While every option on this list is a great way to get the extra money you need, they won’t all work for your unique circumstances. It’s important to carefully research what each method of funding involves, who’s eligible and whether there are any consequences further down the line. For some startups, bank loans will be a perfect choice, but other entrepreneurs might be more interested in grants for UK small businesses. Take some time to explore the below before making your final decision:

Government Loans And Grants

The UK government has a range of different loans and grants on offer for small businesses and startups. It can take some time to sift through all the options available, but there are all kinds of funding available to suit individual circumstances. For example, if you’ve been rejected by the bank for a small business loan, you may be eligible for something like a BCRS Business Loan. While this particular option is limited to the West Midlands, it’s worth reaching out to your local council to find out what’s on offer closer to home.

If you’re more interested in applying for a grant, you might be able to make use of start-up and small business growth grants. These are again usually location-specific, so be sure to check if your postcode is eligible for funding. Alternatively, if you’re interested in making your business more energy-efficient, you can look into applying for an Energy Efficiency Grant to support your project.

Grants can be incredibly competitive, which is why it’s worth paying close attention to specific criteria that could apply to your venture. You’ll be able to find grants for things like tourism boosting initiatives and businesses that support local artists.

Bank Loans

If you’ve been unsuccessful in finding government funding in your area, traditional bank loans are always an option for startups in the UK. While many loans will require you to have a good credit rating, some lending schemes are specially geared up to support first-time business owners, which could make them more understanding in some circumstances.

Securing funding from a bank is typically an easier process than applying for a grant, but that doesn’t stop many entrepreneurs from being rejected. If your financial history is riddled with debt or missed payments on your mortgage, you can struggle to get the fresh start you want for your business. Consider taking out a secured loan if your bank doubts your ability to make payments on what you owe. This means that the bank will be able to claim your property or other assets as payment if you fail to uphold your end.

If you do want to pursue bank loans as an option, remember that there’s no one-size-fits-all solution. Before taking out a large, long-term loan, consider whether a bridging or short-term loan could suit your needs better.

Bad Credit Loans

If you’ve tried to secure funding from a High Street bank and aren’t eligible for government grants, there are alternative loans available for people with bad credit. Some of these providers will be available exclusively online, while others will have offices you can visit in person. Remember to be careful when taking out a bad credit loan, as interest can be much higher than on more traditional business loans. Companies like Capify have options available for entrepreneurs with a low credit score, while Liberis Finance may offer merchant cash advances to those in need of capital.

Non-Government Grants

If you had your heart set on a grant but the government couldn’t deliver, don’t lose hope just yet. There are many other organisations that help budding entrepreneurs to get their ideas off the ground if they meet certain requirements. For example, The National Lottery is committed to funding startups and voluntary organisations all across the country. Often designed to help businesses looking to improve their communities, their grants are always worth a look.

Aimed at young people, The Prince’s Trust can be particularly helpful if you’re aged between 18 to 30 and are trying to start your own business. Not only can they help you financially, but they also offer advice and mentoring to support you on your journey. This is particularly valuable for people who are new to business and don’t have any previous skills or experience in starting their own company.

Remember that while you won’t have to pay grants back, you should always ask for a realistic amount in your application. Organisations expect you to fully support your request for a grant with in-depth reasoning and possibly even a copy of your long-term strategy and goals. It’s best to work this out yourself before putting your business forwards for consideration, otherwise, you could be setting yourself up for failure.

How Long Does It Take To Secure Small Business Funding In The UK?

The process of getting the funds you need can vary and often depends on the kind of funding you’re looking for. Getting hold of a traditional bank loan will take considerably less time than applying for a specific grant from your local council. But the main thing that puts off entrepreneurs is getting rejected. It’s understandable to be disheartened after your applications aren’t accepted, but it’s important to keep going. Because there are so many options out there, eventually you’re bound to find something that works for you.

