Business Link Closed, RedSky Open!

Following the demise of Business Link at local level RedSky is filling the gap.

Business Link Closed, RedSky Open!

Whilst Business Link had its critics, it was undoubtedly a good local focal point for SME’s and easily accessible.

Following its demise, and amid concerns that new LEP’s are more strategic bodies than business service providers, RedSky is filling the gap at this difficult time for businesses and their owners.

We provide a wide range of help and advice for SME’s, including the following business support services:

• Finance & banking
• Grants
• Sales & marketing
• Personnel
• Mentoring & bespoke problem solving 

YBF

We have launched a group with the intention of it becoming the main forum in Yorkshire & Humberside.

 Yorkshire Business Funding - New LinkedIn Group

RedSky have launched a new LinkedIn group called Yorkshire Business Funding. We aim to make this the main forum in the Yorkshire & Humberside area for lenders, professionals, businesses and others whom have an interest in business funding.

The group will only include meaningful and relevant news and information rather than the large amounts of trivia often associated with other groups. As such, we have selected the following as our main contributors:

• Finance Yorkshire
• Banks and other lenders
• Connect Yorkshire
• Chamber of Trade
• YABA
• Federation of Small Businesses
• CO2 Sense

 To join the group click on the following link:

 http://www.linkedin.com/groups/Yorkshire-Business-Funding-3946754?gid=3946754&mostPopular=&trk=tyah

RedSky Bank Video Released

We have produced a short film entitled: ‘How to get the bank onside’.

The film focuses on what the banks look for when lending money and what has recently changed since the credit crunch. Despite the adverse media reaction to the banks, we have had a good rate of success sourcing funding for our clients by putting ourselves in the shoes of the lender.

The video and a copy of the script  are available on this site.

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RedSky On The Move!

We have moved into new premises conveniently situated just off the A1M at Boroughbridge.

'The Lodge' is a recently converted, attractive building near Boroughbridge Hall and has excellent client parking. We have expanded recently and it is ideal for our needs. Please feel free to call in for a coffee if you are in the local area, we would be delighted to see you.

We were delighted to be joined by a large number of clients and colleagues at our recent launch; here are several members of the team toasting the event...

YBF Articles

This page hosts current Yorkshire Business Funding group articles.

 

1.Which stock market is best for SME’s?

AIM: The Title Holder

 The success of AIM in offering smaller growing companies a destination to raise funding, both at the time of flotation and though the further issues of shares once listed, is undeniable. Over 3000 companies have joined AIM since it’s inception in 1995, and AIM currently wears the crown of most successful growth stock market in the world. Unlike some other stock markets, AIM offers companies the benefits of being on a world renowned stock market. but with less red tape and regulation than many others.

Companies joining the market don’t need a trading history and there is no restriction on the size or profitability which a company needs to achieve before joining the market. Also there is no minimum amount of shares that a company has to put on the market at the time of flotation.  However, the growth and success of the market has also led to increased costs of joining.

 PLUS:  The Challenger

Appearing out of the mist in 2006, came a worthy challenger to AIM. PLUS Markets Group run by AIM’s ex Chief Simon Brickles  re-branded and re-vamped the existing OFEX stock market and created PLUS-quoted. Many of the PLUS Markets Group team, used to work at AIM, and unsurprisingly there are comparisons as a result, in terms of regulation and legal frameworks.

Although much smaller than AIM, PLUS-quoted reached an important milestone in 2007 when it was granted RIE (Recognised Investment Exchange) status, thus placing it on the same level as many other stock exchanges, including AIM.

 The verdict

The size of the companies joining AIM has risen in recent years and the costs of listing on AIM makes it less accessible for the smaller companies than one would think. PLUS, on the other hand, offers smaller companies a more accessible venue, with joining costs around a third of those for AIM. However, one of AIM’s key benefits is that it‘s a good market for companies to raise money, particularly if acquisitive and requiring repeat fundraisings. PLUS on the other hand, remains predominantly a market for companies looking to raise under £5m. Therefore for larger or repeat fundraisings AIM remains the market of choice for many companies.

Perhaps the most interesting development in recent months is that some companies appear to have successfully used the key benefits of each stock market to their advantage. This year companies such as Frontier IP and Dot Digital,  having previously  first cut their teeth on PLUS and benefitted from the flexible regulation and low joining costs that the market offers , have now grown and reached a stage in their development were a move to AIM is beneficial . Proof that, going forward for SME’s, there is likely to be demand for both of these stock markets.   

 

 2. The 60 second guide to raising funding via a stock market flotation 

Even through the most challenging business conditions over the past few years, many companies listed on the UK stock markets have been able to raise considerable funding, whilst the sources of funding available for companies not listed on the stock market have shrunk significantly.

Choice of Stock Markets:  The UK benefits as being home to a number of different stock markets.  For larger companies, The Main Market is one of the largest and most respected stock markets in world and includes the FTSE 100 (the index of the largest 100 companies on the Main Market). SME’S should considered AIM, (the worlds most successful growth company stock market) or PLUS , a market designed for smaller companies.

The process of floating a company need not be too challenging if the following recommendations are followed;

Produce a business plan: Consider the motives for floating the company. If the company is looking to raise funding then start by preparing a brief business plan including forward projections .

Commission a flotation feasibility study from a specialist firm:  This will provide key information such as the likely valuation which the company will receive when it floats, the amount of cash the company will be able to raise, the most appropriate stock market to float on, the timing of the flotation etc. The findings of the study should be carefully considered before going ahead with the flotation and incurring flotation advisor fees.If, based on the findings and recommendations of the feasibility study you decide to proceed with a flotation, then consider the following:

• Appoint an appropriate Non-Executive Director/s:(if not already in place) to strengthen the current board of the company
• Prepare documents: Have company accounts audited and bring together information required for the production of a flotation admission document /prospectus. This will include the biographies of Directors, details of your business sector and your competitors etc.
• Appoint Advisor teams: Arrange beauty parades for advisors teams and choose those that have a successful track record in bringing to market companies of a similar size and business sector to your own.
• Work to a sensible timetable:The pre-float preparation period can be time consuming for those involved (usually the CEO and Finance Director). Ensure that there is sufficient time so as not to cause major disruption to the business.
• Marketing and PR opportunities:Prepare a marketing plan which maximises the new PR and marketing opportunities that flotation brings. Consider employing an external PR/Marketing agency if required.