BUSINESSAn intro to Enterprise Apps

LEGALMoving to the UK

FEATURECoworking in London

issue 03 | Spring 2015 | quarterly£5 where sold

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Dear ReaderStep right up, step right up and gather to see the newest, most impressive and truly tantalising spectacle your eyes ever did read. For in this quarter’s issue we have tamed the lion but kept the Roar, bringing you a big top full of startup extravagance (and all the other useful bits)!

In what seems like forever since our last performance piece (it was before the New Year), we are proud to present our latest circus themed edition. Here at StartUp Roar we have been busy scouting out the rising startup stars of 2015. The New Year not only offers resolutions but is also an extremely busy period for companies that are looking to expand, incorporate or seal investment before the end of the tax year in April ’15.

December’s issue focused on looking forward and at StartUp Roar we aim to honour that commitment by bringing you the latest and the greatest in the startupsphere! In this issue we cover the intricacies of setting up your own business (unfortunately, it’s not simply a case of baking a cake and selling willy-nilly), our favourite co-working spaces across London and making apps easy with Fliplet.

So take your seat, make yourself comfortable and enjoy the read – this is one show you cannot afford to miss!

Hamish Parker-JonesEditor

2

ROLL UP…

3

CONTACTS

T. 00 44 20 7952 1721

E. editor@startuproar.co.uk

W. www.startuproar.co.uk

@RoarStartup

/startuproar

StartUp Roar

StartUp Roar is published by Buckworths Limited trading as “StartUp Roar”, 200 Aldersgate, St Paul’s, London EC1A 4HD.

All statements and opinions contained herein are those of the writers and content contributors and do not refl ect the opinions of Buckworths Limited. Any content of a legal or fi nancial nature contained in this magazine is published by way of guidance only and shall not be deemed to constitute legal, accountancy, tax or fi nancial advice. No content contained herein is intended to be, nor shall be interpreted as, a fi nancial promotion. No advertiser or subject of any articles is or shall be deemed to be making or communicating any inducement to engage in investment activity of any kind.

Buckworths Limited specifi cally disclaims any liability for losses, damages or other expenses incurred by any person as a result of reliance on any statement in this magazine.

Copyright 2015. All rights reserved.

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CONTENTS

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

LEGALManaging Risk - 6Identifying fi nancial, legal and reputational risks with your business

Moving to the UK - 10Tapping into the UK investment market

Legal Structures - 14An introduction to structures for a full-profi t business

Social Enterprise - 14The pros and cons

BUSINESSEnterprise Apps - 24Internal mobile motivation

Smart Grant Scheme - 28A taste of competition

Service on Demand - 34Living in the on-demand economy

TRAVELVida Cruises - 38Taking your holidays on the water

4

In the last edition of StartUp Roar, we discussed

legal structures available for use by for

profit businesses. Later in this edition,

the legal forms of social enterprises

are reviewed. But what other

matters do entrepreneurs need

to consider when founding a

new business?

Tax Regime

Businesses operating in the UK

benefit from a relatively straight-

forward tax regime with tax

payable on profits of the

business at 20%. Expenses

incurred in the course of

business may be deducted

from income to reduce the

taxable profit of the business.

VAT is generally chargeable at

20% of turnover (depending

on the nature of the goods

or services being sold and the

specific VAT scheme that the

company has opted for) and

businesses can usually offset VAT

they have paid out against VAT

they have collected. Businesses do

not have to register until their VATable

turnover has exceeded £81,000 in any

twelve month period.

Setting up a Business

LEGAL

5

Managing Risk

The first question founders should ask

is “Is my business legal?” One would

hope that the answer to this question

should be pretty obvious. However,

occasionally the legalities of a business

can be difficult to identify. This

particularly occurs in business sectors

where there is a regulatory regime in

place.

For example, a founder wishing to

set up a business to source and find

valuable old cars and then bring

together individuals to buy those

cars together might consider that this

is a business handling the purchase

and sale of cars. Unregulated, right?

“The first objective is to understand the risks associated with your business. Once the risks have been identified, those risks need to removed or reduced as far as possible.” Michael Buckworth, Buckworths

Not necessarily – the founder needs

to understand whether any of the

regulatory regime relating to arranging

and/or managing investments apply.

The second priority of an

entrepreneur is to identify the legal

regime applicable to his business. Even

with “vanilla” retail businesses, there

is a degree of complexity as regards

the rules applicable to the sale of

goods. Consumers, for example, are

entitled to return goods within certain

periods, particularly where the goods

are ordered online. Whilst there

are certain exclusions to these rules

for certain types of goods, founders

need to be sure whether or not these

exclusions apply.

Finally, founders must understand the

cost of doing business and must have a

plan for ensuring that their business will

either be profitable over time or will

provide both founders and investors

with a return on their investment.

Each business carries with it risks – some of these are financial, some

legal and some reputational.

