Overdue disruption in consumer technology market

Tech and software firms will have already planned three years down the line. But for the rest of us, it pays to be up on consumer technology trends. Most business is conducted online, and with office space for startups at a premium, many nascent businesses are taking to phones and laptops. Instead of rented office space, entrepreneurs are setting up camp in the nearest coffee shop.

It’s always hard to predict precise trends in this fast moving landscape. It’s probably enough though to state that there will be a major disruptive force next year. While minor shifts such as the falling popularity of tablets and resurgence of laptops have occurred, these only reflect usage habits, as people look to strike a balance between portability and operability. The phablet is arguably the last major change to the tech landscape. If that doesn’t ring a bell, it’s because pretty much every phone is a phablet now. The term has almost passed out of parlance.

Various contenders have come and gone over the last decade without really landing. Remember netbooks, or Google Glass, or the more recent Apple Watch? With phones now so powerful they can run complex video games and software, something has to give.

For small businesses this is likely to mean changes to the means of delivery for all sorts of content. Statistics from May 2016 showed that a fifth of all mobile Google queries were conducted by voice search, and that number is likely to rise. Getting your app to launch through Google Now or Siri could be a huge selling point. And different sized screens and resolutions pushing 4K UHD may require new website assets to display properly.

Mobile shopping meanwhile is likely to become ever more competitive as trust grows in mobile security. This is not to mention products like Amazon’s Alexa, which can automatically order from its website. Whether it’s perfect voice control, augmented reality or seamless integration with our homes and workplaces, 2017 is the year to keep your finger on the pulse of home tech.

Virtual convergence and first steps in vCommerce

Speaking of far-flung technology, 2017 may finally be the year where the virtual becomes physical. Not literally; we’re not quite in Westworld yet. But the rise of virtual reality (VR) and other futuristic technology seems unstoppable. As major and minor players in the online space continue to compete for attention, this may be the toolset for online businesses to stand out from the crowd.

VR shopping environments may be the ultimate endgame, but convincing implementation and widespread uptake are still some time away. The cost of a headset and computer is still prohibitive for most people, and the hardware lacks a ‘killer app’. It will take a fall in prices and a purpose-built PC with its own software before VR hits the mainstream. They’re both being worked on, but they’re a big ask for one year.

More likely is that eCommerce platform providers will begin to integrate new feature sets. It probably doesn’t seem long since optimising online stores for mobile became a big deal. The next logical step is optimising for Samsung Gear or Oculus Rift in a way which fully utilises the hardware.

With Amazon already owning a video game development studio and a massive digital infrastructure, they may get there first. Basic efforts at fully virtual shops or ‘vCommerce’ have emerged elsewhere, and the shopping giant is well placed to continue them. But the efforts here could set the trend for every business over the coming years. Combining the convenience of online shopping with the ability to see the item and pick it up will revolutionise markets.

Cybersecurity will take centre stage

Another small business tech trend is hacking. It’s long been a latent threat, but 2016 was the year when businesses started to take notice. The DynDNS attack in late October signalled a shift in the power balance. Twitter, Paypal, Amazon and Netflix were all down for hours, with a massive loss in revenue.

The distributed denial of service attack (DDoS) wasn’t an instance of hacking; it’s just a way to overload a network with data. But it was carried out by an enormous array of ‘hijacked’ devices. This included many Internet of Things (IoT) nodes, realising long held fears around their vulnerability.

Small businesses should not think themselves exempt just because they are smaller targets. Indeed, the high tech security at many larger companies may make SMEs more compelling targets. 2017 will be the year when enterprise at every level stops to review its security strategy and takes more advice on its physical and network infrastructure, or risk paying a heavy price.

Given that a small online businesses could still hold sensitive data on thousands of customers, and be entirely reliant on online banking and payment portals, the need to assess security strategies is greater than ever. Simply put this means limiting points of access as much as possible, storing sensitive data on a non-networked computer, and using strong encryption and passwords.

More than anything, there is a legislative impetus to change this year. A new EU directive comes into play in 2018, forcing anyone who does business within the Union to comply. This ruling transfers more power to consumers to choose which data they want to be collected. Crucially it also requires data protection officers at many smaller businesses. Your outlay on IT services will seem small fry next to the percentage fines for data breaches and mismanagement.

Katya Puyraud is the co-owner of Euro Start Entreprises, specialising in company formation in France, the UK, US and throughout Europe. Since 2007 Euro Start Entreprises has helped budding digital nomads, entrepreneurs and expanding SMEs to open their companies in over 30 countries worldwide.

The swiftest and loudest appeal was from Paris to the City of London, primarily courting its financial institutions. With Paris already home to £3.1 trillion of assets under management, the markets are well established in the country. And in the run-up to elections, the French government is keen to distance itself from Hollande’s early policies.

Adverts welcoming British businesses went online immediately after the vote, and more than 4000 letters were sent to city investors. The French government has also worked feverishly to push through an extension to expat tax exemptions, offering eight years of incentives for workers based in France.

