Over 30 years ago, psychologist Dr Carol Dweck coined the idea of a Growth Mindset. A growth mindset is a belief that, if you’re not as good at something as you would like, you can work to improve. She tells a story of hearing about a high school in Chicago where students would get a ‘Not Yet’ grade instead of a failing grade. “And I thought that was fantastic,” she said, “because if you get a failing grade, you think, I’m nothing, I’m nowhere. But if you get the grade ‘Not Yet’, you understand that you’re on a learning curve. It gives you a path into the future.” She found that students that were taught to have a growth mindset were much more likely to improve their grades than students that had not been taught the growth mindset. But the Growth Mindset is not only applicable to school children. Entrepreneurs constantly have to learn and teach themselves new skills and succeed. For example, did you know that Walt Disney’s first film studio closed down due to bankruptcy barely a year after he first started it? Similarly, Bill Gates applied his knowledge from a failed first computer business to build Microsoft. Another example is an entrepreneur learning how to navigate a new financial records system or a CRM software. Understanding that failure does not mean the end, but is instead a learning experience is key to finding success as an entrepreneur. The growth mindset means the belief that we can continuously develop and build up our skillset, so how can you start to develop a growth mindset? One easy way is to give and ask for feedback: once you understand where you have the potential to do better, you can begin to create strategies for how to improve. Another easy way is the set yourself some SMART (specific, measurable, attainable, relevant, timely) goals that stretch you and get you out of your comfort zone, then begin planning how you can achieve them. As a leader, you can also promote a growth mindset among your team by encouraging continuous learning and providing opportunities for your team to improve or learn new things.

The elevator pitch is a short description of your company. This pitch should last as long as an elevator ride, which is between 15 seconds and a couple of minutes. However, on most occasions, your elevator pitch shouldn’t be longer than 30 seconds.​ Delivering an effective elevator pitch has become increasingly important among start-up founders as VCs and angel investors get bombarded with start-up pitches. The idea is that, once you have identified your target (an investor), you get his or her attention in as little as 30 seconds.​ To craft a good elevator pitch, you should take the following things into consideration: ​ Define the goal of your pitch – What do you want to get out of this? Is it a meeting? An opinion? Think about this before crafting your message.​ Explain briefly but clearly what you do – Can you be concise and still express the core idea of your start-up?​ What is your value proposition? Communicate your USP – Are you able to identify one or two key differentiators for your start-up?​ Engage the listener with one good question – What is the next step after you pitched your idea? Ask for it!​ When To Use It? This could follow your “Twitter Pitch” or can be used when you know that the listener is open for pitches. I personally recommend not going on for 30 (or even worse 60) seconds when you first meet someone, especially at an event. An alternative, if you feel like the twitter punchline is not enough, is to think about a 15-second elevator pitch​. The framework for elevator pitches to help you get to the point quickly while still clearly communicating key information to the listener is:​ For (customers) that have (a problem) we provide (a solution).​ Here’s an example from Pana, a Techstars company:​ For hiring managers that don’t want to spend time booking or reimbursing travel, Pana is a chat-based travel concierge that allows candidates to book travel without the hassle of reimbursement or scheduling.​ There are a few things to notice from Pana’s pitch:​ They use everyday language - no jargon.​ It’s one sentence.​ If you time how long it takes to read aloud, it’s roughly 10 seconds.​ End your pitch with what you want from your audience, anything from investment, a purchase, advice or a useful contact.