6

FINANCE LEGAL

7

8

Insurance

Insurance is essential for almost all

businesses. Most will automatically

have public liability insurance and

employer’s liability insurance, each of

which is relatively standard. Services

businesses will often have professional

indemnity insurance which covers

negligent advice, whilst product

inventors and sellers may have

product liability insurance. In addition

to customer-facing insurance policies,

some businesses may have directors

and officers liability insurance (D&O

insurance) which is designed to protect

directors from liability if something

goes wrong.

Getting the right insurance is important.

Entrepreneurs should be careful to

review policy terms before purchase

to ensure that it is suitable.

Customer Terms

Having an agreement with your

customer is important for several

reasons: to limit your liability, to ensure

that you can get paid for the goods or

services you sell and to ensure that

you can get out of the agreement if

need be.

For many risks, you can exclude

liability. This would be applicable for

example in a tech business when you

would state that you are not liable if

your application, website or software

goes offline for some reason (perhaps

due to a server failing). Similarly you

would generally exclude your liability

for special types of damages.

Sometimes, often for commercial

reasons, you can only limit your risk.

LEGAL

You would generally match your

maximum liability to your insurance

coverage. Finally, some risks cannot be

limited. These risks include personal

injury and death. For these risks, you

must have insurance.

In order to require payment from

a customer, you need to show that

you have demanded payment which

is generally achieved by sending an

invoice and that payment is due (i.e.

the payment period stated in your

terms of business has expired).

Finally, in some circumstances, you

may not be able to terminate your

agreement with a customer even if

they are refusing or are unable to

pay. These issues can be resolved by

setting out in your terms of business in

what circumstances you can terminate

your contract with a customer without

being in breach of contract.

Regulatory Regime

Employment laws in the UK have

become more employer-friendly in

recent years. In most cases, employees

are not protected from “unfair

dismissal” until the expiry of two years

from commencement of employment

giving employers a wide discretion

to terminate the employment of

employees who are not performing or

are not suitable for the business. There

are some exceptions.

The rules relating to the maintenance

of companies are light touch and easy

to satisfy. A company must file a return

to Companies House each year along

with a copy of its accounts. A company

will make intra-year filings when it

appoints or removes directors and

when it changes its share structure (for

example, by issuing new shares).

9

Foreign Companies: Moving to the UK

The UK is a fantastic jurisdiction in which to operate a startup business. Businesses operating in the UK (whether UK or foreign business) are able to attract investment from UK investors who benefit from SEIS and EIS.

The UK startup community is

very well developed meaning

that entrepreneurs can access a

range of support and advice. This

has attracted a large number of

foreign entrepreneurs to the UK,

many of whom have experienced

growth and success to a far

greater extent than their peers

back home.

In this article, StartUp Roar explores

how a foreign business can gain access

to the UK startup market.

10

Foreign Companies: Moving to the UK

Entering the UK Market

In order to take advantage of SEIS

and EIS and government grants in

the UK, a foreign company needs to

either create a UK holding structure or

establish a permanent establishment

in the UK. Whilst there are complex

rules governing each approach, the

below summarises the requirements.

The first approach will require the

foreign company to create an English

holding company that sits above the

existing foreign compan(y/ies). This

is done by way of a “share for share

exchange”.

This is a tax neutral transaction

requiring a valuation to be completed

in the home jurisdiction and the value

of the company to be reflected in the

issued share capital of the new English

holding company.

The result is that all the shareholders

of the foreign company swap their

shares in the foreign entity for shares

in the new English holding company.

The foreign company becomes a

wholly owned subsidiary of the English

holding company.

The second option is for the foreign

company to establish a “permanent

establishment” in the UK which

requires the foreign company to have

a permanent office in the UK which

carries out a significant part of its

business from that office and employ

one or more persons in the UK. A

permanent office includes: a place of

management; a branch; an office; a

factory; a workshop; an installation or

structure for the exploration of natural

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

quarry or any other place of extraction

of natural resources; or a building

site or construction or installation

project. Also, the foreign company

would usually register as an overseas

company with the companies regulator

in the UK (Companies House).

A permanent establishment may also

exist in the UK if there is a “dependent

agent” in the UK. This is defined as “an

agent acting on behalf of the company

has and habitually exercises their

authority to do business on behalf of

the company”.

LEGAL

11

The authority of the agent to conclude

contracts may be written, verbal or

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

enterprise taking no active involvement

in the negotiation or conclusion of

contracts).

However, this specifically refers to

agents who conclude contracts with

customers. Contracts concluded

for the purposes of establishing the

business in the UK (for instance the

rental agreement to obtain premises)

will not fall within this definition.

Registering a permanent establishment

is often a more complex option than

setting up a UK holding company

when viewed from the perspective of

on-going compliance. Whether or not

the foreign company has a permanent

establishment in the UK is a factual

question to be decided by the UK tax

authorities, HM Revenue & Customs

(HMRC).

Both of these options allow the

company to take on investment from

UK investors claiming tax relief.

Accessing finance in the UK

The UK has two extremely generous

schemes for investors investing in

startup companies. Equity investors

(those purchasing shares) in young

companies carrying on a “qualifying

business” (which includes most

businesses other than property/real

asset businesses and leasing of assets)

can claim relief on their investment

under two schemes, the Seed

Enterprise Investment Scheme (SEIS)

which applies to the first £150,000

raised by the company and the

Enterprise Investment Scheme (EIS)

which applies to the next £5,000,000

raised each year. Companies seeking

to raise investment under SEIS must

have started preparing for their trade

within the period of 2 years prior to

the date of investment.

