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UNLOCKING YOUNG UK ENTREPRENEURS/ Zero Gravity founder Joe Seddon P.66 THE CITY OF SPIRES (AND STARTUPS)/ London’s startup resilience P.32 UK TECH GROWTH INSIGHTS / The Founders Forum Group CEO Carolyn Dawson P.8 ORBEX CEO PHIL CHAMBERS/ THE MAN ON A MISSION TO BUILD AND LAUNCH THE UK’S FIRST VERTICAL LAUNCH ROCKET P.24 September 2024 / Entrepreneur.com STARS SHOOTING FOR THE UNITED KINGDOM
BOLD FOR THE BOLD UNITED KINGDOM
Contents/September 2024 P.24 Shooting for the Stars ORBEX CEO PHIL CHAMBERS is on a mission to build and launch the UK’s first vertically-launched orbital rocket P.32 The City of Spires (and Startups) A look at how London is holding its own among global startup hubs. P.40 Let’s All be “Day One” People And not “one day” dreamers, says Whalar Group co-founder and co-CEO NEIL WALLER. FEATURES → Phil Chambers is the CEO of Orbex, a private, low-cost orbital launch services company. 3 September 2024 / ENTREPRENEUR.COM /
DOWNLOAD YOUR DIGITAL EDITION HERE UNITED KINGDOM Out now in the UK
Contents September 2024 8 Growth on the Agenda After the successful staging of London Tech Week 2024, Founders Forum Group CEO CAROLYN DAWSON shares her notes on the UK tech scene. 43 Deal or No Deal An entrepreneur’s playbook for bargaining success. 48 From Pitch to Payday Five key insights to help you secure funds for your business. 50 Fostering Equity Hatch Enterprise Managing Director REBEKAH CAPON lists five notes that can help underrepresented entrepreneurs carve their own paths to success. IN THE LOOP 53 The Ties That Bind The co-founder of Lottie, WILL DONNELLY, is here to debunk the myth that family and business don’t mix. 58 Franchising in the UK: Tips, Trends, and Triumphs Explore top expert advice, tips, and success stories to fuel your entrepreneurial journey. 66 Powering the Next Generation Zero Gravity founder and CEO JOE SEDDON explains how the potential of Britain’s young entrepreneurs can be unlocked. 13 A Woman’s Woman How TRINNY WOODALL disrupted beauty norms (and won). 18 From Blogging to Big Bucks Insights (and inspiration) from SaaStock founder and CEO ALEX THEUMA. ‘TREPONOMICS STARTUP SPOTLIGHT BUSINESS UNUSUAL FEATURES EDITOR Patricia Cullen patricia.cullen@bncb2b.com CEO Wissam Younane wissam@bncpublishing.net MANAGING DIRECTOR Rabih Najm rabih@bncpublishing.net ART DIRECTOR Simona El Khoury EDITORIAL TEAM Aby Sam Thomas, Tamara Pupic, Aalia Mehreen Ahmed MEDIA SALES MANAGER Olha Kovalova olha.kovalova@bncb2b.com REGIONAL DIRECTOR Andy B. andy@bncb2b.com CONTRIBUTING WRITERS Rebekah Capon, Joe Seddon, Neil Waller, Matt Ford, Will Donnelly SUBSCRIBE Contact subscriptions@bncb2b.com to receive Entrepreneur United Kingdom every issue. COMMERCIAL ENQUIRIES sales@bncb2b.com WWW.ENTREPRENEUR.COM/EN-GB Access fresh content daily on our website All Rights Reserved 2024. Opinions expressed are solely those of the contributors. Entrepreneur United Kingdom is officially licensed exclusively to BNC B2B In United Kingdom by Entrepreneur Media Inc. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Entrepreneur United Kingdom are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock. 20 Wenlock Road, London, N1 7GU ↑ TRINNY WOODALL is the founder and CEO of Trinny London. U N I T E D K I N G D O M entrepreneurMediaUK entrepreneurUK entrepreneurmedia-uk entrepreneurmedia.uk 5 September 2024 / ENTREPRENEUR.COM /
6 / ENTREPRENEUR.COM / September 2024 Editor’s Note/ Editor’s Note/ PIONEERING INNOVATION; CELEBRATING VISIONARIES Say hello to Entrepreneur United Kingdom W elcome to the inaugural edition of Entrepreneur United Kingdom! We’re delighted to present this first issue, crafted with passion, purpose, and an unyielding commitment to showcasing the best of British entrepreneurship. As we embark on this journey, we’re here to celebrate the visionaries, disruptors, and dreamers who are redefining what it means to be an entrepreneur in today’s fast-evolving world. At the heart of this issue is a story that’s truly out of this world. We are thrilled to feature Phil Chambers, CEO of Orbex, a cutting-edge space agency that’s taking giant leaps towards the stars. Orbex’s upcoming space launch is not just a technological marvel, but a powerful testament to what can be achieved with determination, innovation, and a touch of audacity. Chambers’ leadership at Orbex exemplifies the spirit of entrepreneurship that we’re here to champion: the courage to break new ground, and the vision to see beyond the horizon. As we navigate through these pages, we also turn our focus to London, the UK capital that has become a thriving hub for startups and innovation. In this vibrant metropolis, where historic charm meets modern dynamism, entrepreneurs are finding fertile ground to turn their ideas into reality. Carolyn Dawson, CEO of Founders Forum Group, is one of the key voices helping to shape this landscape. Her insights into what makes London such a fertile ecosystem for startups are invaluable, and her work in connecting entrepreneurs with the resources they need is nothing short of transformative. But it doesn’t end there. This magazine is packed with stories, strategies, and insights that will inspire, inform, and empower you, no matter where you are on your entrepreneurial path. From exploring the latest trends in tech with Trinny Woodall, to top tips to attract investors, we’ve curated content that speaks to the diverse challenges and opportunities facing today’s entrepreneurs. This edition also features entrepreneurs like Alex Theuma of SaaStock, who provides key advice for scaling in the competitive SaaS sector; Will Donnelly, co-founder of Lottie, a company that has rapidly become a leading UK care home marketplace, and many, many more. As we launch Entrepreneur UK, we invite you to join us on this exciting journey. Together, we’ll explore the uncharted territories of innovation, celebrate the victories, and learn from the setbacks. The entrepreneurial spirit in the UK is alive and thriving, and we’re here to capture it all. Thank you for being part of our very first issue. The future of entrepreneurship is bright, and it’s an honour to have you with us as we chart the course ahead. Patricia Cullen Features Editor, Entrepreneur United Kingdom
14 - 18 OCTOBER DUBAI WORLD TRADE CENTRE MON 11 AM - 5 PM TUE - FRI 10 AM - 5 PM Where the visionaries and policy makers meet. Exhibitors 6,700+ Speakers 1,800+ Visitors 187k THE LARGEST TECH & STARTUP EVENT IN THE WORLD Global Collaboration to Forge a Future AI ECONOMY # G I T E X G L O B A L g i t e x . c o m ORGANISED BY Scan the QR code to SECURE YOUR PASS
8 / ENTREPRENEUR.COM / September 2024 LTW is produced by the Founders Forum Group in partnership with Informa Tech and London & Partners. Since its incep- tion in 2005, the Founders Forum Group has estab- lished a premier network for European entrepre- neurs, and its 2023 acquisition of Tech Nation, a platform for tech growth, offering insights, connec- tions, and support to help founders and teams succeed from startup to scaleup, further strength- ens its mission to support tech entrepreneurs, scale startups, and offer a unified platform for UK tech founders. And LTW? It brings all this innovation and energy into one spectacular showcase. In an interview with Entrepreneur United Kingdom, Carolyn Dawson, CEO of the Founders Forum Group, shared her insights on a variety of topics, ranging from her optimistic outlook on artificial intelligence (AI), to the critical “secret sauce” that defines successful founders. Here are more excerpts from our conversa- tion with her on the side-lines of the event: }In your opinion, what were the three most valuable takeaways from this year’s London Tech Week? From the onset, we were thrilled because we moved In The Loop/ Growth on the Agenda After the successful staging of London Tech Week 2024, Founders Forum Group CEO Carolyn Dawson shares her notes on the UK tech scene by PATRICIA CULLEN H osted from June 10th-12th, 2024, London Tech Week (LTW) is the UK’s premier tech event, which continues to grow in scale and impact. Featuring 45,000 delegates from 165 countries and 5,500 innovative startups, this annual event underscores the impressive expansion of the UK tech sector. To accommodate the growing interest in the scene, LTW 2024 was held at Kensington Olympia, nearly twice the size of last year’s Queen Elizabeth II Centre. This larger venue hosted keynotes from Dr. Nicola Hodson, CEO of IBM UK & IRELAND, and insights on “leading in the era of artificial intelligence” from Clare Barclay, CEO of Microsoft UK, and Mark Chaban, Microsoft’s CTO of Customer Success, along with numerous other experts and several exciting fringe events. It’s no wonder LTW 2024 drew in the crowds. ↑ Carolyn Dawson is the CEO of the Founders Forum Group.
9 September 2024 / ENTREPRENEUR.COM / to a venue that was nearly double in size, and we had a phenomenal result of approximately 20,000 people attending LTW –45,000, if you count the many fringe events throughout the week. If LTW is a platform for the sector, it really did mirror the energy and enthusiasm for tech right now, and the positive sentiment that the UK is in a brilliant position on the global stage. We also had a phenomenal number of startups, over 6,000, coming to the event, and meeting and interact- ing with corporates and larger tech players. That was also really fantastic to see come to life, signifying LTW as an event that truly brings the whole ecosystem together, from later stage enterprises to startups and investors. This year, there was less government presence with the elections, but policymakers and key advisors that have an interest in ensuring the UK has got the best tech sector possible were present. However, the biggest takeaways were AI-related. While we expected that to be the week’s biggest theme, if we think about the AI Safety Summit in November last year and the UK’s approach around that time, it was perhaps one of trepidation, regula- tion, and uncertainty. At this year’s LTW seven months later, it was much more about showing tangible applications, really showing how enterprises can enhance their productivity and their efficiency using AI. Major companies like NatWest demonstrated how they’re using AI day-to-day to build more efficiency and creativity into their customer service. With technology ramping up at a very fast pace, there is a real sentiment of the time is now. Companies that do not adopt AI and what it has to offer run a very real risk of being left behind–and quickly. }The UK government says it hopes to become a tech superpower by 2030. Is the UK on course to achieve this, and what can help build momentum? The UK has the third largest tech sector after the US and China, and it ranks as the number one destination in Europe for AI investments, highlighting the country is already a tech superpower on the global stage. Obviously, we can never be compla- cent, especially as the pace changes so fast. There are other countries in Europe doing well, so the UK can’t take its foot off the gas. In July, the UK held a general election that resulted in Keir Starmer’s Labour Party coming into power. The message to any govern- ment is clear: we must continue to strongly support and nurture the tech sector. It has huge potential for economic growth, and it needs to be front and centre. To build momen- tum, Starmer must prioritise both promotion and celebration of the tech sector, ensuring its continued growth. There are plenty of startups in the UK, the focus should be on harness- ing more scaleups. Answering key questions is crucial to achieving this goal. How can we achieve the best financial conditions to attract fast growth tech companies? How can the UK attract outside investment? How can we ensure that the UK is front and centre in our education system, but also bring in enough internation- al talent to maintain our position? This is especially important when you’re looking at deeper tech areas like climate, deep tech, quantum, or AI. The success of these areas is really down to having skilled talent, guaranteeing we get the best next generation of entrepreneurs and companies. }What do you believe are the key differences between the UK, the US, and Asia in terms of fostering unicorn startups? For UK companies to grow at scale, they have to think about their international growth longer term, but I don’t know if comparisons are neces- sarily helpful. While it’s down to the investment size and scope, we are seeing significant US investors like Sequoia Capital and Institutional }} RATHER THAN FOCUSING ON COMPARISONS, THE KEY IS TO ENHANCE COLLABORATION BETWEEN ECOSYSTEMS.” “ ← From left: Mark Bergen (Bloomberg), Philip Belmant (Zilch), Nadine Hachach- Haram (Proximie), Sir Colin Humphreys (Paragraf)
10 / ENTREPRENEUR.COM / September 2024 Venture Partners, choosing the UK as their headquarters for Europe, and making sizable investments here. The Pension Reforms highlight the need for educating stakeholders on risk appetite to attract more institu- tional-scale investments. Over the past decade, both the UK and Asia have developed robust ecosystems. The exponential growth seen in UK-based businesses is especially noteworthy, and recent years have seen a rise in deep tech firms. Additionally, verticals like retail are gaining traction thanks to AI and demonstrating exceptional perfor- mance, further enhancing their attractiveness. This diverse growth landscape underscores the UK’s accelerating pace in various special- ised areas. Rather than focusing on compari- sons, the key is to enhance collabora- tion between ecosystems. The UK and Asia benefit from a robust trade agreement and network, facilitating growth and scalability for companies. Specialising in areas such as fintech, climate, food, and health, these sectors offer substantial growth opportunities. Ensuring sufficient large-scale investment is also crucial, especially as the UK leads in critical areas like climate innovation. }Is unicorn status the ultimate benchmark for a startup's success? Over the past year, the UK has witnessed the emergence of four new unicorns, including Quantexa and Wayve. These companies are relatively young, highlighting the significant potential for more AI-driven unicorns to originate in the UK. Wayve secured over US$1 billion to develop AI for self-driving vehicles in May, marking the largest European venture capital (VC) investment in AI to date. While achieving unicorn status is noteworthy, equally important is building companies with robust, renewable revenue streams and scalable business models. This dual approach signifies substantial success in the tech ecosystem. }Which UK businesses are spear- heading innovations in 2024? In the Tech Nation Report 2024 that we released in June, we announced there are 1,800 VC-backed AI startups, and over 20 AI unicorns in the UK. Tech Nation’s Future 50 pro- gramme, established several years ago, has propelled numerous outstanding companies to success, with a third of UK unicorns complet- ing the programme. Notable exam- ples include Zilch, Deliveroo, Zoopla, Revolut, and Starling Bank, all thriving within the UK and globally, particularly showcasing the nation’s strong fintech sector. Also, Patchwork Health is revolu- tionising healthcare, particularly in staffing, offering significant benefits to the National Health Service (NHS) and demonstrating scalability on a global level. Another standout company is PolyAI, leveraging AI to develop conversational assistants for enterprises. This innovation enhances customer interactions, significantly boosting efficiency in problem-solv- ing processes. }Can you offer one bit of advice for aspiring tech entrepreneurs looking to make an impact in the industry? My advice for founders is to first identify their unique strengths—their “secret sauce.” Then, surround yourself with an executive team that complements your strengths, while acknowledging and filling any skill gaps. Embrace AI technologies to maximise efficiency and leverage available tools for scaling your startup rapidly, rather than solely relying on expanding your workforce. It’s also crucial to define a clear long-term plan aligned with your vision. Whether aiming for an initial public offering or preparing for a strategic sale, ensure that this vision aligns with the expectations of board members and investors from the outset. This alignment fosters a cohesive strategy, top talent retention, and enhances the likelihood of achieving long-term success. IF LONDON TECH WEEK IS A PLATFORM FOR THE SECTOR, IT REALLY DID MIRROR THE ENERGY AND ENTHUSIASM FOR TECH RIGHT NOW, AND THE POSITIVE SENTIMENT THAT THE UK IS IN A BRILLIANT POSITION ON THE GLOBAL STAGE.” → From left: Timothy Armoo (Fanbytes), Roham Gharegozlou (Dapper Labs), Lilly Sabri (LEAN), Jordan Schwarzenberger (Arcade Media)
11 September 2024 / ENTREPRENEUR.COM / }What can Entrepreneur United Kingdom expect from the Founders Forum Group in the near future? We will be at Olympia again next year for LTW, building on this year’s growth. We anticipate even greater growth with increased participation from enterpris- es, even more international delegations, startups, scaleups, and investors as we approach our 20th year of Founders Forum Global punctuating the week. This milestone will be a mega celebration of our impact on the entrepreneurial ecosys- tem and our success in connecting founders with enterprises. We are expanding our presence not only in Asia and Europe, but also in the Middle East, reflecting the Founders Forum Group’s global perspective, strategi- cally planning significant milestones and events to commemorate this journey of growth and collaboration. We have also begun exploring new verticals such as critical technologies, defence, and longevity, which are key areas of focus for us. We are collaborating with the government to advise founders and shape policies in these crucial areas, particularly in AI, to ensure responsible growth while enhancing the UK’s competi- tive edge. Through our work at Tech Nation, we are committed to producing research and insights that continually support entrepreneurs. Our focus remains on facilitating connections and helping entrepreneurs access the right investors, clients, and support networks. We are especially excited about programs like Future 50, Upscale, and Libra, which support underrepre- sented founders. We’re also enthusiastic about Climate and Creo, a groundbreaking growth program launching later this year, focused on disabled founders and innovations for people with disabilities. These initiatives underscore the Founders Forum Group’s dedication to fostering innovation and inclusivity in the tech ecosystem and beyond. COMPANIES THAT DO NOT ADOPT AI AND WHAT IT HAS TO OFFER RUN A VERY REAL RISK OF BEING LEFT BEHIND–AND QUICKLY.” “ → From left: Julia Hartz (Eventbrite), Lisa Mae Brunson (Wonder Women Tech), Aaron Rajan (Unilever) → From left: Daphne Koller (Insitro), Lord Nick Markham (Cignpost Diagnostics & ExpressTest), Thomas Clozel (Owkin), Lara Lewington (BBC Click)
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13 September 2024 / ENTREPRENEUR.COM / A Woman’s Woman How Trinny Woodall disrupted beauty norms (and won) by PATRICIA CULLEN ← Dubomedy co-founder Mina Liccione is a performance artist, tap dancer and comedian. IMAGES COURTESY TRINNY WOODALL ← TRINNY WOODALL is the founder and CEO of Trinny London.
