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“It’s crazy to think that an idea I had when I was 21 is now my full-time job.”

Alexander Flint Mitchell took home the prize for Best Business Pitch in June’s Pioneer awards. He reflects on a life-changing year of building his business, Blind Cupid.

When Alexander Flint Mitchell enrolled onto Birkbeck’s MSc Business Innovation last September, it was with a view to changing career direction and developing the business idea that had been on his mind for the last five years.

Handing in his notice just one month later, you could say things had moved a little faster than expected. “Looking back on it, that was probably a bit naïve,” Alexander admits, “but if you want to achieve something big, you’ve sometimes got to take a leap into the unknown.”

The motivation for this leap of faith? A little idea for an app called Blind Cupid.

Blind Cupid is a dating app with a difference, using a never-before-used science to match people based on their fundamental values, giving users the chance to see bios and compatibility scores before they reveal pictures to potential matches.

“A lot of dating apps claim to be all about personality,” says Alexander, “but it’s really just a slogan. In their questionnaires, they will ask about polarising issues like politics, which is valid, but simply agreeing on something doesn’t mean that you’re compatible. Take Brexit, for example: people voted Leave on both extremes of the political spectrum. It’s essential to understand the rationale behind the belief.

“The questionnaire that we use for Blind Cupid goes right to basic principles. The greatest feedback we have received so far from users is that they could see the value in the product even from just filling out the questionnaire – before they’d received any matches. When we tested the product, 80% of the test group went on four or more dates with their matches – that’s way higher than anything else in the market.”

Was the concept for the app born out of Alexander’s personal experience? “People ask me that a lot,” he says, “but in reality, the idea just came to me in a lightbulb moment, fully formed. I came up with the concept aged 21, while studying Law and working in the City. I found the reality of being a lawyer very boring and would end up spending most of the day daydreaming about this app. I knew that I was going to do it eventually, but I wanted to do it properly.”

In 2019, Alexander applied for the MSc Business Innovation at Birkbeck, specialising in entrepreneurship. “Studying in the evening meant that I could continue working in the City until the business was up and running,” Alexander explains. “I thought that, worst case scenario, I could find a role in venture capital, but I really wanted to give Blind Cupid a go.

“The course was everything I wanted to learn. One of the early modules, Entrepreneurial Venture Creation, required us to write a business plan. I wrote a business plan for Blind Cupid, and that’s when I decided to quit my job.”

As Alexander worked through the masters and the Pioneer programme, his business and networks grew. “I’ve made some amazing connections and put together a dedicated team – we’d meet at 8am and still be working together at 1am, before we were earning any money to do it, which just shows the commitment we all have to the business.”

Alexander’s Pioneer experience culminated in June’s virtual awards ceremony, where he took home the award for Best Business Pitch. “It was a shame not to be able to do the finale in person, but I was really surprised and pleased by how many people came along to the virtual ceremony. When pitching Blind Cupid to investors, it usually takes a full hour to go into all the detail, so drilling it down to three minutes was a real challenge. I’m thrilled to have won the Best Business Pitch award; it feels like all the hard work is paying off.”

Alexander is currently fundraising for Blind Cupid, with the aim of getting the product on the market within the next three months. Encouragingly, it seems that he’s also hit on an idea that can withstand the current tough economic conditions: “Strangely enough, the dating industry is booming at the moment. Regardless of what’s happening in the economy, people have a natural desire to have someone in their lives romantically, and that doesn’t go away in a recession.

“The decision to do the master’s was a life-changing, life-affirming decision. It’s crazy to think that the idea that I had when I was 21 is now my full-time job.”

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New (and not so new) perspectives about humour and management

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Juan Dávila, BA Global Politics and International Relations alumnus (returning to Birkbeck to undertake an LLM in the next academic year), discusses resilience, virtual socialisation and productivity in these challenging times.

In the last decades much had been written about the relationship between humour and good management. Still, considering the current global pandemic crisis originated with COVID-19, it is necessary to revisit a few key concepts that help us to contribute to the preservation of the right spirit and motivation in our organisations. After all, institutions, either seeking profit or not, are human constructions, and human nature is and has always been resilient.

Having said this, hundreds of thousands of original videos were produced in the last months, proving that self-isolation can be positively a time of self-discovery, where humour is a crucial element to enhance mental health and to deal with constant mediatic bombarding. Like Roberto Benigni in ‘La vita è bella’, people use their creativity and imagination under the worse circumstances.