OKR stands for ‘Objectives and Key Results’ and is a way of defining goals and measuring progress and success as you set out to achieve them. The way it works is you set an Objective and then define the key results that will mean that you have reached your objective. A very simple example: Objective – to learn more about OKRs Key Results – read at least one article on OKRs As you can see, the Objective is more of a high-level goal while the Key Results break it down into smaller, measurable goals. A Better Example: Objective – Increase customer satisfaction Key Results – Achieve Net Promoter score of 4 or above; Resolve all complaints within 48 hours; Reduce customer churn rate by 30% It is important to remember that the Key Results are not specific tasks that need to be completed, but rather the way you measure the success of your objective. Tasks should instead be designed to fulfil the key results. Measuring success: OKRs can also be used to provide a figure on how successfully you are completing them. As each OKR is reviewed, score the key results from 0.0-1.0 based on your success in achieving them. Regularly scoring either 0.0 or 1.0 might mean that you have to rethink the way you set your OKRs. They might be too ambitious, or not ambitious enough. To ensure that key results can be scored accurately, they need to have some way to measure success included when they are set. Clearly defined goals make it easier to track long-term improvements. Using OKRs OKRs can be used if you are the only person working in your business, or if you have a team of thousands. The important thing is to ensure that everyone shares the same language and overarching goals. You might want to have one or two OKRs that describe your company’s vision while setting (or letting your employees set) more specific ones that impact day-to-day tasks. One company that successfully uses OKRs is Google. Each employee is encouraged to set their own “stretch goals” – goals that are just beyond being achievable. Google defines success in achieving these as consistently scoring 0.6-0.7. Every OKR is made public so that the whole organisation can see what each employee is working towards. You can find out more about Google’s approach to OKRs here.

Do you have a Big Hairy Audacious Goal? A Big Hairy Audacious Goal (or BHAG) is a term that was created by Jim Collins and Jerry Porras in their book Built to Last: Successful Habits of Visionary Companies. A BHAG is a long-term goal, usually 10-25 years, that is inspired by your organisation’s values and purpose and, in turn, inspires your shorter-term plans. Your 90 day, one year and 5 year targets should be steps on the journey to achieving your BHAG. An example is one that Microsoft founder Bill Gates shared: “When Paul Allen and I started Microsoft over 30 years ago, we had big dreams about software. We had dreams about the impact it could have. We talked about a computer on every desk and in every home." It is your vision for the future that will serve as the roadmap for all the changes that you seek to make. How do you define your BHAG? First, don’t choose something that you think you will accomplish easily. SpaceX’s BHAG is to ‘Enable human exploration and settlement of Mars’. Microsoft’s dream of a computer on every desk and in every home might seem relatively straight forward now, but when it was created, it presented a seemingly impossible goal. Secondly, pick something that you, your executive team and your employees are passionate about so that everyone can feel encouraged to work towards it. Finally, make it simple to understand and communicate. How can new employees or customers get on board with your vision if they can’t understand what you’re working towards? Try to condense it to no more than a sentence so that it can be easily communicated. Here are some more examples: Walmart’s 1990s BHAG was to reach $125billion turnover by 2000. NASA’s goal in the twentieth century was to land a man on the moon by 1970. Nike’s BHAG in the 1960s was simply: “Crush Adidas”. Once you’ve chosen your BHAG, commit to it and start working towards it!

We’ve all seen the movies where the main characters are trying to pull off an elaborate heist. To make sure it works, they all gather around the blueprints (and maybe a 3D model) of the building where the jewel, or safe, or secret document, is kept so that they can prepare for every eventuality. Sometimes it works, sometimes it doesn’t, but films always need some kind of drama. In real life, you want to cut out as much drama as possible, especially when starting your business. You need to plan carefully and follow it up with a successful heist! A business model is a blueprint for how your business functions. It shows you every angle and allows you to examine the potential weaknesses and strengths of your business, as well as innovate and take advantage of market gaps. Like a blueprint, your business model should show the essential building blocks of your business. For example, who will your customers be? What is your value proposition, that is, what are you offering to customers that they can’t get elsewhere? How will you make money? What resources will you need? Fill in each section accurately and in as much detail as possible to best assess your plan. Research your market and customers to help you. Once you have filled in all the necessary building blocks, you can then use them to assess three things: desirability (do people actually want it), feasibility (it is possible to do) and viability (will it make money) of your business. Your business model is validated if it can do all three! Once your business model is finalised, don’t put it away and never look at it again. Business models should be reviewed frequently to keep them up-to-date and relevant. Let’s take a famous example: Netflix. Over 200 million people are currently subscribed to Netflix worldwide and a large part of that is down to the company’s successful business model… and business remodelling. Did you know that Netflix actually launched in 1997? The original business model was an online DVD rental service which, in 2006, had grown to 5 million members. In 2007, though, Netflix began to introduce the model that we know today with a streaming service alongside DVD rentals. By 2012, they were making their own content and, by 2016, the now-exclusively-streaming service had launched in over 190 countries across the globe. As you can see, Netflix’s business model has changed significantly since its launch to take into account new market opportunities and current trends and technologies. (Netflix’s rival failed to adapt to changing environments and went bankrupt in 2010.) One of the tools you can use to help you create a business model is the Business Model Canvas. To find out more about this and how we can help you to start, survive and thrive, contact us at the SME Centre of Excellence.