14 / ENTREPRENEUR.COM / September 2024 B/The Big Idea I t is the toughest thing to let go of your dream, but the thing about being an entrepreneur is, you never just have one dream,” says Trinny Woodall. This statement by Woodall points to her ability to always pivot and focus on what truly excites her as an entrepreneur—which, in turn, has been the driving force behind her success with her UK-born beauty brand, Trinny London. Her journey from digital innovator to beauty powerhouse demonstrates how resilience and a strategic approach can turn rejections into remarkable success. THE ORIGIN STORY “I’ve always been intrigued by business,” Woodall says. “I launched my first venture at just 16 while still in school.” Fast forward to 1999, and Woodall co-founded Ready2Shop.com with Susannah Constantine, a direct-to- consumer brand that almost certainly set new standards for the industry. However, despite early promise, the nascent digital market presented challenges, but the experience offered invaluable lessons. Reflecting on the early 2000s dot-com boom and bust, Woodall notes that rapid—often hasty— decisions led to expensive mistakes. “We were ahead of our time, and without a viable monetisation model, it was challenging to sustain. I learned that timing and financial planning are crucial.” Early “big”’ hires also meant that Ready2Shop.com quickly burned through its funding, forcing Woodall to close the business. Years later, when building Trinny London, Woodall waited to hire in experts with deep industry experience until three years in. This time around, she also chose to bootstrap the business so as to ensure it was in a strong place before raising venture capital. Looking back on her experiences, Woodall advises aspiring entrepreneurs to be ready for the unexpected. “Startups are a numbers game. I approached 250 investors to secure 50 meetings, and ultimately one investment. Persistence and learning from each rejection are key.” Reflecting on her journey, she acknowledges that failures have been as instructive as the successes. The early closure of Ready2Shop.com, despite its potential, highlighted the importance of timing and adapting to market conditions. Woodall also cautions entrepre- neurs against pursuing a path solely due to obligations, commit- ments, or partnerships if their instinct says otherwise. “Some- times we go down a path because we feel that we’re expected to... and sometimes it’s very challeng- ing to listen to our intuition, and choose another route,” she says. She recalls developing two business ideas in tandem, one of which was more developed than Trinny London. After discussing both with a friend, his remark— ”the light came on in your eyes when you talked about Trinny London”—highlighted her genuine passion for the idea, and convinced her to pursue it instead. → With multifunctional products, personalised solutions, and a focus on simplifying your routine, TRINNY LONDON is revolutionising beauty through custom formulations, artificial intelligence-driven recommendations, authentic representation, and savvy marketing.
15 September 2024 / ENTREPRENEUR.COM / 15 THE BIRTH OF A BEAUTY REVOLUTION Trinny Woodall’s early experiences set the stage for her innovative career. During her time on What Not To Wear, the BAFTA-nominat- ed BBC television show, Woodall noticed that women struggled to find beauty products that suited them and their needs, often getting caught up in fleeting trends. This insight sparked her passion for creating person- alised beauty solutions. Welcome Trinny London. With multifunctional products, personalised solutions, and a focus on simplifying your routine, the brand revolution- ises beauty through custom formulations, artificial intelligence (AI)-driven recom- mendations, authentic representation, and savvy marketing. “Through my work on TV, I saw women of all ages struggling with beauty norms. I realised there was a gap— women needed products tailored to their individuality, not just seasonal trends.” Woodall’s expertise in creating a personalisation- focused online business, combined with her deep emotional insight into women’s needs, has been crucial in advancing her tech venture. With money raised through the UK’s Seed Enterprise Investment Scheme and her own funds, she embarked on creating a beauty brand addressing the personalisation gap. “I knew I wanted to sell online—I got the bug in the late nineties. I loved the idea, you have a global audience, and you can ship around the world immediately,” she says. The emotional intelligence Woodall gained from working with thousands of women around the world helped her build a brand based on trust and genuine connection. Her vibrant social media presence, engaging millions, is also a major factor in her brand’s success. She underscores the value of trust by avoiding retouching in Trinny London photos and featuring over a hundred non-professional models, aged 17 to 83, to showcase the products across different }} I REALISED THERE WAS A GAP—WOMEN NEEDED PRODUCTS TAILORED TO THEIR INDIVIDUALITY, NOT JUST SEASONAL TRENDS.” ← Dubomedy is behind several community projects like Clowns Who Care, through which they host arts camps, shows and workshops at refugee camps and centers for children with determination. ↓ TRINNY LONDON’S intense peptide moisturiser, Bounce Back.
16 / ENTREPRENEUR.COM / September 2024 B/The Big Idea skin tones, hair colours, and ages. “The most important thing is to be candid and honest. You get trust through an emotional connection, not through how the product works.” Woodall finds it difficult when entrepreneurs use arbitrary figures in five-year plans. Instead, she opts for more realistic assumptions. Right at the beginning of Trinny London, she projected that 3% of her followers will make a purchase—a figure she felt she could believe in, and that made her projections more credible. Later, her first venture capital investor showed her a graph of Trinny London’s five-year plan and re- marked, “You’re the only person we’ve invested in where the numbers turned out to be exactly as projected.” By setting realistic sales targets and rigorously testing her business plan, Woodall achieved sustainable growth and market validation, goals that many startups aim for. When launching Trinny London, Woodall had a fundamental understand- ing of makeup, but needed to dive deep into the technical side—which included prototypes, formulations, and packag- ing. “It was a steep learning curve, but it was essential. I think everything I’ve done, I’ve learnt on the fly, but I’ve really been determined to learn.” Woodall emphasises the need to be involved in every aspect of a business in its early stages. As the company grows and tasks are delegated, it’s crucial to understand your team’s processes in finance, operations, customer service, technology, marketing, and perfor- mance—even if you don’t know every detail. “If you’re going to challenge your team on things and work with them to grow, you need to be able to have a certain amount of knowledge,” she says. EMBRACING A DIGITAL- FIRST STRATEGY As a digital-first beauty brand, technology is key to Trinny London’s success. The use of AI and personalised experiences has fueled growth and kept the brand at the cutting edge of beauty industry innovation. “It’s about using more AI in the business, as the work we do with skin analysis, we can do with augmented reality (AR) and AI,” she says. Trinny London leverages technology to enhance customer connections and streamline shopping. The Match2Me algorithm assesses each customer’s skin, hair, and eye combi- nation to recommend tailored products and shades. This helps customers select items suited to their specific age, skin type, and concerns, avoiding a one-size-fits-all routine. “Today, over 75% of customers use this tech-enabled personalisa- tion service when buying a product from Trinny London, and this is set to increase as the technology rolls into Trinny London’s stores,” she says. In just seven years, Trinny London has evolved from a small team sitting around a table to a major success. Starting with six employ- ees, Woodall focused on creating products that resonated with her audience. “I wanted our brand to be a reflection of real beauty, not just trends, aiming to create products that empower women to embrace their individual- ity.” She advises founders to analyse customer data and tailor products to their needs, reflecting her unconventional marketing approach of using social media for genuine conversation rather than just advertising. “Instead of traditional ads, we engage our STARTUPS ARE A NUMBERS GAME. I APPROACHED 250 INVESTORS TO SECURE 50 MEETINGS, AND ULTIMATELY ONE INVESTMENT. PERSISTENCE AND LEARNING FROM EACH REJECTION ARE KEY.” → Founded in 2017, Trinny London is now one of Europe’s fastest-growing beauty brands.
audience with relatable content that feels like a conversation rather than a pitch,” she says. By making ads indistinguish- able from editorial content, they enhance viewer interac- tion, and the results are impressive. The brand achieved remarkable growth, driven by word-of-mouth and product effectiveness. “One of our hero products, the Plump-Up Serum, became a bestseller because it delivered results. Customers started recommending it, and it took off.” Connections are important when building a business. Believing in the six degrees of separation theory, Woodall believes that regardless of your background, there’s always someone in your network who knows someone who can assist. With time being crucial, Woodall recommends sending a brief, informative email that’s easy to forward, making it simple for others to act on your behalf and make introductions. “A WOMAN’S WOMAN” As 2025 nears, gender bias persists in fundraising, with only 2% of UK investments in female-founded businesses. Despite more women entering venture capital, the field remains 70% male, leading to biassed decisions that disadvantage female entrepreneurs. Woodall advocates for strong networks and practical advice for female entrepreneurs, advising founders to follow up on declines with an email seeking clarification on the refusal. “Sometimes it’s a reason that isn’t so much to do with the strength of your business, but with their remit for how they invest,” she says. According to Woodall, understanding the reason behind a refusal is crucial for entrepreneurs to move forward effectively. Describing herself as “a woman’s woman,” Woodall continues to support female founders, emphasising the importance of a strong network. “I am as supportive as I can be to other female founders because it is important to have that sort of old girl’s network with other women,” she says. Looking ahead, with 160 employees at the head office and 70 in retail, Trinny London is scaling up and staying ahead with fresh ideas. “We’re doubling our retail presence in key markets, exploring AI and AR for personalisation, and planning a major push into the US market. Our goal is to be a global leader in personalised beauty,” Woodall says. The next game plan? Expanding across the US, ramping up the team, and unveiling a flagship store in London—all of which proves that this entrepreneur is just getting started. IT IS THE TOUGHEST THING TO LET GO OF YOUR DREAM, BUT THE THING ABOUT BEING AN ENTREPRENEUR IS, YOU NEVER JUST HAVE ONE DREAM.” “ → TRINNY WOODALL’S vibrant social media presence, engaging millions, is also a major factor in her brand’s success. 17 September 2024 / ENTREPRENEUR.COM /
18 / ENTREPRENEUR.COM / September 2024 B/Strategies A lex Theuma is the founder of SaaStock, the world’s leading community and media platform for the global B2B SaaS ecosystem. While SAASTOCK started out as a blog, it’s now a multi-million-dollar company, hitting US$4.8 million in revenue last year. In an interview with Entrepreneur United Kingdom, Theuma offers a peek into his entrepreneurial journey, sharing actionable strategies for other founders to take inspiration from. Here are excerpts from the conversation. From Blogging to Big Bucks Insights (and inspiration) from SaaStock founder and CEO Alex Theuma by PATRICIA CULLEN → ALEX THEUMA is the founder of SaaStock, the world’s leading community and media platform for the global B2B SaaS ecosystem
19 September 2024 / ENTREPRENEUR.COM / What was your motivation behind starting SaaStock, and how has building a strong community contrib- uted to its success and growth? Entrepreneurs often share a common trait: a lifelong entrepreneurial spirit. From a young age, I was building lemonade stands, creating perfume, selling various items, and doing newspaper rounds. By 16, I had a job at McDonald’s—I was always looking for ways to earn money. In my early 20s, I had business ideas, but felt limited by a lack of capital. If I had known you could bring ideas to life without money, I would have started SaaStock much sooner. Entering my 30s, with 11 years in sales and three in cloud computing, I became increasingly intrigued by SaaS and thought, if I don’t start a business now, when will I, which spurred me into action. Around 2014, I noticed a gap in the SaaS blogosphere. Existing blogs were either from vendors like HubSpot, trying to sell products, or from venture capitalists looking to elevate their profiles. A neutral, community-driven blog didn’t exist. I decided to create SaaScribe, a blog for SaaS founders. Despite not being a writer or having run a SaaS business, I reached out to experts for original content. Within three months, the blog had around 30,000 monthly }} AS SOMEONE WHO RUNS A SAAS EVENTS COMMUNITY BUSINESS, I UNDERSTAND THE CRITICAL ROLE OF BUILDING A STRONG AND CAPABLE TEAM TO ACHIEVE SUCCESS.” ↓ SaaStock helps SaaS founders and their teams scale faster through the most actionable SaaS conference and membership on the planet. IMAGE COURTESY SAASTOCK ← While SaaStock started out as a blog, it’s now a multi-million- dollar company, hitting US$4.8 million in revenue last year
20 / ENTREPRENEUR.COM / September 2024 During the COVID-19 pandemic, there was an influx of money from venture capitalists, leading to numerous investments, the creation of thousands of unicorns, and inflated valuations. Companies hired massively, planning for the next 24 months. But in 2023, due to macroeconomic issues, there was a substantial pullback from investors. The market saw a drastic reduction in available funds, especially at the growth stage. Investors advised their portfolio companies to focus on profitability, leading to numerous redundancies and down rounds, where companies had to raise funds at lower valuations than before. Certainly the period from 2023 to now has been the toughest time in SaaS in the nine years I’ve been running SaaStock. However, there is more investment expected in 2024, with significant hype around artificial intelligence (AI) and substan- tial funding rounds for AI companies. The expectation is that Q4 of 2024 will improve, and by 2025, we will be back on track. The SaaS market is still growing, albeit at a slower rate over the last two years. Despite this slowdown, the growth rate is expected to pick up. Currently, the SaaS market is worth around$350 billion, with projections that by 2030, it could reach $900 billion to $1 trillion. What trends do you anticipate shaping the industry in the coming years? AI is here to stay, and it’s evident that every SaaS company will need to integrate AI, and become, in some sense, an AI company. This integration ties in nicely because AI, while it can be a standalone sector, is fundamentally about enhancing software. Therefore, it’s likely that nearly all SaaS products will incorporate AI. New companies are building AI capabilities from the ground up, while legacy companies are integrating AI into their existing products. This trend will shape the industry over the next few years and possibly even longer. Last year was marked by a significant focus on AI as well as the challenges tech companies faced due to budget cuts, leading to slowed growth. Despite these challenges, AI’s integration into SaaS is becoming a necessity. Both new and legacy SaaS companies are embedding AI into their products, and this will play a crucial role in shaping the future of the industry. What are common scaling mistakes SaaS founders make, and how can they avoid them? First-time founders will inevitably make mistakes; there will be bumps along the road. The biggest mistakes typically revolve around hiring the right people—arguably the number one challenge. People are the driving force behind every business, and getting hiring right is crucial. Whether it’s hiring a Vice President of Sales too early, or just choosing the wrong one, people issues will almost always arise as you scale. You can mitigate these mistakes to some extent, and there are numerous excellent books on the hiring process, but it’s essential to have a thorough process in place. You need to find the right person for your business’s current stage and where you aim to go. Ideally, hire someone who has “been there, done that.” If they haven’t experienced your specific growth stage, or have B/Strategies AI IS HERE TO STAY, AND IT’S EVIDENT THAT EVERY SAAS COMPANY WILL NEED TO INTEGRATE AI, AND BECOME, IN SOME SENSE, AN AI COMPANY. ↓37SIGNALS founder and CEO Jason Fried, beside Alex Theuma, at a SaaStock event in the US. visitors. This success led me to start the SaaS Revolution Show podcast, a Slack channel for founders, SaaS-focused meetups, and a newsletter. The community’s demand for a conference led to the launch of SaaStock in 2016, attracting 700 entrepreneurs from 34 countries. Building an engaged community was key to our success, and it still is today. Through meetups, Slack channels, and our annual conference, we have fostered a thriving community that continues to support SaaStock’s growth. How do you view the rapid growth of the SaaS market, and its attractiveness to entrepreneurs and investors? The SaaS industry has grown rapidly for most of the time I’ve been running SaaStock. However, there was a significant market correction last year.
