What support is available for start up businesses?

All businesses start with a bright idea? Whilst this can be true, your first business may not come to you in a lightbulb moment. It can be the result of lots of thought, collaboration, support, planning and discussion. It can be turning your passion or hobby into a business or taking small strides to turn your profession, skills and experience into your own viable business. Many people have started this process recently and some are thinking about starting a business perhaps after furlough ends or redundancy. I will outline why it might not be a bad time to start up a business if your circumstances permit, this is so you can benefit from the current available business and start up support.

In my role as a Business Engagement Manager, I am involved in supporting SME's and recent start-ups. I have supported businesses in various organisations and in different capacities for over a decade, this includes supporting businesses an Employer Advisor (during the last ‘credit crunch' recession) as a Recruitment Consultant, Innovation Adviser and Enterprise & Awards Judge for some fantastic programmes. 

I have no doubt that setting up a business in the current climate is undoubtedly extremely difficult.... however the stock market is showing signs of recovery and a vaccine is potentially on the way. 2021 should be a better year for start ups than 2020? 

In all honesty, setting up a business even in the best of times is really tough and unfortunately, some do not succeed. However at least there is lots of support available at the moment which may help you to survive and thrive, I will highlight this support in this article. 

Obviously times are tough for those who are faced with redundancy through no choice of there own, they will find themselves in extremely tough labour market. Some have therefore decided that now is the right time is right to set up a business for themselves, this information will hopefully help. I have already heard positive stories of people using furlough time to learn new skills and prepare for a career change or a new business venture.

I admire those who have used recent times productively as a transition period and as a catalyst to learn new skills, some have completed research to get the ball rolling to set up a new business.  

This reminds me of when I worked for the Department of Work and Pensions during the last recession, some of the start ups reflected that redundancy gave them the push and funding to pursue a new career or to start their own business. Some said, they have always wanted to have their own business, but have never had the courage to take the plunge. Many of those who set up during that time are still running and are very successful. Self employment and starting a business is definitely a big plunge, but one you don’t need to take on your own with the support available at present.

If you can set up and survive during a pandemic, this is could be ultimate test of business viability. Your business could be set up to thrive in better economic conditions and resilient to overcome future obstacles which surely will be minor in comparison?….

Support and Funding

Entrepreneurship support and funding is available to support start-up businesses nationally and locally, for example in Staffordshire County Council have recently announced a start-up business loan programme. 

Traditionally, one of the hurdles to starting up a business is finance, hopefully with this support and using your savings/redundancy money this could be capital that you need.

More information about the Staffordshire County Council business support is below; but please contact your local Council for information about what is on offer. https://tinyurl.com/y4d2r7fk

Nationally, The DWP have their New Enterprise Programme aimed at supporting start ups. Should you be presently unemployed, please to not hesitate to make a Universal Credit claim and speak to your Work Coach about this programme. Coaches will be happy to advise about starting up a business and mentoring via their Enterprise support network (I was an coach myself - many years ago.) Also if you are lucky enough to be under 30 years old, The Princes Trust can support and fund young people to start up a business, their website is below.

https://www.princes-trust.org.uk//help-for-young-people/support-starting-business

Start-up advice & support

Entrepreneurs and starts ups can sometimes be hesitant to get support and advice, usually because they want to be independent and figure things out for themselves.

When you first wanted to drive a car, did you jump in a car on your own and drive straight down the M6 in the rain, or did you have driving lessons first?

Getting some support is not a sign of weakness its the sensible thing to do. Often entrepreneurs are very concerned about confidentiality, so much so, that they don’t seek advice. I understand the importance of confidentiality but nobody has a successful business which is total secret, even the most successful entrepreneurs have had lots of support in there early stages and also they continue this as they grow.

I want to reassure you that advice from reputable sources is generally confidential, the organisations running the support and advising you are experienced in supporting start-ups. 

After all, an NDA could also be signed if appropriate! On this subject, it is worth mentioning that there is great support from local Business Innovation Centres to support you, for example Staffordshire BIC have funding to support you in IP issues-https://thebic.co.uk/

Your local Chambers of Commerce have funding and specialist advisers to support and offer advise on all matters regarding starting up a business, if you thinking of setting up, they can book you in for 1-2-1. You have nothing to lose and discussing it with someone in confidence may help. 

I know that in Staffordshire for example, we have fantastic start up advisers who will support you and try to fill in any blanks in your knowledge about starting up a business, this support from the Start up programme is free and with no obligation.

Chambers of Commerce also run mentoring programmes where you can access support and guidance from experienced business professionals alongside a multitude of online events, please see their website and contact them for more information - https://staffordshirechambers.co.uk/business-support/

Chambers often give a discounted membership rate for start ups, which is well worth considering in my opinion, but some support from the chamber is for non members too.

