Tag Archives: Growth

Franchises, News

How will franchises fare in the post-Covid world?

by Claire Simmons – In Home Care  founder and director

According to a study conducted by King’s Business School, two-thirds of entrepreneurs felt they would not be able to survive the pandemic, with a poll by the Federation of Small Businesses suggesting two out of three companies believe trading will only get worse .

However, for all the upheaval, the franchise model and its importance for aspiring business owners, appears to be bucking these trends.

Home care franchise In Home Care is not only weathering the Covid storm, but is continuing to extend its network of branches. Director Claire Simmons gives an insight into why the franchise model holds hope for aspiring entrepreneurs post-Covid and how In Home Care continues its growth plans.

There is no doubting that Covid-19 has changed our lives in one way or another. From being seen as a perk, working from home is now essential in keeping businesses operational and there has never been a greater need for clear communication. The pandemic has also forced many of us to reconsider our plans for the future, especially when it comes to starting a new business venture.

Statistics from the British Franchise Association (BFA) and HMRC reveal that franchisees of strong, well-organised franchisors are up to five times more likely to stay in operation than a completely new start-up , though of course, that does not necessarily mean that independent businesses are doomed to fail.

What has become more evident throughout the pandemic, though, is the importance of the franchisor-franchisee relationship. Unlike setting up a business from scratch, franchisors provide their new additions with all the tools they need to make their business as successful as possible, based on the franchisee’s skills and capabilities. Here at In Home Care for example, we assist our new franchisees in getting registered with our regulatory body and provide ongoing training at both our dedicated facility in Waterlooville, Hampshire, and the local branch.

Being able to run what is essentially a unique entity but with the backing of a respected, established brand, with plenty of support in growing the branch, is one of the main appeals of the franchise model. And there is little doubt that it will become all the more crucial in the post-Covid business world. While there will always be a need to demonstrate commercial acumen and knowledge, franchising does offer a viable alternative for those starting a new business.

What may have changed in the wake of the pandemic is that there is now greater unity amongst franchisors. Trade bodies such as the BFA, combined with representatives from the wider industry, have shown immense resolve in providing training and continuous support to franchisors, which can then be shared with franchisees.

For us here at In Home Care for example, video training conducted over Zoom has proved to be effective in keeping our managers up to speed with the latest guidelines in safe working and how to protect their individual teams of carers. Alongside this, we have offered internal support for employees feeling overwhelmed or stressed as a result of the pandemic.

Back in 2011, In Home Care set out to ensure the most vulnerable members of the community had access to the best possible care from the comfort of their own homes.

That has, and always will be, the In Home Care way. By sticking to this principle, we have continued expanding our franchise network, affording each addition the same high level of support as we would expect to deliver to our customers.

In the past two years, we have completed six franchise deals, with three more expected to be finalised by the start of 2021, taking our brand and expertise to Essex, North London, and the Republic of Ireland.

Franchising has not been immune to the challenges of Covid-19. But there have been some outstanding success stories. Online education, for example, has seen a surge in demand as schools closed their doors and even pet care franchises have become beacons of hope for aspiring franchisees with demand increasing in the wake of the first UK lockdown in April.

There is still great uncertainty on the exact impact Covid-19 will have had on the franchise industry. However, with the pandemic causing many of us to consider our futures and plenty of examples of resilience, there are early signs that franchising’s future is looking bright.

Businesses in need of legal advice regarding a franchise should contact a British Franchise Association Solicitor

News

Mike Ryan: Key considerations when taking your business international

Mike Ryan, Chief Executive at PACK & SEND, offers tips for businesses planning an international expansion

According to recent statistics, the number of UK businesses trading abroad is on the rise, increasing 6.6 percent in the last year. More companies are looking to reap the rewards in less saturated markets and reduced manufacturing costs.

However, it’s not without its complications, with complex marketing and legal issues to navigate as you trade in new regions. With this in mind, Mike Ryan, Chief Executive at PACK & SEND, outlines how to give your business the greatest chance of success when taking your business international.

Keep it local

Before entering international markets, it’s important to carry out relevant consumer research, including identifying local demand and understanding culture and existing attitudes towards your niche or service.