The pre-requisite for these schemes is

that the company taking the investment

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

a foreign business, investors invest into

its UK holding company) or, if a foreign

company, it must have a permanent

establishment in the UK.

Investors under the SEIS scheme

receive up to 50% of the amount

invested by them back from the tax

authorities (HMRC) as a deduction

from their income tax bills in the tax

year of investment, the year before or

the year after. Investors must hold the

shares for three years after which, on a

sale of the shares, they benefit from a

0% rate of capital gains tax on any gain.

The gain is essentially tax free.

The tax reliefs for investors under SEIS

are some of the most generous in the

world and significantly reduce the risk

for investors in early stage startups. It is

relatively easy for companies to qualify

for SEIS – the first step is to seek an

advance assurance from HMRC that

the company qualifies.

EIS is the bigger scheme for companies

who have already raised money under

SEIS or who have exceeded the two

year limit on SEIS. Investors under

this scheme receive up to 30% of

the amount invested by them back

from HMRC as a deduction from

their income tax bills in the tax year

of investment, the year before or the

year after. Investors must hold the

shares for three years after which, on

a sale of the shares, they benefit from

a 0% rate of capital gains tax on any

gain meaning that the gain is tax free.

Companies can raise up to £5,000,000

per year under the EIS scheme and

investors can invest up to £1,000,000

per year

These schemes have made startups

very attractive for investment

with the result that London is

the number one place to raise

investment in Europe.

G o v e r n m e n t Grants

There are a large number

of government grants for

startups employing people

in the UK and/or doing

something innovative in

their sector.

The most popular grants

are TSB Smart Grants.

Startups can be awarded up to

£250,000 to build and develop

their prototype. This money is

not repayable. The grant requires

“matched funding” meaning that

the company must raise investment

simultaneously with receipt of the

grant.

12

LEGAL

13

Social enterprises can be

operated through a for-profi t

structure or a specialist not-for-

profi t entity. There are pros and

cons of each approach.

A social enterprise is a business

carried on for a social purpose. Social

enterprises can be operated via a

number of structures.

The desire to pursue a social purpose

impacts on the structure, governance

and use of profi ts. In the main, social

enterprises aim to benefi t the social

purpose for which they were set up,

rather than to maximize profi ts for

their shareholders.

One of the most important things

to consider when setting up a social

enterprise is what legal structure

to choose. It is vital to consider

which structure will offer the best

protections for the social purpose,

how the structure will impact on the

business’s ability to manage risk and

access fi nance, what tax breaks will be

available (if any) and how stakeholders

can be incentivised.

A social enterprise can operate via one

of a number of legal structures. These

include an unincorporated association,

a company limited by shares or by

guarantee, a community interest

company, an industrial provident

society or a limited liability partnership.

Further, a charity can be operated

through a number of structures.

Sole traders, partnerships and

unincorporated associations benefi t

from light touch regulation. However,

those responsible for running the

business will be personally liable and

exposed to the full risks and liabilities

of the business. For this reason, they

tend not to be practical structures

for businesses operating in the public

sphere and/or with signifi cant liabilities.

Common legal structures

Community interest company (CIC):

CICs were originally established

as a social enterprise structure for

businesses with a social purpose which

did not wish to become a charity. The

CIC structure requires the business

to offer safeguards to protect its

community purpose. This is done via

the imposition of an asset lock which is

contained in the articles and operates

to protect the community purpose.

Except in limited circumstances, assets

cannot be distributed to the CIC’s

shareholders. Upon a winding up of

the CIC, the assets must be applied for

the benefi t of the community and not

to repay creditors. The CIC cannot

transfer any assets for less than market

value apart from to another CIC,

other asset locked company or charity.

Social Enterprise

14

LEGAL

15

CICs are much more flexible than

charity structures and can offer limited

returns on investment to investors

and reasonable remuneration for

directors. They are regulated by the

CIC Regulator which offers a lighter

touch approach to regulation than

the Charity Commission. The CIC

must satisfy a community interest

test both upon incorporation and

throughout the CIC’s lifespan.

The CIC must p r o v i d e

a community in terest

report each

year.

Limited company: businesses wishing

to provide the benefit of an asset lock

without restricting the possibility of

operating the business as a for-profit

business can use a standard limited

company structure and replicate the

asset lock provision in the articles of

association. However, unlike CICs,

the shareholders of such companies

can amend the articles to remove the

asset lock at any time. This gives added

flexibility but also potentially puts the

community interest being pursued

at risk.

Industrial and provident society (IPS):

IPSs are societies which can take

the form of either a community

benefit society

( B e n c o m )

(set up to

benef i t

a

wider community other than its

members) or a co-operative society

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

members). IPSs offer members an

equal stake and an equal say in the

management and pursuance of the

purpose for which the society was

set up.