Business incentives for relocating to France

As of September 2016, individuals sent to work in France by a foreign company or recruited to work in France by a French company are tax exempt on any perks or supplements to your salary, or from 30% of the net remuneration. There is also a 50% exemption on any shares, deposits and capital gains tax, providing the payments originated from a foreign source.

While squarely aimed at attracting bankers, this could also apply to smaller businesses and entrepreneurs with the right structuring. As with any tax scheme, it’s vital that you seek professional advice before attempting to take advantage.

Smaller businesses could also reap more tangible benefits from hopping the Channel. Another recent tax break allows corporations investing in SMEs to spread the expense over five years. This is beneficial in minimising tax and maximise profits, helping both investor and recipient. Efforts will also be made to help families integrate, with schools across the country promising foreign language classes for new students.

What do you need to do?

Once you’ve decided to up sticks and move, the first big decision is picking the right business structure for your needs. The variations are numerous, and while it is possible to change, you’ll want to get it right first time.

The difference between a EURL and a SARL for instance might not be immediately apparent. As changing business classifications can be difficult, it is vital to seek specialist advice for any company formation.

Most small businesses in France will choose to incorporate as a SARL, a form of limited company. This technically requires €1 of share capital, but banks will ask for a bare minimum of €4000 ex. VAT to open an account.

Many SARLs have two directors, although this is not mandatory. Until you are no longer an EU resident you will also forego the need to provide a translated criminal record to the government. Partnerships with foreign companies will usually form as an SAS company, and larger businesses with a number of shareholders will usually become an SA, or corporation.

Fees and finances

Opening a bank account can be one of the more difficult parts of the process as regulations have tightened since 9/11. In most cases you will need a partner who speaks French to liaise with the various organisations.

Knowing exactly what you’re selling is a major part of company formation in France. After you’ve chosen your structure, you need to register your company’s by-laws through a company formation agent or lawyer. In essence, this will tie you to selling only the products or services mentioned therein.

The incorporation process requires a few administrative fees, as well as declaring the specifics of your business. This is accomplished by contacting the local ‘centres de formalités des entreprises’ (CFE) specific to your industry. They can then forward your application to the correct Chamber of Commerce in order to secure the requisite paperwork. 

In the past year alone, sales of consumer goods from brands with a demonstrated commitment to sustainability have grown by more than 4% globally, while those without grew less than 1%. (Nielsen, The Sustainability Imperative).

The commitment to sustainability has become commonplace as a business strategy and “Going Green” is no longer a unique selling point but a necessity for many businesses and entrepreneurs. There are of course variations by region, demographics and category, but what’s clear is the opportunity for significant brand growth, on a global scale, for those willing to listen and respond to increasingly educated and socially conscious consumers.

Last year the French government committed to the protection of the environment and took a key step towards providing a more sustainable economy when a new bill called “The Energy Transition for Green Growth” was passed into legislation.

The energy law specified that 40% of French power production should come from renewables by 2030, while the share of nuclear should fall from to 50% by 2025.

In development for almost three years, the ecology minister Ségolène Royal described it as:

“the most advanced and ambitious piece of environmental legislation in Europe, and probably the world”

While an ambitious statement, the new law has no doubt created the right conditions for the emergence of “green” industries throughout France. The country already had a solid foundation and is home to 20 world-renowned companies in the recycling, waste management, water and sanitation sectors. With Green industries employing approximately 300,000 people in France and creating between 10,000 and 15,000 additional jobs every year, French eco-businesses are starting to gain momentum.

The new policies have undoubtedly played an active a role on both supply and demand, giving rise to a broad and array of entrepreneurs and eco-businesses whose innovative products have potential applications across the world. These new entrepreneurs are hitting the market with products and services that could radically alter how we think of, and consume power.

Glowee

An exciting example is Glowee, a Parisian start-up who are harnessing the power of a bioluminescent bacteria to light up public spaces. Working on the principals of luminescent marine organisms, the non-toxic bacteria are encased in a transparent container made from the nutrients needed to keep the organisms alive. The end result is a lighting technology that requires no electricity to run.

Tidoo

Another French based business, Tidoo, won the 2015 “Best Eco Product Award” by offering a viable alternative to non-eco-friendly nappies. Sold in over 1,000 organic retailers throughout France, the company is now looking to expand to the UK thanks to its popularity and increasing sales.

Phytorem

Phytorem, a small French enterprise has plans to use a bamboo filtering system called ‘Briter Water’. The French business successfully applied for funding under the EU’s Competitiveness and Innovation Framework Programme (CIP) to turn the idea into a viable industrial business. Since the launch, the company has set up two bamboo plantations in France and has started to develop business opportunities abroad.

While eco-businesses are typically small, what’s interesting is that both large and small organisation’s are finding most of their outlets abroad. According to a report in “Industries”, eco-industries generated more than half of their turnover through exports, with the major players operating alongside small and medium-sized enterprises in some highly specialised niche markets.

