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Tier 1 (Graduate Entrepreneur) visa scheme Help and resources pack
Tier 1 (Graduate Entrepreneur)
visa scheme
Help and resources pack Contents
This guide has been designed to assist those interested in Section A: About the scheme 4
starting their own business and are applying for a Tier 1 (Graduate 1. Introduction 4
Entrepreneur) visa. In order to qualify for endorsement by Cranfield
2. The Scheme 4
University, you will need to satisfy the processes outlined in this
3. Pre Assessment and Submission 4
document.
4. Assessment Panel 5
The Tier 1 (Graduate Entrepreneur) visa is for graduates who have an 5. Visa Endorsement and Issue 6
outstanding business idea that they wish to put into practice in the UK. 6. Reporting 6
Higher education institutions are responsible for identifying and 7. Renewal, Cancellation, Transfer 7
supporting graduates who have developed genuine and credible
business ideas. 8. Completion 7
In this help pack you will find everything you need to know
about the Tier 1 (Graduate Entrepreneur) visa scheme
at Cranfield University along with useful advice on
Section B: Business start-up 8
starting your own business venture, how to 1. How to write a Business Plan 8
structure a business plan, and links to useful
2. Feasibility study 8
entrepreneurial resources.
3. Management team 8
Please read each section carefully, 4. Product/service should be attractive to investors 9
referring to the links and examples
5. Address the target market 9
provided.
6. Make the ‘right’ deal 9
7. Realistic forecasts 10
8. Meet the investor’s funding criteria 10
9. Further Reading 11
10. Sample structure of a business plan 11
11. Judging criteria for written business plan 12
12. Judging criteria for business plan presentation 13
13. Useful Links 14
14. Contacts 15
Section A:
About the scheme
1. Introduction
The Tier 1 (Graduate Entrepreneur) visa is for Switching: Can switch into Tier 1 Entrepreneur • A statement on how the opportunity
will benefit the stakeholders, including When taking a proposal to the panel applicants
UK graduates identified by approved higher with financial investment (£50,000)
where possible the University, must submit the following:
education institutions as having genuine and
credible business ideas and an entrepreneurial Time spent with Tier 1 (Graduate Entrepreneur) • Confirmation of support in principle from a • Details of their awarded degree, or anticipated
skill set to establish one or more businesses leave does not count towards the period required senior member of staff, who will agree to completion date,
in the UK. Cranfield University has obtained in the UK for eligibility for settlement under Tier 2. remain as your point of contact with Cranfield • An updated copy of their one page submission,
endorsements for 2018/19 in order to support University for the duration of the visa. • A detailed business plan,
international students starting their own
3. Pre assessment • A supporting statement from the senior
enterprises. Having the ability to sponsor
students through the Tier 1 (Graduate and submission 4. Assessment panel member of staff associated with the student
covering:
Entrepreneur) visa is a distinct advantage to Formal assessment panels are due to take place
Within Cranfield University the application will be - support for the principles of the idea,
Cranfield University given our specialisms twice a year, once mid October and once at the
in entrepreneurship, innovation and business expected to be led by the student(s). Applications - confirmation that the student should be
end of January. Further assessment panels will
growth and our strong links with industry. are anticipated to be brought forward by: supported by the university and that the
take place as required. The panel will consist of:
member of staff will be the main point of
• Individuals or teams of students from across • Stephanie Hussels, Senior Lecturer in contact with Cranfield University,
the University, Entrepreneurship,
2. The scheme • PhD, or other student(s) from across • Shailendra Vyakarnam, Director of the Centre
- confirmation that the student has worked
on developing the idea during their time
the University. for Entrepreneurship,
Prospective applicants can find full details of at Cranfield University,
the scheme and detailed eligibility conditions • Mohammed Ali, Assistant Registrar - a statement in support of the integrity of the
Informal support will be available to advise (Head of Student Immigration and Funding),
on the Home Office website at applicants on the suitability of their ideas and students in the form of a personal reference.
www.gov.uk/tier-1-graduate-entrepreneur-visa. • Nominated members of the Bettany Centre
the approach to take in developing them into a Advisory Board,
It is the students responsibility to ensure that meaningful application.
they comply with all regulations appertaining to • Oksana Koryak, Lecturer in Entrepreneurship,
the Tier 1 (Graduate Entrepreneur) visa, and to be • Richard Adams, Reader in Entrepreneurship,
Students who wish to apply for this visa should • Michelle Carter, Research and Innovation
aware of any changes that may occur from time notify Dr Shailendra Vyakarnam, Director of the
to time. Project Manager.