Staffordshire County Council has a start up support page with information on what they offer, your local Council will have a similar offer to check out;

https://www.staffordshire.gov.uk/Business/Coronavirus-COVID-19-support-for-businesses/Support-for-start-up-businesses.aspx

Banks are also a great place to seek support from, Santander and Natwest are particularly active in supporting start-ups. They also obviously offer business bank accounts, these services will have associated benefits and support attached to them.

Accountants also often support local businesses in their region with information and support about starting up, a good accountant can support your business in many ways and not just supporting your accounts.

Their are lots of business events and workshops available at the moment, do a quick search on the business section of Eventbrite to see what is in your area, most workshops are free.

Business Growth and Innovation Support

The sooner you start up, the sooner you can grow.

Once you are set up, there is also support available to help you to grow. As a B2B start up in particular, you maybe eligible for funding and support via EU grants and programmes. This particular pot of funding for innovation will not be around forever (until 2022 to be exact), which is another reason why now maybe a good time to start, so you are in a position to benefit from support programmes in 2021. For example, if you are located in the Staffordshire area then Keele University has a Business Basecamp course which can be fully funded for you. This something which I have been involved with and clients have given me great reviews, this will be running again in 2021.

Office and Incubation space

Modern office working areas are available at a surprisingly low cost. Check out what is available in your area.

Some people loathe working from home and prefer to be part of a community, they miss the office environment and companionship. I suppose it is dependant on your circumstances working style and business. Working from home will no longer have a stigma attached to it which was a barrier for start ups in previous years. I can the benefits of having a mix of environments available to you, this maybe the new normal and best operating model for many start ups. I have seen the impact of utilising an incubation offer when you are starting up, the extra support available can be a game changer!

Locally in Staffordshire, we have a great selection of low cost hot desking, serviced offices and incubation spaces. If you are looking to start up your business in a supported community environment (rather than working from home full time) then your local Universities (whether you’re a graduate or not) will have options for office space.  Your local growth hubs and inward investment teams will also be able to help you to identify suitable space for you, in your area.

Incubation and shared office space facilities can give you a boost, not only by having the right space, environment and support, but also the reputational gain and networking opportunities which are vital when starting up.

I definitely recommend considering an incubator for your start up, if you want links to investors or if you are looking for rapid business growth then an incubator can improve your chances of success.

In 2019, I visited a successful business incubator centre in Zurich, it was a hot bed of fast growing start-up companies with lots of success stories and a honey pot for investors.

I have also visited great incubators in the UK, they have has become more popular in recent years, we have great options for this kind of support in the Staffordshire area, from both Universities and private providers.

Graduate Enterprise support

If you are a graduate, your University will have support available to you and sometimes they will have funding, do not be afraid to contact them to see how they can help. As mentioned, they may have incubation space and a support for you (Universities like to support their graduates to start up successful businesses as it is good PR for them....and therefore sometimes free PR for you.)

If you are a graduate living in Staffordshire, the Be Inspired programme is something to look at. I have enjoyed judging applicants for this programme for the past few years and the quality of business start-ups that this programme supports is fantastic. The guidance such programmes offer, alongside funding and mentoring is a fantastic package at no cost to you. https://www.beinspiredatstaffs.ac.uk/

Talent acquisition

Most start-ups work on their own or as part of a partnership for a few years before employing staff. However buying in talent with specific skills as a short term measure could be an option to explore and to accelerate your growth quicker. (Especially as a start-up you wont need to commit to payrolling and employing someone straight away). Universities have internship programmes and internal recruitment agencies, some have funding for SMEs to part fund the wages with you, you also get support in the recruitment process (some can even payroll the staff member for you)

Some Universities have Knowledge exchange programmes like the Keele Research Innovation Support Programme (KRISP) at Keele University, (this is the programme I have worked on for the past 4 years). Such programmes can support innovative early stage businesses with specific research or business challenges at no cost to your business.

Once your business is set up, you could even then look towards having a Kickstarter placement fully funded by the government or a work placement from a College or even hosting a new T level placement. Whilst this will involve you training and mentoring a young person they may have a skill sets to add value to your start up business and you will be giving a young person an opportunity. This can be personally rewarding and it is a good way of having an extra pair of hands at little or no cost.

The Chamber of Commerce and education/ training providers are running the Kickstarter scheme locally, in partnership with Jobcentreplus. Get in touch with them directly to express an interest. If it is too early to think about this, keep this and similar schemes such as Apprenticeships in mind for the future, again government funding is available for SMEs to support in the costs and could be a good route to have your first staff member.

Finally networking can be extremely valuable for a start up and many local networking groups are available dependant on your area. Some are free, (LinkedIn and Eventbrite are the best places to spot these). One of the most well known groups which is national is BNI, they will have a group in your area so check out their website, for this you pay a membership fee but some can get good returns from this.

Hopefully this information helps, feel free to contact me to ask any questions and best of luck!!

By Steve Hargreaves

*Views are my own, information as correct on 16/11/2020