Bpifrance – France’s public investment bank – also has plans to inject €15 billion into the French manufacturing sector by 2018, by providing funding for environmentally friendly upgrades, digital technology and the Industry of the Future initiative.

There’s no doubt that environmental protection has become a major concern, and in the last ten years, eco-businesses have grown much faster than any other sector of the French economy. For business that have carefully considered their sustainable credentials, the future looks bright as changing trends in consumption, government policy and cost savings all point towards increasing opportunities in the years ahead.

• Autonomy & better work: Freedom, flexibility, and better work opportunities.

• Challenge & opportunity: Personal challenge, fulfilling a vision, opportunities to use existing skills and receiving recognition.

• Financial motives: Financial security, larger income, and wealth.

• Family & legacy: Continuing or creating a family business.

While the extent of these motivations will no doubt vary depending on an individual’s desire for world domination, the one trait that was found to be universal among all entrepreneurs is the desire to succeed. Interestingly the research found a correlation between “success”, and a company’s ability for growth. Startups led by entrepreneurs with low growth expectations were more likely to fail.

Technology is enabling faster growth

Before the Internet, the common formulae for startup growth, establish a presence in your own country and encourage expansion by diversifying products, new customer segments, and innovation. Today companies are considering international expansion right from the outset. Barriers that traditionally inhibited early international expansion have been either eroded or eliminated, thanks to recent technological advances.

Long gone are the days of Steve Jobs’ Interpersonal Computing demo having to be delivered to customers by a travel weary sales exec. Worldwide communication and logistical processes are of course much easier today, and the growth achievable through globalisation is an extremely competitive strategy, particularly if your competitors have yet to create a presence in a particular country, or if the local market has become saturated.

A new study from Pew Research Center found that social networks like Instagram, Facebook and Twitter are all slowing down considerably when it comes to adding U.S. based adult users. Facebook, Instagram, and Pinterest had slight increases during 2015, Twitter remained static when compared to 2014 and LinkedIn’s members actually decreased. The saturation of the domestic market is arguably one of the primary reasons why Facebook is looking towards India.

Success stories

International expansion, however, isn’t the solely reserved for large, established companies. One of the most famous examples of startups expanding early is Uber. It started its international expansion only three years after being formed and six years in, the company has a presence in over 60 countries.

Criteo is another notable success story and probably one of the most successful tech IPOs in the last ten years. Criteo originally formed in Paris before expanding to the UK, then to Silicon Valley, Japan, and now they’re a multi-national doing business across the world. Similarly, from its humble beginnings in Sweden, Spotify has the majority of its users in the US and 18 offices throughout the world. While the service they offer played an important role in their ultimate success, the original location of Spotify is likely to have helped define their international plans.

Startups located in countries with a relatively small domestic market are almost programmed to think about global solutions from the very outset. These entrepreneurs arguably have a head start over their US peers, as solely focusing on the domestic audience and trying to re-engineer products years later for an alternative market can be a headache. By laying the groundwork at the very beginning and challenging teams to think about a product’s global limitations can certainly help with international strategies.

This decision to go global however is not always planned. Opportunities may arise because a customer makes an approach from a new market and services naturally grow from there. Whereas a planned international growth strategy is a deliberate intention to acquire foreign customers. However even with the best-laid plans, the speed of growth can often make the process haphazard and it’s imperative to get the timing right.

Timing is everything

Deciding to expand too quickly has its dangers and there are a number of high profile, well document cases of what can happen if everything doesn’t go according to plan. Careful consideration and advice from international experts and those who have been there and done it is an integral part of any international strategy.

The whole world is fast becoming one market and whether you’re selling in China, marketing to the French or closing a deal in New York, it’s often just as easy – particularly for tech-based startups – to generate revenue internationally as it is to do with your home base clientele.

The result is that every startup company now needs to consider every aspect of management, sales, and service on a global basis. The best-placed companies are increasingly international from day one and it may just be the best route to fulfilling your own entrepreneurial motivations.

In contemporary times, the rivalry has softened (unless of course you mention the Tour de France) and the UK’s adoration of all things Gallic has taken on the lines of a semi-religious cult, with French fashion, cuisine, style and culture all playing an important role in both business and popular culture. Long gone are the days of aristocratic acrimony and trying to shoot each other with pointy arrows.

What we have today are strong business ties, trade agreements and excellent transport links between the two countries. Even for those who still have strong family and business ties in the UK, opening a business in France has now become a realistic and popular option for Brits looking for a new life abroad.

In 2014, the number of UK expats living in France was estimated at around 400,000. Disillusioned Brits – worn out by the 42-hour working week, ever-increasing house prices and those not so balmy summers – are increasingly opting to move to the land of wine and cheese in search of a new work life balance.