Furthermore, a beneficial link between laughter and the boost of the immunological system had been traced as a result in scientific studies, since when we laugh our body produces substances like endorphins, adrenaline, serotonin, and dopamine that helps to relax our muscles and potentiate a feeling on mindfulness.

Once again, institutions, profit and non-profit, have in the last months made radical efforts to adapt their operations to the new circumstances affecting all type of practices and routines. Stress and anxiety are common symptoms that can later change the core of the organisation if they are not dealt with collectively. The challenges are indeed enormous, but also opportunities to be embraced.

But how can we apply humour to motivate our work environment? Like in any human interaction, speakers and listeners produce and exchange verbal and non-verbal communication. The effectiveness of communication is the base to reach mutual understanding. In that context, humour is an exciting tool to be used organically. Our difference with previous generations is that in times of social distance, much of our daily interaction is done online through devices that can, fortunately, allow us to retransmit image and voice in real-time.

In terms of effective communication, being funny is always about taking risks, considering the timing and other people points of view—also, project confidence and intellectual agility. Co-workers can eventually feel stimulated to work with someone that knows how de-dramatise the complexity of some operations. But, inappropriate jokes and remarks can undoubtedly cause the contrary effect and can eventually evidence incompetency. In any case, teamwork and good peer feedback are encouraged to safeguard fluent and effective communication, that at the end impact on the work environment.

When the dog is barking, or a child is crying in the middle of an urgent conference call, some things are indeed beyond our control. We have all been in similar situations. In these circumstances, a laugh can help to humanise these kinds of situations. It is essential to always take into consideration that the best humour is still coming from laughing about ourselves. In this context, leaders with a sense of humour are more approachable, helping to build up trust and boost the morale of the team.

Simple team building dynamics can also motivate people and encourage productivity. Here some tips and ideas:

If you want to keep your privacy at home, make sure that you use a professional virtual background. You can have a few of them to change accordingly to the situation.
You can all agree to wear a particular colour or dress code to attend a meeting. For example: ‘Red on Tuesday, and Green on Fridays’
Celebrate small steps or achievements is also a way to show appreciation to your colleagues.
Sharing ideas about what to do during social distance can also help to motivate people.
When working with colleagues in different time zones, it is vital to empathise. It could be the beginning or the end of the day for them
Also, working with people using different languages, it is crucial to formulate ideas and questions using simple vocabulary to facilitate understanding.

Moreover, being positive will not guarantee to succeed, but being negative will ensure that you will not. So, let us be the reason why someone smiles today.

Further information:

Study Business at Birkbeck

Why businesses fail: Financial management

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Welcome to the Why businesses fail series. This is the final instalment of the series that delves into the reasons for businesses failing and offering solutions. This series was launched by Lucy Robinson of Birkbeck Futures and Ghazala Zia from Windsor Swan. In this blog, they share why financial planning should be high on the list of priorities for new businesses and start ups.

Lucy Robinson is the Employability Consultant for Business and Enterprise at Birkbeck Futures. She runs the Pioneer programme for aspiring and early-stage entrepreneurs and hosts an enterprise series on the #FuturesPodcast.

Ghazala Zia is a Venture Capital Advisor at Windsor Swan, a boutique London business advisory firm. She has an extensive legal background and currently specialises in advising start-ups of all stages on funding, strategy and business analysis.

Young businesses often prioritise hiring team members to focus on technology and sales. Obviously, these are very significant elements of the start-up, but neglecting the management of finances is a common reason businesses might fail.

A very common reason for a business failing is running out of money. Frequently, entrepreneurs will burn through cash to the brink and then be left with two to three months’ worth of cash, which is really unattractive to investors. This comes back to investors wanting to secure a return on investment and showing poor financial management makes you high-risk. Instead, having eight to twelve months’ worth of cash indicates that you’ve got time to grow your business and doesn’t come off as desperate.

In the beginning, having access to someone who performs a CFO-type function could be the difference between succeeding and failing. This doesn’t have to be a full-time team member if that’s not feasible, as this is a function that can be outsourced fairly easily. Essentially, this is someone to discuss how you allocate your costs, draw up your financial model, and manage your finances day-to-day for the business. Think about this before you receive funding, as they can also help you plan ahead. Showing investors that you’ve taken this initiative is also a big plus in terms of your trustworthiness.