21 September 2024 / ENTREPRENEUR.COM / only worked for established companies, they might not be the right fit, despite an impressive resume and big-name logos. When scaling, consider using executive search companies. Although headhunters are expensive, they often provide signifi- cant value. Also, don’t go it alone. Being part of a support network is invalu- able. At SaaStock, we offer the SaaStock Founder Membership, offering Traction, Growth, or Scale packages, depending on the stage of their business. These memberships provide the right support network and education, bringing peers together to discuss challenges, opportunities, plans, problems, and progress. This network helps keep each other accountable, and makes the journey less lonely. From your experience, what are the critical factors investors look for when evaluating early- stage startups? When you’re in the pre-seed and seed stages, you won’t have the metrics that investors at later stages want to see, like revenue and net retention. Without these key performance indicators (KPIs), investors are essentially making an educated bet on the team. They look at whether the team is the best group of individuals to execute the vision and build the platform or solution. If you’re building something in a space where you have experience—say, after working for 10 years in the sector, or studying relevant topics in university—this will certainly be advanta- geous. However, investors back the team first and foremost. For example, my fund, BackFuture Ventures, invests at the pre-seed and seed stages, and our primary focus is the team, particu- larly the founder and CEO. Are they impressive, smart, and well-suited to execute their vision? We also look for grit and resilience—traits often demonstrated through overcoming hardships. In addition to team strength, the vision must be compelling. The SaaS market is saturated, especially in areas like marketing and sales tech. A new startup needs to offer something innovative, something that does things differently, and can poten- tially become a market leader. If a startup is merely replicating what already exists, it won’t generate excitement. For me, the hierarchy of importance is team, vision, product, and then market size. As someone who runs a SaaS events community business, I understand the critical role of building a strong and capable team to achieve success. What are the most valuable lessons you’ve learned about building and leading a successful conference in the tech industry? Community is crucial, and it’s the core of what we’re about. Without an engaged audience and super fans, the conference wouldn’t be successful. Our community will help us prevail, and they will lead us to become the best SaaS conference on the planet. Understanding this—and staying focused on it—is essential. }} I’M VERY OPTIMISTIC ABOUT THE FUTURE OF SAASTOCK, AND WE HAVE A 10-YEAR VISION TO SCALE THE COMPANY 10X.”
22 / ENTREPRENEUR.COM / September 2024 People and hiring are equally important. Over the last nine years, different stages of the business required different types of hires. Getting the right people for each stage has been crucial. In the early days, we had more generalists in the business, but we always looked for people with startup DNA, who were missionaries, not mercenaries. Initially, we had a very young team, mostly smart graduates with little experience, but immense drive and hunger. These individu- als were missionaries, eager to learn, put in the hours, and make a difference. As we grew and scaled, we needed to balance our team composition. While I prefer missionaries, having some mercenaries became necessary. We now look ahead to the next three years, hiring people who have specialised experience, and can help us reach our goals. For the first time, we have a much more senior team with a lot of experience, which is crucial for where we want to go. Looking ahead, our focus is on hiring individuals with experience in specific roles to guide us to our future goals. For the first time, we have a senior team with extensive experience, which is essential for our next phase of growth. These key lessons—focusing on community, adapting our hiring practices, and understanding the changing needs of the business—are what have driven our success so far and will continue to do so in the future. What advice do you have for founders looking to foster similar communities in their respective industries? There’s nothing better than just getting out there and doing it. Don’t overthink things, and don’t just sit on ideas without taking action. Start somewhere—take action, do the groundwork, the grassroots stuff, and build your community. While some people may plan a large confer- ence right away, it’s much harder to do without an engaged community. Begin small, and start building your community in any way you can. This could be hosting quarterly dinners for founders, creating a WhatsApp group, a Slack channel, or organising regular meetups. Building an audience takes time and effort, and you have to love what you’re doing. If you lack excitement, passion, and interest, it will become a chore. Remember, it’s a long-term commitment. YOU NEED TO FIND THE RIGHT PERSON FOR YOUR BUSINESS’S CURRENT STAGE AND WHERE YOU AIM TO GO. IDEALLY, HIRE SOMEONE WHO HAS ‘BEEN THERE, DONE THAT.” B/Strategies ← A SaaStock event in Dublin, Ireland. IMAGE COURTESY ROD SLOANE
23 September 2024 / ENTREPRENEUR.COM / Do you have any advice on how to transition from being a hands-on entrepreneur, to a CEO who delegates responsibilities? Running a SaaS business for nine years has been a transformative journey for me. In the first half, I was a hands-on micromanager. I constantly checked the website, monitored the social media, and sent numerous Slack messages to my team. I traveled extensively, and I was always involved in group discussions. While this level of involvement might be necessary in the first year or two, it’s crucial to evolve beyond it. It took me about four years to realise this. During that time, the business likely lost some talented people who didn’t feel as empowered as they should have. Empowerment is essential—you need to hire people for roles, because they are better at those roles than you are. As the CEO, you are a generalist. My personal growth in this area correlated with starting executive coaching. With an executive coach, I learned to be a better manager, and how to delegate effec- tively. I built a structure within the business, establishing a hierarchy of reporting. Now, as the CEO, I focus on strategy, envisioning the future, and providing advice regularly. We have a Managing Director who handles day-to-day operations, and we’ve hired capable managers and teams in sales, finance, and other functions. These individuals create the plans to deliver on our vision, which we then sign off on, trusting in their expertise. It doesn’t always go perfectly, and sometimes more involvement is necessary. Scaling requires time, reflection, and the willingness to delegate and reinvent your role continuously. You can’t scale if you’re trying to own everything. It’s not easy, but reflection on past management behaviors, engaging with an executive coach, and extensive reading in the field have been invaluable for me. What’s next for you and SaaStock? I’m very optimistic about the future of SaaStock, and we have a 10-year vision to scale the company 10x. Currently, we host SaaStock in Europe, and our goal is to continue innovating to ensure it remains the number one SaaS event there. The next event is coming up next month in October. Last year, we launched SaaStock in the US, and we aim to scale it up, potentially making it even bigger than our European event, given the vast market there. Looking ahead, we envision expanding to other interna- tional markets, including South America and Asia. In addition to our events, we’re building the SaaS Founder Member- ship, which aims to be the world’s leading support organisation for B2B SaaS founders. Although we’re early in this journey, our goal is to help thousands of SaaS founders scale faster through this membership. Furthermore, I’ve launched the fund BackFuture Ventures, which adds another layer of support for SaaS companies. This initiative allows us to invest in early-stage companies that excite us, providing them with the capital needed to grow. This ability to offer not only networking and learning opportunities through SaaStock, but also financial support through BackFuture Ventures is incredibly exciting for me. This robust 10-year plan for SaaStock includes scaling our events, expanding internationally, supporting SaaS founders through our membership program, and investing in promising early-stage companies. It’s very exciting! YOU CAN’T SCALE IF YOU’RE TRYING TO OWN EVERYTHING. IT’S NOT EASY, BUT REFLECTION ON PAST MANAGEMENT BEHAVIORS, ENGAGING WITH AN EXECUTIVE COACH, AND EXTENSIVE READING IN THE FIELD HAVE BEEN INVALUABLE FOR ME.
24 / ENTREPRENEUR.COM / September 2024STARS SHOOTING FOR THE ORBEX CEO PHIL CHAMBERS The man on a mission to build and launch the UK’s first vertical launch rocket by PATRICIA CULLEN 24 / ENTREPRENEUR.COM / September 2024
25 September 2024 / ENTREPRENEUR.COM / 25 September 2024 / ENTREPRENEUR.COM / → CEO Phil Chambers
26 / ENTREPRENEUR.COM / September 2024
27 September 2024 / ENTREPRENEUR.COM / T here’s a new space race in Europe.” That’s what Phil Chambers believes in his role as CEO of Orbex, a UK-based private, low-cost orbital launch services company. Chambers, a software industry veteran with a distinguished 20-year career, first made an impact at Gumtree, a leading UK website, then played a key role at Qype, Europe’s top local review site, which was acquired by Yelp. Most recently, he co-founded Peakon, an employee success platform that achieved industry leadership before being acquired by Workday for $700 million. Now, as the CEO at Orbex, Chambers is venturing into a completely different realm: aerospace. This new chapter not only marks a shift from software to space, but it also presents a unique opportunity to put the UK on the map in the aerospace industry. “The thing that really excites me is the opportunity to build the UK’s first ever vertical launch space rocket, and have a British majority- owned rocket launching from British soil to deliver British satellites,” Chambers says. “We don’t have a sovereign launch capability in the UK at the moment.” In the 1980s, the UK government chose not to join the Ariane program, a European space initiative led by the European Space Agency as well as the French national space agency, Centre National D’Études Spatiales, to develop a cost-effective satellite launch system. This decision redirected aerospace jobs predominantly to France and Germany, significantly shaping the industry’s landscape in Europe. Now, Chambers aims to change that trajectory. “Not only does the UK have a seat at the table, but we have the chance of becoming the European champion,” he says. AMBITION UNLEASHED Today, Orbex is focused on the successful launch of its Prime rocket next summer, and it also intends to enter the European Launcher Challenge, a competition by the European Space Agency. This competition offers substantial funding for developing a larger rocket. To secure this opportunity, Orbex engages with the UK Space Agency and the Department for Science, Innovation and Technology frequently, emphasising the critical role of government support in their plans. “If we want the UK to be a leader in launching satel- lites, then we also need the UK government to support it,” Chambers declares. Across Europe, countries like France, Germany, and Spain have invested significantly in small }} NOT ONLY DOES THE UK HAVE A SEAT AT THE TABLE, BUT WE HAVE THE CHANCE OF BECOMING THE EUROPEAN CHAMPION.” → Orbex is a UK-based private, low-cost orbital launch services company. “
28 / ENTREPRENEUR.COM / September 2024 launch vehicle programs—France with EUR400 million, Germany with over EUR100 million, and Spain with EUR45 million. In comparison, the UK government’s investment has been relatively low. However, Chambers remains optimistic saying that the ruling Labour party is developing a new industrial policy document that may address this disparity. “I hope to see space as part of industrial policy,” he says. “If you look at Labour’s priorities around levelling up, around green growth, creating new jobs and new economic opportunities for the UK, we tick a lot of boxes there.” Orbex is leading the way with green credentials in Northern Scotland, and this is translating into significant job creation. Currently, the company employs over 200 people, with more than 150 of these positions based in Northern Scotland. As it continues to grow, it will create even more job opportuni- ties. “If we succeed in scaling up the manufacturing of Prime and larger vehicles, we anticipate creating nearly a thousand high-tech manufacturing jobs in the UK.” NEXT-GEN TECH Orbex is developing the nearly zero-carbon rocket to address the environmental impact of space launches. Traditional kerosene rockets emit harmful black carbon soot and carbon dioxide, which are growing concerns as launches increase. Orbex’s innovative approach uses biopropane, a byproduct of biodiesel, reducing carbon dioxide emissions by 96%, and eliminating black carbon altogether. It has also advanced with a fully carbon fibre rocket, and constructed the world’s first cryogenic coaxial tank in Scotland. Additionally, Orbex is pioneering 3D-printed engines and managing all aspects of production and software development across the UK and Denmark. Looking at the ecosystem at large, Chambers highlights that the recent rocket engine explosion in Shetland involving Rocket Factory Augs- burg—a competitor of Orbex—un- derscores the inherent risks in aerospace development. Neverthe- less, the entrepreneur remains hopeful about the industry’s future, emphasizing the necessity for ongoing innovation and improve- ment. “It’s not uncommon for rocket programs to experience technical setbacks,” Chambers says. “Elon Musk, for instance, needed four attempts to launch Rocket One. All companies launching in the UK, including Orbex, must undergo rigorous testing to prevent such incidents from recurring.” Maintaining momentum is essential for sustained growth and success, Chambers points out. If you ↑ Left to right are Orbex's chief executive Phillip Chambers and chair Miguel Bello Mora
29 September 2024 / ENTREPRENEUR.COM / cease pushing forward and enhancing your efforts, you risk falling behind. “Even SpaceX, despite achiev- ing a remarkable level of reliability, recently faced an issue with a Falcon 9,” he adds. “Although they’ve had over 100 successful launches, they encountered another problem.” Orbex is on the brink of an exciting new chapter, with its Prime rocket set to make its debut in 2025 from the Sutherland Spaceport in Northern Scotland. As the company continues to advance technical development, construct the spaceport, and navigate the licensing process, Chambers remains cautious about pinning down an exact date for its first launch of its small launch vehicle. However, all signs point to a promising launch on the horizon next year. Orbex is also set to make significant strides with its launch vehicle capabilities, and the company is working on developing a larger vehicle designed to handle a wider array of missions. “This new vehicle will not only cater to low Earth orbit, but it will also be capable of reaching geostationary orbits, the Moon, Mars, and even interplanetary destinations, marking a substantial advancement in technological offerings,” he says. In addition to the upcoming rocket launch, Orbex is also expanding its horizons by developing a diverse array of products to support these missions. This strategic diversification is set to unlock fresh opportunities across the space industry, positioning If we succeed in scaling up the manufacturing of Prime and larger vehicles, we anticipate creating nearly a thousand high-tech manufacturing jobs in the UK.” “ } → The Orbex Prime rocket has been designed to be one of the most environmentally friendly space launch vehicles }}
30 / ENTREPRENEUR.COM / September 2024 Orbex as a formidable force in the rapidly evolving space landscape. THE TIME IS NOW If Chambers had one piece of advice for aspiring entrepre- neurs, it would be to get started as soon as possible. Having never met an entrepre- neur who regretted jumping in too early, especially when timing is so crucial, Chambers believes one should start ahead of their competition rather than wait. Plus, Chambers says, talent is everything. With over 20 years of experience scaling businesses and navigating the complexities of growth, Chambers has uncovered valuable lessons about the dynamic interplay between core values, evolving operations, and the critical role of talent in achieving lasting success. While a company’s values and mission may remain constant, its operations and people evolve, and subsequently, he believes that getting the right people in place is crucial to success. “It’s about finding ways that the original founding team can succeed, but also bringing in new talent,” he explains. “That’s how you shortcut your way to success—that blend of the ↑ Orbex aims to finish Spaceport Sutherland by early 2025 for a Prime rocket launch later that year. If you look at Labour’s priorities around levelling up, around green growth, creating new jobs and new economic opportunities for the UK, we tick a lot of boxes there.” }“
31 September 2024 / ENTREPRENEUR.COM / original creativity, enthusi- asm, and dedication of the founding team, plus the experience in the hands of management.” The entrepreneur thinks that it’s a bit of a myth to credit groundbreaking inventions to just one genius, like how we often think of Thomas Edison and the lightbulb. In reality, he says, similar ideas often pop up in different places at the same time—what really makes the difference is the team you have behind you. Besides lacking talent, running out of money can also spell disaster for your company. Chambers points out that one sure way to deplete your funds is by hiring too many people too soon, before you’ve really nailed down the right product for the market. It’s tempting to think your product is a perfect fit for small companies, but as you scale up to larger organisa- tions, it might not meet their needs. By then, you might have already poured a lot of money into sales, which is a common trap many entre- preneurs fall into. Another common pitfall Chambers encountered in his career was neglecting the core values of the company. He stresses the importance of clearly defining what it means to work at the organisation—not just with abstract terms, but by specifying the actual behaviours expected from everyone. “At Peakon, we had a value called ‘serious, not seriously,’” he says. “We wanted to be a serious company, we were building a serious product, but we were determined to also have fun at work. And that worked incredibly well.” At the end of the day, if you’re thinking about starting your own venture, Chambers’ advice is simple: don’t wait for the perfect mo- ment. Dive in now, and make things happen—as Chambers put it: “Start yesterday would be my advice.” “START YESTERDAY WOULD BE MY ADVICE.”
