. The user tells the

provision may not be suitable.

on a street corner attempting to hail

app what he wants and presses “get it

a taxi. One click on your smartphone

now”. Henchman currently operates

Health Vine allows health professionals

and you can see how soon a car will

within zones 1-2 of central London

to contribute and monetise some

35

of their free time. However, Health

providers are constantly

Vine’s model is more than simply an

innovating to try to

“Uber for healthcare”. Health Vine

provide

have combined the service provision

response that meets the

by health professionals with a social

on demand requirement

element allowing health professionals

without

and users to share experiences,

their ability to operate their

tips and information to the wider

business.

the

quick

impacting

on

Health Vine community. Health Vine are creating a database of valuable

A potential risk with the current

experience and information about

trend of developments in this area is

medical conditions that in time will

that the on demand economy ceases

provide users with context as well as

to be about maximising the usage

specific medical advice.

of down time and becomes about providing all services on demand.

One of the fascinating insights that

Returning to Uber, the huge success of

businesses in the on demand economy

their platform has lead drivers to work

may be able to provide is the profile of

solely for Uber. For drivers who may

user who requires the almost instant

be reliant on demand whether or not

gratification provided by on demand

they operate through Uber, this may

services. Are users younger more tech

not represent a significant alteration

savvy people, or have the benefits of on

in their risk. But for other service

demand been picked up by the older

providers, a move wholesale to serve

generation, so called “silver surfers”?

consumers on demand can have a very

Does the on demand economy serve

significant impact on their business.

a particular socio-economic group or are its benefits utilised by people from

Take your hairdresser as an example.

a range of economic backgrounds?

Historically

additional appointments.

Some on demand leads generated (though

may

have

regular significant

clients 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

hairdresser

swamped by on demand customers

probably relied on regular clients who

who potentially displace the regular

demand

either rebooked each month for their

customers. Mrs. Bloggs who is used to

services through technology amass

hair cut or rang a day or two before

be able to ring a day or two before

huge quantities of data about their

to book, confident that they could

her appointment now finds that the

users, their usage of services and a

be fitted in. The hairdresser knew

hairdresser is booked up. She books

number of other personal and generic

(probably weeks in advance) exactly

elsewhere and discovers that “Blow

characteristics. This information can

how busy he would be and how much

and Go” down the street are just as

(and is) used to analyse trends and to

revenue would be generated in respect

good and revolutionise her hairdo.

better understand what drives people

of any particular working day. He

She starts going there instead.

to require services on demand. What is

could also predict with a fair degree of

clear is that the concept of on demand

accuracy when Mrs. Bloggs would be

Over time, our hairdresser may be

has impacted all areas of service

in for her monthly colour or when Mr.

hugely successful with on demand

provision including those services

Smith would book for his fortnightly

customers, but in the process he has

that are not (and cannot truly be)

cut. The on demand economy may

lost his regular clients and now has few

on demand. Increasingly consumers

have initially provided benefits in that it

bookings made in advance. He has

want instant gratification and service

allowed him to fill up empty time with

no guaranteed workflow lined up in

Most

36

providers

of

on

the

local

BUSINESS

advance and no ability to predict his future cashflows with any degree of certainty. Essentially his business model has changed and operating risks

So,

in

have increased.

the long run, will exposure to the on

Monetising un-used time makes good

demand economy

business sense. Whilst on demand

be simply about

may increase short and long term

maximising

revenues, it may also significantly

downtime

increase operating risks and may

will on demand

require a greater expenditure on

become a basic

marketing and advertising to ensure

non-negotiable

that the consumers with a lower

business

degree of brand loyalty know and use

mantra? Only

the service provider.

time will tell.

or

37

VIDA CRUISES Whether you’re a seasoned sailor or a nautical newbie, sea cruises offer endless entertainment, unparalleled panoramic views and flexibility 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.

Cruises by the Crew:

Living la Vida Loca:

We’ve all had those frustrating customer service interactions; you’re asking

With its founder having personally

the question but it remains unanswered. Not because your question is overly

been on hundreds of cruises, Vida

difficult. And certainly not because you’ve called the wrong number! Rather

is able to offer its customers a much

the advisor is uninformed, disengaged and quite frankly couldn’t care less

greater insight as to what to expect

about the business let alone the customers’ actual needs.

on board, provide extensive advice on where to visit at docking ports and

Well, when parting with your cash for a holiday, as a customer you want the

most importantly, where to get the

best customer experience.

best ice cream!

Vida Cruises operates from a place of wholesomeness, honesty and hands-

The company promotes cruises all

on experience. Company director Tiago Cesar, has worked on-board cruise

across the globe whilst offering tailored

ships for over 12 years and offers a unique insight into what truly makes each

advice to suit its customer’s individual

cruise special alongside unrivalled local knowledge of destinations all over the

needs. So whether you are looking

world. Through this ‘life on-deck’ mantra, Vida Cruises are able to offer the

for family fun, a romantic retreat or

ultimate advice and deals for its customers – they certainly know the docks

some simple self-indulgence, you’re

from the harbours!

guaranteed to find the perfect cruise.

38

TRAVEL

39

A Couple of Current Cruises: 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:

Anthem of the Seas:

Britannia was the newest and largest

Taking cruises to a whole new

member of the P&O fleet when she

level, Anthem of the Seas boasts an

launched in March 2015. Designed

incredible range of ground breaking

exclusively for British holidaymakers,

features that are new to the cruising

she offers 15 decks of fantastic

world. One that particularly stands out

entertainment, leisure, and dining

is the brand new North Star. Elevating

facilities. Britannia will include many

guests 300 feet above sea level, this

popular P&O features such as the

jewel-shaped capsule offers some

Oasis Spa and The Crow’s Nest, plus

breathtaking views of the surrounding

great new innovations including The

area and is an entirely new concept

Cookery Club, The Limelight Club

for the Royal Caribbean fleet. Other

and The Studio.

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.

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TRAVEL

16

Club Workspace London Bridge, London SE1 3ER

14

Google Campus 5 Bonhill Street, London EC2A 4BX

JUNE 2015

6:30 PM

18

Club Workspace Clerkenwell London EC1R 0AT

RAISING INVESTMENT IN THE UK

MAY 2015

6:30 PM

RAISING SEIS INVESTMENT

APRIL 2015

6:30 PM

INTRO TO STARTUP LAW obtain your free ticket at www.buckworths.com