Charities: a social enterprise can

become registered as a charity if it

has been set up for a purely charitable

purpose and it meets the stringent

requirements of charities legislation

(including falling within one of the

increasingly narrow classifications

of purpose and being operated for the

public benefit). There must be an asset

lock in place to ensure that all assets

are applied solely for the charitable

purpose. One of the biggest benefits

of becoming a registered charity is that

charities are entitled to a number of

very beneficial tax breaks.

Financing

Like for-profit businesses, social

enterprises can raise finance

from debt and equity

financing. Social enterprises

are also able to benefit from

targeted grants. Grant funding

is available to social enterprises

whatever the legal structure.

However, structures containing

an asset lock and/or restrictions

on investment returns and salaries

are often viewed as more suitable

for grant funding.

16

FEATURE

Top 6: Co-working SpacesLondon has a world class offering when it comes to office space, and particularly co-working spaces, for startups. This is our pick of the best – in no particular order.

What are Co-working spaces?

Co-working spaces offer fully serviced, shared working environments that unlike

most traditional offices, are not employed by a single organisation.

Often considered a haven amongst creative professionals and freelancers, co-

working spaces offer a sense of synergy amongst people who share the same

values, goals and mindsets. Designs are meticulously thought out in order to make

excellent use of space, optimise work flow and most importantly offer a sense of

genuine comfort that is often missing in standard office space.

17

Central WorkingCentral Working is one of the most established co-working spaces in the market. Shortlisted as one of the UK’s Top 100 Startups of 2012, Central Working currently operates in 4 locations in London (Bloomsbury, Whitechapel and 2 in Shoreditch) and one in Manchester.

Users can tailor the space to suit their individual or collective needs be that as a one-off drop in session, a permanent offi ce or a coworking area. With a curated membership of SME’s in clubs across London they provide the support, infrastructure and tools needed to create the connections, momentum and recognition for growth.

Aside from offering great coworking spaces, Central Working have partnered with some of the biggest names in the tech startup sector such as working with Google to create Google Campus and have helped Barclays to create The Escalator, the world’s number 1 startup accelerator.

They have had incredible success from the launch of Angry Birds in the UK, Hootsuite, the home to Microsoft Ventures in the UK, and hundreds of other businesses from all sectors - Not just tech businesses.

centralworking.com

Club Workspace – London BridgeWorkspace is one of the most established coworking businesses in the capital. With 10 locations spanning both sides of the Thames, the clubs are renowned for hosting some of the countries leading startups and creative SME’s.

However Workspace’s uses are not just limited to that of collaborative working, they also provide excellent event spaces that can be rented on a “one-off” basis. Here at StartUp Roar we are avid fans of Workspace’s multi-functionality and frequently host our seminars across their portfolio of sites. But, with a little bit of bias, we have managed to highlight our favourite club from the 10 spaces currently on offer – London Bridge.

Workspace London Bridge is a playful inviting space. It boasts a large circular lounge area affectionately named the “rotunda” in which you can prop yourself on a bean bag whilst chipping away at emails, or like us, utilise the space to create a small scale auditorium. It creates the perfect atmosphere of peaceful professional – and who doesn’t work better nestled into an oversized pillow stuffed with massaging beans!?

club.workspacegroup.co.uk

18

FEATURE

19

TOP 6 CO-WORKING SPACESin alphabetical order:

1. Central Working2. Club Workspace3. Innovation Warehouse4. Level 395. Techspace6. The Trampery

1

2020

2

6

3

4

5

FEATURE

To Canary Wharf

2121

Level 39Level39 is Europe’s largest technology accelerator space for fi nance, cyber-securities, retail and future cities technology companies. Occupying the entire 39th fl oor of the iconic One Canada Square building, Level39 was opened on 18th March 2013 by Boris Johnson, Mayor of London, and has quickly become an important part of Tech City- having hosted over 200 events, including hackathons, skunkworks and demo-days.

Level39 is a space for early-stage businesses that have potential for high-growth. Members are looking to create, test, market and deliver scalable world-class fi nancial, retail and future cities technology products and services. Level39 also plays host to innovation and accelerator programmes – these are short programmes that aim to boost a young company’s growth over a concentrated period of time.

Last, but by no means least, Level39 host many startup and investor events, publish an online blog and newsletter and have a coffee machine controlled by an iPad. And to top it all, their view over Canary Wharf and the rest of London is unparallelled

level39.co

Innovation WarehouseThe key to any successful startup is originality, breaking the mold to achieve something that has never before been accomplished. And what better way to nurture these budding enterprises than in an environment that celebrates being innovative?

Innovation Warehouse does just that. The space already boasts some of the capital’s fastest growing startups such as Touriocity - a platform that connects tourists with local expert guides - alongside a selection of angel investors who also occupy the space.

Furthermore members are actively monitored and encouraged to push boundaries in order to truly grow and develop. Located on top of Smithfi eld Market in Farringdon, one of Europe’s largest dedicated startup spaces. Innovation Warehouse benefi ts from being right in the heart of one of the most forward thinking cultural hotspots in the world.