32 / ENTREPRENEUR.COM / September 2024SPIRES CITY OF THE (AND STARTUPS) A look at how London is holding its own among global startup hubs by PATRICIA CULLEN 32 / ENTREPRENEUR.COM / September 2024
33 September 2024 / ENTREPRENEUR.COM / ↑ Anything World co-founder and CEO Gordon Midwood. E ver wondered what makes London a magnet for startups? Hint: it’s more than just tea and Big Ben! The UK capital has emerged as the country’s most valuable tech hub, with a US$621.5 billion valuation in 2023, up from $70 billion in 2014, according to Startup Genome’s Global Startup Ecosystem Ranking 2024. London also holds its own among global tech giants, standing shoulder to shoulder with New York, and trailing only behind Silicon Valley. The Tech Nation Report 2024 also highlights London’s dominance, with it especially noting that of the 1,800 venture capital (VC)-backed artificial intelligence (AI) startups and scaleups in the UK, 66% are based in the capital. Coupled with 103 unicorns and an 800% jump in VC investment over the past decade, what is it about the big smoke? Entrepreneur UK chats to a few dynamic businesses that chose London, exploring their motivations for setting up shop in the city. B ased in Brick Lane, Anything World is transform- ing interactive 3D experiences, enabling developers to create them 40% faster than competitors. With their user base nearly doubling to 25,000 in 2023, while also clinching a 2024 Webby Award for Technical Achievement, how much of Anything World’s success can be attributed to London’s prime location? For co-founder and CEO Gordon Midwood, the capital was the perfect launchpad. “London is one of the best places to run a startup in Europe,” he says. “Crucially for us as a deep tech startup, access to highly skilled 3D and machine learning talent is excellent.” Plus, “it’s an excellent and vibrant place to live and work too, which helps,” Midwood adds. However, Midwood pinpoints price as a potentially debilitating factor, acknowledging the significant costs associ- ated with hiring a workforce and maintain- ing a studio in London. “Those are genuine challenges for a startup, especially in the early days,” he says. He suggests that London needs to step up its game to stay competitive with other places offering similar benefits for less—a key point of interest for entrepreneurs weighing their options. “Clearly, infrastructure needs to be world-class, but even more key is talent and access to world-class education,” he says. “London needs to invest even more heavily in cutting-edge education facilities with a particular focus on AI.” After all, in today’s knowledge economy, having top-tier expertise in AI is crucial for staying ahead and maintaining a competitive edge. }} THE PERFECT LAUNCHPAD London is one of the best places to run a startup in Europe.” “ }
London is far less onerous than the US from a regulatory and reporting perspective.” I t might have seemed like like an obvious choice to have Boku, a US-based company, listed on the Nasdaq stock exchange in New York. However, Stuart Neal, CEO of the innovative, mobile-focused payment method (and recipient of the PayTech Company of the Year Award at the Fintech Awards London 2023), admitted that Nasdaq wasn’t conducive to smaller tech firms. Explaining his rationale for choosing London, he says it’s great to be on the Nasdaq when you are “big tech,” but not necessarily when you’re “small tech.” “In contrast, we thought the London market, with fewer growth companies, provided us with ample opportunity to attract more attention,” Neal adds. He also credits London’s lighter regulatory frame- work in helping Boku establish and grow without heavy administrative burdens. “London is far less onerous than the US from a regulatory and reporting perspective,” he points out. “We only have to report semi-annually instead of quarterly, and we aren’t subjected to stringent regulations such as the Sarbanes-Oxley Act,” he says. And while he acknowl- edges that London is not the largest market in terms of funds, Neal admits that the capital offers numerous pathways to reach inves- tors—namely through analyst coverage. “If your numbers are strong, analyst coverage is readily available, which has been beneficial for us in attracting investor interest and funding opportunities,” he reveals. He credits London with better visibility and a larger share of voice due to having fewer tech competitors, unlike Nasdaq, which has more competition. For startups considering where to establish them- selves, Neal’s advice is to have a clear and detailed plan about how you can generate revenue and grow. “It’s crucial to understand the mix of investors in the market and their investment theses—whether they are seeking long- term growth, or short-term profits,” he adds. } ← Boku CEO Stuart Neal. “ CENTRE OF ATTENTION 34 / ENTREPRENEUR.COM / September 2024
35 September 2024 / ENTREPRENEUR.COM / H oxton Farms, a London-based biotech startup, grows real animal fat–but without the animals. Co-founded in 2020 by Max Jamilly and Ed Steele, Hoxton Farms are a team of 45 based in London, who believe that food should be made in the city, not the country- side. “We grow cultivated fat in a convert- ed office block, just minutes away from where it will be eaten and enjoyed,” Jamilly says. A highly interdisciplinary team is required to power Hoxton Farms, which include chefs, food scientists, synthetic biologists, cell culture scientists, machine learning engineers, software developers and operations specialists. “There are very few cities that have the diversity of talent to enable us to fill all these positions,” Jamilly says. “We’re lucky London is one of them.” According to Jamilly, early-stage startups thrive on talent, and London’s vibrant atmosphere attracts top scientists and experts, offering a diverse talent pool in biotech, cellular agriculture, and bio-manufacturing. “Another key factor is easy access to investors and regulators,” Jamilly adds. “London is a hub for venture capital firms. Whitehall, home to politicians, policy-makers and regulators, is a short journey from our office. We’re defining a new category in food; so, we need to be close to the action.” He credits being based in London as a key enabler for Hoxton Farms’ rapid growth over the past four years, building strong commercial relation- ships with key industry players who are headquartered here. “The availability of capital in London is also unmatched. By being based here, we’ve been able to more easily fundraise, raising financing early on from top UK funds such as Systemiq Capital, Backed VC, and more,” he says. However, no location is perfect. London-based companies like Hoxton Farms often have to seek growth-stage VC funding in the US or Asia due to a lack of such financing opportunities in London. Plus, according to Jamilly, regulatory processes could be im- proved, having gone through them himself when Hoxton Farms’ cultivated fat was designated a novel ingredient by the UK’s Food Standards Agency (FSA). “After Brexit, we inherited a system that is not designed with innovation in mind,” Jamillly notes. That said, he believes “we now have an opportunity to adapt it, to enable the UK to become a world leader in food tech, and the FSA has shown great willingness to collaborate.” However, Jamillly admits that despite such challenges, the benefits of being in London far outweigh them, making it the ideal location for Hoxton Farms. }} → Hoxton Farms co-founders Ed Steele and Max Jamilly. CLOSE TO (ALL) THE ACTION ↑ Based in London, Hoxton Farms crafts cruelty-free, sustainable fats to combine with plant protein for delicious meat alternatives.
36 / ENTREPRENEUR.COM / September 2024 A s an American from Silicon Valley, Nina Mohanty, CEO at Bloom Money, found building a tech startup in London offered the best of all worlds. “London has the financial sector and energy of New York City, the proximity to regulators and government of Washing- ton D.C., the art and creativity of Los Angeles, and incredible ideas and problem solvers to rival Silicon Valley— all with better public transport,” she says. According to Mohanty, building a fintech company in London was a no-brainer, with London’s tech ecosystem growth making hiring a dream come true for any founder. “Importantly, London is a hub for more established industry players, be it financial institu- tions or multi-national conglom- erates which makes it an exciting place to pursue partnerships for startups.” Mohanty acknowledges that London and Europe more broad- ly are often lambasted as being more risk-averse than the US, and therefore comparatively, the UK’s tech ecosystem is quite nascent. “This can make fundraising difficult for founders tackling large, hairy problems,” she says. “Access to capital is improving, but the willingness to bet big will take more exits and longevity to secure London as the true jewel in the European crown of tech.” London has the financial sector and energy of New York City, the proximity to regulators and government of Washington D.C., the art and creativity of Los Angeles, and incredible ideas and problem solvers to rival Silicon Valley—all with better public transport.” “ } ↑ Bloom Money CEO Nina Mohanty. THE BEST OF ALL WORLDS
37 September 2024 / ENTREPRENEUR.COM / NOT EVERY STARTUP’S DREAM DESTINATION L ondon was a no-go for Meetfreed, the app incentivizing plant-based eating. Patrick Huang, founder of Meetfreed, cited costs, marketing budgets, and a crowded market as reasons for bypassing the capital. “Starting outside of London let us scale thoughtfully, and make sure our mission to inspire more plant-based living reaches diverse communities across the UK,” he reveals. Manchester’s vibrant and less saturated food scene, coupled with its substantial student population, proved an ideal location for the ambitious startup. Collaborating closely with local eateries, Huang believes they can effectively promote plant-based options. “It’s tough to stand out in such a saturated market, and we thought it might slow down our initial growth,” he says With over 400,000 university students within an hour’s drive, Manchester offers a sizable user base, which was better aligned with Meetfreed’s target demographic. }} ↓ Meetfreed founder Patrick Huang.