The “traditional” ex-pat stereotype who retired to the south of France for a life of Mediterranean paddling is being replaced, in part, by ambitious and dynamic entrepreneurs looking to set-up or expand their businesses. In an age where a half–decent Internet connection can give you the freedom to work from anywhere in the world, the former obstacle of finding a local employer have all but been removed by comfy coffee shops and Wi-Fi.

In a 2014 report by Deloitte that examined the 500 fastest growing tech firms across Europe, France was the most represented nation for the fourth year in a row. Despite its reputation as a high tax, low growth, bureaucratic country, France had 86 companies in the top 500, with Paris claiming its status as the startup capital of Europe. The combination of lifestyle, scenery and business opportunities in the 6^th largest economy in the world is proving to be an attractive consideration for a growing number of British business owners.

Time & cost of starting a business

Contrary to popular belief, relocating to France and registering a new business is deceptively simple, particularly if you’re going to be self-employed. The registration process takes on average 4.5 days in France compared to the 6 days in the UK.

You may need some assistance with opening a bank account where you’ll need translations and a business plan, but many of the bureaucratic hurdles to setting up a business have either been reduced or eliminated altogether.

Auto entrepreneurs

For expats who are looking to start their own business there have been a number of changes made under French law that allows residents to set up as “auto entrepreneurs”.

Under the system, an individual who sets up an enterprise with a turnover capped at €32,000 for services and €80,000 for trade, is regarded as an auto entrepreneur. Under the changes you will only pay taxes and other social contributions according to your turnover. To put it simply, if you don’t sell anything, you don’t pay anything.

Quality of Life

Although everyone is different, France does seem to be more concerned with wellbeing than the UK. The standard 35-hour working week is much more aligned with work-life balance than the UK’s 42 hours. Admittedly both are a little way off from the 6 hour workday being tested in Sweden.

The sheer natural diversity of the country means it attracts individuals searching for different types of outdoor pursuits including skiing, surfing, Alpine climbing and walking. The sunny climate and excellent way of life also attracts those who may have little interest in sport, but just want to enjoy the good things in life!

Population

• France: 66.03 million

• UK: 64.01 million

While the population of both countries is very similar, the total area of the UK (243,610 sq. km) is relatively small when compared to that of France (640,427 sq. km). According to a recent BBC documentary, 20,000 Brits a year are moving out of a very overcrowded UK in search of more elbow room just over the water. The additional space is an alluring prospect not just for swinging the proverbial cat, but has an understandable impact on the housing market.

Housing & cost of living

Nembeo is the world’s largest database of user-contributed data and statistical analysis relating to the cost of living in countries across the world. According to their latest research, the UK is a more expensive place to live than France, particularly when it comes to rent that is on average 36.4% higher.

• Consumer prices in the UK are 6.85% higher than France.
• Groceries are 3.37% lower in France
• The average bill in a restaurant is 15.96% higher in the UK

When comparing the cost of a mortgage as a percentage of income between the capitals, Paris is again markedly cheaper than London. With house prices in the UK continuing to soar, part of the draw has been the relatively affordable property throughout France (although French property is also on the rise).

Cost of a mortgage as a percentage of income

• London – 218.53%
• Paris – 118.17%

It’s important to note that while the figures look attractive, they’re based on the whole of France. If you’re considering a move to Paris, you may need to do some further research to compare the cost of living in the capital.

Industries

The comforting news is that in many ways France is a similar market to the UK. If your product or service is successful in the UK, there’s a good chance you’ll be successful in France. However, French businesses can be wary of buying outside France and you’ll need to be reassuring about quality, price and reliability of your products and services.

One sector that has proven to travel particularly well across borders is fashion. For UK brands expanding into France, the strong heritage and lifestyle credentials associated with Britain ensures that these types of products tend to do well in France, where profitability can often be higher than in neighbouring countries.

The alternative is to open a new company in France where the “Made in Paris” association allows brand owners in the low to mid-market, to sit comfortably in the premium, high-end sector of less developed and established international markets.

Whatever your motivations for starting a business in France, there continues to be strong global demand for French brands and while the French eco-system is not perfect, it has come a long way in the last few years. If only the same could be said about the cycling.

This post was written by Euro Start Entreprises. Helping businesses and entrepreneurs with company formation in France, UK, Europe, US & the Emirates.

If you haven’t had the time yet to fully explore all the options available to you, here is an overview of the different types of Intellectual Property and how they can contribute to the ultimate success of your business.

What is Intellectual Property?

Intellectual property relates to something that you’ve physically created; unfortunately this doesn’t extend to ideas. Essentially protecting your IP makes it easier to pursue legal action if someone steals or copies your work. It can be used to help protect:

• Brand or products names
• Your inventions
• Technology
• The design or look of your products
• Things you write, make or produce

How Can Intellectual Property Benefit Your Business?

• IP rights provide protection against someone directly copying your idea.
• IP rights help maintain a businesses competitive edge.
• Registered IP ensures that maximum financial benefits can be gained from your idea.
• It can help convince investors or financial institution to invest in your business.
• It gives consumers confidence that products are of an excellent standard.
• Holders of IP rights enable entrepreneurs to license/franchise ideas for continued expansion.

