New 'Business Forum' Launch

Our first free forum will focus around "Raising Finance For Your Business"

The forum will take place at the Warwick Innovation Centre on Thursday 25th September with an 8:00am start and conclude by 10:30am allowing you plenty of time back in the office.

Perfect opportunity to network and have breakfast. We will be serving hot sausage and bacon baps, croissants, muffins, cold ham and cheese, freshly baked baguettes and refreshments.

You will hear presentations from the following organisations, who have extensive experience in raising finance for start-up and growth businesses:

• HSBC Bank - commercial and international business banking
• James Cowper & Co. - advice on Business Angel and equity funding
• Advantage Proof of Concept Fund - grants of up to £30k for SMEs or potential SMEs
• Regional Business Angel Finance - An overview from Advantage Early Growth Fund
• Scriptswitch Limited - a real life example of raising finance from a start-up company's perspective.

The first event is free but for future events there will be a small charge.

We look forward to welcoming you very soon!

Science Park Company set to take over Space

After starting to conquer the world with its specialist technology, a Coventry company is set to take over space too!

ApplianSys is based at the University of Warwick Science Park’s Business Innovation Centre in Binley, and provides computer server appliances to major businesses and organisations.

The six-year-old firm has attracted capital investment and that has helped to achieve a 200 per cent rise in sales with the firm now reaching more than 30 countries worldwide.

Most recently it has conquered new territories such as Honduras, US Virgin Islands, Angola, Burundi, Nigeria and South Africa and added new customers such as NASA and Dubai International Airport to existing bluechip clients worldwide such as IBM, BT, Canon, Panasonic, Financial Times and Warner Bros.

The company’s growth has been assisted by the Business Innovation Centre’s flexible office space.

When the company signed up with the Science Park in 2002, there were just three employees in a 299 square feet office. Every year since has seen a steady increase in employees and now the company is looking to expand again.

“Our investors saw the potential in the company, its products and its people and their confidence in us is starting to pay off,” said CEO Mike Clark.

“ApplianSys has propelled itself forward at a significant pace, tripling turnover for the year and expanding its international customer base.

“We have made great progress, but there’s a lot further to go. Right now we are recruiting across the board - in software engineering, technical support, sales, service and marketing teams here in Coventry.

“Our competitiveness and exciting growth reflects the quality of the people we already have, and now we’re looking for more of the same. With more people joining our team, rapid growth in international markets and further investment on the horizon, I’m expecting this to be our best year to date.”

Karen Aston, manager of the Business Innovation Centre, said: “We have watched ApplianSys grow over the past six years and are delighted with the company’s fantastic success.

Mike Clark (ApplianSys) with Karen Aston (Business Innovation Centre).

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Meet the Team Member

Karen Aston
Manager, Business Innovation Centre, Binley

Karen (pictured in previous story) joined the University of Warwick Science Park (UWSP) in February 2001 as Centre Manager, Business Innovation Centre, Binley Business Park, Coventry, where she remains to this day.  Prior to joining UWSP Karen had worked at Aston Science Park for more than ten years as Sales & Marketing Executive, so she has developed over the years into a versatile and experienced Science Park manager.

Karen completed her Post-Graduate Diploma in Marketing in 2002 and is an Associate Member of the Chartered Institute of Marketing.

Over the last few years Karen has become a popular figure on the international Incubator and Science Park scene having attended conferences and networking events in Hungary, France and the UK.

Karen’s interests include sailing – recently off Croatia and soon to be off New Zealand (yes, the Antipodes!) – and cycling around the lanes of Warwickshire.  Additionally, Karen is a keen cook and is about to embark on an Indian cookery course (mine’s chicken dhansak please Karen – editor).  Finally, those of us in the know will testify to Karen’s impressive collection of shoes and handbags which would make Imelda Marcos green with envy.

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Property

Wherever you live in Coventry & Warwickshire or the Solihull area you won’t be too far from one of our modern, well equipped Business Innovation Centres where you can start a new business or grow an existing one.