As well as holding regular events, Hackathons and Seminars, Innovation Warehouse also hosts an in-house cat making it the purr-fect place to hatch evil plans in the style of Blofeld.

innovationwarehouse.org

2222

FEATURE

TechspaceArguably, co-working spaces were originally conceived to help cater to the rapidly expanding tech startup community. With the launch of the app store, mobile technology (and quite frankly tech in general) ignited a technological revolution lead by a new wave of developers and forward thinkers – and their successes were life changing.

Fast-forward to present day and startups and SME’s are dominating London’s economic and business landscape, with the tech sector estimated to contribute £100bn to the UK economy. And what better way to harness all these creative juices than provide a space specifi cally designed to compliment these talented individuals?

Well cue Techspace – one of London’s most unique co-working spaces in that they cater almost exclusively to tech startups. Techspace currently operates from 3 locations in Bath Street, Great Eastern Street and Underwood Street. With a 100mb Internet connection, Sonos music system amongst a cluster of overly competitive ping pong players, Techspace provides a perfect fl exible co-working space in the heart of a thriving tech community.

techspace.london

The TramperyOne of the most unique and confi dently quirky co-working spaces in London belongs to The Trampery, a social enterprise that designs and operates spaces for entrepreneurship, creativity and innovation. The company currently boasts 4 locations across the capital including Old Street (in the heart of tech city), Shoreditch, Hackney Wick and London Fields.

The Trampery’s spaces encourage collaboration across multiple sectors including fashion, retail, tech, research, design, software and policy amongst countless others. This enables startups and SMEs to create effi cient and effective networks so that they really hit the ground running; you are bound to fi nd someone who compliments your aims, ambitions and passions.

Furthermore, members benefi t from shared knowledge in the form of the “Incubator Programme” which offers a series of events ranging from peer-peer learning, workshops, expert talks and meetups. This means that startups can openly share information with one another contributing to business growth and development for all budding members.

thetrampery.com

2323

Enterprise apps: Doing business in the mobile ageIt’s the era of the like, tweet

and favourite, where on-the-

go means breakfast in the left

hand, screen scrolling with the

right whilst your legs cycle away

during your 6am gym session. It’s

mobile efficiency at its greatest.

However, whilst business leaders

have harnessed the power of

portable communication with

an external audience, internal

interactions are still heavily

reliant on the limited capabilities

of email. Communications with

employees, particularly those

in the remote workforce, are

often restricted to email with a

resulting loss in productivity. So

how, in a world where revenue

derived from iphone apps alone

exceeds $50m, are businesses

struggling to tap into the full

potential of mobile technology

when it comes to employer-

employee interactions?

The “Tech” Problem:

With over one million apps available

on both the Apple and Android store,

it is clear that mobile is quite simply,

massive. Businesses produce and

publish upwards of 300 bespoke apps

per day which are released into the

public sphere and are purchased and

used by consumers. However the

vast majority of these apps produced

by businesses are aimed at their

customers, not their employees.

Apps are extremely complex to

build - unique in their coding - and

relatively expensive to produce. So,

until recently, many businesses viewed

apps aimed at the internal audience as

a drain on money and resources. But

the complexities associated with app

creation are being simplified all the

way down to consumer level, bringing

us enterprise apps.

Apps for Business:

With the rise in BYOD (bring your

own device to work) and a general

shift towards enterprise mobility, more

and more businesses have realised the

importance of making their solutions

accessible over a smartphone.

Enterprise apps are mobile applications

produced to specifically enhance how

a business and its employees operate,

increasing efficiency, productivity

(by 46%) and overall job satisfaction

(53% say it helps them do their jobs

better). It is estimated that 59% of

large enterprises intend to introduce

internal apps inside the next year, with

38% planning on developing 6 or

more. This huge expansion into

the enterprise app industry

is largely down to

tools such as Fliplet,

which enable tech

novices to create

bespoke mobile

apps using

p r e - c o d e d

t e m p l a t e s

with simplified

e d i t i n g

i n t e r f a c e s .

These mean

companies can

create centralised

information hubs that

have been specifically

designed to compliment

the employees with their

individual or collective work

needs. Good examples of business

areas where such apps could be

invaluable are marketing, HR and

finance. These apps also allow remote

workforces to access secure useful

information wherever they are,

estimated to have the capacity to

contribute to increased work time by

an average 240 extra hours per year

even when off duty.

24

BUSINESS

Enterprise apps: Doing business in the mobile age

How Can I Use Enterprise Apps for My Business?

There really is little limitations in

what enterprise apps have to

offer as they are typically

moulded to suit your

individual business needs.

One of the biggest advantages of

custom-built apps is the increase in

efficiency and productivity that they

offer. This ultimately brings about a

competitive advantage to enterprises

over other businesses that do not offer

similar tools to their employees and

customers.

Enterprise apps usually fall into one of

two categories: apps you deploy to

users outside of your company, and

apps you deploy only to users within

your company.

Deploying apps to customers

Enterprise apps deployed

to customers can be

advantageous to businesses

as the app can be designed to

provide:

• A l w a y s -

on customer

service –

You can

provide

y o u r

25

customers with the answers they

need, whenever they need them.