Pausing and recollecting yourself is a fantastic thing to make a hobby out of. Losing control in the heat of the moment is a sure way to make mistakes or take unnecessary risks. Taking that moment to have a breather, relax, cool off and calmly progress forward or backward is a much safer, well thought out plan. But being amongst the hustle and bustle, working all day, personal problems etc, saying all this might be easier than it sounds. So, here is our list of ways to stop and think. Daydream – We know, this doesn’t sound the most productive, however daydreaming can be pretty useful when coming up with potential future procedures. Having your imagination be the only limitation, you can plan out what you would do in all of these scenarios. Ask your close ones – Parents tend to have many more years of knowledge and experience than us. Don’t be afraid of asking them for advice, chances are they’ll be able to help. It’s also free! Check your diary – Scour through your upcoming plans. You might have to cut out on some social events to devote time to your business, are you prepared for this sacrifice? Give it some thought. Ditch the phone – Phones are a huge distraction in daily life. Switch it off for a bit, and use the freedom to focus on thinking ahead. This is the ideal time to start daydreaming. You might be surprised what your mind comes up with. Go for a walk – Early morning walks can test your fortitude, commitment, and willingness to get out of bed and get the day started. On a walk, you have plenty of time to yourself to think of your future, make the most of this. Breathing exercises – Controlling your breathing can be a great way to free your mind of current stresses, so you can use this free-thinking space to analyse your situation properly. Next time you’re about to make a rash decision, try box-breathing (or any other exercise), and then approach the decision again.

Innovative research company, FibroFind Ltd, have appointed leading business man Ammar Mirza CBE as their new Non-Executive Director to help their ambitious growth plans. FibroFind is leading innovation in the research of medicines to treat fibrosis in chronic disease. Led by a team of world experts with a combined total of 100 years of experience between them, they are currently in the early stages of ambitious plans to scale their operations, nationally and internationally. Ammar is one of the North East’s most influential entrepreneurs. An angel investor and businessman in his own right, he has used his skills and experience to support thousands of businesses, not least through the SME Centre of Excellence, of which he is Executive Chair. “I am honoured and proud to be joining FibroFind as their new Non-Executive Director,” Ammar says. “It is a company with an exciting future and growth plans. I have had significant experience within the Health and Life Sciences sector and I hope to bring my experience to aid FibroFind as they grow. I look forward to working with the leadership team and wider network at FibroFind to support them going forward.” As well as significant experience leading and advising scaling businesses, leading a number of private and public sector organisations, Ammar supports the creation and implementation of the Life Science Innovation Pathway working with the Academic Health Science Network for North East and Cumbria and NHS, alongside chairing the Business Growth Board of the North East Local Enterprise Partnership. “We are excited to have Ammar on board,” Professor Jelena Mann, FibroFind CEO, says. “We know that he has some extremely valuable insights to offer us as we begin scaling FibroFind further. Ammar’s experience and knowledge make him the perfect choice to join us as Non-Executive Director and we are looking forward to our future collaboration.” FibroFind is a rapidly developing Newcastle-based biomedical sciences company that was spun out in 2019 from research carried out by its founding scientists and directors (Professors Mann, Mann, Oakley and Dr Borthwick) at Newcastle University. The science focus for the company is a disease process called ‘fibrosis’ which results from infections or injuries to internal organs of the human body and which underlies up to 45% of all deaths in the developed world. FibroFind has a deep understanding of the biology of fibrosis and has employed this knowledge to design bespoke biological assays with human tissues that can determine if a novel drug is able to prevent fibrosis and halt disease. At present, there are only two medicines approved for the treatment fibrosis and they are only licensed for use in a rare form of lung disease. As such, the hunt for anti-fibrotic medicines is intense and has become a multi-billion-pound industry. The business focus for FibroFind is their proprietary human fibrosis bioassays that provide a pre-clinical service for pharmaceutical and biotechnology companies developing medicines that target fibrosis. This business model has proved to be highly valued by its growing client base which currently stands at 89 companies based in the USA, Asia and Europe, comprised of prestigious, major blue-chip global pharmaceutical companies. Despite only beginning trading just over 2.5 years ago, FibroFind has already been directly responsible for new medicines entering into ongoing clinical trials, this providing direct benefit to society through advancement of human health. FibroFind is now entering its next phase of business development which includes expanding its service operations into Asia, with new laboratories currently being set up in Istanbul, Turkey.