The misconception is often that we don’t need to hire a CFO or shouldn’t spend money on this, as an accountant can perform the same function. Whilst accountants are great at what they do, their role is more about looking backwards than forwards. In essence, planning ahead financially isn’t exactly their purpose. When looking at the finances for your start-up, it’s speculative and forward-looking – largely making educated guesses. So, you need someone with this skill set, which is more likely to be a financial specialist who’s worked in start-ups before.

Read more from the Why Businesses Fail series:

An MBA with a difference

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Sammera applied for the Central Saint Martins Birkbeck MBA to build the skills to have a greater impact in the charity sector. Her efforts have been recognised by a scholarship from the Aziz Foundation, who support British Muslims into higher education to better society.

As Head of Development at the British Asian Trust and with over fifteen years’ experience of charity and voluntary work, Sammera speaks with authority when she talks of the need to innovate in the third sector.

“Innovation and creativity are central to developing products or services in any leading organisation,” she explains, “but in the fast-changing and highly competitive environment in which charities operate, it is essential. There’s also the added challenge of adapting within a strictly regulated and scrutinised environment.”

Sammera wanted to return to education to consolidate the skills she had learned through her working life. The Central Saint Martins Birkbeck MBA appealed as it provided the opportunity to bring together creative and business disciplines.

“I didn’t want to do anything too conventional – I wanted to bring in a creative angle,” says Sammera. “The four units of the MBA programme link in with my work, so I can apply what I’m learning in my day to day integrating the business management theories practically. There are elements of the course that require independent investigation and research, while others focus on entrepreneurship, leadership and change.”

In January 2020, Sammera successfully interviewed for a scholarship from the Aziz Foundation, which will partly cover the costs of the MBA programme. The Aziz Foundation offers Masters scholarships to British Muslims in order to empower one of the most disadvantaged communities in the country to bring positive change to society as a whole.

For Sammera, the MBA is an opportunity to gain the skills she needs to make an even greater impact: “At the British Asian Trust, I have learned the value of social finance, making sustainable changes for the longer term and helping marginalised communities in South Asia. Beyond this course, I hope to continue to empower the diaspora and wider communities locally and internationally.”

Dr Pamela Yeow, Programme Director of the MBA, said: “We designed the MBA to equip students with the tools to make positive change. I am delighted that the Aziz Foundation has recognised Sammera’s commitment to the charity sector and that they have seen the potential for her to have an even greater impact with the help of the MBA.”

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Why Businesses Fail: Business Plans & Financial Models

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Welcome to the Why businesses fail series. This is the fourth of five blogs that delve into the reasons for businesses failing and offering solutions. This series was launched by Lucy Robinson of Birkbeck Futures and Ghazala Zia from Windsor Swan. In this blog, they share why having a carefully considered business plan is essential to the success of your business.

Lucy Robinson is the Employability Consultant for Business and Enterprise at Birkbeck Futures. She runs the Pioneer programme for aspiring and early-stage entrepreneurs and hosts an enterprise series on the #FuturesPodcast.

Ghazala Zia is a Venture Capital Advisor at Windsor Swan, a boutique London business advisory firm. She has an extensive legal background, and currently specialises in advising start-ups of all stages on funding, strategy and business analysis.

We all know the importance of a decent pitch deck when it comes to presenting a business idea to investors, but ultimately, they’ll be looking at the detail behind the pitch when making their decisions. Once you’ve started your business and got a few customers, you should be looking at your business plan and preparing it for an investor. This seems early but is the right time because that’s how long it takes to prepare for investment.

Investors might not ask for a business plan straight away, often they’ll request to see this after a few meetings. Entrepreneurs often wait until they’re explicitly asked before creating a business plan, which isn’t setting yourself up for success.

In reality, a business plan is a living, breathing document, not just something you rustle up on request for the purpose of your funding application to an investor. Showing an investor, a rushed, poorly considered, or insufficiently detailed business plan won’t fill them with confidence.

A detailed and carefully considered business plan isn’t just important for impressing investors – it’s one of the most important tools in your arsenal as an entrepreneur, and when used correctly it can be incredibly valuable for planning ahead, making decisions and staying on track.

The business plan should work for the life cycle of the business, which is approximately 3-5 years. Consider the milestones you’ll reach and issues you’ll face within this timeframe. It should be a professionally written document that you and your team refer to time and time again, meaning that everyone is literally on the same page. It’s not static, and should be amended as you go along. This allows you the flexibility to adapt to new circumstances and continue planning ahead.