To increase your chances of getting accepted for a loan or grant, speak to an accountant or financial advisor. They can help you find the right opportunities and hone your application to perfection. 

There is the uncertainty of whether your business will gain traction or not. Most small businesses fail, and it’s mainly due to financial issues. It’s true that you can save up before getting started with a business. However, keeping your business running means you need more than just your own money. At some point, you’ll find yourself needing third parties to fund your business. In this case, it’s important to know your funding options ahead of time. We have listed below some funding sources for your startup business.

Where To Get Funding For A Startup Business?

To have a successful startup, you’ll need to invest in other aspects like marketing. Now, you could learn how to determine the best marketing strategy for your company. However, that will take up much of your time. Hiring a startup marketing agency will help you focus on growing your business instead. 

They cover pretty much everything. Brand development, marketing, and advertising. And best of all, some startup branding agencies can connect you with future investors. This is important for any startup business, which will be discussed briefly later.

While this is true, investing in startup marketing can be expensive if you’re just starting. It’s like the chicken and egg dilemma. Luckily, there are other funding options to avail a startup branding agency’s services.

1. Bootstrapping

Bootstrapping or self-funding is a good way of getting funds for a startup. If you’re still in the early stages of your business, it’s difficult to immediately get traction. It’s one of the challenges of starting a business. You can take your chance with some investors. However, without startup branding, you’ll find it hard to convince them to fund your business.

Investors won’t lend money to a startup that is bound to fail. They wanted to partner with businesses with strong chances of success. That’s why most first-time business owners start with investing in personal resources. This means payments for business expenses will come from your own pocket. 

While bootstrapping is difficult, there are some advantages to it. For one, if you survive self-funding, that means you have a good business strategy. And because of that, investors will be attracted to funding your business in the future. They usually consider this as a favourable aspect. And, it is extremely satisfying to see your business grow from your hard work.

However, this is only ideal when your business has minimal needs. Some startup firms need funds from the start. If you find yourself in that category, this method is not the best solution for you.

2. Family Members And Friends

Aside from bootstrapping, your family and friends are also a great source of startup capital. This is one of the simplest ways of getting funds. You can establish your own conditions. Plus, these are the people who know you best. You don’t need to present a track record of previous loaning activity. That is to say, that you asked them properly. If not, there will be consequences not only to your company but also your social life. People reported feeling hurt, as well as resentment towards family and friends. And some even said it resulted in irreparable damages to their relationship. To make sure you’re doing it right, here are some things to consider:

• Think about how it will affect your relationship with them when it gets out of hand. Are you willing to risk your friendship over it? Will there be ways to settle the problems that will arise?
• You should know why they funded your business in the first place. Do they want their money back or is it a gift to you? How long will they fund your business? These are some of the questions that you should know the answers to.
• The terms and conditions for funding should be clear to both parties. To do so, you want to have it written down on paper. Lending money to friends and family can seem informal. However, it’s best that both parties have a clear copy of the terms.
• Even though they are family, they need to know what’s going on with the business. Having open communication with your funders can prevent future problems. They need to know you’re both on the same page.

Having full support from your friends and families is the best foundation of a good business. Many successful businesses today resulted from good relationships with friends.

3. Crowdfunding

Crowdfunding is a relatively new method of funding your startup business. It’s the equivalent of getting a loan, donation, or investment from multiple people at the same time. To get funding with this method, startup owners need to post on a crowdfunding site. It usually contains a thorough description of the business, including goals and plans. The platform helps you reach out to people who will be willing to invest in your firm. When they like your business concept, they will donate money. Those who donated will make online commitments in exchange for a pre-order. Anyone can make a financial contribution to a startup that they believe in.

Moreover, it’s not just useful for getting initial funding for your business. You can also raise funds for your products in the future. With an effective startup marketing strategy, you can use the platform to your advantage.