Using stakeholder management, a business can understand: The most important stakeholders How the stakeholders connect What the various stakeholders contribute to the business What influence do stakeholders have on the business? Ways the business can act to benefit the stakeholders How it’s used To begin stakeholder management the business’ stakeholders must be identified. The different stakeholders are grouped based on how they relate to the business e.g. staff. Stakeholders carry different levels of importance so it is important to understand how they will each influence the decisions of the business. Consider: The power of the parties to influence decisions of the business The actions of stakeholders within the business If stakeholders score high on the above characteristics, they can be considered to have a high level of influence therefore their interests and concerns should always be considered by the business. You should also look at the relative position of stakeholders amongst other stakeholders: The current relationship of the stakeholder with the business The relationship of the stakeholder with other stakeholders The position of the stakeholder in the market that the business operates in The power of the stakeholders The core interests of the stakeholders The interest of each stakeholder or interested group should be considered, as well as the concerns of the direction that the business wants to go in. From there, you can decide which stakeholders will support the business and those that won’t. The supporters are known as movers and they will actively engage with the business. Those who are against the decisions are called blockers, and those who are not as supportive but are not against the business, are called floaters. For those with doubts, the business can explain how they will work to serve their doubts. With regards to the blockers, the business should inform them of how their plans aim to counter the threats perceived by the blockers.

You cannot start a business without taking risks. Choosing to launch your business is inherently a risk, there is no guarantee on success. But you shouldn’t do so without the mind set of being able to overcome any of these risks. To help with this, identify them in advance and have a plan set in place to fight them in manageable levels. Of course, you cannot predict every possible problem that can materialise, but the more you try to anticipate them, the easier plans to deflect them can be. Risks can come in a variety of forms: External Incidents: These are the more difficult to predict, but the probability of them occurring is lower than others, for example floods, fires, or pandemics. But even with a low chance of happening, these are disastrous events with great impact. So great, that you need contingency plans to deal with them. You should identify these risks as part of your market / industry analysis, as these risks will generically affect your whole industry, so think of how your competitors might react to gain an advantage over you in recovery. Internal Incidents: The range of risks in this category are varied depending on how your business operates, for example loss of supply, malfunctions with machinery, product contamination etc. Use scenario planning to find these risks when identifying your key activities. Based on the threats your organisation faces, you can explore scenarios about the results before they materialize, and find a possibility that makes life easier to move on from it. Possible Risks: Pre-launch delays – Are any of the pre-launch key activities likely to cause delays? Competitors – What are they Doing? Competitive advantage – Is it being eroded? Market – How is it changing? Customer value proposition – Is it being delivered? Product / service quality – Is it adequate? Customer service – Are they satisfied? Cash flow – Is it adequate? Sales – Are you meeting targets? Profits – Are you meeting targets? Operations – Are key activities under control? Productivity – Is it meeting targets? Administration – Are processes and procedures working well? Brand identity – Is it being established? IP – Is it secure? Technology – How are changes affecting you? Investment – Do you need more? Why? Stocks / inventory – Are they adequate or too much? Merchandising – Is it under control? Debtors / receivable – Are they under control? Interest rates – How will changes affect you? Exchange rates – How will changes affect you?