Both primary and secondary market research is recommended to give you an accurate understanding of the market. Begin with first-hand methods like focus groups, phone interviews and online surveys from those living in the region, then validate your findings against public data records and business reports.

Speak with regional experts about the situation in your proposed region. Native economists or business experts will help you get an idea of the market landscape, so you get an accurate estimate of your chances of success.

Thorough consumer research can help you achieve the 80/20 customer split – maximising return from the 20 percent of customers that drive 80 percent of your revenue.

Understanding regional culture and way of life is key, too. Local values can make or break your success. Communities may welcome or reject brands based on their business model or ethics, so invest time in understanding the culture and read case studies on other businesses that have entered the market.

Competition time

You’re always going to face competition. However, researching current market prices, existing services and consumer engagement gives you an idea of where your business can stand out.

Find out who the current big players are and where you can differentiate your service and compete. While some competition is healthy, if an existing business historically dominates your industry in the area, it’s better to shift your focus to new opportunities than risk time and money on trying to make it work.

Agility is key when entering new markets – if you spot a gap in the market you need to move before the competition. Outsourcing tasks to specialist companies or freelancers can help you enter the market quickly.

This may include time-consuming and region-specific tasks like accounting and payroll which require local knowledge and can be sped up by working with experts.

Franchising opportunities

One option when seeking international expansion is franchising. Establishing your business in a new area through franchising is quicker and lower-risk than managing each new location yourself.

Plus, franchising is proven to deliver success and stability for businesses, with 90 percent of franchises deemed profitable after 2 years.

Franchising speeds up growth and simplifies management. Franchisees take ownership for the operation of their franchise, without the need for your key stakeholders to oversee development.

Relocating key employees is a common roadblock for businesses looking to expand overseas. However, franchising with qualified regional franchisees means you don’t have to worry about negotiating relocation bonuses or losing senior team members to new locations.

When looking for qualified franchisees in your new territory, consider local paid advertising and targeted online adverts. Local directories and direct mail are also an effective way of identifying leads in the area.

Staying compliant

Once plans are in place to establish an overseas franchise, you need to check the legal regulations in your new region. Each territory has its own rules on tax, products and marketing and compliance is key.

Failing to adhere to your region’s laws could result in significant fines, so it’s important to be informed and compliant form the start.

Initial research should include information on tax rates, payroll and any employment laws. Consider hiring a legal advisor or accountant with local knowledge who can provide expert advice.

It can also help to outsource complex tasks – like human resources – to local companies who can help get you up and running quickly and keep you compliant after go-live.

Outsourcing in the early stages of your venture helps you stay agile as you look to move into new markets and covers you against costly employee lay-offs if the worst happens. Then, as you settle into the market and start to grow, you can begin putting together a dedicated in-house team.

Finance News, News

EclecticIQ raises €20 million in Series C funding

EclecticIQ, a global threat intelligence, hunting and response technology provider, has raised €20 million ($24 million) in Series C financing, led by Ace Management, Europe’s leading cyber growth investor.

Other contributors to the funding round include Capricorn Digital Growth Fund and Quest for Growth, Invest-NL, Arches Capital and existing investors INKEF Capital, KEEN Venture Partners and KPN ventures. This brings the company’s total funding raised to €47 million over a four-year period, making it among the best funded global cybersecurity scale-ups based in Europe.

Funding will go towards deepening the company’s commitment to government, large enterprises and service providers, expanding its portfolio and increasing the company’s global footprint. With this investment EclecticIQ will accelerate its strategy to transform from a leading threat intelligence platform vendor into an innovative cybersecurity leader across the globe.

As cyber threats continue to evolve rapidly, intelligence-led cybersecurity has become the norm. EclecticIQ’s growing customer base relies on its threat intelligence platform as the single source of truth for cyber threats and incidents. The financing will drive further innovation of the platform with new use cases, enabling governments, large enterprises and service providers to effectively manage threat intelligence, create situational awareness and adopt an intelligence-led cybersecurity approach.

Having mastered threat intelligence technology, the company sees adjacent opportunities in operationalizing threat intelligence, as this is a problem that has not been solved in the market yet. With the recent acquisition of PolyLogyx’s end-point technology, the company is well positioned to develop new solutions that re-imagine how organizations detect, hunt and respond to sophisticated threats.