Aimed at technology based businesses, all of our centres offer full time reception service and management team, meeting and conferencing facilities, on site parking, 24/7 access and high levels of security.

Office sizes vary from under 200 sq.ft to 2,000 sq.ft., depending on the site.  Licences and leases are flexible, allowing graduation to larger offices without penalty for fast growth companies.

Currently our four sites are:

• The Venture Centre, Canley, Coventry (south)
• Innovation Centre, Warwick Technology Park
• Business Innovation Centre, Binley Business Park, Coventry (east)
• Blythe Valley Innovation Centre, Solihull

Alternatively, if you are not yet ready to take on the responsibility of an office but still require a prestigious address, why not become a virtual tenant at one of our centres where you can have a mailbox and/or telephone answering service?  You also have access to our meeting and conferencing facilities to impress your clients at our normal tenant rates.

Visit www.warwicksciencepark.co.uk for more information.

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Are you Looking for Investment? Why is it sometimes right to sell shares (equity) instead of taking out a loan? If both you and the prospective lender believe that your company can pay the interest and capital repayments when due, and there is enough acceptable security (and perhaps personal guarantees from shareholders), a bank loan and/or an overdraft might be the right answer, and we can probably help with that.

However, if the company needs money for the long term, and its success is too uncertain for a lender, the right solution might be to sell a stake in the business (equity finance). It would also give the company more stability. For example if the business becomes loss making a bank would still demand payment of loan interest and capital, whereas company law could prohibit the payment of dividends on shares (thus keeping essential cash within the business).

Is equity finance just for start-ups?
No. Business angels and venture capital funds are very keen to invest in established businesses that need capital for expansion, and in MBOs (management buy-outs) and MBIs (management buy-ins).

Must I give away a slice of my business?
You don't give anything away. An incoming investor would buy shares in your company at a price that you both agree. If you don't agree on price, you don't proceed.

How long does it take?
We have raised capital from business angels in 2 months from start to finish, but depending on the complexity of your business it might take up to 6 months from starting the process to receiving investment

Must my business be high tech?
No. For businesses to grow and be sustainable they need competitive advantages and other commercial strengths, and that is what investors look for

Will I lose control of my business?
Whether you borrow from the bank or take on external investors, they all expect to have a say in what you do with their money. You should enter into a Shareholders Agreement with your new investors and that will clearly define your relationship before it starts. Remember that if the business struggles an equity investor will help you to turn it around, whereas a bank's primary concern is to protect its security and recover its debt.

What are my chances of raising capital?
Ultimately your success depends on the strength of your proposal, but we will only accept your company as a Minerva client if we believe there is a realistic probability of success.

How much will it cost?
Minerva will review your Business Plan or your Executive Summary and within 2 working days will give you feedback on your funding proposal - this service is free.

If you plan to bring in external investors, your Business Plan should include a budget for legal and/or accountancy charges, plus the fees payable to Minerva. To help ensure they are committed to this labour-intensive process, companies pay a Commitment Fee of £295+VAT upon acceptance as a Minerva client. On receipt of investment there is a previously-agreed Administration Charge of up to 4%+VAT of the amount raised. Unlike parts of the commercial sector we do not require you to either pay a monthly retainer or grant us share options (the ability to buy a stake in your company at a preferential rate at a later date).

We help established businesses raise investment for expansion, and emerging businesses to find funding for start-up and growth.  We often combine capital from two or more funding sources to leverage our angels' investment and create a package that best meets the company's needs.

If you are serious about unlocking your company's potential for growth - or want a knowledgeable and supportive environment in which you might be a business angel -please contact us right now. 

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Ignite – What it's all about and what it could mean for you UWSP actively assists the creation and expansion of high potential companies through initiatives such as Access to Finance, Marketing and Student Projects.  In addition, there is Ignite, which offers practical business mentoring and support to help business owners increase profits and the long-term value of their companies

So who might want to join Ignite?

• Companies owned and managed by people who want to grow their company – and they want it to happen bigger and faster than it's happening now.

• People who are still in the world of employment, but are fed up of making money for others and want to build something of substance for themselves.