38 / ENTREPRENEUR.COM / September 2024 The availability of capital in London is unmatched.” }“ OPPORTUNITY KNOCKS L ondon still has a lot going for it though. With over 20 years of experience in equity capital markets (ECM), Simon Olsen, a Partner at Deloitte’s ECM division, emphasizes that a London listing for a UK startup offers significant opportunities to raise growth capital during an initial public offering (IPO) and subsequent funding rounds. “A startup would also benefit from a liquidity platform for existing shareholders, a potential enhancement in its brand and reputation, and a liquid currency for mergers and acquisitions (M&A) as well as employee remuneration,” he adds. However, Olsen notes that businesses must ensure these benefits outweigh the incremen- tal costs and time involved in the IPO process, and maintain- ing the listing. “London’s Alternative Investment Market (AIM) offers these benefits in a market intended for growth companies, with lower costs and less regulation than London’s main market,” he reveals. Commenting on the current state of play, Olsen says IPO markets are re-opening, driven by improving macroeconomic conditions. “These include less uncertain geopolitics, pent-up demand, the need for private equity to exit, and the impact of higher interest rates making alternative funding options less attractive,” he points out. Given the advantages of a London listing, the resurgence of IPO markets, and the increasing difficulty in securing private investment, now may be an opportune moment for early-stage, high-growth businesses to contemplate a London listing. L ondon navigates the complex balance between innovation, affordability, regulatory agility and growth opportunities, main- taining its leadership, despite the IPO choices of giants like Arm, CRH and Flutter. With UK tech professionals and founders feeling optimistic (64% and 84%, respectively, are confident about the future of the sector, as per the Tech Nation AI Report), London looks set to solidify its role as a global tech leader in 2024 and beyond. → Deloitte ECM division Partner Simon Olsen
39 September 2024 / ENTREPRENEUR.COM / Five Must-Have Tech Gadgets For Everyday Life According to AMY KNIGHT B/Gear Amy Knight is the co-founder of Must Have Ideas, and as a busy working mother, here’s her list of the top five tech gadgets she makes use of, and why she wouldn’t be without them. From her indispensable iPhone, to the AirPods that help her multitask, here are the tech essentials that help her juggle her business and family life with ease. 1/APPLE IPHONE 14 PRO MAX “Like everyone else on the planet, I’d be completely lost without my Apple iPhone. Not only does it keep me in touch, it enables me to schedule my diaries, stay connected, and generally organise my life from one easy place! I try not to use it when I’m spending quality time with friends and family, but let’s face it, who does without a mobile now! The numerous apps that are available are amazing, making it easy to do workouts on the go, banking, booking appointments, and keeping up to date with the world. Plus, the Global Positioning System (GPS) is great for getting me to and from important meetings or any other new places I need to get to.” 2/ DELL XPS15 LAPTOP “My laptop means I can take work home with me or work on the go, depending on where I am if I’m not in the office. As a rule, I have set times when to work or when I’m spending time with my two young daughters, but laptops are so easy to use and a convenient way to get things done professionally. It also comes in handy for the odd film if we’re away on a break, or, if I need to jump onto a work meeting.” 3/APPLE WATCH SERIES 8 “My Apple watch is great for getting me to where I need to be on time! Not only this, I can measure my steps to ensure I’m getting the right amount of exercise, and even the quality of sleep I’m getting, which is all so important as a business owner and mother. What’s also great is that by keeping everything Apple, I can sync everything including my contacts and my diary entries, and anything else I want to. Taking the odd call from the watch can also be quite useful, or, to pay for things instead of digging out the card or phone.” 4/AIR PODS PRO “These are a brilliant invention, and they mean that I can accept calls hands-free, allowing me to multitask! I can also use the noise- cancelling features to focus on work or relax without background noise. It’s also very convenient being able to switch between devices, such as my phone and laptop when I need to. I listen to music, podcasts, or audiobooks while commuting or during any spare moments. I also use Siri to ask quick questions, set reminders, and control other smart devices hands-free. 5/HUBBLE NURSERY PAL BABY MONITOR “This device is a brilliant way to have peace of mind and to keep track of my little ones if they are in a different room to me. It helps me to do things while they are having a nap, knowing that if they wake up, I’ll be on hand, and ready for when they need me. More modern baby monitors come with features like video feeds, sound detection, and even smartphone connectivity, which are fantastic and they’re so sophisticated, with some featuring temperature sensors which is great for any parents or carers.” 27-year-old Amy Knight is a disruptive entrepreneur, owner, founder, and Director of Must Have Ideas, a leading UK e-commerce company generating an annual turnover of GBP65 million. Specialising primarily in problem-solving household solutions, what started with packing orders on her dining room table and storing stock in the spare room has evolved into a thriving business with a 40,000 sq. ft. distribution centre in Kent. The business now employs 135 people, dispatches around 7,000 orders a day, and focuses on the highest standards of customer service. Amy is a mother of two young children, and she lives with her husband and (co-founder of Must Have Ideas) Rob Knight, in Maidstone. In 2024, Must Have Ideas achieved a place on The Sunday Times Hundred list of Britain’s fastest growing companies. 1 2 3 4 5
40 / ENTREPRENEUR.COM / September 2024 T he rise of entrepreneurs is reshaping the economic and cultural landscape, with a new generation of innovators driving change and creating opportunities like never before. There are 582 million entrepreneurs in the world (MARKINBLOG, 2020). In the US, according to the latest statistics, nearly 5.1 million new businesses were registered in 2022 (US Census Bureau, 2023). This was the second year in a row that that number exceeded five million. My own journey in entrepreneurship began in 2006, when my friend James Street and I took a leap of faith. We decided to drop out of an entrepreneur-focused university program, just shy of graduation, to pursue our first business venture—ironic, right? Though not everyone supported our decision, that hands-on experience taught us invaluable lessons. Over nearly a decade in, we’ve had significant successes and crushing failures. We’ve discovered that the best way to grow is often by diving headfirst into the unknown, learning by doing. In 2015, James and I won the Shopify Build a Business award for one of our direct-to-consumer (DTC) companies. After seeing first-hand the rising success of creator marketing and the opportunities to elevate creators, we launched Whalar in 2016. Over the years, Whalar has evolved into Whalar Group: a global creator company with a unique, end-to-end creator ecosystem. This includes six companies: Whalar, Whalar Talent, Moby Ventures, The Lighthouse, Umi Games, and Foam. }} by NEIL WALLER “PROSPECTIVE ENTREPRENEURS OFTEN WONDER HOW TO EVEN START. I LOVE TO SHARE PAULO COELHO’S QUOTE: ‘IT’S EITHER ONE DAY OR DAY ONE. YOU DECIDE.” Let’s all be Day One People (And Not One Day Dreamers)
41 September 2024 / ENTREPRENEUR.COM / P rospective entrepre- neurs often wonder how to even start. I love to share Paulo Coelho’s quote: “It’s either one day or day one. You decide.” Day One embodies the spirit of entrepreneurship. I challenge myself—and all entrepreneurs—to embrace this mantra each day. Earlier this year, I had the opportunity to tour the SpaceX facility in Los Angeles, where employees focused on the “rate of learning.” They emphasized that the most valuable asset is a willingness to stay curious and keep learning. The best ideas pivot, evolve, and adapt; that’s where real growth happens. You can’t learn if you don’t start. My best advice? Be a Day One person, not a One Day person. Half of the battle is managing risks, and being willing to learn and evolve. My favourite part of this journey is the challenge of embracing the uncertainty: being at point A, with a goal at point Z, when the path isn’t clear. When we started Whalar, it was just a small team of five. Today, we’ve grown into a global company with over 300 employees. Taking the first step, at Day One, can lead to extraordinary growth. Having a business is immensely rewarding, but it comes with intense pressure. Hiring a team means taking on the responsibil- ity for their livelihoods and navigating uncharted territory. The stakes are high. I’m fortunate to share it all with my co-founder and co-CEO, James. Having a partner means you’re not navigating challenges alone; you can “play better ball.” For example, when one of us isn’t on our A-game, the other is always there to take the reins. Many people saw a “global creator company” as a risky business move. But we always believed that creators were the future, not a temporary trend. Creators are the heart of enter- tainment, media, and culture. After all, they drive 39% of watch time in entertainment. They will shape the future of these indus- tries. As Whalar grew, we knew it was time to define our core philoso- phies, providing us with a blueprint to guide our journey. We focused on our mission, “liberating the creative voice.” This guiding principle is key to our growth. I tell up-and-comers that every experience is a learning opportu- nity. There’s no shortcut to gaining wisdom; struggles make you a better entrepreneur. Listen to advisors and mentors, but, ultimately, you need your own perspective to build something great. It’s also crucial to tackle problems you understand and are interested in. When we started Whalar, our goal was to better support creators and the industry. Solving a problem you’re passionate about makes the journey not only easier, but also more enjoyable and fulfilling. One of my favorite TED Talks is by Bill Gross of IdeaLab. He discusses why few startups succeed, while many falter. Many people believe that having the perfect idea is the key to success— hence Gross’ idea to name his company IdeaLab. However, he found that timing is actually the most crucial factor—followed by team and execution. The idea itself ranks third in importance. While ideas can pivot and evolve, timing is critical, and often the hardest element to gauge as an entrepreneur. If Whalar had launched five years earlier, our story might have been very different. So, embrace the uncertainty. Entrepreneurs grapple with imposter syndrome, so it’s important to take it day by day. While you might overestimate what you can achieve in a year, you likely underestimate what you can achieve in five or more years. Success is about making progress one day at a time. James and I thrive on the limitless opportuni- ties within the industry. Entrepreneurship is a roller- coaster, full of challenges and rewards. You have to power through. The line between success and failure is thin. During uncertain moments, I’m always inspired by this quote from Winston Churchill: “Success consists of going from failure to failure without loss of enthusiasm.” That’s the thrill of entrepreneur- ship, facing setbacks with unwavering passion. Let’s all be Day One people, not One Day dreamers, and enjoy every twist and turn. And yes, starting a business and being an entrepreneur is tough as hell, but damn, it’s so worth it. Neil Waller is an entrepreneur who’s the co-founder and Co-CEO of Whalar Group. whalar.com “THERE’S NO SHORTCUT TO GAINING WISDOM; STRUGGLES MAKE YOU A BETTER ENTREPRENEUR.”
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43 September 2024 / ENTREPRENEUR.COM / Deal or No Deal An entrepreneur’s playbook for bargaining success by PATRICIA CULLEN For startup success, mastering negotiation is non-negotiable. Effective negotiation skills are a founder’s secret weapon. Building strong relationships, maintaining integrity, and prioritising open communication emerge as fundamental principles for navigating high-stakes negotiations. For entrepreneurs eager to elevate their game in this regard, here’s Entrepreneur United Kingdom’s winning playbook for bargaining success. }}
44 / ENTREPRENEUR.COM / September 2024 1/MINDSET MATTERS Unitary, an artificial intelligence (AI)-powered media analysis company, has demonstrated significant success in securing investment, raising GBP12.3 million in a Series A funding round in October 2023. This achievement is particularly impressive given that the company had raised GBP6.7 million just seven months earlier. This rapid succession of funding rounds under- scores the confidence investors have in Unitary’s vision and capabilities. SASHA HACO, co-founder and CEO at Unitary, believes that effective negotia- tion is a crucial skill in business, and according to her, mindset is key. “Negotiating is hard, particularly if you feel the stakes are high,” Haco points out. “If you’re ready to walk away, then it takes the heat out of the situation.” As such, by maintaining a readiness to walk away from the negotiating table, Haco says she and her team can make decisions that are not driven by desperation, and instead by a clear evaluation of what is best for the company. This attitude not only alleviates pressure, but also empowers the negotiating team to hold firm on terms that are beneficial for long-term success. “You have to feel ready to walk away,” she reiterates. 2/RAPPORT RESONATES Building rapport is your golden ticket to sealing deals. People are more inclined to do business with those they feel connected to and trust. However, there is a general deterioration in communication skills that we all need to contend with. Mike Greene, serial entrepreneur and star of Channel 4’s The Secret Millionaire, attributes this decline to the widespread use of technology, particularly social media and mobile devices, alongside the lingering effects of the COVID-19 pandemic. According to GREENE, this combination has led to a societal “hangover” where interpersonal and social skills have reached an all-time low, with people struggling to effectively communicate. “They say that it takes 7-12 points of interaction before you can successfully close a deal, and yet, many expect marriage at the first date—in business at least!” Greene says. “If we believe—and I certainly do— that ‘your network = your net worth,’ then business owners need to up their game in networking, connect- ing, engaging, listening and responding to the needs of the partner, customer, or party on the other side of a negotiation.” ‘T/ Skillset FOR STARTUP SUCCESS, MASTERING NEGOTIATION IS NON-NEGOTIABLE.” ↓ MIKE GREENE, serial entrepreneur and star of Channel 4's The Secret Millionaire. ↑ SASHA HACO, co-founder and CEO at Unitary. → ROSS TEMPLE is one of the UK’s leading business success and transformation coaches.
45 September 2024 / ENTREPRENEUR.COM / 3/CONVICTION CONQUERS Negotiation is not about convincing, but conviction. One of the UK’s leading business success and transformation coaches, ROSS TEMPLE, reveals that the skill of a successful negotiation comes down to three Ls: Language Take note of the words being used. Matching the language shared to you is the quickest way to build rapport, and to confidently reiterate you understand what they are saying. If you don’t repeat similar terminology, a client is not going to feel like they are being heard, and less likely to convert during a negotiation. NEGOTIATING IS HARD, PARTICULARLY IF YOU FEEL THE STAKES ARE HIGH. IF YOU’RE READY TO WALK AWAY, THEN IT TAKES THE HEAT OUT OF THE SITUATION.” Leverage Drive a conversation forward by using the momentum built by the earlier conviction to your negotiating advantage. Listen Make sure you are listening to what the individual is saying. Are you taking on board what their fears are, what problems they are facing, and what frustrations they are experiencing? CHARLIE DAY, founder of Sales Is Easy If You Just Know How and its accom- panying podcast, helps entrepreneurs boost sales and scale their business. She also stresses that mastering the art of listening is essential for successful negotiations. “Active listening ensures you hear what the client wants/their pain points and barriers, which you can then use to negotiate,” she shares. 4/WIN-WIN WISDOM The best deals are made when both sides feel like winners. Levi Levenfiche, co-founder of PerfectTed, the UK’s first matcha-pow- ered energy drinks brand that secured investment from Dragon’s Den investor Steven Bartlett last year, says that you need to know exactly what matters to your counterparty. “At Perfect- Ted, whether we are negotiating a new super- market listing, or with prospective investors, we place major emphasis on researching the person that is on the other side of the negotiating table,” he says. LEVENFICHE goes on to say you can garner a huge amount of information about a person online, beyond LinkedIn. “The research goes as deep as knowing what the person’s favourite workout class is, or what pets they have,” he reveals. Levenfiche also advises entrepreneurs to listen (not just hear) what the other person is saying. “In a negotiation, if you let the other side talk—they will eventually give you even more information and insight into what matters to them,” he adds. It’s worth listening to Levenfiche’s words—after all, PerfectTed has earned the distinction of being Steven Bartlett’s most successful Dragons’ Den venture, with 5000% business growth, and projected GBP12 million revenue this year. }} ← CHARLIE DAY, founder of Sales Is Easy → LEVI LEVENFICHE, co-founder of PerfectTed.
46 / ENTREPRENEUR.COM / September 2024 5/TRUTH TRIUMPHS Whenever you’re in an important negotiation, it is essential that you never lie. That’s the advice given by Cashing Out author ALEXIS SIKOR- SKY, a consultant who helps entrepreneurs scale and exit their businesses. He has successfully achieved a US$100 million+ exit himself and has assisted other founders in doing the same. Accord- ing to Sikorsky, successful partner- ships with investors and clients are grounded in transparency and trust, and this needs to be established from the get-go. “Be honest in your intentions from the beginning, and try to understand as precisely as possible what the other person’s priorities are,” he says. Sikorsky points out that truth stands as the linchpin for forging strong relationships and sealing agreements; it’s the honesty and transparency that ultimately pave the path to successful outcomes and lasting partnerships. “When trying to secure investment in particular, any dishonesty during negotiation will be quickly found out during the following due diligence process, and this could prevent you from closing the deal,” he adds. 6/PREPARATION POWER Thorough preparation is crucial for successful negotiations as it enables informed decision-making and effective strategy planning. RYAN EDWARDS, founder and CEO of Audoo, a multi award-winning technology company, is a skilled negotiator, propelling the London- based music tech startup into over ten countries across Europe, the Middle East, and Australasia, while also securing investment from Sir Elton John and Björn Ulvaeus. “The first piece of advice I’d give would be to over-prepare,” Edwards says. “When I go into any investment meeting, I think of every possible out- come, and how I can prepare for each potential eventuality, with lots of research.” As an example, Edwards reveals that during Audoo’s first big raise, he was up against a billionaire investor. However, it helped that he knew his numbers and had prepared for every possible outcome of the conversation “Through this preparation, I was able to triple the business valuations, and additionally negotiate a further GBP7 million in investment,” he says. 7/FOCUS ON THE FOUNDER (I.E. YOURSELF!) Founders must demonstrate grit, and they should have the perseverance to navigate the inevitable ups and downs of building a startup. This resilience is critical to overcome the myriad challenges that arise in the entrepreneurial journey, from securing funding and building a team, to managing market competi- tion and adapting to changing industry landscapes. NUAN ZHANG, a Senior Associate at Breega, one of the fastest growing venture capital (VC) firms in Europe, reveals that while a compelling pitch is important, the eventual investment hinges on the founders themselves. “Great founders can inspire and lead their teams effectively, com- manding respect from all stakehold- ers,” Zhang points out. “Understand- ing what motivates a founder is crucial. A strong ‘why’ often trans- lates into a passionate and committed founder, which is a key ingredient for success.” Zhang’s insights underscore the importance of personal attributes and leadership skills in the startup ecosystem. It’s not just about having a great product or service; it’s about having the tenacity, vision, and ability to inspire and lead a team toward achieving that vision. ‘T/ Skillset THEY SAY THAT IT TAKES 7-12 POINTS OF INTERACTION BEFORE YOU CAN SUCCESSFULLY CLOSE A DEAL, AND YET, MANY EXPECT MARRIAGE AT THE FIRST DATE—IN BUSINESS AT LEAST!” ← NUAN ZHANG, Senior Associate at Breega.