As well as your business plan, you also need a detailed, well-evidenced and realistic financial model. The first question to answer here is that of why your business needs funding in the first place. Where are you hoping the business will go in the next 3-5 years? What specifically will the funding be spent on? How have you arrived at these costs? How will the meeting of these needs lead to more growth and profit? Specificity is needed here, as investors awarding significant amounts of money will want to know exactly where that money is going, and how it contributes to their return on investment.

You also should be proportionate and realistic about the amount of funding you ask for. There’s no exact rule about how much funding to request, as it ultimately comes down to your planning, but you shouldn’t expect to waltz out of your first investment meeting with one million pounds. It’s speculative at the early stages, but you can come up with a good financial model that’s relevant to the type of investor you’re approaching if you take the time to look at the detail of your business. Seeking the guidance of a financial advisor is a good step to take here, as they’ll know the right questions to ask you.

When it comes to your business plan and financial model, sit down and spend a lot of time on these. This is why investors often prefer to back entrepreneurs who’ve already tried and failed, because they know the steps to take and the questions to ask themselves.

Read more from the Why Businesses Fail series:

“I used my work as a kind of petri dish for everything that I explored in the classroom”

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Roscoe Williamson, Creative Strategy Director and Partner at MassiveMusic reflects on how the Central Saint Martins Birkbeck MBA has helped him shape his career path.

With a twelve-year career in the music industry under his belt, you might be surprised to hear that Roscoe studied Chemistry as an undergraduate. “ It’s hard to know what you want to do with the rest of your life at 18 years old,” he explains, “Chemistry was a bit of a slog, so I had a real hunger to go back into education later in life, to learn and expand my horizons around topics that genuinely interest me.”

Roscoe was keen to develop strategic leadership skills to advance his business, but coming from a creative industry, it was important to find a programme that valued creativity: “I was particularly interested in bringing creativity into business and applying design and systems thinking to the corporate world. I was interested in a few courses that took a creative approach to business education, but I chose the Central Saint Martins Birkbeck MBA because it had both the innovative outlook and the solid finance and strategy side.”

The MBA focuses on three curriculum units: Provocation and Enquiry; Entrepreneurship in Action; and Effecting Change: Collaboration in Practice. The eighteen-month programme culminates in an extended live project or dissertation. “I enjoyed most aspects of the course and the exploratory learning style that was encouraged,” explains Roscoe, “The whole experience was like tasting a knowledge cake with lots of segments. I left behind those I didn’t like so much, while my final research project allowed me to really get into what I liked the taste of.”

Roscoe’s academic dissertation explores how organisations can nurture, scale and grow creativity and innovation. His findings point to ways in which organisational creativity can be led by individual behaviours, teams dynamics and organisational structures. “Analysing organisational creativity and innovation from managerial, psychological and sociological perspectives allowed me to identify gaps between academia and practice and understand how to get the best of both,” he explains.

Roscoe’s dissertation is in the final stages, but the changes in his work have been felt already: “I wouldn’t have enjoyed the course nearly as much if I hadn’t been working at the same time. As well as becoming more efficient at managing my time, I used my work as a kind of petri dish for everything that I explored in the classroom. I’ve been lucky to have a really supportive business partner who gave me time to devote to the MBA – he says he has seen a change in me and the business already. Through the MBA, I got partially interested in strategy and realised strategic thinking is something that we needed more of.”

Completing the MBA with a new job title of Creative Strategy Director, it seems that Roscoe has wasted no time in implementing what he’s learned to his business. In the future, he plans to create a content hub, where he intends on sharing his leanings to the wider world.

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Pioneer Programme 2020: Meet the Finalists

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Meet the entrepreneurs in the running for the Best Business Pitch and Best Business Idea awards. Winners will be announced at a virtual ceremony in June.

As the government, businesses and individuals adapt to a “new normal” in the wake of COVID-19, the case for innovative thinking in the workplace has never been clearer. With this in mind, we’re delighted to introduce this year’s Pioneer Programme finalists.

Pioneer is an extra-curricular course for Birkbeck students looking to develop the knowledge and skills to excel as an entrepreneur. Over seven Saturday sessions, participants learn from a range of entrepreneurs, industry experts and each other to build the skills needed to develop their business idea or scale up an existing business.