• Owner managers who might have a specific business issue right now, but would also like to work with a trusted and knowledgeable business mentor to provide input on growing the business over the longer haul.

• People who are technically able in developing a product or service but lack the expertise to commercially exploit their development.

Let's first take a look at a company owned and managed by people who want to grow bigger and faster and value the help of their business mentor in addressing the challenges of doing so...

Initium is one of a select band of small but very successful UK companies developing and selling mobile technology solutions to companies worldwide.  A portfolio of products includes “Sky Shopper” an electronic point of sale solution for duty free sales now being used by many of the world’s leading airlines.

Keith Neville, MD of Initium, readily admits that while the company has been successful in developing a blue chip customer base, a more structured approach to growth in the early days would have seen the business develop to a much bigger size than it is now.  “We initially struggled to adapt from four IT people immersed in software development, to a tight-knit team focused on selling and not just and not just developing solutions” comments Keith.  “We’re probably a couple of years behind where we should be”, “and we saw the Ignite Programme as an opportunity to work with a business mentor to help us develop a plan for the business over the next five years allied to an action plan for the next twelve months.  We’ll then be in a position to know where we want to be and what we need to do next week, next month and next year.”

Russell Munslow, Initium’s business mentor, is confident that the company will achieve its long-term growth objectives, albeit with blood, sweat and tears along the way.  “It’s not just about developing a plan, that’s the easy bit.  It’s about staying on track and continuing to work toward your aims…. and it’s my role to make sure that happens.  We meet on a regular basis to review what’s been achieved, what hasn’t and what else needs to be done.  Of course changes to the plan will be necessary, but we won’t lose sight of hitting defined targets along the way.”

Initium continue with their rapid progress and as we go to press are about to announce a major Middle Eastern airline as the latest in a long line of airline customers.  For further information, see www.initium.com    

Now let's meet someone who had left the world of employment, and was looking to build a business with some substance...

John Southall worked as a Health & Safety Enforcement Office for a local authority before deciding to set up on his own.  A short period as a self-employed H&S consultant gave him the confidence to try and build a more substantial business to rival some of the more established consultancies in the West Midlands.

John says “I knew that I could offer as good if not better service than my competitors, but what I needed was someone with experience to bounce ideas off…..…someone I could pick up the phone and talk to or get a quick response via email.  The Ignite mentors (Russell Munslow and Dirk Schafer) have been extremely useful in all sorts of areas such as advising on pricing, developing a business plan and how to make approaches to potential customers.”

Over the last two years the business has developed to the extent that John’s wife, Angela, now works full-time on administration and client support.  In addition, the business took a decision to employ another consultant earlier this year.  “It was an anxious period before making the decision to take on another employee.  It would have been easy not to, but the business could not have continued to grow.  I’d made up my mind before I consulted Russell, but he set out the pros and cons and it was reassuring to have someone to back my decision.”

Southall Associates www.southallassociates.co.uk now have a solid platform for growth and plan expand their solid customer base and employ more people in the years to come.

Ignite can provide a range of support including:

• Helping you to build – and keep up – the momentum
• A range of new networks/contacts
• Introducing a wider perspective and “outside the box” thinking
• Being there as a sounding board in the face of uncertainty
• Providing encouragement and extra motivation when needed

So if you’d like to benefit from the above and join Initium and Southall Associates in accelerating the growth of your business, then we’d be pleased to hear from you.  All enquiries are treated as confidential.

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Strange but True “So we went to Atari and said, ‘We’ve got this amazing thing, even built with some of your parts and what do you think about funding us? Or we’ll give it you. We just want to do it. Pay our salary, we’ll come work for you.’  They said ’No’. Then we went to Hewlett-Packard; they said, ‘We don’t need you. You haven’t got through college yet’.”  (attributed to Apple Computer founder Steve Jobs on attempts to get Atari and HP interested in his and Steve Wozniak’s personal computer.)

Do you have something to shout about? Would you like to feature in the next issue of UWSP E-News? Email us with your contact details and a brief outline of what you have to say, and we'll be in touch!