There are a number of ways to own intellectual property including trademarks, designs, patents and copyright.

Trademark

Trademark registration is a sign or symbol (think Nike swoosh) that immediately identifies a brand, service or product. It not only distinguishes your products and services from others, but also provides reassurance to customers as to the quality and credibility of your service. Reputation is arguably how many businesses remain profitable and fundamental to the future success and expansion of a business.

Having the appropriate branding and trademark however is not solely reserved for large businesses. It can help increase the commercial value of company, both large and small. While not everyone will reach the heights of Apple or Google, the latest figures for the most valuable brands in the world illustrates just how important they can be to a business.

1. Apple: $145.3 billion.
2. Microsoft: $69.3 billion.
3. Google: $65.6 billion.
4. Coca-Cola: $56 billion.
5. IBM: $49.8 billion.
6. McDonalds: $39.5 billion.
7. Samsung: $37.9 billion.
8. Toyota: $7.8 billion.
9. General Electric: $37.5 billion.
10. Facebook: $36.5 billion.

Once registered a trademark can apply indefinitely as long as they’re renewed. Renewal periods can vary across countries but it’s not uncommon to renew every 10 years.

Designs

By registering a design, you can prevent a competitor from copying and reproducing a product or component. For example fashion designers often register their designs to stop cheap imitations being produced.

Copyright

Copyright relates to the “expression of an idea” and can include copy, illustrations, pictures, sound recordings and literature. There is no fee associated with registering for copyright and is applied automatically as soon as something is created. It applies to both print and web related material.

Patents

Patents are used to protect inventions, processes and methods that are “unique” and “useful” – it’s often surprising how many applications forget these all-important words. If granted a patent can give you a monopoly on selling and marketing your idea so no one can infringe on your rights and claim the invention as their own work. For certain types of business, patents are incredibly important.

In today’s competitive world it’s often difficult to successfully acquire a new patent as the idea is likely to have be thought of already (unless it truly is unique) or there may be another application ahead of you in the queue.

The process often requires detailed drawings, schematics and documentation and could take years before the application is approved or rejected. A good tip however is to file your patent as fast as you can. The application holds your place in line and depending on which country you’re applying, you may have additional time from that initial submission to complete your application.

The World Intellectural Property Organisation has detailed statistics on IP and patent applications by country and industry. If you’re interested in searching if your innovative idea already has a patent, it may help to start with a Google patent search at google.com/patents.

Intellectual property protection is critical to fostering innovation and without it, years of hard work and dedication can be wiped out by competitors. If you haven’t had the time to include it on your to do list, it may be one of the best things you could do for your business.

Author Bio

A former journalist and scriptwriter, Katya Puyraud is the co-owner of Euro Start Entreprises. Helping businesses throughout the world with company formation, incorporation and trademark registration.

The findings are beautifully simple.

“The only thing that really matters in life are your relationships with other people. Happiness is love”

Without wanting to disparage the research and the dedication of everyone involved for what initially seems like a logical conclusion, there is a little more to it than that (which you can read about in this excellent post). But essentially we’re happiest when we have a place in the world, when we love and are loved, and when we make the most of our gifts.

Making the most of our gifts is arguably why we take up hobbies. Whether our own particular penchant for happiness is sport, art, candle making, writing, coding, food; it’s enjoyable to do the things we’re good at. With work taking up so much of our time in the modern world, doing what you love and turning a hobby into a successful business is the Holy Grail many of us aspire towards.

The research from the study shows that 50% of our happiness is determined by our internal “set point,” which is shaped by genetics and early childhood. 10% is determined by circumstances and the remaining 40% from how we react to circumstances. It’s over this last 40% that we thankfully have some control.

Taking control of your happiness by pursuing what you love invariably involves the dilemma many aspiring entrepreneurs make; should you leave it as a hobby, or give up your day job and go full-time.

If you’re currently mulling over this particular dilemma, there may be a number of considerations that could help you reach the happiest of conclusions.

Turning you hobby into a business

Teach what you know

Whether it’s cookery, engineering or your prowess on social media, there are always people willing to learn from those with experience. Setting up online courses, forums or even teaching in person are cost effective ways to get everything up and running without the need for heavy investment.

Find a niche

Unless you’ve come up with a truly innovative idea, then it’s likely you’ll have competition. Finding a niche will not only help differentiate your business, but will give customers reassurance that you’re trusted and credible within the niche. It’s also much easier to target specific audiences online without wasting valuable budget during the early stages.

Combine previous work experience with your hobby

For example if your background is in publishing, but you love cooking, you could teach chefs on how they can get their cookbooks published. A happy compromise between previous experience and your passion.

Research & Business plan

This is an area that’s often overlooked, but by doing the necessary due-diligence you can save yourself a lot of time and effort in the long run.

