Starting a business is exciting but daunting, especially when it comes to navigating the world of finance. Luckily, Smarta, a dedicated partner of Durham Startups, is here to help. We sat down with Colin Lynch, an enterprise coach at Smarta, to discuss how the organisation supports startups in Durham. Smarta combines online resources, one-to-one support, and comprehensive workshops to address the challenges of raising finance. Here’s how Colin and Smarta support local business founders, and some essential tips he shared for securing startup funding.
Who Is Smarta?
Smarta was founded by Ian, Rich, and Damian, three entrepreneurs with years of experience in startups, finance, and growth management. Recognising the challenges new business owners face—such as understanding finances, accessing funding, and developing a clear business plan—they created Smarta to help founders avoid common pitfalls.
The Smarta online learning can be found on our own Durham Startups Portal and provides essential resources, including business plan templates, cash flow forecast models, and insightful videos covering topics every startup needs to master. More than just resources, Smarta offers workshops and one-to-one support, tailored to the unique needs of Durham-based businesses through their collaboration with Durham Startups.
Working Together: Smarta and Durham Startups
Smarta’s collaboration with Durham Startups has grown over the past year, with Smarta serving as a key delivery partner. Together, they aim to offer startups a robust foundation through essential workshops and access to experienced advisors like Colin Lynch. The programme includes hands-on workshops covering business fundamentals, such as choosing between sole trading and limited company status, understanding tax implications, and developing a strong marketing strategy.
The workshops also address critical aspects of finance, from the basics of business finance to understanding equity versus debt funding, angel investing, and crowdfunding. "The support we provide isn’t just about the technical aspects—it’s about offering a personal touch," says Colin Lynch. "Many people need guidance in areas that go beyond numbers and figures; they need someone who’s been through the ups and downs of entrepreneurship."
Essential Tips for Starting and Funding Your Business in Durham
With Colin Lynch’s experience in finance and entrepreneurship, Smarta is well-equipped to offer actionable advice for startups looking to secure funding. Here are some top tips Colin shared:
1. Get into the Right Mindset: Building a successful business requires resilience, focus, and patience. Embrace the journey, acknowledging that success often follows years of hard work. Maintain motivation by developing routines that keep you centred, and don’t compare your progress to others. With passion and a solid sense of purpose, you’ll be well-prepared to tackle the challenges that arise.
2. Conduct Thorough Market Research: Validate your business idea with detailed market research. Understand customer needs and use the customer persona method to target the right audience effectively. Analyse competitors to identify gaps that your business could fill, refining your concept and ensuring there’s demand for your product or service. This groundwork, Colin stresses, is vital whether your market is local or national.
3. Create a Comprehensive Business Plan: Writing down your business ideas is crucial for refining and clarifying your vision. A solid business plan serves as your roadmap, detailing your business idea, market analysis, financial projections, and operational strategies. It’s a dynamic document you should review frequently, guiding your actions and serving as a powerful tool to attract potential investors.
4. Understand Legal Requirements: Setting up a business involves navigating legal requirements, such as choosing the right structure (e.g., sole trader or limited company) and securing any necessary licenses. Consulting a legal expert can help you manage these complexities and prevent costly errors.
5. Understand Your Financial Needs: from Day One Many startups fail because they underestimate the funding required. From the beginning, create a realistic cash flow forecast and revisit it monthly. “It’s better to ask for the right amount upfront than to run short,” Colin advises. Proper planning can help avoid cash flow issues and set the foundation for financial stability as your business grows.
6. Cash is King: Prioritise Cash Flow Management Effective cash flow management is crucial. Your cash flow forecast isn’t just a one-off document but a tool to update monthly. Allocate time for administrative tasks and be ready to adjust as needed. Smarta’s workshops provide practical guidance on creating, monitoring, and managing cash flow to ensure your business remains financially healthy.
7. Explore Multiple Financing: Options Smarta encourages startups to consider a range of funding options beyond traditional loans. Options include Startups’ loan scheme, angel investors, crowdfunding, and grants. Crowdfunding can suit consumer-oriented products, while angel investors may lean towards tech-driven startups. Knowing your options helps you find the funding route that best fits your business needs.
8. Leverage Resources Available in Durham: Durham offers numerous resources, including grants and advisory services. Solution Advisors from Durham Startups can help connect you with local funding options and guide you through the application process. Smarta’s workshops offer valuable insights into these resources, simplifying access to essential support.
9. Prepare to Pitch with Confidence: Pitching your business isn’t just for Dragons’ Den; it’s a skill every entrepreneur should develop. Smarta’s pitch-preparation workshops help founders confidently present their business ideas to potential investors or grant boards. Learning to articulate your business’s value can significantly enhance your success when seeking funding or investment.
10. Believe in Your Potential: Starting a business is challenging, but with preparation and perseverance, success is achievable. Stay committed, lean on available resources, and never hesitate to seek help. You’ve got this!
Navigating the Path to Success with Smarta’s Support
One of Smarta’s greatest strengths is its approach to continued support. Their online platform and hands-on workshops work in tandem, creating a support system that startups can rely on at any stage of their journey. As Colin Lynch explains, "Having been self-employed ourselves, we know how isolating the startup journey can be. We’re here to provide advice, support, and a sense of community."
Durham-based entrepreneurs also benefit from Smarta’s workshops on business fundamentals. Topics range from legal structures and tax planning to digital marketing and growth strategies, ensuring that startups have a rounded understanding of what’s involved in running a business.
Upcoming Opportunities for Durham Startups
For startups looking to jump in, Smarta’s workshops are a great place to begin. From demystifying business finance to preparing a winning pitch, each session is designed to equip founders with practical skills. To access these workshops, Durham startups are encouraged to register with Durham Startups, which will assign them a Solution Advisor to guide them through the resources and workshops available.
Smarta’s commitment to empowering startups goes beyond traditional support. With their focus on actionable knowledge and real-world experience, they’re a valuable resource for anyone looking to launch or grow a business in Durham. For those ready to take the next step, Colin Lynch and the team at Smarta, together with Durham Startups, offer a welcoming, resource-rich environment to help make entrepreneurship a reality.
Ready to take your business idea to the next level? Call Durham Startups at 0191 625 1221 or visit ww.durhamstartups.co.uk and discover the support, resources, and guidance available to help make your entrepreneurial dreams a reality!
