‘Investment opportunities for innovative SMEs’ “Innovation distinguishes between a leader and...
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‘Investment opportunities for innovative SMEs’
“Innovation distinguishes between a leader and a follower” – Steve Jobs.
Welcome to The Good News Tour
Only positive facts, no spin, all we say is available TODAY
Helping you to build your business
All positive questions welcome
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Slide 3
But please remember
All positive questions welcome
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Slide 4
This is the most powerful hand gun in the world punk…!It’ll blow your head clean off
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Slide 5
Growth from innovation
Our market disappeared
New productlaunched
?
Recession1980 -82
04/18/23 [email protected] Copyright ©Andante [UK] Ltd
Slide 6
Growth from innovation
Our market disappeared
Second company to market with new technology
New productlaunched
?
Recession1980 -82
04/18/23 [email protected] Copyright ©Andante [UK] Ltd
Slide 7
Growth from innovation
Our market disappeared
Second company to market with new technology
New productlaunched
?Early to market with new products
Recession1980 -82
04/18/23 [email protected] Copyright ©Andante [UK] Ltd
Slide 8
Growth from innovation
Our market disappeared
Second company to market with new technology
Early to market with new products
New productlaunched
?
Recession1980 -82
Recession1990 -92
04/18/23 [email protected] Copyright ©Andante [UK] Ltd
Slide 9
Growth from innovation
Our market disappeared
Second company to market with new technology
Early to market with new products
New productlaunched
?
04/18/23 [email protected] Copyright ©Andante [UK] Ltd
Slide 10
The benefits of properly managed innovation
• Early to market advantage provides premium margins
• Having a product that is different helps your sales team stand out in the crowd
• Provides some protection against market downturns
• Join an elite bunch of leaders– Jobs, Branson, Dyson, Gates, Banbury were all early to
market innovators
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Slide 11
Now is the time to innovate
• Larger companies are moving slowly • Less able competitors have been
taken out • Ever growing unfulfilled need• Five year plan private sector to create
jobs
Despite what you may hear from ‘informed’ sources
THERE IS MONEY TO FUND INNOVATION
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Slide 12
Funding innovation starts in house
•Establish a real need (Evidence NOT gut feel)
•Build a Business Case (Forecasts, Income, Costs, ROI)
•Make people accountable (Leaders who deliver)
•Write a development plan (Essential)
•Protect existing revenue streams (Essential) •Acquire external help if you need to
(Please Seriously consider it)
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Slide 13
So how do I fund innovation?
Free money Free money no strings no strings attachedattached
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Slide 15
Current funding options
• Bank - Enterprise Guarantee Fund• Private equity, business angels• For some - European funding• Manufacturing Advisory Service MAS• High Growth Coaching Programme• GRD Grants for R&D • HMRC ……………………………..!
Advancement – it could simply be
£
£
iPhone 3 iPhone 4
Cost Reduction
Product Improvement
Make it, safer, greener, cleaner, meaner, more efficient, less cost
R&D Qualifying Costs
• Staffing costs• Consumable items including software• Power, fuel and water• Payments to Subcontractors• Externally provided workers• Indirect qualifying costs (new)
What do HMRC want to know?
Project Name:
1. What was the scientific or technological advance?
2. What were the scientific or technological uncertainties involved in the project?
3. How and when were the uncertainties resolved?
4. Why was the knowledge being sought not readily deducible by a competent professional?
What is an SME for R&D purposes
New limits, effective from 01/08/08• Fewer than 500 employees AND
• Turnover less than €100m, OR
• Balance sheet less than €86m
The rewards depend on what size you are!
Project Requirements
• Innovation– New to an industry or market– Creates a significant improvement over existing
products or processes– Sent off to the Patent Office for evaluation
• Technical Risk– Must have high technical risk and technology
challenges– Evaluated by an independent technical expert
• Market Potential– Market size and clear route to market – Evaluated by TSB and Associates
Company Requirements
• Start up and established companies are eligible
• Must be able to show how they will fund their part of the projects costs (40% for Research and 60% for Development)– Cash in the bank– Director’s loan– Cash flow forecast (based on last two years)– Other investment (e.g. VC)
• The grant must be essential for the project– Companies with large balance sheet totals are
highly unlikely to obtain a grant
Claiming the Grant
• Research projects receive 20% of the grant at the start
• Claims made every 3 months for costs incurred– Time cards for employees – Receipts for external spend– Independent accountants’ report
• Deviations from the original budget must be explained
National Funding Programmes
• Technology Practice dedicated to winning GRD funding (old name for TSB R&D Grant)
• Focus on Research and Development grants• Two full time GRD proposal writers• Contracts with four Associate writers• Wrote 54 applications in 2 years and 48 were
approved
04/18/23 Helping you grow through InnovationCopyright ©Andante [UK] Ltd
Slide 32
Funding Innovation at The Banbury group
John Banbury Chairman
04/18/23 Helping you grow through InnovationCopyright ©Andante [UK] Ltd
Slide 34
What we do
Manufacture and supply a range of construction materials that:-
• Are durable and lasting• Reduce construction time• Are lightweight and easy to handle• Easy to transport• Contribute to the environment improving
insulation
04/18/23 Helping you grow through InnovationCopyright ©Andante [UK] Ltd
Slide 35
Funding so far
• 2010 Manufacturing Advisory Service MAS support and help to hire a consultant to develop a national sales strategy
• 2010 Sustainable construction iNET funding for a consultant to help us put together a detailed business plan for our R&D activities
• 2011 Sustainable construction iNET funding for testing and certification of new products
• 2011 Manufacturing Advisory Service MAS support for a consultant to provide training to our sales and sales administration teams
04/18/23 Helping you grow through InnovationCopyright ©Andante [UK] Ltd
Slide 36
Results so far
• Opened new showrooms in Sheffield and Mansfield
• Safeguarded two sales jobs and created two new ones
• Expanded our manufacturing facility creating five new jobs
• Last year we achieved £10m this year we have budgeted for £12m
04/18/23 Helping you grow through InnovationCopyright ©Andante [UK] Ltd
Slide 37
The future
Application in for a grant for research and development to help us expand our Sheffield manufacturing plant and open up EU markets
Future dates: The Good News Tourwww.andanteuk.com
Only positive facts, no spin, available TODAY
15th September Notts Construction forum14 October IBA Nottingham venue to be advised
Helping you to build your business
04/18/23 [email protected] Copyright ©Andante [UK] Ltd
Slide 39
• Specialist support for product development AND strategic “go to market” planning
• Thirty years experience and proven track record of managing growth and innovation
• Approved supplier to MAS
• Approved PERA High Growth Coach
• Member of the IoD and the IoC
Andante [UK] Ltd