‘Fail fast’: mantra or myth?

by Tarmini Mootoosamy

It’s no secret that when pursuing a business venture, two things should concern you: failure, and fear of failure. If you’re wondering whether that was an unfortunate misprint… read again.

The tale of new businesses’ poor rate of success has become a driver of low business confidence that is creating a self-fulfilling prophecy for British companies. Can we justify this fear? Perhaps. After all, the internet is flooded with statistics such as ¾ of new businesses fail (Harvard Business School).

In contrast, Estelle Lloyd, Founder of the children’s app Azoomee, recently told The Memo: “fear of failure in the UK often precludes innovation and drags entrepreneurs onto longer journeys; sometimes wrongly attributed to persistence”.

Does the UK offer opportunity for growth?

Recently, businesses with growth potential have been receiving more and more support. This can be seen from the inception of hundreds of Business ‘Incubators’ and ‘Accelerators’, whose aim is to help new companies hit the ground running, by teaching them the basics of running a business. Once they have established support, the time comes whereby business leaders need to start thinking beyond initial funding; this stage is precisely where we fit in.

At CFPro Ventures, we know how important it is for businesses to establish and maintain strong client relationships. If you’re a business leader trying to secure [the next round of] funding to push your growth even further, chances are you’ll soon come to realise just how heavily regulated access to funding in the UK is. In fact, The Silicon Valley Bank found that 9 in 10 entrepreneurs consider the UK fundraising environment to be “challenging”− combine this with the uncertainty over how support from the European Investment Fund will change post-Brexit, and you have a perfect recipe for increased risk aversion.

But, never fear−this grey cloud does have a silver lining.

One doesn’t need to be directly involved in the business world to know that SMEs are a major source of innovation and economic prosperity. Research by the government-backed Start Up Loans Company (SULC) showed that 90% of start-ups are expecting to grow sales in 2018, with 47% forecasting double-digit growth. These growth projections are exactly what the industry needs, and we have definitely seen this reflected in the UK’s move towards becoming more business-friendly.

The merger between the SULC and the British Business Bank (goal: provide new and established microbusinesses with low-interest funding) is just one of many ways high-potential companies are being encouraged to innovate.

A bright future for innovators

Overall, there are great business prospects here in the UK; this year alone, crowdfunding has seen almost £45m invested in over 80 early-stage companies, an 11% growth in deal numbers since 2016. With all the existing and upcoming policy changes/initiatives, we are thrilled to be a contributor to and an ambassador for innovation. After all, failure to fund sufficiently, and well in advance, is consistently the single biggest threat to success.

Making progress can not only seem daunting, but incredibly frustrating when you have great ideas but a lack of access to specialists, especially ones who are on your side. Often, investors engage in funding but take little active interest in the development of your business, and it can feel as though both parties are speaking different languages. Having ‘been there and done that’, our team are dedicated to effectively bridging the gap between the City and the Industry.

The opportunity to work with industry experts who have a proven track record has never been more reachable, if our services are what you’ve been searching for, simply get in touch with us today!

2017-08-01T11:01:01+00:00 August 1st, 2017|News|Comments Off on ‘Fail fast’: mantra or myth?