Bettany Centre for Entrepreneurship, by email
on EntrepreneurVisa@cranfield.ac.uk on a single Other senior members of the University, including,
For the year 2018/19 Cranfield University can page detailing:
endorse up to 20 non-EEA national graduates where applicable, applicants’ Course Directors or
to take part in the Tier 1 (Graduate Entrepreneur) • Description and summary of the opportunity, Academic Supervisors, from across the University
scheme between now and 5th April 2019 demonstrating why it meets the criteria of being may be co-opted onto the panel when there are
providing they have achieved a degree or PhD genuine and credible, applications that they wish to contribute to.
from Cranfield University. The scheme will be • A summary of the business strategy, with an
made available to in country and out of outline of the intended actions in the initial
country applicants. period,
• Details of the team or individuals developing Applications must be submitted to:
the business idea, EntrepreneurVisa@cranfield.ac.uk
Grant of Leave: 12 months, extendable to
24 months. • A summary of the Risk and Reward associated by Thursday 18 October 2018 for consideration at the October panel.
with the initiative, The next panel will take place on Wednesday 31October 2018.
Any submissions not received in full by the 18 October will not be considered by this panelSection A:
About the scheme
5. Visa endorsement 6. Monitoring and 7. Renewal, cancellation,
and issue reporting transfer
If the panel supports the issue of an endorsement The University will perform two tasks at After endorsing a graduate entrepreneur for an Successful applicants will be granted leave by the
to a student(s) then a graduate entrepreneur this stage: application through this route the University will: Home Office for 12 months initially, which may be
endorsement number will be allocated to the extended for a further 12 months. The University
• To contact the Home Office and provide • Keep evidence of the selection process that
individual by the Student Immigration and would need to endorse any extension applications
details of the individual being endorsed, and: resulted in issuing the above endorsement and
Funding Office. The individual will use this from graduate entrepreneurs. At such time the
• Provide the individual with a letter on the provide this to the Home Office if requested,
number within 3 months of the date of the University must confirm that they are satisfied
institutions headed paper confirming their • Maintain contact with individuals and assess
endorsement to make their formal application with the progress that the applicant has made in
endorsement. the progress at regular intervals (at least
for the Tier 1 (Graduate Entrepreneur) visa to the establishing their business.
quarterly),
Home Office.
The university will confirm: • Inform the Home Office if the individual does
If the University is not satisfied with the students
not keep contact, or misses one of their
Before issuing the endorsement letter the • That we have an established process for adherence to the terms of their visa then the
progress reviews without authorisation,
graduate should provide the requested identifying and developing entrepreneurs University will:
• Tell the Home Office if we have evidence to
information required from them. Also, the amongst our post-graduate population,
suggest that a migrant is breaching the • report to the Home Office if the graduate does
graduate should send a consent email • Details of the qualifications the university has
conditions of their leave, not keep contact, such that they miss one or
to the Student Immigration and Funding awarded to the individual, and to ensure it meets
• Inform the Home Office if migrants are no more reviews of their progress without our
team studentimmigration@cranfield.ac.uk Home Office criteria,
longer participating in the scheme. authorisation;
as the following: • That the individual has a genuine and credible
• report to the Home Office if there is evidence
business idea,
“I give Cranfield University my express written This documentation will be retained on behalf of to suggest that the graduate is breaching the
• That the individual will spend the majority
consent to allow: the Bettany Centre by the School of Management conditions of their leave; and
of their working time on developing their
1- Cranfield University to monitor my progress Career Development Service. Regular update • withdraw endorsement and inform the Home
business venture.
in establishing a business, and to request reports will be produced for Student Immigration Office if graduates are no longer participating
information from me in connection with this and Funding in the scheme.
When the students have been issued an
requirement; and endorsement it is their responsibility to complete
2- Cranfield University to use this information the relevant Home Office application in order to 8. Completion
(or the absence of it) to comply with its obtain their Tier 1 (Graduate Entrepreneur) visa.
obligations to the Home Office as an On completion of the period of their visa, and not
endorsing institution.” *A graduate can only be endorsed once they have including provision for extension described above,
received their result letter i.e. their successful students will take one of the following actions:
result has been confirmed • transfer to Tier 1 Graduate Entrepreneur
(with a requirement for £50,000 of funding),
• transfer to Tier 2 (if they have an offer of a
skilled job and a sponsoring organisation),
• leave the UK before expiry of visa,
• make other arrangements in accordance with
their own circumstances.Section B:
Business start-up
1. How to write a 2. Feasibility study 4. Product/service 5. Address the
business plan Putting together a business plan is normally a should be attractive target market
lengthy and interactive process, which can be
Business plans serve as roadmaps on a rather time-consuming. It is, therefore, important to investors Investors need to be convinced that the business
company’s journey towards being a successful to first conduct a feasibility study to understand is solving a significant customer problem.