4. Venture Capital

Venture financing is not for every business owner. Investors in this group are more focused on funding technology-driven companies. They are more inclined towards firms with the potential to grow in certain industries. These include industrial technology, communications, and biotechnology industries. Their main goal of investing is for firms to carry out a promising yet risky initiative. This includes handing over a portion of your company’s ownership or stock to them. Venture capitalists (VC) also anticipate a healthy ROI. It means that the company can now sell stocks to the general public. Just make sure to find those with experience and knowledge that match your business. A marketing agency for startups can help you look for VCs that your firm needs.

5. Angels Investment

Unlike Venture Capital, you will be dealing with only one person with Angels Investment. This person is known as an Angel, hence the name. Mostly rich or retired executives, they invest in small businesses run by others. They are usually industry leaders who offer their experience and networks. Alongside these, they are also experts in the technical and/or management fields. This group of investors often fund between $25,000 - $100,000 in the early phase of a firm. If you need larger investments, you should turn to institutional venture capitalists. Looking for them means you have to contact specialised organisations. You can also do an internet search on angels’ websites.

6. Accelerators Or Incubators

Joining an accelerator (or an incubator) programme is another potential fund source. Business incubators are more focused on the tech industry. They assist emerging firms in different stages of business development. Usually, incubators will invite startup businesses to share their facilities. Aside from that, they will also share their administrative, technological, and logistical resources. 

The incubation period can extend up to two years in most cases. When the product is ready, the company leaves the incubator’s grounds. After that, it can now go into industrial production on its own. Businesses with this type of assistance are usually in cutting-edge fields. These include biotech, multimedia, computer, and industrial technology.

7. Government Grants

If you think about investors, the government will be the last thing on your mind. Many people are unaware that their government provides easy loans or full-fledged grants. New enterprises are a major source of economic development. That’s why governments are willing to assist prospective business owners.

However, these programmes and grants are not widely advertised. To know more about how to qualify for a grant, you can look up your government websites. You can also ask other local startup businesses.  Generally, government grants are more focused on projects about science and technology. You will need to provide detailed information about your project. This also includes how you’re going to spend the grant. To get qualified you need to:

• Explain how your project is beneficial
• Enumerate all the expenses you expect to have to work on the project
• Give an elaborate background and related experience of all project managers

Although, there are government agencies that offer programmes for small businesses. For example, the US Small Business Administration has its own investment programmes. 

8. Bank Loans

Asking banks to fund your business seems like the best option. However, that is not the case at all. Most banks are afraid of lending money to startups because of the uncertainty of success. And if startup businesses go bankrupt, they will lose their money. In order to get funded, you need to have a good track record. In addition to this, a strong business plan can also help you land a fund.

Conclusion

It is healthy for any business to have multiple funding sources. With this, you won’t have to worry about financial problems in the future. Additionally, having diverse financial sources helps you invest in startup marketing.

Most bankers assume you have other sources of capital. It will be difficult to ask for funding for your entire business process. More importantly, having multiple sources shows that you’re a proactive business owner. With that kind of reputation, you’ll be more qualified to receive funds.

Shares in UK cybersecurity startup Darktracce surged as much as 43% on its hotly anticipated stock market debut on Friday.

The firm initially priced its shares at 250p on Friday morning, for a total value of £1.7 billion. But at around 8:15 AM London time, these shares climbed above 358p – an increase of 43%.

Darktraace said that its initial offering would comprise around 66 million shares, or roughly 9.6% of its issued share capital, and raise a total of £165.1 million. £143.4 million of this will go to the company, while the remaining £21.7 million will go to existing shareholders, with the possibility of a further 9.9 million shares also being sold if demand beats expectations.

Darktrace shares began trading in conditional dealings on Friday under the ticker “DARK”. Unconditional dealings are expected to begin on 6 May.

The firm’s successful stock market debut comes just weeks after the highly anticipated Deliveroo IPO, which became one of the biggest London debut flops in history. Shares in the Amazon-backed food delivery startup plummeted as much as 30% when trading began on 31 March.