47 September 2024 / ENTREPRENEUR.COM / “In 2014, I set up a money management business called Pariti. In some ways, you could consider it a success, because we got an exit, selling to Tandem Bank. However, we arguably failed, because we never raised enough money. At the time, there was only one other company that went down the same path as Pariti, but they Raised significantly more than us, and they were able to stay in the game much longer before they found product-market fit. A decade ago, the funding landscape was markedly different. Ten years ago, there was a prevailing ethos of ‘build it first, monetise later.’ Drawing inspiration from successes like Facebook, the mantra was clear: prioritise building robust businesses without immediate revenue concerns, aiming to monetise once established. I was a fresh-faced, 20-something-year-old, and I had never raised money before. Raising only GBP500,000 meant we were setting ourselves up for failure from day one, because we just didn’t have enough runway. I made all the errors that first-time founders do, because I couldn’t attract the senior people who’d done it 20 times before to de-risk the process. This approach meant I consistently operated with a small, predomi- nantly junior team. While this had its limitations, it also had its benefits. Operating with minimal financial flexibility wasn’t entirely negative; in fact, it fostered creativity through constraints. In 2024, startup entrepreneurs must embrace failures as learning opportunities, and remain focused on solving real problems for their customers. The key lesson is the importance of securing sufficient time and resources to properly develop and test a business idea, rather than rushing into a venture with limited funding. Some entrepreneurs just get lucky—they have an idea, see a problem, find a solution, and it changes the world. However, for the majority of entrepre- neurs, it is not like that at all. You think you see a problem, you believe you’ve got a solution for it, and then you realise over the next 12, 24, 36 months, all the reasons you’re wrong. You need to keep trying and adapting and failing, trying and adapting and failing, and eventually, hopefully, you actually get to the right answer. Early stage startups don’t have this buffer. Fast forward to today, my current entrepreneurial venture, Sidekick, has secured a total of GBP8.5 million in funding, providing an ample runway. My journey through failure has thus strengthened me, and emphasised the importance of prioritising the needs of our customers.” sidekickmoney.com S/Insights Turning Failure Into Fuel IMAGE COURTESY SIDEKICK → MATT FORD, co-founder and CEO at Sidekick U nlock the power of failure. Entrepreneurs often worry about it, but by embracing setbacks, you learn what doesn’t work, push the boundaries to innovate, and cultivate the resilience needed to succeed. That’s why we at Entrepreneur United Kingdom are asking entrepreneurs to share their personal stories of how they’ve turned troubles into triumphs. Under the banner of Turning Failure Into Fuel, here’s Matt Ford, co-founder and CEO at Sidekick, a next- generation digital wealth manager for the modern investor, sharing his own story to highlight the valuable lessons entrepreneurs can learn from their failures. Lessons on harnessing setbacks for growth by PATRICIA CULLEN
48 / ENTREPRENEUR.COM / September 2024 ‘T/Pro 1/ ADOPT A TARGETED APPROACH When it comes to finding funding, get specific. Competition is rife, and David B. Horne, founder of Funding Focus and the bestselling author of Add Then Multiply, says that it’s essential that founders take time to research investors, and single out ones that are a good fit in terms of sector, deal size, and stage of the business. “Recently, I was speaking with the managing partner of a mid-sized venture capital (VC) firm in London, and he told me that last year they received over 8,000 pitch decks from companies,” he shares. “They made 16 investments- that’s 0.2% of decks submitted that led to funding!” As such, Horne urges entrepreneurs to do their homework, tailor their pitch for each one, and secure an introduction from someone they know to significantly increase one’s chances of joining the 0.2% of founders who succeed.Horne also says that problems tend to occur when founders look at pitching to investors as a single activity rather than a multi-step process. “With angel, VC, and private equity (PE) investors, the process will have many steps, from initial meeting to term sheet, to signed agreement and money in the bank,” he advises. “The founder’s goal at each stage in the process is to stay in the game and get to the next stage.” From Pitch to Payday W ith today’s tough market conditions, investors demand assurance of a viable route to profitabil- ity before committing funds. A recent report from the British Private Equity and Venture Capital Association revealed that the number of investment private business- es in the UK attracted, as well as the number of UK-led investment rounds, have both dropped by nearly 50% since their peak in 2021, all of which highlights a need for improvement in the country’s entrepreneurial ecosystem. In such an investment landscape, here are a few essential actions that you, as an entrepreneur, should take to attract investors and secure funds for your startup: Five key insights to help you secure funds for your business by PATRICIA CULLEN 2/ ALWAYS LOOK INTO ALTERNATIVES Remaining open to a variety of financing options can propel a brand’s growth. For his sustainable children’s footwear brand, Dubs Universe, co-founder Stuart Davis initially raised funds through the crowdfunding platform Kickstarter, allowing the self-funded startup to connect directly with its customers. “Understanding our audience was crucial; we knew the type of parents we wanted to reach were creative and active on platforms like Kickstarter,” he shares. “Leveraging our backgrounds in the creative and design industries, we tailored our messaging to resonate with this audience, ensuring we captured their attention and support.” Additionally, the brand engaged the community through updates, social media, and interactive content. According to Davis, communicating a compelling story about → DAVID B. HORNE, founder of Funding Focus.
49 September 2024 / ENTREPRENEUR.COM / the brand’s mission and the unique value of the product, along with showcasing tangible progress and milestones, built trust and confidence among potential backers. “These strategic actions were essential in securing our initial funding and laying a strong foundation for future growth,” he says. Davis encourages other startups to embrace alternative funding sources like crowdfunding, revealing that for Dubs Universe, a tiny startup with no access to VC or contacts in that space, not pursuing it would have been a significant misstep. “Despite it being daunting and outside our comfort zone, we recognised its potential, and took the leap,” he says. “If we hadn’t embraced crowdfunding, Dubs wouldn’t exist today.” 3/ KNOW YOUR STUFF Clarity and confidence in presenting business plans to potential investors can be the decisive factor in securing crucial funding for startups. Sneha Morjaria, an angel investor who’s also the entrepreneur behind enterprises like The Growth Chain and OBM Studios, advises her fellow founders to know their stories inside out. “Be able to explain your business plan, figures, and forecasts- mutual trust is so important when an investor is considering giving you their cash, and the best way you can earn that trust is by being able to answer questions about your forecasts, and how you are going to achieve them clearly and easily,” she says. And once you have explained your story, sell it, Morjaria adds. “Investors, and angel investors in particular, who are investing into an early-stage startup are looking at whether they can get behind your mission and vision,” she explains. “So, spend time crafting your story ensuring that you are answering these questions: Why this concept? Why you? Why now?” 4/ STAY OPTIMISTIC In business, maintaining a positive attitude benefits both your team and potential investors. According to Leo Smigel, a personal finance expert as well as the founder of Analyzing Alpha, investors want to see that you believe in what you’re doing, and that you know }} WITH ANGEL, VENTURE CAPITAL, AND PRIVATE EQUITY INVESTORS, THE PROCESS WILL HAVE MANY STEPS, FROM INITIAL MEETING TO TERM SHEET, TO SIGNED AGREEMENT AND MONEY IN THE BANK. THE FOUNDER’S GOAL AT EACH STAGE IN THE PROCESS IS TO STAY IN THE GAME AND GET TO THE NEXT STAGE.” → STUART DAVIS. co-founder of Dubs Universe → Angel investor, SNEHA MORJARIA ↓ LEO SMIGEL, founder of Analyzing Alpha.
50 / ENTREPRENEUR.COM / September 2024 where you’re headed. “Remember that investors aren’t just giving you cash,” he says. “They want to back a plan and a group that will work hard and find a way to succeed, even when it’s tough. Staying hopeful is key to convincing them to take a chance on our vision.” Passion and enthusiasm are contagious traits that attract support, and staying optimistic during challenges will pay dividends. 5/ COME RECOMMENDED The proof is in the pudding. Zain Ali, founder of Centuro Global, says never underestimate the power of social proof when fundraising. “If you have any happy investors from an earlier stage, put their quotes on your pitchbooks,” he declares. “Satisfied customers and clients? Their testimony should stand at the centre of your pitch.” Your peer network is also a valuable resource. A recommendation from a fellow founder to their investor significantly boosts your chances of success. “We’re social animals who take our cues from each other, and the voice of real people who’ve stuck their heads above the parapet to back you is far more valuable than any technical walkthrough or deck design could ever be, no matter how slick,” Ali says. At the end of the day, when it comes to securing funding, it’s all about crafting personalised pitches, exploring creative financing options, and tapping into the power of social connections for that extra edge. ↑ ZAIN ALI, founder of Centuro Global. ‘T/Pro Fostering Equity Five notes to help underrepresented entrepreneurs carve their own paths to success by REBEKAH CAPON A lot of people can feel like entrepreneurship is not for them, mostly due to outdated stereotypes, and the image that a lot of us carry of the archetypal business tycoon—often white, male, and non-disabled. Indeed, recent research showed that 74% of people in the UK do not believe that an entrepreneur is someone that looks like them, which can be a big problem for diversity and accessibility in the sector. The following tips are thus to help prepare anyone who does not feel that they fit the traditional mould of a business owner to take the leap, and start their entrepreneurial journey 1/ FIND YOUR COMMUNITY Entrepreneur- ship doesn’t have to be lonely, and finding your community should be your first priority. Whether that’s an online community on LinkedIn, or in-person networking sessions, you may be surprised how many opportunities there are to meet and learn from likeminded people. Here’s what Christina Fonthes, the founder of REWRITE, a community interest company for women of colour writers, suggests doing. “Reach out for assistance and participate in numerous groups and programmes until you find your community,” Fonthes advises. “There are countless programmes out there, and once you join one, you’ll discover even more opportunities. Entrepreneurship is challenging! Seek as much support as possible, and surround yourself with individuals who are on a similar journey, or have already walked that path.” Also, start signing up to newsletters, following people you’re inspired by, and joining events and further-learning programmes. There can be a perception of the startup community as being fuelled by competition, but the reality is one of collaboration. There are networks specifically for Black founders, disabled founders, female and non-binary founders,
51 September 2024 / ENTREPRENEUR.COM / impact-led founders, and more, and once you start putting yourself out there, you’ll be rewarded with a wealth of expertise, opportuni- ties, and support. United by shared experience, and the shared aspiration to see the world of entrepreneurship diversified and democratised, these communities will provide you and your business with a legion of new cheerleaders, and a network of potential mentors, collabora- tors, and customers. 2/ DEFINE SUCCESS FOR YOURSELF Every business has a different goal, and you need to be clear on what success would look like for you from the beginning. Whatever your motivation for starting the business, this needs to guide your business plan as well as the metric that you use to keep on track. Are you looking to create wealth, have a positive impact in your sector, or build a lifestyle that works for you? All of these things can be true, but committing to your one guiding star will make it easier to prioritise decisions moving forward. It will also be important to keep this in mind when pitching your business, whether that’s for investment, for a contract, or an award. Remember that there is no right or wrong goal for your business; this is something that is personal to you. Think about what prompted you to start this journey, and don’t feel pressured to switch course to align yourself with those around you. 3/ FIT YOUR BUSINESS TO YOUR LIFE Something that is important to unlearn right away is the “hustle culture” narrative that we are often fed by the media. The entrepreneurial journey is unique to everyone, and for groups often underrepresented in the sector, it offers an alternative to the unrealistic expectations of the traditional workplace. For anyone managing a health condition or with caring responsibilities for others, running a business gives you the autonomy and flexibility to fit your work around your life. But being the one in charge can come with a weight of responsi- bility to always be working and available to potential customers or clients. However, it is important to remember that the boundaries you set early on can become the boundaries people come to expect from you, and it is up to you to set a healthy working culture for yourself and your business. A lack of structure in your own working patterns can lead to burnout, and it can also set unhealthy expectations to any staff that you bring into your operation. Being the one managing the business gives you the power to do things differently, to be more creative, and to be the boss that you wish you’d had. 4/ YOUR PERSONAL BRAND HAS POWER Your founder story is an important tool that can help you grow your business. Think about having an “about me” section on your website, invest in your social media presence, and put yourself forward for opportunities. You don’t have to be an extrovert, and it’s okay to feel a bit wary about putting yourself out there—but the value-add to your business is huge. People want to know about the person behind the brand, and connect on a human level to a business; so, the more authentic you can be, the more people will trust in your brand, and want to invest in your story. There are lots of ways you can do this without going too far out of your comfort zone. Put yourself forward for awards, send a story to your local paper, volunteer as a speaker on a podcast, comment on relevant LinkedIn posts, submit a guest blog. Whatever works for you, adding a human element to your brand will not only help your business, it can also be a great way to celebrate diverse entrepre- neurship, and maybe inspire someone else to take the leap. Representation is so important- in fact, Fonthes remembers that this as being a key challenge she faced in her own entrepreneurial journey. “It was difficult to enter and navigate the scene, as there were few businesses, I felt, that were led by people of colour,” she recalls. “I think that for this reason, I didn’t really see myself as a business owner for a long time, even though I was running my business full time!” 5/ JUST START This can be the hardest part—but don’t overthink it; just start! The reality is that there’s never going to be a perfect moment for you and your business to start, and holding off until you have absolutely everything ready will just result in infinite delays. You have to accept the fact that having something out there and live is better than having a perfect plan you keep to yourself, and real-life experience and feedback will be the most valuable thing you can gain. Think about your minimum viable product and be brave enough to put it out there. Confidence is often the biggest barrier, and this is especially the case if you struggle to see yourself as an entrepre- neur, and don’t see many people who look like you in the sector. But at the end of the day, being a business owner is all about learning as you go, and having a healthy dose of audacity! You will inevitably have to change things about your plan, and adjust the initial vision you had for your business, but the only way to work this out is to try. Rebekah Capon is the Managing Director of Hatch Enterprise, an entrepreneurship charity supporting those typically underrepresented to launch and grow sustainable, successful businesses. hatchenterprise.org YOUR FOUNDER STORY IS AN IMPORTANT TOOL THAT CAN HELP YOU GROW YOUR BUSINESS.”
EMPOWERING THE VISIONARIES OF THE UNITED KINGDOM UNITED KINGDOM
53 September 2024 / ENTREPRENEUR.COM / The Ties That Bind The co-founder of Lottie is here to debunk the myth that family and business don’t mix by WILL DONNELLY
54 / ENTREPRENEUR.COM / September 2024 S/Strategies MY ADVICE FOR ANYONE LOOKING TO START THEIR OWN BUSINESS, ESPECIALLY IN THE HEALTHTECH SPACE, IS TO ALWAYS HAVE A PURPOSE BEHIND EVERY DECISION.” C ontrary to popular belief, starting a successful business with a family member is highly advantageous, as my brother Chris and I co-founded Lottie in July 2021. Combining Chris’s tech expertise and my experience in social care, we aimed to improve elder care standards globally. Lottie emerged from our personal struggles to find suitable care for loved ones, and it now helps thousands of families across the UK. Despite challenges, including the COVID-19 pandemic’s impact and adjusting to each other’s working styles, our complementary skills have driven Lottie’s rapid growth. Today, Lottie is a trusted and respected brand, leading the later living marketplace in the UK and valued at US113 million. Our journey shows that family partnerships can thrive in business, driving positive change in a competitive market. Disgruntled by our own experience of finding a care home for our grandmother, Chris and I founded Lottie as a care home marketplace. Our aim is to transform the later life sector by connecting care seekers to the UK’s best care homes at a fair price. Before co-founding Lottie, I spent over five years advising the UK’s leading care and retire- ment operators, and I was also part of the property team that helped the National Health Service (NHS) throughout the COVID-19 pandemic. Chris has a strong background in digital and tech. Prior to co-founding Lottie, he was the founder and CEO of Verb Brands, a company he launched at university and grew organically into one of the world’s leading digital and tech agencies. The idea for Lottie was born when Chris’ expertise in technology and my experience in the social care sector were combined. Exactly three years after launching, Lottie continues to empower ← Lottie co-founders CHRIS and WILL DONNELLY.
