Jennie Flint, Senior Commercialisation Associate at Cambridge Enterprise, shares her top tips for budding entrepreneurs during the pandemic
Here at Cambridge Enterprise, the enthusiasm of researchers thinking of starting new businesses is as strong as ever. Although Covid-19 has wounded the economy, this is a time of rapid global change, leading to new and exciting opportunities for budding entrepreneurs.
If you are seriously thinking of starting a business after the arrival of Covid-19, here are our top tips…
1. Build value in your idea without racking up costs
Starting a business involves a multitude of activities, and not all of them have to cost money. Customer feedback is one of the most valuable assets, and right now, you are in a world which is embracing the video call, and unpredictable workloads can give people unexpected free time. Capitalise on this by talking to as many people as possible. Go to online events, sign up for programmes like Ignite and Impulse, and network – think about how you can use resources like LinkedIn and Twitter. Even if you can’t find a warm contact with someone you want to talk to, just pick up the phone or send an email. You’d be surprised who is willing to talk!
2. Consider what sources of free money you can tap into
Although traditional sources of investment are clamping down on their spending at the moment, there are still sources of no-strings-attached money out there. Admittedly the competition may be fiercer than usual, but use the insights you’ve gained from all that networking to give your business plan an edge. Apply to business plan competitions, and keep a keen eye out for grant applications and fellowships that you may be eligible for. Are there any open accelerators or incubators that fit your business? Also, is anybody willing to pay you for what you have right now? You may never know unless you ask.
When you hit unexpected obstacles, the process of having planned well in the first place should smoothly guide you to a new path
3. Know that the power is in the plan
If you’re hoping to attract angel and venture capital investment in today’s challenging economic environment, investors will be scrutinising your business plan – especially the financials. Make sure you know who you are going to sell to and when, be realistic about how long the investment is going to last, and then ask for more money than that. Ideally you should be looking at a 24-month runway, and having a plan B where you know what can be adapted never hurts. When you hit unexpected obstacles, the process of having planned well in the first place should smoothly guide you to a new path.
4. Have a strategy for IP
Intellectual Property (IP) can be key to raising venture capital investment, but depending on the type of IP, it can also be costly. Patents are some of the most expensive assets that a business may own in its early days. Spin outs also often find that five years down the line, their patents were filed on IP they’re now no longer using. However, IP such as know-how and copyright in software is free to own and can dramatically increase the value of a business. Come up with a clear IP strategy, prioritise, and make sure that any patents filed are vital to the business to make the expense worth it, while endeavouring to build IP in software and know-how.
Uncertainty offers new opportunities
5. Focus on flexibility and creativity
New businesses often pivot, and in uncertain times, pivoting fast and effectively will be essential to your business’ survival. Uncertainty offers new opportunities, so think creatively to make sure you capitalise on these as they arise. Remember that a business that is using 100% of its resource 100% of the time is also slow to change direction. Having space that will allow you to change direction quickly is critical.
If you’re ready to start your journey as an entrepreneur, watch the Grand Finale of Cambridge Enterprise’s Postdoc Business Plan Competition for some extra inspiration, and get in touch with Cambridge Enterprise to see how they can help.