Idea for start up

[mickythefish]

I have an idea for a start up, it is an emerging market that will be worth a lot. My idea is simple not really novel but can't see anyone else doing it currently. Basically first to market.

Is it possible to come up with an idea for seed funding with aim of securing a government contract?

[V8RAW]

Get initial investment via crowdfunding?

https://republic.com/raise

You need a solid business plan and a history in startups also helps.

[mickythefish]

No history so probably do it myself then.

[E63eeeeee...]

You’ll be doing well to get through a normal government tender process with no track record, especially if they're your only customer, you'll look very high risk regardless of how well you sell the service. Can you try it out on some smaller customers first? Is it something that government already puts out tenders for or are you trying to create the market for it at the same time? There are some schemes for startups and innovators to sell ideas to govt - might be worth a Google. They're most likely to be associated with either Cabinet Office or Crown Commercial Service. Good luck with the idea.

[Simpo Two]

V8RAW said:

You need a solid business plan and a history in startups also helps.

Would a history of starting things suggest you're not very good at making them work?

[mickythefish]

Simpo Two said:

Would a history of starting things suggest you're not very good at making them work?

Touche

It is weird start ups can have great ideas, but no actual product and still get investment.

I have a great idea, probably not even original, but know money is available, I guess it is the marketing I need to work on.

[anonymous-user]

Simpo Two said:

Would a history of starting things suggest you're not very good at making them work?

Not really (Elon Musk has a prolific history of starting things). Starting a business and getting it to stick is a specific skill. Entrepreneurs don't always stick around once they've created a valuable asset and can realise the profit.

Problem with selling to government is the time it takes, their conservative attitude to purchasing, lack of track record.

I might be going out on a limb and no disrespect to the OP but I suspect he's not an experienced entrepreneur or used to dealing with governmental purchasing. If his idea has legs he'll almost certainly need someone in board who is.

[hmg]

mickythefish said:

I have an idea for a start up, it is an emerging market that will be worth a lot. My idea is simple not really novel but can't see anyone else doing it currently. Basically first to market.

Is it possible to come up with an idea for seed funding with aim of securing a government contract?

I’d probably change your username before asking for investment.

It comes over a bit dodgy geezer out of a Guy Ritchie gangster movie.

[Wilmslowboy]

It’s always possible to get funding, but at this very early stage it is going to be expensive (very expensive).

Unless you can put up personal guarantees, most investors will be assuming a 90%+ failure rate, so will be wanting a 25x to 50x return (if it comes off).

A big factor will be if it’s SEIS qualifying.

I invested in over half a dozen early start ups over the past two decades, the vast majority failed (even though each one was a dead cert). SEIS meant I got 45% of initial investment back in 1st year (through self assessment tax relief), and when the co finally failed, another 45% back of the remaining 55% lost.

£100k in, ended up being just over £30k lost (plus stress and opportunity costs).

Try

https://www.angelinvestmentnetwork.co.uk/

[LooneyTunes]

mickythefish said:

My idea is simple not really novel but can't see anyone else doing it currently. Basically first to market.

If it is neither complex nor novel, but nobody else is doing it, you need to really rip it apart and consider what (if anything) you’ve missed.

First to market is often cited as an advantage. Unless you can really protect your IP (expensive) it rarely is.

The other thing with aiming for government money, whether funding or contracts, is the bureaucracy… British government isn’t good at supporting start-ups or innovation.

mickythefish said:

It is weird start ups can have great ideas, but no actual product and still get investment.

I have a great idea, probably not even original, but know money is available, I guess it is the marketing I need to work on.

There’s investment and investment. You will find it very difficult in the current market to get funding with no track record (personal or product) and without putting up a chunk of your own cash. As has been mentioned, the earlier money comes in, the more expensive that money is likely to be.

[Alex Z]

E63eeeeee... said:

You’ll be doing well to get through a normal government tender process with no track record, especially if they're your only customer

Just need another pandemic to come along.

[Simpo Two]

Alex Z said:

Just need another pandemic to come along.