business. They describe the direction the Investors become quite risk adverse when there The business plan should highlight significant
the key features and trends of the market and is uncertainty in the market. Whether they are
company is taking, where it wants to be, and how the industry, as well as the characteristics of the growth and profit potential and the ability to
it plans to get there. Prospective investors often individual investors (‘angels’), financial achieve market power. If you have a solution to
target customer group. This will help to assess institutions or a bank, they will only back
require business plans as a first step to assess whether the opportunity is worth pursuing a problem, the investors will be very attentive.
an investment opportunity. In this way, a business entrepreneurs with compelling ideas that add Investors like to see evidence that the market
or whether it should be discarded at an early significant value to customers by solving a
plan serves as a means of communicating a new stage, in order not to waste time and talent. can be developed and penetrated with a matching,
business venture’s potential to an investor in a significant problem or fulfilling a need. well executed, customer-focused marketing
Potential investors use business plans as initial
logical, accessible, and consistent manner. screening tools to understand the company and strategy. The product/service should have a
In his Harvard Business Review article The business plan should, therefore, be strong unique selling point and rise above the
to overcome the information asymmetry between stringently customer-focused. Avoid situations
‘How to write a great business plan’, Professor the entrepreneur and the investor. A business plan competition.
W Sahlmann highlighted that a business plan in which the product is still at the concept stage
often serves as a starting point for due diligence and when it is not clear whether and how it can
should demonstrate the entire entrepreneurial in which the business risks are assessed in detail. High costs to gain critical mass and low barriers
process from identification of the opportunity to be developed. It is important to state the to entry worry investors and negatively impact
The ‘pure’ submission of a business plan to development cost/timescale and to include
the harvest/exit. It should carefully articulate potential investors is by no means a guarantee the company’s opportunity to gain and sustain
the opportunity, the strategy and resource key milestones. critical market share. In the absence of a crystal
for successfully raising investments. Only a
requirements, risks and rewards, as well as the minority of business plans will ever reach the ball, a business plan relies on in-depth market
management team. A typical structure of an Also, cover all costs associated with making and analysis and the evaluation of the collected data.
negotiation stage. To get off on the right foot, marketing the product/service, incorporate the
effective business plan is shown in point 10. consider the following aspects. Do your homework!
The emphasis of each section of the business anticipated customer perception of the value
plan will vary considerably according to the of the product/service and consider the pricing
nature and stage of the business. Moreover, a 3. Management team of the competition. Avoid undercutting the
competition at the outset as the established
business plan should address the issues a firm
Investors look for a capable, ambitious, players are likely to respond and move you out
is confronted with. Hence, a good business plan
trustworthy management team that consists of the market before the venture even takes off.
will rigorously identify whether or not there is a
of doers who can motivate themselves; kick
profit opportunity and justify the strategy chosen
down doors to obtain customers, possess Moreover, the business and as such the product/
to exploit it.
market insight, show adaptability, are hands-on, service should be scalable, allowing the investors
and ideally have a track record in the industry. to gain the required return on investment.
The management team should show financial Moonpig.com, the online greeting card business,
commitment to the venture as it reflects the for example, had from the beginning the potential
team’s self-belief in the business. If the team does to attract a large target customer group.
not believe, how can the investor? The business model allowed them to cater for
the increasing demand and, thereby, made them
highly scalable. Moonpig.com is now more than
a decade old and is challenging the recession
with fast growth and their best financial results
to date.Section B:
Business start-up
lowering of prices. To be attractive to an • Management team and organization
6. Make the ‘right’ deal investor, the business should offer high returns, 9. Further reading - Key personnel, company structure,
Investors will want a rate of return to cover the be scalable, not take too long to achieve • K Arundale, Raising Venture Capital in Europe: advisors and board of directors
risk involved in the venture. In general, the break-even, and have sustainable gross/ A practical guide for business owners, • Appendices
greater the risk, the greater the necessity to net margins. entrepreneurs and investors, Kogan Page.
offer a higher rate of return. Younger firms are • J Khedai r and M Anderson, (2009) Successful Hussels S (2010) Planning and Funding: How to
regarded as being more risky and, therefore,
investors require a higher rate of return on
8. Meet the investor’s Business Plans, Crimson Publishing.
• J Mullins, (2006) The New Business Road Test:
secure funding with an effective business plan, in
Starting a Business: A Finance and Management
investment in start-ups. The cost of capital funding criteria What Entrepreneurs and Executives Should Do Special Report, Finance and Management Staff,
Institute of Chartered Accountants in England and
can be reduced by operating on a small Before Writing a Business Plan, Financial Times/
scale initially and then seeking finance for Before submitting the business plan to an Prentice Hall. Wales (ICAEW), March: 11-12.
growth. It may also overcome some investor, check that the investor makes • E Ries, (2011) Lean Startup, Penguin.
of the investors’ requirements to observe that investments in the relevant industry as well as • WA Sahlmann, (1997) ‘How to write a great
the entrepreneur/management team has the geographic location, and that the investment sum business plan’, Harvard Business Review,
necessary ability to run and develop the firm. required is not too small or too large. A mismatch July/August.