Today’s customers expect to have

access to customer service on their

terms. And that means providing

them with options to access 24/7

support.

• A personalised service - Customer

expectations for service are rising

every day. Being able to meet

t h e s e

new needs often means providing

a type of personalized service that

goes above and beyond what your

competitors can deliver.

• Multichannel support – Today,

customers use various channels

to voice their opinions. Some opt

for the traditional communication

methods such as phone and email

and others seek to use social

media for a fast response to a

problem. Time is critical when

talking about customer care. With

an enterprise app, you can provide

faster customer support which will

be satisfying for the customer and

will save your company money.

• Intelligent customer service -

Predictive support is the next wave

in the customer service revolution.

Fix problems before they happen

and delight customers in the

process.

26

An enterprise app can be especially

useful if your business runs an online

platform. You can design an app

to collect data on consumer

behaviour, take care of server

maintenance and support and even

to provide information like response

time, uptime and error rates, giving

you an easy way to watch over your

website performance.

The

o u t c o m e

is that enterprise apps

will allow businesses to increase their

customer acquisition and retention

rates as it places the customer in

control, allowing users to interact with

a business however they wish to.

Deploying apps to employees

Enterprise apps can be designed to

optimize work tasks by providing

employees with instantaneous access

to the information they need to do

their jobs. Whether sitting in an airport

lounge or engaged in a meeting with

a client, employees can easily access

up-to-the-minute data on their mobile

device through enterprise apps

that are managed and

updated through

a centralized

enterprise app

store.

Fliplet have

ident i f ied

t h e

f o l l ow ing

f o r m a t s

as being

most popular

amongst clients

who distribute

apps to their

employees:

• Sales support

ensuring remote sales team always

have up-to-date information

facilitating cross-selling in business

with a lot of products/services

enabling interactive and visual

customer demos

• Content marketing

• Events (Internal and external)

• Product information

• Internal communications

(Employee handbooks,

Induction etc)

• Training (Self assessment,

quizzes etc)

• Reporting (to clients, senior

management and customers)

So for Startups?

Mobile technology is currently gaining

incredible momentum and huge

growth is predicted for the enterprise

app industry in the latter part of 2015.

Startups are in an advantageous

position when it comes to competing

with larger competitors in the mobile

sphere as enterprise apps can grow

organically alongside the company;

there is no need for mass integration.

This means that when the startup

becomes more established, they will

already be a step ahead of companies

that haven’t used mobile productivity

enhancements. This also makes for a

more productive workforce leading

to quicker expansion and company

success. Neither cost nor knowledge

need be a barrier to your startup

investing in enterprise app technology

as tools like Fliplet cut the cost and

time to use mobile for bespoke

services such as sales and workflow

improvement.

So hit the ground running and take

your business with you. There has

never been a better time to make your

business mobile.

BUSINESS

www.fliplet.com

27

What is the Smart Grant Scheme?

In the last edition of StartUp Roar, we introduced TSB Grants. This article written by Emma Lim of Buckworths outlines the Smart Grant Scheme (“Smart”). Smart is a competition run by the Technology Strategy Board (“TSB”) for small and medium sized enterprises (“SMEs”).

28

BUSINESS

The objective of the Smart Scheme is to encourage SMEs to engage in Research and Development (“R&D”) projects in the areas of science, engineering or technology from which new products, processes and services can emerge.

29

There are three types of

grant available under the

Smart scheme:

The Proof of Market grant is designed

to enable companies to assess

commercial viability through market

research and

testing. A maximum grant amount

of £25,000 is available and TSB will

fund up to 60% of an SME’s total

project costs.

The Proof of Concept grant allows

companies to explore the technical

feasibility and commercial potential

of a new technology, product or

process. A maximum grant amount

of £100,000 is available and TSB will

fund up to 60% of an SME’s total

project costs.

The Development

of Prototype grant

allows companies to

develop an innovative

technology, product

or process, has a

maximum grant

amount of £250,000

and will fund up to 35% of a Medium

enterprise’s costs or up to 45% of a

Small/Micro enterprise’s costs.

A Smart Grant will only make up a

proportion of the total project cost.

A company will have to match Smart

Grant funding with its own resources

and/or investment.

TSB requires a company to provide

evidence that it can obtain the

remainder of the funds to complete

the project. One of the key features

of a Smart Grant is that a business can

receive a grant from

Innovate UK and

also gain investment

under the Seed

Enterprise Investment

Scheme at the same time

and all eligible costs of the project,

30

however financed, can be claimed

as R&D tax credits against its

taxable profits, thus reducing

its corporation tax bill.

A company may also apply

for additional funding from other

public bodies provided that the total

percentage of funding from the public

sector amount does not exceed the

percentage amount claimed from TSB.

A company awarded a Smart Grant

is required to reclaim eligible costs

from TSB after such costs have been

incurred. This means that claims

can only be made for costs that (i)

are directly incurred as a result of

delivering the project (ii) have

been incurred during the

project period and (iii) are

capable or being audited.

