100 Stories of Growth - Insights from Entrepreneurs

85 84 INSIGHTS FROM ENTREPRENEURS RECOMMENDATIONS Following our detailed investigations into the perfect blend of contemporary capital for scaling small and medium- sized businesses, we believe that investing in the owner of the business is as important as their balance sheet. The alignment of expectations, depth of relationships and well- being of founders creates a solid foundation for sustained success and contributes to a healthier economy. RECOMMENDATIONS FOR SUSTAINED GROWTH Investment is a sign of confidence in a founder, and supported entrepreneurs are likely to feel more confident about growing their businesses. Pressure to grow too quickly can undermine that confidence, so capital must be patient and it must come with practical support. 1. CAPITAL MUST BE PATIENT We would like everyone in the SME investment community in the UK to understand how stress in founders can escalate into self-destructive behaviour. We recommend mental health first- aid training for SME investment teams and all advisers to entrepreneurs, to recognise the signs and highlight the support that is available to them – whether it’s financial or emotional. 2. PRIORITISE WELLBEING Many younger and less experienced entrepreneurs have had less time to build up professional and personal resilience before they secure funding to accelerate growth. With a shorter runway to investment we believe it’s in the interests of the investment, finance and professional services communities to coach, mentor or recommend networks to help them build leadership capability. 3. SUPPORT LEADERSHIP CAPABILITY The Chancellor has recognised the role of peer learning and mentoring in building leadership and management capability. We believe that the SME investment community should promote and collaborate with peer networks to provide access to founders at all stages of the scale-up journey and a trusted space to share their challenges. 4. PROMOTE PEER LEARNING Company founders and CEOs need to recognise the importance of building a high-performing senior team and succession planning. It’s what investors and financiers buy into and instils confidence in sustainable growth. The SME investment community can work with relevant partners to educate founders and provide access to the right executive talent. 5. BETTER ACCESS TO TALENT A strong senior management team enables founders to work on the business, not in it. We applaud those investors who are supporting founders with identifying talent, but they have most impact when they have an entrepreneurial mindset and understand the challenges and opportunities of a 21st century economy. The SME investment community should put forward NEDs and chairmen with entrepreneurial experience who founders will be more receptive to. 6. AN ENTREPRENEURIAL MINDSET As the UK transitions to a post-Brexit era, founders and CEOs need access to international networks to find partners, talent and customers to drive export growth. We recommend that the SME investment community works with the Department for International Trade to provide opportunities to learn about new markets, how to enter them, and make the right connections. 7. DRIVE EXPORT GROWTH Company founders and CEOs should prepare for their legacy by aligning their senior management and other key stakeholders so that their company has great potential to succeed for the long term. 8. SHARE LEGACY GOALS Too often, entrepreneurs are so flattered by investor interest or relieved to secure funding that they live to regret accepting the first offer. Company founders and CEOs should undertake investor, financier and acquirer due diligence before entering into important agreements. Investors and financiers need to be responsible with their capital, ensuring they are the right partner and it’s the right time for the business. 9. NOT ALL CAPITAL IS CREATED EQUAL Robust financial management and planning enables company founders and CEOs to make better strategic decisions. Business owners must be responsible for their own financial literacy but supported by the SME investment community. 10. PROMOTE FINANCIAL LITERACY