As a similarly tech-focused UK startup, the Darktrace IPO has been viewed as the second major test of London’s viability for high-growth tech company debuts.

Darktrace uses AI technology developed by a team of Cambridge mathematicians to identify unusual patterns in firms’ IT systems that indicate hacking attempts. It has raised a total of $230.5 million from investors to date, according to data collected by Crunchbase.

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The startup’s progress towards Friday’s stock market debut has been dogged by concerns over its connection with Mike Lynch, founder of Autonomy and an early investor in Darktrace, who faces fraud charges in the US over allegations of having inflated his firm’s value before its sale o Hewlett Packard in 2011.

Shares in food delivery startup Deliveroo rallied on Wednesday as its first day of unconditional trading on the London Stock Exchange began.

Wednesday marked the first time that retail investors could trade shares in Deliveroo, including the 70,000 who invested in the company’s IPO. It followed a week of “conditional” trading that began last week, during which only institutional investors could trade stakes in Deliveroo.

The firm’s shares rose 3.2% in early trading, reaching as high as 289.05 pence per share. However, this is still roughly 25% below the shares’ asking price of 390p during its £7.6 billion IPO, which saw a precipitous first-day tumble after lifting on the LSE – becoming one of the weakest IPOs in FTSE history.

UK Chancellor Rishi Sunak, who prior to the IPO had lauded Deliveroo as a “true British tech success story”, said he was not embarrassed by the plunge in share value. “Share prices go up, share prices go down,” he said in an interview with ITV.

However, several major UK investment fund managers have said they will not buy shares in Deliveroo, citing concerns over lack of investor power and the working conditions of its delivery riders. Firms backing away from the company include Aberdeen Standard, Aviva Investors, BMO Global, CCLA, Legal and General Investment Management and M&G.

The news comes as hundreds of Deliveroo drivers planned to strike on Wednesday amid calls for higher pay. Only 400 of the firm’s 50,000 riders are estimated to be taking part in strike action, as Deliveroo’s survey data showed that 90% of its riders were happy with the firm.

London-based fintech unicorn Revolut has started to apply for a bank charter in the US, the firm announced on Monday.

On the first anniversary of its US launch, the company submitted a draft application with the Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation, the first step in the banking license application process.

“A US banking license would ultimately enable us to provide US customers with all the essential financial products and services they can expect from their primary bank including loans and deposits,” Nik Storonsky, co-founder and CEO of Revolut, said in a statement.

“We’re on a mission to build the world’s first global financial superapp, and pursuing a US banking licence is an integral part of the journey.”

Revolut was granted an EU banking license in Lithuania in December 2018, allowing it to offer banking services in Central Europe. It applied to the FCA and the Prudential Regulation Authority for a UK banking license in January.

The startup also intends to launch its business accounts in all 50 US states. These accounts allow companies to make free money transfers in 29 currencies at the interbank exchange rate, among other features.

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Since launching in the UK in 2015, Revolut has built a customer base of more than 15 million across nearly 40 different countries. Its flagship products include an app-linked debit card that allows users to spend different currencies at the interbank exchange rate with low fees attached.

Revolut’s fintech peers are also seeking bank charters in the US. In February, Brex announced that it would apply for a bank charter in Utah, while Varo Bank obtained a license last summer.

Paul Naha-Biswas, founder and CEO of Sixley, shares some of the outcomes of the 2008 recession and how a similar economic downturn could lead to greater innovation and success in UK businesses.

On 12 August, the worst-kept secret in the country came out, and the UK entered a recession for the first time in eleven years.

Few were surprised by the news. In the months preceding the announcement, the economy went through a period of unprecedented disruption due to the COVID-19 pandemic and the subsequent lockdown, culminating in GDP plummeting by 20.4% within the first three months of the year.

But, while the ‘R’ word might send a shiver down the spine of most businesses, it may surprise you to learn that many of the household brands we use today were formed in the last global financial crisis (GFC). Uber and Airbnb were just two businesses founded during the 2008 crash and used the recession as an opportunity to innovate within their sector.