To accelerate growth, EclecticIQ will use the funding to expand its commercial teams in Europe and the United States, and establish a presence in the Middle East, Africa and Asia Pacific. Leveraging its experience with governments, and some of the most targeted enterprises globally, the company will expand its focus to new segments and strengthen its global partner ecosystem.

François Lavaste, Partner at Ace Management who will join EclecticIQ’s board of directors, said: “We are convinced that Ace Management’s new investment will help the company to improve and accelerate its solutions that enable the world’s biggest governments and commercial enterprises to identify and protect against the most intense cyber threats.”

Joep Gommers, EclecticIQ’s co-founder and chief executive officer said, “It is exciting to bring in a high-caliber cyber investor like Ace Management, which shares our vision of threat intelligence at the core of cybersecurity, and sees the opportunity to transform the industry by solving massive challenges faced in threat detection, hunting and response. This financial investment will enable EclecticIQ to drive the industry forward and support our clients more effectively facing an ever-evolving threat landscape.”

EclecticIQ has seen impressive growth over the years:
• Growth: In 2019, the company grew its revenue by 84 percent by successfully expanding the company’s market segments from government to larger financial organizations, telecoms and big tech companies.
• Product: EclecticIQ is continuing to push the envelope, with a new intelligence ingestion engine introduced to the EclecticIQ Platform, improving robustness and scalability of the company’s core threat intelligence technology.
• Industry alliances: The company is a sponsor member of OASIS, EclecticIQ joined the Open Cybersecurity Alliance (OCA), along with some of the biggest names in cybersecurity.
• Leadership: The company further strengthened its leadership team, adding Wytse Bouma (ex Rockstart) as CFO, and Ciaran Bradley (ex Adaptive Mobile, Kemp) as CTO.
• Board: Three new members have been appointed to its board: Ben Verwaayen (KEEN Venture Partners, previously CEO of BT Group PLC Alcatel-Lucent, President of KPN Telecom and Vice-Chairman of Lucent Technologies), François Lavaste (Partner, Ace Management) and Katrin Geyskens (Partner, Capricorn Partners). The Board is chaired by Sam van der Feltz (ex Unilever, TNS & EMI).

Bryan, Garnier & Co acted as sole financial advisor and sole placement agent for EclecticIQ.

News

Innovative Cambridgeshire Startup Relocates to New Office Premises

Innovative Cambridgeshire business intelligence startup, Meet Hugo, has announced the move from Brightfield Business Hub in Peterborough to Warmington Mill in the village of Warmington.

Warmington Mill is a wonderfully characteristic Grade II listed converted mill and boathouse, located in the idyllic scenery on the banks of the River Nene.
Meet Hugo experienced huge growth throughout the initial lockdown this year and grew from nine staff members to twenty-seven, which necessitated the move to a bigger office to accommodate their growth.

CEO and Founder Ben Harper had this to say, “we were really fortunate to experience considerable growth this year. We certainly didn’t expect to be tripling our staff members in 2020.”

Ben continues, “the new office has enough capacity to accommodate over seventy employees, and at the rate of growth we’re currently experiencing, we’d really like to hit that goal in the next twelve months!”

“We’ve really enjoyed our time in the Brightfield Business Hub, but with the move to Warmington Mill, we’ve got a place that we can grow into, make into our home and really reflect what we stand for as a business – the view isn’t half bad either!”

News

Fastflow Group makes Sunday Times PwC Top Track 250 for first time

Fastflow Group has made it into the Sunday Times PwC Top Track 250 for the first time, ranked 177th. Published on 27th September 2020, the Sunday Times PwC Top Track 250 league table ranks Britain’s leading mid-market private companies with the biggest sales – before the pandemic struck. In June 2019 Fastflow joined forces with United Living, substantially increasing the size and scale of the combined group.

The company provides essential gas, water and multi-utility infrastructure services to blue chip customers across the UK, as well as the development of new homes and planned and responsive property maintenance services for social housing and local authority clients. Chief executive and Chairman Neil Armstrong heads up the enlarged group and oversaw sales of £137.5m in 2019. Revenues this financial year are expected to reach £500m, so the company is hoping to again feature in the Top Track awards. The enlarged group has a secured order book of c£1.2bn and a pipeline of opportunities worth c£3bn.