Representing the best entrepreneurial minds in Birkbeck, the finalists are in with a chance of winning either the Best Business Pitch or Best Business Idea award, each worth a £1000 cash prize to support their business, along with a bespoke package of mentoring, coaching and promotion.

Participants’ achievements will be celebrated at a virtual awards ceremony on Thursday 18 June, with a panel of five independent judges, themselves entrepreneurs and industry leaders in start-ups and innovation.

Meet the Finalists

Jody Halstead
MSc Management with Business Strategy and the Environment
Business: Circular Surrey

My business, Circular Surrey, is a platform for local business leaders who want to transition to a low carbon circular economy.

Research shows that more localised solutions are needed in order to make the shift to a low carbon circular economy. Alongside this, business owners and leaders often don’t have the resources to fully apply their time and need some additional support.

The Purpose of Circular Surrey is to provide clear and tangible support for local businesses to enable them to shift to more sustainable business models and practices whilst continuing to power Surrey’s economy.

Alexander Flint Mitchell
MSc Business Innovation (specialising in Entrepreneurship)
Business: Blind Cupid

Blind Cupid is for people who want lasting love and are frustrated by the time and money wasted dating incompatible people. Blind Cupid offers fast, fail-safe matchmaking. Unlike eHarmony and Hinge, our product matches users with people who share the same values and fundamental way of thinking via a never-before-used science. This creates a fast-track to lasting love. Far from the superficiality of Tinder, profile compatibility is scored and bios are seen before a user chooses which of their matches to reveal photos to. This leads to better dating decision-making.

You can take Blind Cupid’s ‘Sense of Life’ Questionnaire today and get a very informative report about who you fundamentally are as a person.

I am currently fundraising for Blind Cupid and the product should be on the market within the next three months.

James Shepherd
MSc Cognitive Neuroscience and Neuropsychology
Business: Smart Therapy Tools

Smart Therapy Tools aims to modernise psychological therapy treatment by providing both therapists and service users with an interactive and engaging smart phone app.

Cognitive Behavioural Therapy (CBT), a therapy based on a structured understanding of how mental health issues maintain themselves, is at the forefront of modern mental health treatments and the NHS alone aims to treat over 1.5 million people a year with this approach. To improve the experience of this therapy, I have developed a prototype smartphone app which brings important techniques away from static pen and paper approaches into a more engaging and dynamic domain.

In the future, I aim to put data science at the heart of the app by using statistical modelling to learn from user inputs. As the app is used more often, more information from the heart of the service user/therapist collaboration can be utilised to help understand the complexity of mental health problems and inform new treatments.

Kevin Tsai
MSc Innovation and Entrepreneurship
Business: Anywhere Bear

Anywhere Bear is a vision born from my passion for travelling. However, I have come to realise how damaging air travel is for the environment – even a short haul flight from London to Edinburgh contributes more CO2 to the atmosphere then an individual’s average annual emissions.

My wife and I recently took a holiday around Italy without flying and we loved the experience of travelling around by train. We then looked at other holidays around Europe but found it difficult to plan without flying. There is no one go-to site that we trust and find easy to use for our needs, hence the decision to pursue the idea of a travel platform specialising in helping holiday makers to plan and book their holiday around Europe without flying. We want to build a fun and engaged community of people who will enjoy sharing their travel stories and be able to challenge and inspire their network to join them as they go flight free.

Due to COVID-19, we’ve had to rethink our strategy, as we foresee travel being impacted by this pandemic. We’re now going to be providing travel inspiration to places around the UK. We plan to partner with eco-hotels and restaurants and build a platform to allow people to still enjoy their holidays with a minimal carbon footprint.

Our plan is still at the ideation stage so watch this space as we reinvent the way people holiday!

Hetty Bonney-Mercer
BA Global Politics and International Relations
Business: FemInStyle Africa

In the near future, representation of women in Ghana’s politics will be higher, women in Africa will be more financially independent, women who have broken the glass ceiling in their respective fields will be the norm instead of the exception, solo female travel will be safer and gender activism will have reached new heights.

Because in 2019, two gender activists decided that there weren’t enough publications in the country that really focused on amplifying women’s voices exclusively and in a positive way and decided to do something about it.

