Features : Cash for new business

So you’ve had a light-bulb moment for a great business start-up. The next big challenge is securing the funds to get the idea up and running. Prospects talks to entrepreneur Simon Best to find out how he financed his company BaseKit, to bring professional quality web development to the masses.

 

When Simon graduated in Electrical and Electronic Engineering from the University of Bristol, he was offered a job helping to develop and maintain websites for a small finance business. ‘I drove the technology side of the business, creating online systems that helped the company to make more profit. I was offered equity in the company, and then a few years later I left to focus on web technology.’

It was while he was developing websites for small businesses, that Simon got the idea for BaseKit, which enables anybody with basic technical skills to create their own rich and engaging web site. ‘Many clients wanted to contribute to the process, but the solutions available were either too technical or lacked flexibility. BaseKit addresses this gap in the market.’

Planting the seed

Financing the business was the first hurdle. Initially, Simon used profit from their ongoing companies and web design clients. Then he applied for Seedcamp which awards financial support to winning new businesses following an intensive week of development and networking.

‘We applied for the Seedcamp competition in 2008 and were delighted to win, which gave us E50K cash injection into the business. We used this money to network and get our name out in the web tech world.

‘Seedcamp was the ultimate experience for a web start-up. During the competition week in London we had face-to-face mentoring with some of the biggest technology companies, including Google, Yahoo!, Facebook, Sun and Microsoft.’

As winners they had a three-month schedule of conferences, pitching and meetings which culminated in a trip to Silicon Valley. ‘We're now proud to be part of an amazing network of companies, investors and entrepreneurs that would have taken us years to build.’

Untangling the web

The other key resource that has been most valuable to Simon is the Internet - for research, networking and marketing. ‘This may seem obvious for a web business, but I believe that the Internet can help to grow any kind of business.

‘We use Internet marketing techniques such as email, blogs, Twitter and social networking. We attend networking events and conferences as much as possible to talk about what we're doing and generate interest and support.’

In any business start-up, research and knowing your market is vital to survive. Simon agrees, ‘It's crucial to know who/what else is out there in your company's space. This was second nature to us, because we're passionate about what we're doing and naturally read and research. We realised BaseKit was a good idea when market research failed to show any competitors with our vision.’

On site strategy

Simon believes persistence and flexibility are key to getting a start-up off the ground. ‘The media is full of stories of instant success, but in reality most start-ups will only achieve success after a lot of effort and dedication. If you can't see yourself sticking with your idea for the next few years then it's not the right one. You also need to be flexible and listen to your partners and customers. You'll inevitably need to adapt to things along the way, but it's important to stick to your underlying vision.’

For graduates interested in starting their own business, Simon advises, ‘Go for it! As long as you're passionate about your idea you will find the time and means to get it done and get it out there. Everybody has ideas, but very few will ever get round to executing them.’

The current economic climate may make the challenge of starting a business even tougher, but not impossible. If the idea is good, it can still take flight.

‘Getting funding is definitely going to be harder during the current economic situation, but if a company or idea has the potential for growth then there are options available. Many companies are being forced out of business, and customers are looking for more cost effective ways of doing things, so there are lots of new opportunities. Ultimately, if you can succeed now while things are tough, then as the economy improves your business will be booming.’

Further information

• Seedcamp