Selling to your current customer base is simpler and more cost-effective. According to HubSpot, you are 60-70% more likely to sell to an existing customer than a new prospect. In this guide, we are going to look at some of the ways you can encourage customer loyalty so that your current customers keep coming back for more. Brand Establishing your brand identity is the first on the list. If you want to achieve a relationship of loyalty with your customers, you need to have an identity. Having an identity will help your customers to recall the company they bought from in the past and quickly understand what they offer. Without a strong brand, your customers will easily put you to the back of their mind and forget about the incredible value that you offer. Take the time to ensure you have an identity and ensure it is consistent across all your communications. Value-driven marketing Rather than using your marketing communications to demand customers buy from you, start moving towards a value-driven marketing approach. This means that your marketing efforts will aim to add value to your customer's lives before they have even bought a product or service from you. This ‘value-driven approach’ is a great way to build a relationship with your customers and encourage them to stay loyal to your business. There is a collection of channels you can deliver value-driven marketing with the availability of websites, blogs, social media, email, Google and a physical presence. These are just a few examples of the mediums available to allow you to deliver value to your audience. Offering perks This is a very common strategy to encourage customer loyalty and is used widely across many different industries. The idea is for a business to develop a loyalty scheme that offers more customer perks or benefits as a customer continues to shop with that business. These perks can come in the form of discounts, vouchers or even limited access to exclusives that the business offers, which provides a customer with an incentive to keep coming back and continue shopping with that particular business. Corporate social responsibility (CSR) People like to buy from brands that make a difference. More than 60% of consumers stated that they would like to buy from brands that help them make a difference. Actions that positively impact the wider community can make your customers more loyal because consumers are now looking to make a difference themselves by shopping more wisely. If they can find a business that helps them achieve this, they will continue to buy from them. Not only will you be improving the world through thoughtful actions, but you will also be encouraging customers to stay with you. We're here to support you Business can become very isolating and facing challenges such as customer loyalty can soon overwhelm us. Our team is here to support you so that you don't have to work in isolation.

Disruptive innovation helps businesses to understand what they can do to avoid displacement brought on by extreme innovations. Most businesses are held back from growth when they aren’t able to take advantage of opportunities. On the other hand, a lot of disruptive innovations are not profitable at first which is another reason that prevents businesses from pursuing them as they can take away resources from other activities. Here are two types of disruptive innovation: ·Low-end disruption targets segments of the market that are willing to pay premiums. This is deemed as a good place to start for smaller businesses as the larger organisations will be paying less attention. If the business wishes to onboard customers who are willing to pay a higher price, further innovation is required. ·New market disruption targets customers who have needs that are currently not satisfied by the businesses already operating within the market. How to use it Disruptive innovation can be used to manage innovations that are potentially disruptive. This method varies slightly from research and development because of the scope it covers because it will look at the business model that the technology creates. Guidelines for fostering disruptive innovation by Bowyer and Christensen: -Is the innovation disruptive or sustaining? -What is the strategy behind disruptive innovation? -Where is the market for disruptive innovation? -Make sure the disruptive innovation remains independent and does not interfere with other activities