So, with this in mind, what lessons can businesses learn from the last financial crash and where are the opportunities for innovation this time around?

Lessons from the 2008 financial crash 

In the last recession, the consumer businesses that did well were those that offered services or goods at a far lower cost than pre-GFC.

As budgets tightened, people were increasingly prepared to change their consumer behaviour and explore new digital-first businesses to save money. As a result, we saw a significant rise in casual dining and low-cost retail – such as Boohoo – and also a spike in digital businesses, such as Airbnb and Uber that, through their use of lateral business models, brought quality services to people at a much lower price than competitors. Who could have imagined before 2008 that you could book a whole apartment for less than a hotel room or get driven around town for half the cost of a black cab?

In the last recession, the consumer businesses that did well were those that offered services or goods at a far lower cost than pre-GFC.

How COVID-19 is changing consumer behaviour  

A similar trend is emerging during the COVID-19 recession, with Britons cutting back hard on their spending – both out of worry and due to a lack of spending opportunities.

Consumer spending fell by 36.5% in April compared with the same month last year, which followed a 6% drop in March. During the same period, spending on travel nearly halved, and outlay on pubs, clubs, and bars dropped by 97%.

However, the unique circumstances of COVID-19 have created a new trend in consumer behaviour that wasn’t apparent in the GFC. The Government lockdowns actioned around the world has shown businesses how much of our economy can shift online. And the longer restrictions go on for, the less likely it is that businesses will return completely to their post-COVID-19 setup.

With more people staying at home, there will be increased demand for digital, online services and more opportunities for businesses to innovate. Take Hopin, a virtual events company, for example, the brand spotted a gap in the market created by everyone staying inside during the pandemic and raised over $170 million from investors and built up a $2 billion+ valuation since lockdown began, despite only being founded in 2019.

Hopin isn’t the only business success story from COVID-19 and with the pandemic likely to bring about permanent changes in consumer behaviour, there are plenty of opportunities for entrepreneurs to establish businesses that will disrupt their sector in a similar way to how Uber and Airbnb did in 2008.

The availability of excellent talent  

However, increased consumer demand for digital services, isn’t the only reason why now is an opportune moment for innovation.

In the GFC, labour turnover fell significantly – from 18% of the workforce in 2006 to a low of 10% in 2013 – as workers looked to hold onto secure jobs and employers put a pause on recruitment.

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Once again, a similar trend is emerging, with employment opportunities falling by 62% across the UK in the three months to June compared to the same quarter last year.

While this isn’t the ideal situation for jobseekers, businesses now have a huge and diverse talent pool to choose from. For example, start-up founders can bring in highly experienced, motivated employees without having to poach or hire on full-time contracts, something that many start-ups may otherwise struggle to afford.

And there’s promising signs that current prospects for jobseekers will change soon. Following news that two potentially effective vaccines will be rolled out in the new year, shares in businesses skyrocketed on newfound optimism suggesting they will bounce back. Similarly, in the aftermath of the GFC, spend on recruitment agencies bottomed out at 75% of pre-2008 levels before eventually exceeding pre-recession levels by 2013/14.

The great American writer Mark Twain once said that history doesn’t repeat itself, but it often rhymes, and, in this instance, the saying rings true. Although the circumstances may be different, the COVID-19 recession, like the GFC, has opened new markets that businesses, if they are fast enough, can take advantage of. With a swell of excellent, experienced candidates available and changing consumer behaviour, the environment is perfect for new start-ups to emerge and become this decade’s Airbnb and Uber.

However, with so many various policies out there promising different types of cover, protecting your businesses best interests can be quite an overwhelming challenge. While one of the most beneficial decisions you can make for your business and its employees is to opt for coverage that protects the financial elements, you should consider these types of cover as they are most suitable for business.