'Exigencies' - when normal rules don't apply.

[V8RAW]

Simpo Two said:

Would a history of starting things suggest you're not very good at making them work?

Not if they were all successful and you sold them off at the right time. 👍

[StevieBee]

E63eeeeee... said:

You’ll be doing well to get through a normal government tender process with no track record, especially if they're your only customer, you'll look very high risk regardless of how well you sell the service. Can you try it out on some smaller customers first? Is it something that government already puts out tenders for or are you trying to create the market for it at the same time? There are some schemes for startups and innovators to sell ideas to govt - might be worth a Google. They're most likely to be associated with either Cabinet Office or Crown Commercial Service. Good luck with the idea.

Very much this, unfortunately.

You also need to keep in mind that the government/public sector doesn't tend to buy things it doesn't need - even if something would benefit them. The fact that there's no-one else doing what it is you're looking to do suggests that the market potential may not be that great.

There are some exceptions.

Back in 2011, I was involved with a business that had the propensity to improve levels of participation in household recycling services. At the time, it was completely unique but we could see how it fitted into national and local policies. It took us 18 months of lobbying DEFRA to adjust their national waste strategy to accommodate our idea. This also created opportunities for competitors to emerge which was a prerequisite as each project needed at least two bids. It was worth the effort and as there was three business involved with our idea, was less of a burden (on time and money) than it might had been if it was all we were doing.

But, as E63eeeeee says, Government are open to discussion on new ideas so do some research and speak the departments you'll be targeting.

[rainmaker2]

I’ve raised £5m and built profitable SaaS co with 50 staff.

Unless you can sell to individual departments or councils I wouldn’t bother and expect a long sales cycle. Hopefully your product has appeal outside of public and third sector.

The advice re SEIS and EIS is good. The very early part is hard.

Feel free to AMA. Do get advice from the right places, there is plenty of you seek it out.

[BGARK]

mickythefish said:

securing a government contract?

Do you have a family member or someone you know in government that you can bribe, if not forget it.

[mickythefish]

Been doing a lot of research and definitely feel like this could be a potentially good idea for a business. Similar companies start ups are receiving funding in USA and can't see any yet I the UK?

Without funding I guess I design a prototype? It isn't really complicated but the principle does work I think.

[StevieBee]

mickythefish said:

Been doing a lot of research and definitely feel like this could be a potentially good idea for a business. Similar companies start ups are receiving funding in USA and can't see any yet I the UK?

Without funding I guess I design a prototype? It isn't really complicated but the principle does work I think.

Go for it. If you believe it will fly then crack on.

Do keep in mind that investors in the US have a different view to risk than UK/European investors. If there are US companies doing something similar, have you considered approaching them about running their product in the UK under licence?

[Mr_Megalomaniac]

Could look at this?
https://britainsgotstartups.co.uk/

[mickythefish]

StevieBee said:

Go for it. If you believe it will fly then crack on.

Do keep in mind that investors in the US have a different view to risk than UK/European investors. If there are US companies doing something similar, have you considered approaching them about running their product in the UK under licence?

My ideas not novel technology just based on a few scientific papers, and currently seeing no one else doing it.. Just seen potentially for start up that could ride a certain government funding wave .

The other start up in the USA is usually a process I could use as well. The idea is actually so simple I'm surprised no I've is doing it..

Feel like Dragons den, this industry is worth hundreds of billions and growing massively lol

Going to create a website, set up a company name , do some more research and see if my local MP can help. I don't really need funding as can do this for free. The investment is more taking it to the next level., as need contacts. I did think of a way of raising money other ways as well targeting customers.

As again it is something they would be interested in and potentially soon be required under legislation to as well .

Tbh I'm a dreamer, I have been looking at government funding for business but nothing in my area.

My USP is, a proven scientific technology process, low cost ,scalable, and second stage ways to improve and create new ways.

Again no really novelle just first to market, and hopefully just get bought out by a bigger company would be aim.

Edited by mickythefish on Tuesday 7th January 10:17