Eligibility

The Smart Scheme is only available

for UK SMEs. Smart defines an SME

as a business that has a turnover of no

more than €50 million, a balance

sheet total of no more

than €43 million

and not more

than 250

employees. Smart encourages

applications from pre start-ups, start-

ups and small and medium-sized

businesses undertaking R&D providing

they meet the SME requirement. The

SME status of a business

can affect the

BUSINESS

31

32

amount of grant that can be claimed.

If an application relates to a software

project, eligibility for the grant will

rely upon whether the technical

development that the project produces

is a “step” change in how computers

are programmed or used. However,

the scheme is unable to support

projects that lead to incremental

development, increased functionality

or general improvements in efficiency,

no matter how much merit there may

be to such a development.

Timeframe

There are 6 rounds of Smart Grants

each year. TSB take up to 1 month

after the relevant round has closed to

review the application.

Smart grants are a fantastic opportunity

for innovative businesses to take

advantage of Government funding.

In conjunction with SEIS, they make

businesses hugely attractive to

investors. and should be considered as

a viable and valuable source of finance

for all innovative startups.

For more infomation visit:

interact.innovateuk.org

BUSINESS

33

Providing service on demand

34

Providing service on demand

Whether or not you have heard

of the “on-demand economy”, if

you have ever used a smartphone

application to ring up a driver

or to get a handy-man to clean

up your house then you know

what it is – a speedy and

efficient way of connecting

with individuals who can

attend to your needs as and

when you need them.

The rise of the on-demand economy

can be attributed, in part, to the

pairing of the workforce with a

smartphone. A large number of tech

startups have taken advantage of this

boom by creating systems that match

time-starved urban professionals

with independent contractors, thus

supplying labour and services on

demand. The tech giant Uber is one

such company.

A ride-hailing service, Uber is one of

the highest-valued technology startups

to emerge in recent years. The value of

Uber lies in the fact that it takes out all

the stress of travel and gets you where

you want to go. On demand. You no

longer have to stand anxiously in line

at a taxi rank, or to wave awkwardly

on a street corner attempting to hail

a taxi. One click on your smartphone

and you can see how soon a car will

arrive and how much it will cost to take

you to your destination.

Valued at $40bn (£25.5bn), Uber is

such a phenomenal success that many

other companies have adopted their

business model and are “Uberising”

industries such as retail, healthcare and

personal services. Arun Sundararajan,

a professor at New York University’s

business school who has studied the

rise of the on-demand economy

comments that “These services are

successful because they are tapping

into people’s available time more

efficiently ... You could say that people

are monetizing their own downtime.”

Along the same lines is “Henchman”,

an app that will bring you anything you

want delivered to you in 60 minutes.

Whether it is medicine from the

pharmacy, red wine for your Friday

night in, that Gourmet Burger from

your favourite restaurant or just a

MacDonald’s, a Henchman will deliver

to your address.

Henchman have created an easy

to use mobile platform that uses

location-based technology to find

where you are. The user tells the

app what he wants and presses “get it

now”. Henchman currently operates

within zones 1-2 of central London

including Fulham, Soho, Marylebone,

Westminster and Notting Hill.

Following an overwhelmingly positive

response (just check out some of the

comments on their twitter handle @

henchmanapp), the business is looking

to grow and expand into the wider

London boroughs so even those in

zones 3-4 can benefit from dropped-

off Ibuprofen. In the same way as Uber

allows registered mini cab drivers

to log into the app and do a pick up,

perhaps between pre-booked jobs,

Henchman has the potential to allow

pre-approved drivers with a vehicle

to make a few drop offs in their

downtime.

Along similar lines is Health Vine, an

innovative business in the health space.

Through Health Vine, users can submit

questions about health and welfare to

verified health professionals. Users can

also book a paid-for online appointment

with a health care professional of their

choosing to discuss issues of concern.

At a basic level this could be an online

visit to a private GP using Skype; at

a more complex level this may be

specific advice on complex issues for

which standard accessible healthcare

provision may not be suitable.

Health Vine allows health professionals

to contribute and monetise some

BUSINESS

35

of their free time. However, Health

Vine’s model is more than simply an

“Uber for healthcare”. Health Vine

have combined the service provision

by health professionals with a social

element allowing health professionals

and users to share experiences,

tips and information to the wider

Health Vine community. Health Vine

are creating a database of valuable

experience and information about

medical conditions that in time will

provide users with context as well as

specific medical advice.

One of the fascinating insights that

businesses in the on demand economy

may be able to provide is the profile of

user who requires the almost instant

gratification provided by on demand

services. Are users younger more tech

savvy people, or have the benefits of on

demand been picked up by the older

generation, so called “silver surfers”?

Does the on demand economy serve

a particular socio-economic group or

are its benefits utilised by people from

a range of economic backgrounds?