Cover for Your Employees

Caring for the health and wellbeing of your team can be implemented in various ways; from providing clean drinking water to encouraging healthy living habits. However, providing your employees with life insurance and disability insurance is a notably important decision.

You can compare deals with the help of an expert insurance broker or similar insurance comparison company near you. Protecting your employees with cover will automatically save your business in the unfortunate event that an employee is to become ill, temporarily disabled, permanently disabled, or worse.

Liability Protection Policies

Liability policies aim to protect businesses from the potential legal costs that can arise in the event of an injury within the workplace. The cover will apply to compensation payouts as well as any relevant legal fees.

As there are a few different types of liability policies out there, it is best to consider a policy that protects you from public liabilities as well as employee liabilities. Be sure to evaluate the terms and conditions of any policy before purchasing coverage as policy details usually vary substantially.

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Business Interruption Cover

If you can imagine the devastating possibility of your business being affected by unpredictable disasters such as a flood, a fire, and several others, the impacts can be daunting. However, you can consider business interruption cover that will protect your business from the loss of sales and profits that result from an unforeseen situation that is not within your realm of control.

Even though this type of cover is not legally essential, it can ultimately save your business from potential closure should a natural disaster or instance of theft take place.

Commercial Property Policies

Commercial property insurance is usually offered in two parts; one is covering the building itself and the other covering the contents within the building. This type of policy might be essential if you have a mortgage loan on the building. However, it is necessary for all business owners as it will be beneficial should damage or theft become a concerning reality. Commercial property policies will protect your business from accidental damage, theft, and other unfortunate instances.

While there are various other types of insurance policies out there that you may consider beneficial for your business, you should always evaluate the costs and the details of a policy before buying cover. Every business owner understands financial challenges and how unforeseen events can snowball quickly. Even if you are in the midst of getting your startup idea off the ground, insurance policies should be a priority right from the start.

Accounts filed with Companies House this week have revealed that Revolut made a loss of £106.5 million in 2019, an increase from the £32.8 million loss it posted in 2018.

The loss comes despite significant growth in Revolut’s business, with its customer numbers rising from 3.5 million to 10 million over the course of the year. These customers held £2.2 billion on Revolut’s cards by the end of 2019, up from £1 billion in 2018.

Revenues also saw an increase of 180% to £162.7 million, but failed to outpace losses.

In an emailed statement, Revolut chief executive Nikolay Storonsky took an optimistic stance on the news, emphasising the past year’s growth.

“While we still have some way to go, we are pleased with our progress in 2019,” he said. “We tripled our revenues, increased retail customers from 3.5 million to 10 million, increased daily active customers by 231% and the number of paying customers grew by 139%.”

“Despite the current economic challenges, we remain focused on our goal of moving towards profitability.”

Revolut is a London-based fintech startup that aims to build a single universal platform for its customers’ financial needs, initially beginning as an app-linked foreign exchange card before expanding into stock and cryptocurrency trading. It is currently one of Europe’s fastest-growing fintechs, and received a valuation of $5.5 billion during a funding round in February.

Revolut also disclosed in its accounts that it has assisted the government during the COVID-19 pandemic by supplying data on how its customers’ spending habits have changed across sectors while lockdown measures have been imposed.

Taking a closer look at the start-up industry in Europe, card processing specialists, Paymentsense, have conducted research to find out which countries have seen the most significant rise in start-ups between 2013 -2017.

 The data has been mapped out across Europe allowing users to uncover the industries that each country specialises in and how fast those industries are growing.

Paymentsense analysed 30 European countries and ranked each one of them based on how many new businesses have been registered in that 5-year period and which business types have been the most popular in these countries.

Turkey tops the list with the most start-ups registered, followed by France and then the United Kingdom. However, data reveals that the UK is the fastest growing start-up nation in Europe and has brought more than a few successful companies to Europe, including Transferwise and Deliveroo.