55 September 2024 / ENTREPRENEUR.COM / care seekers by simplifying the process of searching for care, i.e. care homes, home care, and retirement properties. We blend innovative technology with market-leading human expertise (through our free concierge service). Each care provider and retirement living property listed on Lottie is reviewed by a team of care experts using “The Lottie Standard” for outstanding care, facilities, and homely environments. This Lottie Standard is constantly being reviewed and updated, but it currently considers industry-ac- cepted metrics like the UK’s Care Quality Commission (CQC) ratings (per category), as well as more subjective measures like external reviews. When we first established the Standard, we used it to dictate which care homes we would target to partner with Lottie. In the future, we will also consider new data points that will benefit care seekers. To date, we’ve placed thousands of residents into Lottie care homes; compared to the industry-wide rate of 44% of care seekers regretting their care home decision, our move-out rate is incredibly low. Our company’s pre-launch financiers included Tom Blomfield (founder of Monzo), Victoria van Lennep (founder of Lendable), Jacob Haddad (founder of AccuRx), Jamie Bolding (founder of Jungle Creations), and Dominic McGregor (founder of Social Chain/Fearless Ventures). In August 2023, we completed our Series A funding round backed by leading investors, including Accel, General Catalyst, and Kindred Capital. Three years later, Lottie is now valued at GBP113 million. }} “LOTTIE WAS BORN FROM OUR PERSONAL STRUGGLES TO FIND SUITABLE CARE FOR OUR FAMILY MEMBERS, DRIVING OUR MISSION TO TRANSFORM THE ELDERLY CARE SECTOR.”
56 / ENTREPRENEUR.COM / September 2024 However, our successes haven’t come without challenges. The pandemic heavily impacted the care sector, making our mission to drive positive change even more challeng- ing. We knew this was an obstacle we needed to over- come from the beginning, and we are pleased to share that through Lottie’s bold pink branding and creative marketing strategies, we have successfully addressed common misconceptions of care. In November 2022, we launched our “Nights On Lottie” campaign, pledging 1,000 free nights for UK carers. Partnering with Unplugged, a company who offer a variety of digital detox cabins in the UK countryside, we gave away 100 free 3-night stays in one of their cabins. Endorsed by Anton Du Beke, best known for being a professional dancer and a judge on the BBC One celebrity dancing show Strictly Come Dancing, the campaign was launched on the ITV television show, Good Morning Britain, on Carer’s Day. This campaign raised Lottie’s awareness and generated over 1,000 nominations for carers. We are now surpris- ing our first winners with their well-deserved breaks. Additionally, it fostered sector unity, with care operators supporting our nominated carers with respite care. Building on this success, our latest PR campaign, Meet The Senior Swifties, featured care home residents recreating Taylor Swift’s iconic album covers, went viral, while also demonstrating that age is no barrier to enjoying music. Campaigns like this make us proud to see how far we have come, and we’re excited to see the positive impact our marketing activity can continue to drive within the social care sector and beyond. However, one of our biggest challenges has been addressing the long-standing status quo in a stagnant OUR JOURNEY SHOWS THAT FAMILY PARTNERSHIPS CAN THRIVE IN BUSINESS, DRIVING POSITIVE CHANGE IN A COMPETITIVE MARKET.” S/Strategies ↓ The Lottie team.
57 September 2024 / ENTREPRENEUR.COM / market. For too long, the social care sector has needed more innovation that benefits care seekers and their loved ones. As a newcomer to the market, we’re constantly reviewing our business services to show how we’re revolution- ising the care sector. For example, in May 2022, we launched Care IQ, Lottie’s proprietary data insights tool offering unrivalled insights into the UK elderly care and retirement living industries. Care IQ has supported over 20 clients in confidential projects totalling over GBP1 billion of deal activity, including mergers and acquisitions and operational performance reviews. Care IQ’s clients include some of the industry’s largest real estate investors and lenders in the UK and European markets. We also recently launched our home care marketplace, which connects care seekers directly to home care and support providers. We’re proud to share that with the launch of our Homecare Marketplace, we now cover all three core types of elderly care—care homes, home care, and retirement living. My advice for anyone looking to start their own business, especially in the healthtech space, is to always have a purpose behind every decision. Lottie was born from our struggles to find suitable care for our family members, which drove our mission to trans- form the elderly care sector. Staying true to Lottie’s mission when making important business decisions has helped grow our success over the last few years. Will Donnelly is the co-founder and CEO of Lottie, a rapidly growing tech startup dedicated to improving later life. Launched from his parents’ spare bedroom in August 2021, Lottie now has one million monthly users and 70 employees across the UK. With over EUR30m in funding from top investors like Accel and General Catalyst, Donnelly recently acquired Found, the UK’s leading care software. Lottie is the top platform for finding and booking later life care in the UK, and it is preparing for international expansion, starting with the USA. lottie.org ← Valued at US$113 million, Lottie leads the later living marketplace in the UK.
58 / ENTREPRENEUR.COM / September 2024 S Franchise T he UK’s franchising sector has undergone substantial expansion and diversification, witnessing numerous brands establishing prosperous niches and drawing the interest of ambitious entrepreneurs seeking established business models. With a remarkable GBP15 billion contribution to the UK economy, marking a 46% increase over the past decade, this industry’s continued growth facilitates streamlined franchising opportunities for businesses and aspiring franchisees alike. Franchising has a long history in the UK, going back to early 70s, and it remains a desirable growth strategy for most British brands across all sectors from food and beverage, hospitality and retail, to B2B and B2C services. We asked Farrah Rose, International Franchise Director at The Franchising Centre UK, a company that has helped thousands start their franchising journey, to share with us the top tips she’d give a first-time franchisee—here’s what she told us: Franchising in the UK: Tips, Trends, and Triumphs Could the UK’s vibrant franchising scene be your next big move? Explore top expert advice, tips, and success stories to fuel your entrepreneurial journey by PATRICIA CULLEN / 1/ DO YOUR MARKET RESEARCH Choose your franchise concept carefully, and ensure that you have the relevant skillset and affinity. Examine the demand for the concept in your area, identify market potential, competition, and logistics of operation, and how these would convert into a financially viable venture 2/ PREPARE A ROBUST BUSINESS PLAN Ensure that you have sufficient capital to fund the venture without risking your total livelihood. Do not overstretch yourself to the point of losing everything if the venture is unsuccessful. 3/ DO AS MUCH RESEARCH AS YOU CAN Search the category on your local Franchise Association Website, find various franchises in the selected sector, and then establish whether or not they are a member of their respective collective. Talk to franchise industry stake holders— think banks, franchise association, franchise consultants–all of whom may know more about the franchisor ‘s reputation than you do. Talk to the franchi- sor’s existing franchisees as well, and seek their experi- ence of dealing with the franchisor. 4/ CONTACT THE SELECTED BRANDS Gather as much information as you can about the franchisor’s track record in both company- owned and franchise operations, as well as the business model, the financials, training and support, franchisor resourc- ↑ FARRAH ROSE, International Franchise Director at The Franchising Centre UK.
59 September 2024 / ENTREPRENEUR.COM / es, and key terms and conditions of the franchise agreement. It is extremely important to get properly orientated by the franchisor—keep away from those who don’t invest time in helping you make the right decision. 5/ BE REALISTIC Franchising reduces the risk of failure prevalent in business startups, but it does not eliminate it totally either. Go into the venture with your eyes open, and prepare yourself to work extremely hard. THE UK MARKET HAS A WIDE RANGE OF FRANCHISES WITH PRICE POINTS FOR MOST CIRCUMSTANCES, AND A BUSINESS THAT WOULD APPEAL, WHATEVER YOUR PASSION. IT IS A GENUINE ALTERNATIVE TO EMPLOYMENT FOR MANY PEOPLE; WORK JUST NEEDS TO BE DONE ON SHARING NEWS OF THIS MORE WIDELY.” Five of the top franchises that have made their mark in the UK market }PIZZA HUT The UK Pizza Hut franchise has expanded since 2000 to encompass 320 delivery stores across the UK and Ireland. The Pizza Hut franchise cost in the UK can range from GBP161,000 to GBP942,000. The Franchising Centre UK’s Farrah Rose puts the success of the Pizza Hut franchise down to a strong track record before franchising, robust operating systems, sufficient resources, a protected trademark, and excellent training and support, all underpinned by a financially viable model for both franchisees and the franchisor. “Staying ahead of the trend through frequent menu modification, whilst introducing ways to improve the operation,” as well as having the “stamina to last the journey when the going got tough” are also key reasons for its staying power, Rose adds. }MCDONALD’S McDonald’s stands as an undisputed giant in the world of franchising, with a ubiquitous presence across the UK with 1,439 restaurants as of 2024. Renowned for its iconic golden arches and beloved menu items, McDonald’s offers franchisees a proven business model, extensive training programs, and ongoing support. But at a cost ranging from GBP349,000 to GBP1.84 million in 2024, this franchise does not come cheap. }SUBWAY As one of the largest submarine sandwich chains in the world, Subway has established a strong foothold in the UK market. SNAPSHOT Franchisees are drawn to Subway’s flexible business model, low startup costs, and emphasis on fresh ingredients and customer choice. On average, you can expect to pay between GBP100,000 and GBP200,000 to open a Subway franchise in the UK. }DOMINO’S PIZZA A UK household name, Domino’s Pizza offers delicious pizzas, convenient delivery, and innovative digital platforms. With a focus on quality and speed, franchisees benefit from comprehensive support and a proven business model catering to growing demand. In the UK, the average cost of a Domino’s franchise is about GBP280,000. }COSTA COFFEE With its inviting atmosphere, artisanal coffee blends, and delectable pastries, Costa Coffee has cultivated a loyal customer base and a strong franchise network. Franchisees are attracted to Costa Coffee’s reputation for quality, its robust training programs, and the opportunity to tap into the thriving coffee culture sweeping the nation. The initial franchise fee is GBP25,000, alongside royalty fees of 6% of your gross sales.
60 / ENTREPRENEUR.COM / September 2024 Understanding the appeal of the franchise business model } Franchises come in all shapes and sizes, and they span pretty much every industry, and Andrew Walters, founder of Kindling Franchise Group, a consulting service for franchisors, puts this down to the inherent flexibility of the franchising model. “It’s a simple way of growing a business by letting other talented business people learn, and share in your successes,” he says. Outlining the benefits of the franchising model, Walters says that when done correctly, it can help new business owners to grow bigger, faster, and stronger– something of real value in the turbulent economic times in the UK at present. “The UK market has a wide range of franchises with price points for most circumstances, and a business that would appeal, whatever your passion,” Walters says. “It is a genuine alternative to employment for many people; work just needs to be done on sharing news of this more widely.” According to Walters, a successful franchise is based on a proven, established concept that can be replicated with consistent quality in every location. However, when it comes to real success, any good franchisor is driven by great franchisees– they are the heartbeat of the business, Walters says. Provided that they are happy, capable, supported, and profitable, they will be passionate brand advocates and drivers of growth. “When a franchise is in balance, and both franchisor and franchisee share in each other’s success, then growth usually happens. When either of these gets out of kilter, problems usually arise,” he warns. The thriving UK franchise scene presents a compelling opportunity for entrepreneurs seeking proven business models, steady growth, and a pathway to expand market presence with confidence and efficiency. S/Franchise SUCCESS STORIES (Of the franchise kind) Consider the example of The Party Tent Company, a Warrington-based marquee hire business, that entered the franchise industry through a simple case of supply and demand. According to Iain Griffiths, Franchi- sor at The Party Tent Company, it became evident early to him and his team that they would be able to take the brand UK-wide with franchis- ing. “However, I wanted to ensure that all the systems and processes were watertight before I considered franchising,” Griffiths adds. While acknowledging that starting the franchise during the onset of the COVID-19 pandemic in 2020 probably wasn’t the best time to do so, the leadership at The Party Tent Company decided to keep going, and as restrictions started to lift, they went into partnership with their first franchisees. Fast forward to today, and Griffiths believes the franchise model is excellent shape in the UK in 2024. THE RUNDOWN ↑ IAIN GRIFFITHS, Franchisor at The Party Tent Company. ↓ ANDREW WALTERS, founder, Kindling Franchise Group.
61 September 2024 / ENTREPRENEUR.COM / Q&A with Carrie Walsh, President of Subway Europe, Middle East, and Africa What key factors do you attribute to Subway’s success in the franchise industry? Subway was founded with an expansion mindset, which helped it become one of the world’s largest quick service restaurant brands. In 1974, after Subway’s founders opened 16 restaurants throughout Connecticut in the US, they made the decision to begin franchising. The franchise business model launched the brand into a period of incredible growth and popularity. Today, Subway is focused on smart growth, and ensuring restaurants are in the right location, [have the right] image to help drive guest traffic, and deliver a high-quality, convenient guest experience. In addition, the brand is continuing to partner with strong, well-established operators with local market expertise to strategically expand and strengthen our global footprint. There are many benefits to franchising with Subway, including that it is a proven, global brand focused on continuous menu and digital evolution. Subway franchisees also have the advantage of a low-cost initial investment, access to scalable concepts, extensive growth opportunities and in-market support and resources. In addition, the brand’s menu updates and strategic marketing initiatives and campaigns, such as the recent launch of Footlong Sidekicks featuring the Footlong Cookie, help drive guest traffic and excitement. What advice would you give to someone considering becoming a franchisee? There are a few pieces of advice we frequently hear from some of our most successful franchisees. The first is that if you take good care of your team members, they will, in turn, take good care of your guests. The second is about leveraging the ongoing support, resources and guidance that Subway provides its new and existing franchisees. The brand’s leadership and field teams are made up of tenured industry professionals with significant experience in franchising. Franchisees that take advantage of resources, including team member training, strategic pricing guidance, digital and in-restaurant promotions, are often more successful in driving traffic and increasing profitability at their locations. THE EXECUTIVE SUMMARY “From a franchisee’s perspective, they can buy into a tried-and-tested model, which minimises the risk of going into business and enjoy the support of the franchise network,” he points out. “Franchisees can also qualify for funding on favourable terms when they buy into a franchise.” Another example of an enterprise in which franchising is taking centerstage is mySTAYINN, a professional property management firm that aims to change the hospitality industry. The company is currently on a mission to grow, with it hoping to reach 2,000 listings by 2027, sharing its proven system with other aspiring Short Term Lets owners and operators. Pav Masutes, founder and CEO at mySTAYINN, acknowledges that running any business has several risks, but reveals that investing in a franchise greatly reduces those risks. “Franchise businesses are very successful,” he says. “Less than 3% fail, compared to 50% of non-franchised businesses failing within the first five years. Also, 93% of franchisees are profitable, with over 66% of those franchisees running their businesses for over five years.” ↑ CARRIE WALSH, President of Subway Europe, Middle East, and Africa.VP MENAT, Organon, with their guests at the event. ↑ As one of the largest submarine sandwich chains in the world, SUBWAY has established a strong foothold in the UK market. ↓ PAV MASUTES, founder and CEO at mySTAYINN.