Neil Armstrong, CEO and Chairman at Fastflow and United Living Group, said, ‘I see this accolade as recognition of the strength of our business and our people. We play a crucial role in society, helping our customers create a better future, often for the most vulnerable in our communities. Our role within infrastructure figuratively and literally helps the ‘keep the lights on’ and provide clean drinking water to millions of consumers. In short, our work is important, and I am immensely grateful to our people who continue to do their utmost to serve our customers’ energy, water and housing assets with exceptional levels of service, quality and commitment.”

Arif Ahmad, a Private Business Partner at PwC UK, the title sponsor of the league table, said: “There’s no doubt that 2020 has posed unprecedented challenges. But time and again, we’ve seen business leaders rising to that challenge, adapting their plans and taking the opportunity to innovate. This year, it’s more important than ever to recognise and congratulate the companies featured in the Top Track 250. They are the backbone of the UK economy and it’s our pleasure to work with them, at every stage of their journeys.”

Business Research, News, Research

Securing talent and external finances are the biggest challenges for European scale-ups

Recruiting and retaining talented staff and securing external finances are the two biggest challenges that European scale-ups face, according to a new joint report from Vlerick Business School and Scale-Ups.eu. The report also shows that boards with external investors are much more professional and have a greater ability to grow.

The study was conducted by Professor of Entrepreneurship, Veroniek Collewaert, Professor of Finance, Sophie Manigart and researcher, Dr. Thomas Standaert, all from Vlerick Business School, on behalf of Scale-Ups.eu. The researchers used Scale-Ups.eu data to study over 80,000 European scale-ups, based across 8 European countries – Denmark, Finland, France, Germany, Luxembourg, the Netherlands, Sweden and the UK.

The scale-ups reviewed were set-up between 2007 and 2013, and had raised at least $1 million from investors since their inception or experienced an average annual growth in sales or employment of at least 20% per year over a period of 3 years. In addition, 124 of these scale-ups were also questioned about their management practices by the researchers to understand the main challenges for European scale-ups.

The researchers found that only 40% of scale-ups recruit staff from abroad, and only 25% of scale-ups use recruitment agencies or head hunters to attract the right talent for their companies. Also, only 36% of scale-ups have an onboarding process for new employees. The researchers state that it is mainly scale-ups with external funding that are much further ahead in terms of HR and would also benefit greatly from the development of a professional HR policy.

The researchers also found that though scale-ups are perceived to be highly innovative and tech-savvy companies, this is not predominantly the case. In fact, the researchers found that only 1 in 4 scale-ups indicate that they had created a product or service that is new on a global scale, and around 1 in 3 even state that they have created nothing new at all.

Professor Veroniek Collewaert says,

“Our research succeeded in both debunking and confirming a number of common views on scale-ups. They are not all innovative tech companies. Not all of them have raised external financing. Our study does confirm the intuitive view though that finding and keeping enough high-quality employees is the #1 growing pain. Knowing this, however, it is painstaking to see how relatively little effort is being put in developing more professional HR practices related to recruitment and retention.”

The researchers also found that almost 40% of the scale-ups only use their own resources to finance their growth, meaning that they are either not open to external financing or unable raise it. Whilst only 30% of the scale-ups in the study had already raised money from external equity investors, despite this method massively increasing the professionalism of scale-ups.

Jürgen Ingels, founder of Scale-Ups.eu says,

“External financing is an important factor for increasing professionalism and growth, however this proves one of the biggest challenges for scale-ups. High-quality networking and matchmaking are therefore extremely important. This report shows the need for time squeezing and also the reason for our organisation’s existence. If you aim to grow, seek out relevant investors and go for smart money, let them pave the way to your success.”

Respondents to the study also stated three other key challenges for scale-ups in their attempts to grow; access to the market, leadership and infrastructure.

The researchers hope that the findings from the scale-ups report and the examples of successes and challenges of other scale-ups can help inform and guide other early scale-ups that are still in the exploratory and trial phases. The full European Scale-up Report can be downloaded from this link: https://www.vlerick.com/en/research-and-faculty/knowledge-items/knowledge/european-scale-up-report-reveals-five-key-challenges.