Top 10 countries fuelling the European start-up industry:

Among all these countries, the UK has seen the biggest growth in the number of start-ups between 2013 and 2017 at 5.09%, followed by Romania and Portugal. What all of them have in common is a business-friendly environment that gives founders the possibility to grow and nurture their company over time.

When looking at what type of start-ups have dominated Europe in the last few years, wholesale and retail have the largest presence with 3.7 million new businesses started up.

This is surprising to see when in recent years we have seen a retail crash with companies like Woolworths and ToysRUs go bust.

The type of companies that have started up in Europe between 2013-2017

Guy Moreve, Chief Marketing Officer at Paymentsense, says: “It’s interesting to see that the UK ranks among the top five countries with the highest numbers of registered new businesses. It shows that the country offers a great setting for those interested in founding their own company.

Further afield, it’s fascinating to see how Europe has changed in recent times. A number of countries are now placing more emphasis on technology which has helped create a ‘golden era’ for tech startups.

“In order to thrive a business in your respective country, make sure you analyse the market you’re addressing – what works best and what doesn’t; It’s also worth looking at the legal and environmental conditions in order to make sure your business idea is a success”.

(Source: Paymentsense)

A new report from VentureFounders, in conjunction with Beauhurst, has found that 56% of UK tech founders expect that their business will sell for £50m or less, but 80% want to re-enter the tech ecosystem and support it post-exit.

Other key findings:

• Most UK tech founders are intending to exit within 2-5 years, despite recognising the risks of exiting too early.
• If founders think they will sell for more than £50m, it would be to an overseas buyer.
• The longer a company has been generating revenue, the lower the valuation they expected on exit.

Quoted respondents include James Meekings of Funding Circle, Justin FitzPatrick of DueDil and SwiftKey's Jon Reynolds.

No ambition gap 

James Codling, CEO and co-founder of VentureFounders, believes that, despite the £50m figure, there is no ambition gap among UK tech founders:

"Our report highlights the challenges faced by scale-up entrepreneurs and how critical it is for the UK to continue to nurture the scale-up ecosystem. While UK founders do expect to exit earlier, 80% of them want to go back in to the ecosystem and support it, after they've exited their own business. We hope the government's Patient Capital Review will address some of the key findings from this report.

"We are also commissioning a further piece of work to look at the cost to scale a business in the UK and the funding gap that businesses experience. On the back of this, we expect to make a number of policy recommendations."

Toby Austin, CEO at Beauhurst, commented: “At Beauhurst, we have observed what I suspect are the beginnings of a shift in the funding landscape. Late-stage companies have been able to find the support and capital they need in the UK recently, although much of the money has come from foreign investors. The findings of the report support my belief that the UK is brimming with exciting, ambitious businesses and the ecosystem simply needs to catch up — hopefully it has already started to do so.”

(Source: VentureFounders)

London hosted the 37th London Marathon on its streets this month, the day of reckoning when thousands of first-time Marathon runners finally put their months of training to the test to attain a life-long dream. Here Gary Turner, UK MD and co-founder at Xero explains to Finance Monthly why starting up a small business is more of a marathon than a fun-run.

While not everyone chooses to run one, there are some striking similarities between the process of preparing for the race and getting a small business up and running. ‘It’s a marathon, not a sprint’ is a bit of a cliché, but the premise is correct - success means careful planning, a lot of time, consistent effort and discipline, and patience when the odds feel like they are stacked against you. Although I’m not a Marathon runner myself, I’ve watched others train hard for them, and the gruelling work, the exhaustion and the sheer joy of success are exactly why the two processes are so similar.

Here’s five ways how entrepreneurs and marathon runners can learn from each other:

1. Be clear about your goal

By signing up to the Marathon, runners commit themselves to the undertaking. Visualising success is a huge part of the mental preparation, and it is exactly the same for a small business owner - have a distinct aim that will help to keep you focused.

2. Plan how you’re going to get there

Marathon runners have a clear training plan from the moment they start, covering everything from distances to pace times - and the rest days in between. Once you have a business goal, create a detailed plan to get there, setting benchmarks and smaller aims along the way to highlight progress and keep motivated.