62 / ENTREPRENEUR.COM / September 2024 D ating is highly competitive; so to stand out, you need to think creatively. Jamie Johnston, co-founder of Mattr, a London-based dating app for the neurodivergent community, has reimagined how dating apps work. Following his attention-deficit/hyperactivity disorder (ADHD) diagnosis in early 2021, he realised that matching is just one part of the overall dating experience. Based on feedback from target groups that traditional dating apps are “overwhelming,” Mattr provides tools and support, including date suggestions to alleviate stress and make the dating experience less daunting. Traditional dating apps have always worked on a model of paying for improved chances, meaning if you have a premium account, you should have more chance of success. However, because dating is a double-sided marketplace where no single person controls the outcome, this model does not work, says Johnston. “With Mattr, we looked at the dating landscape and determined where we could always guarantee value,” he continues. “We have access to experiences, wellness, bars/restaurants, coaching, and therapy, all within the app at a discounted rate, meaning users can always benefit from the app.” When it comes to advice for his fellow entrepreneurs, Johnston suggests starting slowly. “Think of your customer’s current experience, and try to remove pain points from that journey,” he adds. Plus, Johnston urges founders to carefully examine the market, and consider additional elements for their offering. For instance, brands might be interested in partnerships to access your audience, providing a revenue source as you grow. In the early stages, such partnerships can build awareness and earn free media, demonstrating potential for growth and success. mattr.social IMAGES COURTESY MATTR Q&A I n the competitive startup scene, business model innovation is not just important— it’s invaluable. With a record-breaking 900,000 startups incorporated in the UK in 2023, and with nearly 20% of new companies destined to fail within the first year, can original business models ensure your business beats the odds? Adopting innovative business models help companies stay ahead of the curve. Entrepreneur United Kingdom looks at four examples of businesses doing things differently. Doing Things Differently Mastering the power of business model innovation by PATRICIA CULLEN Decoding the dating dilemma S/ MATTR/ THINK OF YOUR CUSTOMER’S CURRENT EXPERIENCE, AND TRY TO REMOVE PAIN POINTS FROM THAT JOURNEY.” ← JAMIE JOHNSTON is the co-founder of Mattr.
63 September 2024 / ENTREPRENEUR.COM / IMAGES COURTESY MYEDSPACE Disrupting education MYEDSPACE/ SPEED OFTEN BECOMES THE BEST ATTRIBUTE FOR YOUR TEAM AS YOU CAN FAIL FAST, AND EQUALLY QUICKLY LEARN AND ADAPT.” → SEAN HIRONS, co-founder of MyEdSpace. S ean Hirons remembers going from poor General Certificate of Secondary Education (GCSE) results, to top A-levels, and further to landing a spot in London School Economics. “I had a turning point when I moved school to a sixth form college,” he recalls. “In my first school, I was going down the wrong path, and did pretty poorly in my GCSEs. Then, I moved to a college where I had teachers that really encouraged me, and who delivered incredible teaching.” Inspired by his own experience of the impact teachers can have, Hirons co-founded MyEdSpace, which reimagines education and gives everyone the opportunity to learn from the best teachers, regardless of their postcode or income. “We believe the best teachers in the country should teach the whole country,” he says. “Our tech and delivery model allows us to deliver this in a one-to-many model, at scale.” By democratising access to top teachers and building something completely different to what’s available, Hirons knows all too well that there isn’t any playbook that you can follow along your entrepreneurial journey. That said, validation is crucial, and Hirons recommends entrepre- neurs with innovative business models to aim to sell their product or service before it’s built, as it’s the most effective way to gauge demand. “When ready, build a minimum viable product (MVP), ideally without involving any third parties,” he says. “Once launched, continuously talk to your customers, and create what they ask for, not what you think is needed. Growth at any cost is not the mantra anymore.” This mindset also ties into Hirons belief that when you are venturing into uncharted territory, there is no expert to guide you. He suggests using the savings made from avoiding high salaries to hire young, innovative graduates to work with you on solving the challenges, harnessing new perspectives to drive your vision forward effectively. “Speed often becomes the best attribute for your team as you can fail fast, and equally quickly learn and adapt,” he adds. myedspace.co.uk → SEAN HIRONS and KHARIS YANAKIDIS, co-founders of MyEdSpace
64 / ENTREPRENEUR.COM / September 2024 S/Q&A Home sweet home JARVO/ D riven by a frustration over the limited availability of flexible workspaces outside major city centers, Dan Hillman founded Jarvo, a company that transforms existing homes into functional environments for remote work. This super asset-light model significantly reduces the cost of opening new spaces. “We are also not carrying the weight of capex and operational costs to set up and run, thus meaning faster routes to learning, revenue, and scale,” Hillman says. “The long term will demonstrate how well this works, but that was a much more exciting path to take.” When asked for tips he’d give his fellow entrepreneurs, Hillman urges founders to seek out markets that are overlooked and lack innovation, as not all markets are competitive. However, that’s not to say that competition should be avoided. Competition can be a motivator, indicating areas that others have identified, and the market can often have room for multiple players. After all, Tesla wasn’t the first electric car company, and Facebook wasn’t the first social site. “I hate the misconception that you have to be the first,” Hillman says. “The first doesn’t always win, and the second or third learns the most from the first-timer. Plus, with the huge benefits of artificial intelligence (AI) and tech, you can leverage tools at very low costs to give yourself a huge competitive advantage over others.” As someone finds inspiration in Jeff Bezos’s motto, “Be stubborn on the vision, and flexible on the details,” Hillmann stresses the importance of thorough research, continuous experimentation, and swift product or service deployment. “I previously believed that everyone would want a desk and chair (most of our homes today don’t have desks, and no one’s ever asked), and I have been wrong on many occasions. I wasted the first year of Jarvo messing around, trying to get everything perfect—scrap all that, perfect is the enemy of done, get out there, and make it happen,” he advises. jarvoapp.com I WASTED THE FIRST YEAR OF JARVO MESSING AROUND, TRYING TO GET EVERYTHING PERFECT— SCRAP ALL THAT, PERFECT IS THE ENEMY OF DONE, GET OUT THERE, AND MAKE IT HAPPEN. ↑ Jarvo, an online platform that allows homeowners to share their homes with local remote workers → DAN HILLMAN is the founder of Jarvo. IMAGES COURTESY JARVO
65 September 2024 / ENTREPRENEUR.COM / Same same but different IPLICIT/ L yndon Stickley, CEO of iplicit, a technology company that ranked eighth on the Financial Times’ list of fastest growing UK companies of 2024 emphasises that success comes not just from having an innovative business model, but from executing it well. “There’s nothing worse than a solution looking for a problem,” Stickley says. “In each of the things with which I’ve been involved, and particularly those that have been most successful, it’s about timing, identifying the opportunity, and having the right solution for the problem.” THERE’S NOTHING WORSE THAN A SOLUTION LOOKING FOR A PROBLEM. After setting up seven companies across various industries, Stickley notes that many small businesses and startups have almost identical challenges. “It’s about finding the opportunities in the market where the target audience has a sizeable amount of pain, and therefore is more receptive to a solution—and then connecting the right solution with the right audience,” he says. According to Stickely, everything takes twice as long as you think, and costs twice as much to bring to market. “The first two years are always about establishing reputation and positioning, and rarely do you get much else done. The exciting things happen between years three and seven in my experience,” he says. Stickely advises testing ideas and gaining traction before committing, cautioning against impulsive decisions based solely on one’s passion or social media trends. “Be really careful what you step into. It’s easy to lose money and get it wrong, so make sure you know what you’re doing, and why you’re doing it, and make sure you’ve got sufficient funds to buy enough time to get the right amount of traction,” he warns. iplicit.com ↓ LYNDON STICKLEY is the CEO of iplicit. IMAGES COURTESY IPLICIT
66 / ENTREPRENEUR.COM / September 2024 S/Ecosystem I n the summer of 2018, I was a naive 21-year-old who’d recently graduated from the dreaming spires of the University of Oxford, becoming the first person in my family to do so. Suddenly finding myself back in my childhood bedroom in Morley, West Yorkshire, I considered splashing the last GBP200 of my student loan on a final big night out. But, instead, I took a chance and invested the money in starting my own tech startup, Zero Gravity. What started as a bedroom project has since grown into a platform that has supported over 8,000 students from low-opportunity areas into top universities, and the business powering the social mobility strategies of major companies like Lloyds Bank, Snapchat, and KPMG. I’ve built a team of 27 based in Central London, raised over GBP6m of equity investment, and deployed GBP1.5m of scholarships to low- income students along the way. Running towards danger paid off. But unfortunately, my story is an outlier in a country where only 12% of venture capital (VC)-backed founders come from working class backgrounds. And whilst more young people than ever before are interested in the idea of starting a business, the rate of startup creation in the UK is still half of that in the US. That needs to change. Powering the Next Generation How to unlock the potential of Britain’s young entrepreneurs by JOE SEDDON THERE’S A BIG OPPORTU- NITY FOR GROWTH More people than ever in the UK are starting their own businesses, with almost half of Brits having a side hustle nowadays. This is particularly a trend among young people, with recent research finding that there are 243,000 Gen Z company directors in the UK, climbing 42% in just one year, as young entrepre- neurs opt to work for themselves, rather than be solely reliant on climbing the corporate ladder. There is so much young talent out there; all with huge potential to transform the UK economy, and drive innovation for decades to come. Young entrepreneurs often bring a fresh perspec- tive to societal challenges, not being restricted by traditional ways of doing things. There’s also a risk-taking inherent to youth that is a breeding ground for forward-think- ing and disruptive ideas. Young people also often have their eyes on purpose, often setting up ventures with a social mission at the core. Social enterprise leaders are often young, with a significant percent- age aged between 16-24 in most countries (Pioneer’s Post). Young entrepreneurs are also twice as likely to say that their business’s primary goal is a social or environ- mental goal (The Entrepre- neur’s Network).
67 September 2024 / ENTREPRENEUR.COM / That’s how my story started too. Like many young entrepreneurs, I wanted to use my skills to make positive change for both individuals, and, as a result, whole communities. I saw first-hand just how high the barriers are for talented individuals from socially mobile backgrounds to reach top universities and careers. I wanted to change this by starting my own technology platform that could unlock their potential. This is how Zero Gravity was born. My story is one of many young entrepreneurs entering the UK market- place. But there are huge barriers to unlocking this talent. THE NETWORK DISADVANTAGE In the world of startups, there’s a scary concept: “the friends and family funding round.” To get the invest- ment needed to initially kickstart an idea into a real business, entrepreneurs are usually expected to fund their startup by raising money from people within their immediate network. Young entrepreneurs are particularly dependent on this funding, being more likely to raise finance from friends and family than older entrepreneurs, and less likely to have attended a comprehensive school (The Entrepreneur’s Network). But while 75% of founders come from wealthy backgrounds, and have access to a network they can call on for funds, for most people, this is simply not an option. It definitely wasn’t for me. Not everyone has a rich uncle working in finance who can invest thousands in their idea. So, how can we plug this gap? It’s up to VC funds and angel investors to change their sourcing methods to be less dependent on privileged networks. More dedicated funds should be set up to fund founders from low-opportunity back- grounds, and those from outside London. This is the only way the UK can stop missing out on top working class talent, and harness the unique perspectives of this group to solve national challenges. Beyond financing your business, your network can take your idea to the next level in other ways. Be it finding a cheap office space, building a team, generating public relations (PR) opportunities, or giving you advice on business chal- lenges, a stellar network connects you with the right people to make things happen. It’s common knowledge that the UK is heavily run by networks. Zero Gravity’s Gap Zero Report found that a state school student is as likely to know zero people who attended either Oxford or Cambridge as a private school student is to know more than nine. State school students are more than twice as likely to report having no “professionals” in their life to support their education compared to private school students. With these stats, it’s no wonder that young entrepre- neurs often come from a subset of privileged backgrounds. Students who have a professional network to lean on for advice and connections have the tools, resources, and insider information at their disposal to get their ideas off the ground. To combat this, we need to democratise access to mentorship. Learning from those that came before is }} WHILST MORE YOUNG PEOPLE THAN EVER BEFORE ARE INTERESTED IN THE IDEA OF STARTING A BUSINESS, THE RATE OF STARTUP CREATION IN THE UK IS STILL HALF OF THAT IN THE US. THAT NEEDS TO CHANGE.”
68 / ENTREPRENEUR.COM / September 2024 S/Ecosystem an invaluable way of building knowledge, and can provide the building block for a successful startup. Like many entrepreneurs, I had to move down to London to make my tech startup dreams a reality. But this doesn’t have to be the case. Other countries offer better models that support innovation. For all of Silicon Valley’s hype and success, the US has a wider variety of startup networks across the country than the UK does with its dependence on London. By building tech clusters outside of central London, we can democra- tise access to entrepreneur- ship for young people across all four corners of the UK from a wide variety of backgrounds. THE NEED FOR AN ENTREPRENEURIAL EDUCATION Most people in the UK have their entrepreneurial energy set alight by social media and squashed by the education system. While Gen Z can find plenty of inspiration through podcasts, TikTok, and other kinds of media, this same drive for business isn’t matched by what they’re learning in the lecture hall. UK universities in particu- lar don’t emphasise entrepreneurship and are often cynical about business. Entrepreneurship needs to be baked into the curriculum and entrepre- neurial skills developed before students enter the workforce. How else can we create competitive busi- nesses on a global scale? The UK also has a risk-averse culture, which is sceptical of budding entrepreneurs. When I told people that I wanted to be an entrepreneur in Morley, I’m pretty sure they thought it was an innuendo for unemployment. We celebrate business successes like Richard Branson, James Dyson, and Alan Sugar, but we don’t celebrate the little guy starting out. There is a greater stigma associated with business failure in the UK, which can deter young people from starting their own ventures. We need to talk more about failure, and what can be learned from it. That not only starts in schools, but also in businesses and government too. In addition, UK investors need to increase their risk appetite and acceptance of failure. Their anxiety rubs off on prospective founders and how they run their businesses, discouraging people from taking risks. Ultimately, playing it safe does not equal progress. To really drive innovation, we need to encourage bold risk-taking from the UK’s young talent. With more support in the right places, young entrepreneurs can power the future of the UK. It’s up to those investors and entre- preneurs who have made it, to push for better funding and accessible networks for young talent. Only then can young entrepreneurs take big bets on the big ideas that will drive progress for everyone. Joe Seddon is the 26-year-old founder and CEO of Zero Gravity, a mission-driven tech startup that powers talented students from low-opportunity backgrounds into top universities and careers. Joe is one of Europe’s leading social entrepreneurs, having been recognised in The Sunday Times Young Power list, the Forbes 30 Under 30 list, and honoured in the King’s 2023 Birthday Honours List. zerogravity.co.uk LEARNING FROM THOSE THAT CAME BEFORE IS AN INVALUABLE WAY OF BUILDING KNOWLEDGE, AND CAN PROVIDE THE BUILDING BLOCK FOR A SUCCESSFUL STARTUP.”
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