Research

Learn about any competitors, how much they charge and how their offering differs to yours? Think about every step you need to make and what you need to achieve each stage. Have all the contacts and resources in place when you reach every individual step.

Pricing

Not having a comprehensive understanding of costs, revenue and profit margins is surprisingly common and a fundamental error that can have a major impact on the success of your business. Have a clear idea of what your costs will be and how to price your product/service/time accordingly? Spreadsheets are likely to become your friends.

Evaluation

Most of the time our hobbies are fuelled by passion, and with it comes emotion. Evaluating your products or services from an objectionable point of view will help you to iron out any kinks that may have previously been missed. Get views from friends, family and any business contacts to have an unbiased appraisal of your idea.

Get help from experts

Getting the advice from experts and those who have been through the process before can not only save time, but can have a positive impact on revenue. How to structure your business (sole trader, limited company etc.) has various implications on tax, accounting and VAT. Getting the appropriate expertise in place early on is one of the most sensible decisions you can make for your business.

Find out what grants and loan schemes are available

There are a number of schemes, grants and incentives all designed to help entrepreneurs get their businesses off the ground.

Unemployed

If you know what you’re going to do, you can apply for the New Enterprise Allowance, which is available to people who are unemployed.

Government grants

There are a number of government grants available at www.gov.uk.

Female entrepreneurs

With the government realising that the economy could be improved with more women running businesses, they have started offering mentoring services to female entrepreneurs. This along with resources to find grants especially for women, and help with the creation of small businesses generally, you can find there’s a wealth of inspiration for female entrepreneurs.

Turning your hobby into a business often takes courage, careful preparation and perseverance. But according to our friend Professor Valliant, the route to happiness can often be paradoxical in nature. Among those he studied he found that the most inspiring triumphs and happiest times, were often the result of studies in hardship.

Latvia isn’t a country that immediately springs to mind when you think of economic heavyweights, but this small state, tucked quietly away by the Baltic sea, is actually one the world’s growing economies.

According to the International Monetary Fund, Latvia is expected to overtake its Eurozone neighbours by doubling its economy growth to around 4% by the year 2020, with one chief economist from a German bank calling the country “a dynamic eastern growth star”.

This is a far cry from the harsh recession that sent the country into near bankruptcy in 2008 when unemployment was rife and the government was forced to pay a billion euros to bail out its largest domestic bank.

But after a major fiscal adjustment coupled with austerity measures, the country began to claw its way back in 2011, and in 2014 its successful entry into the EU reinforced its increasingly stable financial image. Last year, the World Bank rated it 23^rd out of 189 countries and now the Latvian government is on the verge of experiencing an almost unheard of fiscal surplus.

Latvia’s presidency of the Council of the European Union and its recent hosting of the European Capital of Culture, the European Leaders’ Summit and the IT Digital Assembly in Riga, has helped the country receive worldwide attention, bringing with it an influx of foreign investors.

Here’s just some of the reasons Latvia is attractive to the international entrepreneur community:

• Strong export market
• Highly qualified multi-lingual workforce
• Low costs
• Low tax
• Central location with great trade links
• Growing tech and startup community
• Strong banking system

The UK’s Prime Minister David Cameron is especially keen on continuing to forge links in Latvia with Britain investing £319 million in 2014, placing it in 10^th place as one of Latvia’s largest investors. And big businesses such as the UK’s bioscience giant Grant Instruments, the Dutch household goods manufacturer Brabantia and the US chemicals company Cabot have all chosen to establish bases in Latvia’s capital Riga.

Transport links are currently high on the country’s list of priorities to help encourage trade. To complement the country’s shipping ports, a high-speed route from the Polish border to central Lithuania has already started and phase two of the project will see it connect with Latvia’s Riga and Estonia’s capital Tallinn, encompassing 455 miles altogether. Riga airport is also undergoing major reconstruction with a second terminal being developed to cope with increased demand.

Latvia has also managed to accrue a stable banking system with Riga being viewed as a regional financial centre due to its 20 domestic banks and branches of eight foreign banks. Almost half the deposits are made by foreign investors and non-residents who are attracted by the personalised services offered by Latvian banks.

Compared to 24 years ago when Latvia struggled to extricate itself from the grips of the Soviet Union, Latvia has now emerged as a “small but flourishing state” according to its proud Prime Minister Laimdota Straujuma. Latvia is a shining example of how a nation’s determination and vision can push through financial and political hardship to develop into one the of the world’s leading economic lights.

We all suffer from fear of the unknown. It’s a perfectly natural response designed to keep our ancient ancestors from doing anything stupid. Without it the human race is likely to have been wiped out in a series of ill informed decisions, over zealous curiosity and the occasional poke at things with very big teeth.

But too much fear can be equally as damaging. It can cause stagnation, paralysis and doesn’t help us reach our full potential. While many SME owners have stated an intention to expand their businesses overseas, the fear of the unknown is often cited as a major reason for not expanding internationally.