FemInStyle Africa is a magazine for women by women which aims to encourage women to live their full potential. We have five columns dedicated to politics, gender activism, profiling working women, financial advice and travel and style: always written with women as the central focus. FemInStyle Africa aims to mobilise women to bring about lasting changes in the fight for gender equality.

We are currently building our website, recruiting writers, and finalising our marketing plan with a view to launching in Q3 2020. We welcome you to be a part of our journey.

Mukesh Bhatt
PhD Law
Business: inSTEAD – integrating Space Technologies into the lives of the Elderly and Disabled

The inSTEAD project wants to re-purpose, re-innovate and re-invigorate space technologies, which can be used to help the elderly and disabled. Over 700 astronauts in space and returning to Earth are supported by a multi-billion-dollar industry, prototyping and patenting health support and rehabilitation mechanisms. The astronauts suffer from the same health problems as the elderly and disabled on Earth, and yet solutions for the latter are priced beyond their reach. However, anything used by astronauts can also be used by the elderly and disabled because each is human.

Encouraged by the Birkbeck Pioneer programme, the International Space University and the European Space Agency at its Noordwijk business incubation centre, inSTEAD (AbleSpace Paradigms) aims to translate the hardware and psychological technologies and methods used for astronauts into a form suitable for the support and rehabilitation of the elderly and disabled on Earth.

The inSTEAD project includes in its mission both commercial and philanthropic aims and objectives for high social impact and making the best use of opportunities for collaboration with national space, technology and development agencies and initiatives. It requires a team of dedicated and impassioned personnel to help make it a success. If you wish to become involved please contact Mukesh.

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Why businesses fail: customer acquisition strategy

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Welcome to the Why businesses fail series. This is the third of five blogs that delve into the reasons for businesses failing and offering solutions. This series was launched by Lucy Robinson of Birkbeck Futures and Ghazala Zia from Windsor Swan. In this blog, they share how you can narrow down your customer and find an effective marketing strategy to attract and retain them.

Once the product or service has been tested, it’s not enough to assume that it will speak for itself. Customers don’t come without being invited. It’s crucial to have a detailed customer acquisition strategy and a relevant, targeted marketing strategy alongside in order to succeed.

Firstly, define your customer. Not just ‘young women’ or ‘professional millennials’, but very specifically identified. Think about gender, age group, location, profession, and more. Similarly, your customer might not be an individual but a service provider themselves. You still need to be specific here. For example, if you want to sell to a university, who do you want to reach within the organisation? The students, the lectures, the staff? Knowing who your customers actually are is vital to the short- and long-term success of your start-up. Conducting market research tests on your intended audience is also a great way to measure if they actually want your product – often, you may be surprised by who your actual customers are.

At the early stages of a start-up, it’s wise to channel funds (even if they’re limited) into a solid marketing strategy. Test your consumer behaviour, determine advertising costs, and determine how many customers you’ll reach. Similarly, build up your brand reputation in order to garner recognition and ultimately, loyalty from your intended audience.

Customers show loyalty to authenticity, and your marketing should reflect a strong and consistent brand identity that is honest to the product itself. If you have a flashy marketing campaign but the product itself doesn’t hold up to scrutiny, you risk being slated online and by word of mouth. This is why the marketing strategy itself only holds up when the product does – which bring us back to the importance of understanding the problem you’re solving, and carrying out extensive testing on your intended audience.

Within your customer acquisition strategy, you should be familiar with certain metrics. How will you acquire your customers? What is your cost of acquisition? How much marketing do you need to spend to acquire one customer? How are you going to retain that customer?

Read about how to identify a need in the market and attract investors in the first two blogs of the series.

Why businesses fail: Being unattractive to investors

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Welcome to Why businesses fail, the second of five blogs that delves into the reasons for businesses failing and offering solutions. This series was launched by Lucy Robinson of Birkbeck Futures and Ghazala Zia from Windsor Swan. In this blog, they share some practical tips to get investors to demonstrate traction in your business and attract potential investors.

Lucy Robinson is the Employability Consultant for Business and Enterprise at Birkbeck Futures. She runs the Pioneer programme for aspiring and early-stage entrepreneurs and hosts an enterprise series on the #FuturesPodcast.

Being unattractive to investors is a primary reason why some start-ups fail, and there’s a few pitfalls to avoid here. One big one is not showing traction.