Everyone has their own reason for starting their new exciting venture. More often than not, these drivers include; financial independence, pursuing a passion, making a lasting change to the world or even creating a legacy to pass down the family. Simon Sinek wrote a whole book and delivered a famous TED Talk on the importance of ‘Starting with why’ because it is a fundamental aspect of how great leaders inspire people to take action. Considering your ‘Why’ before you jump into your business idea could be the difference between success and failure. This guide explores some of the common reasons why people decide to start their own business and the benefits they have experienced by doing so. 1. Financial Independence One of the most common reasons why people decide to start a business comes down to the potential financial independence it supposedly brings. Now, it is certainly not guaranteed as many individuals find themselves working ‘in’ the business rather than ‘on' the business which can be a problem for those looking to achieve financial independence because you can quickly become overwhelmed, working 24/7 to keep the business going. This is the last thing you would want if you are aiming for independence/freedom. Instead, you might be looking for a more efficient start-up that can continue to operate when you are not around. In addition to that, you might consider starting a business with an exit strategy in mind. There is no right or wrong answer but you do need to find what aligns with your goals. Money can be a motivator but many have stated that it is not a strong enough incentive when the business start-up journey becomes tough or demoralising. 2. Freedom Second to financial independence is often freedom. Many of those striving to create their own business venture is often driven by the desire to have freedom around their schedule which is understandable as some people are not able to achieve their preferred lifestyle when working in a company with a structured way of working. Starting a business does not always mean that you get to work 8 hours a week. In fact, it is very unlikely that you will be working low hours at the beginning of your venture as you have a lot of work to put in to get the business off the ground. Despite this, being your own boss will allow you to control the rules so that you can work a schedule that fits in with your lifestyle. As the business progresses you could find yourself in a position to be able to step back from the business and spend more time pursuing other interests that you have in life. 3. Following your passion Building on the last point, starting your own business does present an interesting proposition to be able to pursue the thing you love. The thing you love doing is often the thing you are good at. Developing a hobby or passion into a business idea will help you to enjoy work-life more and it could also improve the likelihood of your business being a success as you are more likely to be good at what you do, as well as, sticking by the idea when things get tough. 4. Making a difference Establishing your own business is one of the best ways to make a difference. The business provides you with independence and empowerment to be able to make decisions that are going to impact the areas that you have concern for. It also provides you with a solid platform to bring people together and have a more powerful impact. Without a platform, it will be difficult for you to reach an audience and have a lasting influence on the individuals you need to get behind you. 5. Potential security Going alone has the potential to bring more security to your life, however, this is not a guarantee as we all know that business ideas can fail quickly, leaving you in a worse position than you were before. This shouldn’t put you off from starting a business because there are ways to remain secure whilst getting your business off the ground. Staying in your current role and starting the business as a ‘side hustle’ is just one example. When you do find yourself in a position of business success, there is more likelihood of feeling secure because you are in control. When you are employed, you have less control over promotions or sackings, leaving you unsure about your future. In the position of self-employment, you are in control. You can decide when you deserve a raise and the opportunities you should be pursuing to help you advance. Alternatively, you can put off the options that could leave you in a position of vulnerability. However, when you set up your own business, confidence in decision making is something you will need to possess to ensure success. 6. Opportunity to learn Many people are driven by a desire to learn and starting a business is one of the best ways to expose yourself to a range of key areas. These experiences can help develop skills in; networking; marketing; sales; product development and becoming an expert in the industry that you choose to operate. The failures that you experience along the way provide you with insight to be able to know what works well and what doesn’t work so well, equipping you to deal with future scenarios that are similar. Without these experiences you won’t be able to grow, preventing you from achieving your life goals. 7. Business benefits As we know, starting a business does not guarantee success, however, there are guaranteed benefits. These benefits include tax breaks and funding opportunities that are only available to certain businesses. Firstly, operating your own business provides tax breaks that you can benefit from but you should always seek the support of an accountant to understand where you are eligible without breaking any rules! Secondly, the Government often provides funding to businesses that look to solve problems such as climate change as an example. If you are looking to start a business that makes lasting change and fits in with the Governments aims, there could be funding available for you to apply for. Why you should start your business The reasons ‘Why’ you should start are endless as people benefit from self-employment in different ways. The main reasons to explore self-employment include; flexibility, financial security and happiness. Although it might seem a daunting task now, you will only know if it is right for you through trying. The sooner you get started, the sooner you get your answer.