3. Know when to give yourself a break

Days off are vital to give your muscles a break and they are equally as important when running a business. Our recent research found that successful small business owners make sure they are taking breaks to give time for their batteries to recharge - in fact, our research found that more than half of small business owners (52%) admit they want to give themselves more time of fin 2017 than they did last year to prevent burning out. Looking after yourself means you can be at the top of your game.

4. Prepare yourself for the route

It’s vital to know the uphills, downhills and the water stops of the marathon route and the same goes for your business. Study what others have done in order to make their business a success, and be prepared for times when your business might be busier or quieter to help with the first few months of cash flow.

5. Remember you are not on your own

Our research found that a third of successful entrepreneurs have turned to a mentor or support group for advice about their company, compared to just 14 per cent of respondents who ran a business that had to close. Starting the business you have always dreamed of is undoubtedly a personal challenge just as a marathon is, but support is vital. Know when to ask for help and turn to a friend or expert for advice, just like training partners and support teams can help as they cheer you on.

The UK’s tech growth over the last decade has been phenomenal, and this very much thanks to technology startups and increased expansion of innovate firms. However, in the midst of uncertainty and instability, expansion is often being pushed to foreign soils, mostly due to a lack of the right people. This week we heard from Adam Hale, CEO of Fairsail, on the role that the UK must continue to play as a global tech hub and the skills crisis that could stand in the way of this.

The unique value of our tech industry comes from the large number of digital businesses starting up and scaling globally out of the UK market. Just look at the hotbeds of innovation in Tech City, Silicon Fen or the Thames Valley areas. To fuel that innovation, and the growth it powers, acquiring the right talent is a pre-requisite. However, despite having the necessary funding and bright ideas, recruiting people with the right technology skills can often being the biggest barrier to global expansion for companies looking to scale up. It’s a barrier we’ve come up against time and time again.

As the CEO of Fairsail, the UK’s fastest growth technology scale up, head-quartered in Reading but with offices and customers around the world, the current skills crisis makes it difficult for us to keep software development in our home market. The skills crisis means that, for companies like us, exports are hampered because we can’t get enough technical skills to keep up the development and innovation that our global market is demanding. Without the right people with the right skills, scale ups are being forced to move development offshore. And without a solid strategy to reverse the skills crisis, the UK tech economy risks losing its momentum. So what can we do?

To start with, there needs to be more recognition of technology as an important part of the UK economy, and government strategy must reflect the real demand for digital skills. Radical action to address the systemic flaws in our education system is at the heart of this. Recent announcements by the government do show improvement in its efforts to address the skills gap, most notably the creation of ‘T-Levels’ announced in the Chancellor’s Spring Budget that will provide 16-18 year olds with vocational technical education to the same level as their academic equivalent – A Levels. However, digital is only one of 15 different technical routes to choose from. So, while £500m investment in skills may be a headline grabbing figure, in reality, it boils down to an insufficient concentration on where we need to radically improve skills – in IT.

Much greater investment is also needed to improve teaching and present the technology industry as an attractive career choice from a young age. Currently, the supply of technical school leavers/graduates is pitiful and does not come close to fulfilling demand. In 2016, only 5,600 students studied Computer Science at A-Level in 2016, and a meagre 600 of these were female. To really change perceptions and address the gender-imbalance in the industry, the government needs to impose increased primary and secondary education focus on tech and STEM. If we are to meet the nation’s demand, we should be aiming for a tenfold increase of students studying computer science over the next five years, with females making up at least 30%.

I have a passionate belief in the UK’s ability to grow and develop world leading businesses; however, as UK-born companies pursue growth, they have no choice but to look further afield in the search for the talent they need to meet their customers’ demands. Only by getting young people interested in and studying technology subjects will we avert this crisis, and cement the UK’s rightful position as a future global tech hub.