Having a strong and evidenced market need for your product or service is the best way to demonstrate traction. By traction, we don’t mean a few thousand likes or free users – that’s not enough for an investor. It needs to be clear that this engagement is converting into paying customers, which is a trackable and easily identifiable metric. Engagement without custom isn’t traction or validation of your product. It could be a sign that you’ve got great marketing or that you’ve got a particularly active customer base, but if they’re not actually buying your product it suggests they don’t really need it.

One metric you should always know as part of your financial model is how many customers you need to stay viable. Before you start pouring hours into creating content, or spending time and money adding new features to your product, ask yourself: “What value am I adding?”. If the effort, energy and resources you use won’t actually convert to more sales, you should consider if it’s really necessary.

Investors vary with the level of traction they’d like to see, and different types of investors look for different amounts. For example, if you’re an early-stage start-up you’re likely looking at individual investors like Angels. Angels want to get involved at an early stage and take a punt on your business, if they see something in you. At a later stage, when you’re in revenue, you might use Seed Investors. Seed Investors get involved when you can demonstrate more growth that they want to get on board with. Generally speaking, investors want to make ten times return on their investment. This means you need to demonstrate traction which suggests they’ll be able to achieve this by investing in you.

Further information:

Why businesses fail: identifying a market need

Back to normal? The government is underestimating the scale of change for workers.

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As the UK government looks for a path out of lockdown, Professor Almuth McDowall considers the psychological impact of transitioning to a new normal.

On Sunday afternoon, we were on our way back from a socially distanced walk with three moderately enthusiastic teenagers when the phone rang. BBC Radio London asked if I was happy to discuss the Transport Secretary’s announcement that the government was considering a phased approach to businesses reopening their doors. The suggestion is to put a number of safety measures in place to safeguard individuals from getting infected, but also minimise pressures on transport and infrastructure.

For employers, the key propositions are to minimise the number of workers using any equipment, to stagger work start and finish times and to maximise home working. The idea is also to encourage people to engage in more active commuting, including cycling and walking.

Many organisations have of course been open and operational throughout the crisis, including our now much appreciated local shops, which have introduced social distancing measures such as limiting numbers allowed in at a time and protective screens.

But will the transition back to the workplace be as easy as some might suggest while extra precautionary measures are implemented?

When quizzed on the radio, I took a rather cautious and even cynical view. Quite frankly, I do not think that the implications of what will be a gigantic organisational change exercise have been properly thought through.

First, let’s think about infrastructure constraints. Many returning workers have children who, we hope, will return to normal nursery and/or school hours sometime soon. This would make it difficult for all workers to shift start and finish times, as there will be practical issues such as school pick up times to work around. Transport will also be a challenge for this reason, given that peak demand is also due to children travelling to and from school.

Furthermore, not everyone lives in cycling or walking distance from their place of work, quite the contrary. Surely, we also must avoid a scenario where more people are taking to their cars and driving alone, as we are already witnessing in our neighbourhood, to avoid public transport.

Let’s also think about who will and needs to return to work. There will be workers who are scared about returning. There are also people who will not be able to return, at least not for the foreseeable future, because they are vulnerable, or someone in their family is.

On the other hand, there are people who are desperate to return, because they currently live and work in crammed conditions, or because they live in areas with insufficient connectivity.

Each business has to start with a detailed analysis of how a phased return to a mix of onsite and virtual working will play out in practice and accommodate individual needs and preferences. This is not a quick solution, but takes time, skill and effort.

Research tells us that to make virtual working effective, particularly during times of crisis and uncertainty, managers and leaders need to take an individual approach to help people feel secure and build up trust and effective ways of working. Again, this is no quick fix.

Some organisations are getting this intuitively right, others not exactly. One of the keys is a combination of communication and clarification of expectations and roles. This will become much harder as businesses are required to adjust and manage a staged transition to open their doors again. If we are not careful, businesses will spend all their energies on managing logistics, rather than concentrating on the core business to keep their customers happy and deliver a good service.

The literature on organisational change firmly agrees on one issue. Change is hard and stressful, even where it is for the better. Humans are hardwired not to like it. This is why times are tough at the moment. Acknowledging this, and our own vulnerability is an important step to manage sustainable change. My fear is that the UK government is considering too complex a range of practical measures without due acknowledgement of the physiological impact on people. It’s time for a rethink.

Birkbeck Perspectives

Birkbeck experts and students share their opinions on a diverse range of thought-provoking topics.

Tag Archives: business

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