Most providers of on demand

services through technology amass

huge quantities of data about their

users, their usage of services and a

number of other personal and generic

characteristics. This information can

(and is) used to analyse trends and to

better understand what drives people

to require services on demand. What is

clear is that the concept of on demand

has impacted all areas of service

provision including those services

that are not (and cannot truly be)

on demand. Increasingly consumers

want instant gratification and service

providers are constantly

innovating to try to

provide the quick

response that meets the

on demand requirement

without impacting on

their ability to operate their

business.

A potential risk with the current

trend of developments in this area is

that the on demand economy ceases

to be about maximising the usage

of down time and becomes about

providing all services on demand.

Returning to Uber, the huge success of

their platform has lead drivers to work

solely for Uber. For drivers who may

be reliant on demand whether or not

they operate through Uber, this may

not represent a significant alteration

in their risk. But for other service

providers, a move wholesale to serve

consumers on demand can have a very

significant impact on their business.

Take your hairdresser as an example.

Historically the local hairdresser

probably relied on regular clients who

either rebooked each month for their

hair cut or rang a day or two before

to book, confident that they could

be fitted in. The hairdresser knew

(probably weeks in advance) exactly

how busy he would be and how much

revenue would be generated in respect

of any particular working day. He

could also predict with a fair degree of

accuracy when Mrs. Bloggs would be

in for her monthly colour or when Mr.

Smith would book for his fortnightly

cut. The on demand economy may

have initially provided benefits in that it

allowed him to fill up empty time with

addit ional

appointments.

Some on demand

leads may have

generated regular clients

(though significant research has

suggested that on demand customers

tend to be focussed on immediate

service in priority to brand recognition

and loyalty). Over time however, the

risk is that the hairdresser becomes

swamped by on demand customers

who potentially displace the regular

customers. Mrs. Bloggs who is used to

be able to ring a day or two before

her appointment now finds that the

hairdresser is booked up. She books

elsewhere and discovers that “Blow

and Go” down the street are just as

good and revolutionise her hairdo.

She starts going there instead.

Over time, our hairdresser may be

hugely successful with on demand

customers, but in the process he has

lost his regular clients and now has few

bookings made in advance. He has

no guaranteed workflow lined up in

36

advance and no ability to predict his

future cashflows with any degree

of certainty. Essentially his business

model has changed and operating risks

have increased.

Monetising un-used time makes good

business sense. Whilst on demand

may increase short and long term

revenues, it may also significantly

increase operating risks and may

require a greater expenditure on

marketing and advertising to ensure

that the consumers with a lower

degree of brand loyalty know and use

the service provider.

So, in

the long run, will

exposure to the on

demand economy

be simply about

m a x i m i s i n g

downtime or

will on demand

become a basic

non-negotiable

b u s i n e s s

mantra? Only

time will tell.

BUSINESS

37

VIDA CRUISES

Whether you’re a seasoned sailor or a nautical newbie, sea cruises offer endless entertainment, unparalleled panoramic views and fl exibility that the modern day traveller treasures. So here at StartUp Roar we explore 2015’s hottest vacation trend with rapidly expanding startup Vida Cruises, and learn how these swashbuckling cruise specialists can offer you an unforgettable land-sea retreat.

Living la Vida Loca:

With its founder having personally

been on hundreds of cruises, Vida

is able to offer its customers a much

greater insight as to what to expect

on board, provide extensive advice

on where to visit at docking ports and

most importantly, where to get the

best ice cream!

The company promotes cruises all

across the globe whilst offering tailored

advice to suit its customer’s individual

needs. So whether you are looking

for family fun, a romantic retreat or

some simple self-indulgence, you’re

guaranteed to fi nd the perfect cruise.

Cruises by the Crew:

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

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

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

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

about the business let alone the customers’ actual needs.

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

best customer experience.

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

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

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

cruise special alongside unrivalled local knowledge of destinations all over the

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

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

from the harbours!

38

VIDA CRUISES TRAVEL

39

So by now if like us you’re

thinking “when do we leave?”,

we’ve selected two of the

most exciting cruises for 2015

departing from UK based ports.

P&O Britannia:

Britannia was the newest and largest

member of the P&O fleet when she

launched in March 2015. Designed

exclusively for British holidaymakers,

she offers 15 decks of fantastic

entertainment, leisure, and dining

facilities. Britannia will include many

popular P&O features such as the

Oasis Spa and The Crow’s Nest, plus

great new innovations including The

Cookery Club, The Limelight Club

and The Studio.

Anthem of the Seas:

Taking cruises to a whole new

level, Anthem of the Seas boasts an

incredible range of ground breaking

features that are new to the cruising

world. One that particularly stands out

is the brand new North Star. Elevating

guests 300 feet above sea level, this

jewel-shaped capsule offers some

breathtaking views of the surrounding

area and is an entirely new concept

for the Royal Caribbean fleet. Other

firsts include the complete redesign of

the staterooms, with inner cabins now

boasting the first virtual balconies at

sea. But with all these state-of-the-art

features, there’s still tonnes of room

for all the favourites of the RC fleet,

including the FlowRider, Rock Wall and

the Vitality Spa. All of this, plus some

incredible dining options and the best

in cruise entertainment.

A Couple of Current Cruises:

40

TRAVEL

obtain your free ticket at www.buckworths.com

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