Grow NorthStaffs Third Annual Enterprise and Business Growth - PowerPoint PPT Presentation

The one minute journey of a film maker Ruairi Cahill Funk-Soul Media

Make your business investment ready in Staffordshire Clare Keegan Staffordshire University

Together we make it happen Martin Russell BES

UK Steel Finance Offer Keith Williams UK Steel Enterprise

Keeping it local Sean Adams Staffordshire Environment Energy Networks LLP

Seeking advice on how to grow and find new customers in the world of photography Cathy Bower Cathy Bower Photography

How the JET Service can help your business Kelly Tomlinson JET

Don’t be afraid to aim high! Alla Pashynska Ice Health Cryotherapy Clinic

One minute guide to successful sales Ben Dyer Youth Enterprise

Kelly’s thought for the day Kelly Caddy Helping Angels

Why should you attend Action for Business: Live8 John Capper John Capper and Co

How we develop business acumen in young people Andrew Henderson Prince’s Trust

Our proposed District Heat Network Andy Platt Stoke-on-Trent City Council

How to attract young people to engineering Derek Newport Kondratiev

Access to finance Paul Heaven, Blue Sky Corporate Finance (Midlands) Limited

Blue Sky Corporate Finance Since 1998 Start Up’s & Early Stage Finance Specialist Advisors up to £5 Million Disposals/Buy-Outs/Buy-Ins and Growth Capital Members of the Regional Finance Forum Chair of GBSLEP Access to Finance Sub-Group Chair of the LEP Growing Places Fund Member of National AMSCI Board

Summary of the Options Grants Debt Equity

Grants Best Type of Funding Typically Non-Repayable No Ownership of Business Rarely Covers the Whole Cost (25% to 33% at best) Frequently a Geographic Focus Often Related to External & Capital Spend Only Some Business Sector Exceptions Requires Patience/Dedication and Persistence

Example of a National Programme R&D Grants The Technology Strategy Board (TSB) Proof of Market Grant (Max 60%) Proof of Concept Grant (Max 60%) Development of Prototype Grant (35% to 45%) Circa 20% Success Rate 2 to 3 Month Process

Examples of Regional Grants SSLEP Small Business Grant £5,000 33% (Min) Match Capital + Revenue Costs Job Creation + Growth Focus Managed by Business Innovation Centre SSLEP High Growth Investment Programme £10,000 to £50,000 25% (Min) Match Capital + Revenue Costs Job Creation + High Growth Focus Managed by Blue Sky Corporate Finance

Green Bridge Supply Chain 2 schemes: £10k - £100k £100k - £1m Available to support new and existing SME supply chain companies to help grow and diversify into the green sector. Competition based Up to 50% grant

Debt No Share of Ownership Always Repayable – Maybe a Holiday Viability Serviceability Security; Security; Security!!! Lots of Types of Debt Factoring/CID/Payroll/Inventory/Asset Loans/Overdrafts/Import Blended Solutions

National Backed Debt Schemes Enterprise Finance Guarantee Scheme Up to £1 million/75% Govt Guarantee Invoice Guarantee Top Up/Overdraft Top Up Extensions Export – Bond Support Scheme (50% Govt Guarantee) Business Growth Fund (£2 to £10 Million) – Debt/Equity/Mezzanine Big Society Capital (Social Enterprise) – through SIFI’s Community Development Financial Institutions (CDFI’s) – BCRS, ART

Peer-to- Peer Debt Most offer Business Loans but some (ZOPA) off Loans to Individuals Most seek Trading Track Record Most seek Security of some description Internet Based Reverse Auctions set Loan Interest Rates Interest Rates in Range 8% to 15% www.fundingcircle.com is the Largest www.thincats.com is the Local Network Blue Sky is registered with both

Growing Places Debt Fund Shovel Ready Infrastructure Projects Commercial Development Focus but Residential Considered No Lower Limit but typically - Loans from £100k+ Will Lend at the Margin (Bridge/Mezzanine) In Exceptional circumstances will consider Equity/Grant Commercial Rates of Interest

Equity Ownership/Participation = Interference High Growth & Exit Plans Like IP Based Business High Risk – High Return Expectations Expensive to Arrange Modest Service Costs Investment Agreement Non-Executive Director £50k to £Gazillions

Types of Equity Investment Seed/Start-Up (F, F & F) Business Angels “Dragons” (£50k+) SEIS Funds (up to £125k) EIS Funds (Typically £50k - £500k) Regional Govt Backed Equity Funds (£50k to £2m) National Govt Backed Equity Funds (£250k to £2m) Business Growth Fund (£2m+) VCT Funds (£2m+) Venture Capital (£5m+) AIM (£5m+)

Regional Equity Funds Early Advantage Fund £18 Million Fund Up to £250k Matched Investments (£750k Total) Fund managed by Midven Exceed Midlands Advantage Fund £18 Million Up to £250 to £750 Fund managed by Midven BCC Creative Fund Up to £500k Creative Industry Focus Mercia Technology Fund £50k to £1 Million High Technology Focus

Summary Traditional (Bank) Funding remains challenging In the market for Finance of £2m or less the market is fragmented Rarely a single/simple answer – A blend is more likely Government/EU recognise this challenge Growth Hubs designed to help you find the right solution National and Regional Programmes designed to fill the ‘Gaps’ There a Lots of Options – most looking for jobs + growth Don’t despair and Don’t give up Be prepared to be flexible and open to alternatives

Paul Heaven Blue Sky Corporate Finance paul@blueskycf.com 0845 258 3759 07799 416416

The business of growth Tony Fulton, HSBC

The business of growth The £100m SME fund for ambitious British businesses in North Staffordshire & Cheshire. PUBLIC

2014 : Why here, why now?  With the UK economy moving into recovery, we are seeing a real increase in business confidence and a renewed demand for lending. GDP growth % forecast: selected major economies  Such positive trends are evident in Staffordshire and we are seeing 2014 2015 real evidence of this. UK 2.9 2.5 USA 2.5 2.5  Investment and output levels are growing and many business owners are Eurozone 0.9 1.1 Germany 1.7 1.7 now capitalising on the recovery and deciding now is the time to invest . France 0.6 1.0 Italy 0.4 0.6  In recent months we have seen our customers adopt a number of Spain 0.7 1.1 Japan 1.0 1.0 different strategies, including the purchase of new premises and equipment, investment in production capacity, increase in inventories Source: HSBC Economics (March 2014) and expansion into overseas markets. PUBLIC

Supporting the Local Economy The £100m SME Fund for growing Businesses in North Staffordshire and Cheshire . PUBLIC

Connecting Our Customers & Working With Our Business Partners A unique source of local knowledge, expertise and networking opportunities  HSBC is one of the largest banking and financial services organisations in the world with around 6,900 offices in over 80 countries and territories across the globe.  Our purpose is to add value by connecting customers to opportunities both globally and domestically, enabling businesses to thrive.  We are always keen to work with partners in the local business community to seek out and provide the best and most appropriate funding package and advice to our customers. PUBLIC