Appointments, News

Edtech company Atom Learning strengthens team with two senior appointments

Fast growth edtech company Atom Learning has announced two senior appointments, as the company accelerates expansion in the UK and internationally. David Joerring joins Atom Learning to lead the company’s business development and growth team. He comes from Boston Consulting Group (BCG) where he was a strategy consultant, with a particular focus on working with the public sector and government.

Meanwhile Tom Digby has joined the company as lead developer. He will be supporting Atom Learning as the company expands the tech team. He will lead digital architecture and design. He is a highly proficient react developer with eight years experience as a front end developer. He comes from the Stylist Group where he was the head of digital product.

Atom Learning uses AI to transform educational outcomes. With ambitions to become the Netflix of education, it is an adaptive learning platform, using machine learning to determine the optimal learning pathway for children at key stage 2. The new appointments will drive the development of its innovative learning platform, Atom Prime. The company is witnessing 50% growth month on month.

According to co-founder Jake O’Keeffe:

“I am delighted to announce these senior hires as we rapidly scale our platform within the education sector. David brings fantastic experience within public sector and government as we look to develop our offering across the UK State sector and overseas.

“Meanwhile Tom’s huge experience in digital product development will be invaluable as we ensure Atom Prime becomes a vital component for schools looking to build excellence in results for key stage 2. Both of these appointments will help us develop our mission to democratise learning.”

The headcount has trebled in the past three months, with Atom Learning expanding into the UK State sector, following a trial in the independent sector – over 250 Preparatory Schools now use the platform. It is also undergoing an international expansion, now operating across Asia, Africa and the Middle East and was shortlisted for AI Business of the Year at the National Business Awards last month.

Business Investment, European News, Research

Invest but have no input – the best way for government funding to be a success

Governments that invest in businesses, but then have no say on any decisions made by company managers, are much more likely to see their investments be a success, according to new research by Vlerick Business School.

Professor of Corporate Finance, Sophie Manigart, and post-doctoral researcher, Thomas Standaert, found that governments that invested but had no input were more successful in stimulating growth in companies and providing more resources to the private risk capital market.

Whereas, the researchers found that governments that invest directly in a company and have complete control of all of the decisions tend to yield the poorest results. Businesses that raised funding this way did not grow faster than companies that raised no funding at all.

The research findings came from a previous study on both literature on government investments, but also from a dataset of 345 Venture Capital funds established between 1996-2017. The researchers analysed how a number of European companies developed after receiving venture capital through four different models, ranging from full government control, to government investment, but independent decision-making. The researchers compared the performances of each firm, up to five years after the initial VC investment.

The four key investment models that the researchers analysed were:
1. Direct and solitary – where a government invests directly in a target company and all decisions are made by the government
2. Direct but in partnership – the government invests directly in target companies, but in partnership with private investment funds
3. A passive government role – the government co-invests in target companies with private players who take all decisions. The government plays a passive role and is hands-off when it comes to most investment decisions; the government merely follows the private sector.
4. A government invests in a fund-of-fund and does not mingle in investment decisions – this goes a step further than the third model by having governments invest in private funds that are managed entirely by equally private fund managers.

Professor Manigart says,
“Government intervention in the risk capital market is needed in Europe and worldwide, but governments should respect the role of private players and not become dominant decision makers. Governments who simply provide this funding, but let the firm work independently and autonomously are much more likely to see growth, which can only be a benefit for investors, the firm, and customers alike”.

The researchers state that governments need to apply the fourth method more often in order for the target companies to be more innovative and successful. A good example of this model being implemented successfully is the Canadian government, who pioneered this model with the launch of the Venture Capital Action Plan, which has resulted in over $900 million in private investor capital being added to the ecosystem.

Government aid is genuinely effective for businesses, even companies like Apple and Tesla would not have survived without government funding. If there’s no financial help, then it could be argued that there would be no high-tech developments and innovations in society. Therefore, it is important that governments look to invest in the most effective way possible for growth in these companies, so that high-tech, social projects and high-employment companies have the greatest chance of growth and survival.