With unfamiliar markets, new regulations, unknown costs and administrative procedures, it’s understandable that it can be difficult to know where to start. But for ambitious small businesses that are not put off by the seemingly complex process (which frequently turn out to be less complicated than first imagined), there can be very profitable rewards.

Benefits of international expansion

• Improve your domestic competitiveness
• Increase sales, revenue and profits
• Minimise risk by not relying on one market
• Reduce seasonal market fluctuations
• Enhanced potential for business expansion
• Sell excess production capacity
• International trade could improve the chances of taking your company public.

As with most things, research and education can go some way to alleviating any feelings of uncertainty. Going through an effective due diligence process can help address some of the more common concerns.

An unfamiliar culture

In a report by BRICM, 84% of SME owners stated that understanding a target market’s culture or language is important or very important in determining its attractiveness. Familiarity is often why English-speaking businesses often opt for expansion into the US, UK, Canada and Australia.

Additional data from the Grant Thornton International Business Report, a survey of more than 2,500 business leaders in 36 countries, found that nearly 75% admitted that they chose a foreign market based on gut feeling.  However this may not always be best for your business and the greatest opportunities may not always be found in a country with a similar cultural background.

For example the sheer scale of China has made it an attractive option in recent years and cultural differences that were initially perceived as a problem, may mean that your product or service has less competition than the more familiar markets of US, UK & Canada.

Areas to consider when conducting any in-house research on potential audiences would include:

Market Assessment

• Size
• Segmentation
• Growth

Identifying Customers

• Customer types
• Target organisations
• Individual names and titles (B2B)

Competitive Assessment

• Competitor types
• Key competitors
• Value proposition

Employing a local resident, particularly during the early stages, can quickly provide knowledge and understanding of any important cultural considerations. Having an employee with a pre-existing network of local connections can also help with winning new business, customer service and provide reassurance to customers that they have a local representative they can call in an emergency.

Not sure which country to choose

While this should never be the sole consideration for selecting a country, certain countries and cities are better suited for particular industries.

San Francisco, London & Berlin all have a thriving tech scene, the eastern European countries of Poland and the Czech Republic have low manufacturing costs and the “Made in Paris” brand associated with apparel can have an immediate impact on a products desirability.

Determining what your business needs first before deciding on a country can help you think differently about the options available to you.

Diverting time between locations

Through the use of technology it’s perhaps more possible than ever to take a small business into international markets. Key employees can literally be located in any part of the world and as long as you develop robust management and reporting processes that monitor the quality and quantity of work produced, it’s now possible to effectively run a business without constantly being on site.

Prior to any expansion you can map out all of the businesses and management processes you’ll need before researching the online tools that will enable you to effectively manage your business. There’s a wealth of options to choose from but popular tools can include:

• Cisco’s Web-ex: Video conferencing and the ability to share desktops
• Hubstaff: Time tracking software that enables you to access data about what your employees have been working on.
• Google Drive: Google Docs will allow colleagues to share important documents and files that are updated in real time.
• Trello: Project management tool for workflow and ideas.
• Slack: Instant chat between employees that includes integration with Google Docs and Twitter.

Financial concerns

After the global recession many governments granted financial support measures to not only help grow the domestic economy, but also to encourage SMEs to their country. This is particularly common in economically disadvantaged areas where the financial support is often used to help boost the local economy.

For example Germany offers governmental loans and grants of up to 50% for SMEs (under certain conditions) and there are plenty more opportunities for financial support throughout the world.

While understanding all the schemes available can be time consuming, partnering with someone who has experience in these areas can ultimately help you get financial support and your overseas business off the ground.

The competition is too expensive

It’s important to carefully examine your pricing strategies in order to make a profit without pricing yourself out of the market. While some countries may not be suitable for you pricing model, others may be ideal.

Pricing can vary enormously depending on which country you’re looking at. To get a clear understanding a good strategy would be to look at “landed costs,” which include the duties, taxes and fees charged by countries when goods arrive.

According to a study published by the Institute for International Economics, companies that expand internationally not only grow faster but are nearly 8.5 % less likely to go out of business than those who don’t. Arguably this is much greater fear for most business owners than the possibility of international growth, and by being open to all the possibilities available you may just find that there really are no serious fears that are preventing you from turning your ‘local’ business into a ‘global’ one.

This post was written by company formation agent Euro Start Entreprises. Helping businesses and entrepreneurs open and expand their operations throughout the UK, Europe, US and the Emirates. Follow us on Twitter.

Image Source: “Scary Halloween Night” by digitalart, FreeDigitalPhotos.net

For a certain breed of individual, there’s always been something quite alluring about the thought of being stranded on a desert island. The idea of being totally responsible for every choice we make and the part each tiny decision plays towards our ultimate success or failure is for some, the perfect challenge.

We are of course talking about ambitious entrepreneurs. The modern day Robinson Crusoe’s where the equivalent of surviving on coconuts and growing a big beard is the thrill, excitement and freedom found from launching a startup. It’s not always easy, it certainly has its fair share of challenges to overcome, but it’s a test of ingenuity and survival that’s comparable to sense of satisfaction we can all find from sleeping under a palm frond and trying to stab a fish with a stick.

Considering most startups already sport an eclectic assortment of tremendous beards, we thought we’d share with you a mini survival guide that will help you and your businesses thrive, even under the most testing of circumstances.

Do nothing – think

One of the first lessons in any survival course is to sit down, take stock of your current situation and prioritise what needs to be done. The sheer scale of the situation can often send people into a panic, blindly stumbling from one task to the next wasting valuable energy and time. Both of which are always in short supply during the early days of a startup.

If you experience a busy period, crisis or you’re simply in the very early stages – sit down, reflect, prioritise what needs to be done and how you can achieve this is the most efficient and effective way possible. Planning is everything.

Build a shelter

There are likely to be a few storms along the way and sheltering your business from potential competitors will protect two of your most valuable assets, your intellectual property and trademark.

Four years ago Turner Barr created a website called “Around the world in 80 jobs” where he intended to fund his escapades to some of the more remote regions of the planet through his blog. He gained some serious traction where his initial idea and success made his dream become a reality. That was until someone stole his idea, the name and ruined years of hard work.

No matter how big or small you are, it’s always important to consider protecting your IP and trademark that will provide a secure shelter for the future of your business.

Energy & food

The human body can approximately survive for 3 minutes without air, 3 days without water and 3 weeks without food. After which everything goes a bit wrong. What keeps a business going – the energy and food of a startup – are sales.

Without a steady stream of revenue, clients and sales any startup will struggle to survive. If you’re not sure where your next sale is coming from, it may be worthwhile to take the time and put together a comprehensive sales strategy that can really pay dividends in the long run.

While there are a number of posts and useful resources that will go into more depth about how to effectively grow your sales, one area that’s commonly overlooked is the ability to listen. Being effective in sales isn’t about shouting from the rooftops and telling everyone how wonderful your product is, often people don’t really care. What they care about is their business.

By listening to your customers you can find out what really motivates them, what challenges they face and what they’re hoping to achieve. THEN, you can tell them how your particular product of service can help them achieve this. Match the benefits of your product with customer needs.

No man/woman is an island

Everyone needs help. Even when entrepreneurs claim that they “did it all themselves”, the reality is that they’ve often had help along the way. Whether this takes the form of staff, mentors, advisors or fellow entrepreneurs, it’s important to have someone as a sounding board that can give you a new perspective or to make sure you don’t do anything stupid.

Many of the hunter-gatherer tribes that still exist on some south pacific islands today are able to build thriving communities because they rely on each other, each member having a unique and individual skill. No one can be an expert in all areas, so identify the people, either internally or externally, who have the necessary skills for a particular task and rely on their expertise to help make your business stronger.

It’s also important to have support from friends and family. Running a startup can often be a lonely experience and it’s understandable that you may want to completely immerse yourself in making it a success; but don’t forget your loved ones. Even if they don’t directly contribute to your business, then can give you a mental boost and the encouragement to keep going when things get tough. Even Tom Hanks had Wilson the Volleyball!

Get a system

Congratulations, you’ve managed to survive the tough part. You’re up and running and have proved that your business can work. The next challenge is to repeat this initial success so you can grow. With expansion comes the problem of scalability and how to repeat the process over and over again.

Without robust systems in place that can be replicated from branch to branch or from country to country, the process of scalability can be a nightmare. Find out what works, why it worked and what systems are required to repeat the process.

Leaving the island

When people are rescued from an island, most of the time it’s because they’ve made the necessary preparations. A signal flare, a raft, or whatever device your own ingenuity can muster, leaving requires foreword planning.

There are a number of options from acquisitions, creating a lifestyle company, IPO’s and selling to a friendly buyer. If your ultimate aim is to sell up, speak to investors and research why they’re attracted to certain types of business. How can you demonstrate that the business will continue to grow and you haven’t reached your full potential?

Exit strategies are extremely important for investors. Having a minority share in a healthy, growing company, without any prospect of an exit is a terrible scenario for them. If they put money in and get nothing back, it’s highly unlikely that they’ll find your business an attractive consideration.

Having a clear idea of how you want to leave (if indeed you do) will save you a lot of work and potential disappointment in the long run.

There will undoubtedly be tough times when surviving a startup, but the rewards can be life changing. By remembering the big picture and taking each challenge as it comes, you never know, you may find yourself on a desert island but instead of running around waving an SOS flag, you’ll be lounging on a beach celebrating your success with a champagne cocktail.

This post was written by company formation agent Euro Start Entreprises. Helping businesses and entrepreneurs open and expand their operations throughout the UK, Europe, US and the Emirates. Follow us on Twitter.

Image Source: “Sos Morse Code Sign For Seeking Rescue Or Help” by ArtJSan, FreeDigitalPhotos.net