Thus, it may make sense to initially self-finance in any of these areas can immediately lead to a
rejection.Furthermore, to enhance your chances
and then only raise external finance once you
can demonstrate the viability of the venture. of raising funding, do not make the mistake of 10. Sample structure
simply sitting down and writing a business plan,
The deal has to be plausible, include value
enhancing stepping-stones, and provide realistic but first come up with an idea, then assess it and of a business plan
valuation allowing the investor to earn a sizeable shape it through hands-on market research before • Cover page
multiple to justify the investment. You should getting everything on paper. • Executive summary
have a clear exit route in mind as well as the • Table of contents
management team’s commitment to exit, Keep a business plan simple; avoid jargon and • Industry and the company and its products/
if appropriate. ambiguous or unsubstantiated statements. services
A business plan should tell a story, and hold the - Idea, vision, history, people
investors’ attention to want to read more. Ensure • Market analysis
7. Realistic forecasts clarity throughout the entire document. A poor
structure might suggest that you may not be up
- Industry overview, competition, trends and
projections, customers pricing, sales volume,
A business plan is not about selling the upside to the rather larger challenge of organizing a product features
of the venture. It is about showcasing the business. Write it yourself. Potential investors • Manufacturing and operations plan
opportunity with its upsides and downsides. can infer a lot about the entrepreneur’s style from - Manufacturing process or service provision,
Entrepreneurs should not alarm the investor with the way in which the business plan has been business location, facilities, equipment, costs
the risks, but need to make sure they are aware put together. • Marketing plan
of them and have contingency plans in place to Finally, always keep in mind: having a business - Target market, marketing mix, costs
react to them. plan does not mean the business will be an • Development plan and schedule
automatic success. However, on the basis of - Development status, timeline, growth plan,
Be realistic! Over-optimism scares the investor experience, business plans will help to beat intellectual property
and merely suggests that the entrepreneur is out the odds! • Critical risks, problems, and assumptions
of touch with reality. Insufficient market research • Financial plan
often leads to unrealistic sales and financial - Revenue, costs, P&L, cashflow, funding
forecasts that are not credible. The business required and purpose, deal on offer
should have sustainable gross/net margins and,
as such, withstand an increase in costs orSection B:
Business start-up
11. Judging criteria for written business plan 12. Judging criteria for business plan presentation
Maximum Maximum
Points Points
Criteria Allowable Comments Criteria allowable Comments
Awarded awarded
Points points
Executive Summary 20 Structure and content of presentation
Structure and content of business plan Concept/business idea:
10
Is it technically or practically feasible and logical?
Concept/business idea:
10 Market analysis and strategy:
Is it technically or practically feasible and logical?
Is there a market gap?
Market analysis and strategy:
How big is it?
Is there a market gap?
What is the growth potential?
How big is it? 15
Who is the competition?
What is the growth potential?
Can they deal with competition and do they
Who is the competition? 15
have a sustainable competitive advantage?
Can they deal with competition and do they have
Feasible prices and sales volumes: assumptions
a sustainable competitive advantage?
Key resources:
Feasible prices and sales volumes: assumptions
Marketing: How are they planning to attract first
Key resources: customer/gain future customers?
Marketing: How are they planning to attract first Operations: How will they set up operations 15
customer/gain future customers? and supply chain?
Operations: How will they set up operations and What about other key resources and IPRs?
supply chain? 15 Short vs long term issues
What about other key resources and IPRs? Management team:
Short vs long term issues How good is the team?
10
Are operations covered?
What about long organisational structure?
Management team:
Financials:
How good is the team?
10 Source, value, and structure of finance
Are operations covered? 10
Define performance and risk milestones
What about long organisational structure?
Exit strategy
Financials: Ability to handle questions
Source, value, and structure of finance Define 10
performance and risk milestones Exit strategy Conciseness
Ability to add information and clarify Showing 20
Judges’ discretion teamwork and demonstrating individual skills
Persuasiveness of the overall plan Judges’ discretion/others
Quality of presentation Persuasiveness of the team
Others 20 Pitch content relevant to target audience
20
Quality of presentation slides
Others
Total 100 Total 100Section B:
Business start-up
13. Useful links 14. Contacts
General websites Websites around venture funding
• British Chambers of Commerce - • Asset-Based Finance Association -
www.britishchambers.org.uk www.abfa.org.uk/ Dr Stephanie Hussels Mohammed Ali
• British Franchise Association - • British Bankers Association - Bettany Centre for Entrepreneurship, Assistant Registrar
www.thebfa.org/ http://www.bba.org.uk/
Cranfield School of Management, (Head of Student Immigration and Funding),
• British Retail Consortium - • Company valuations by Professor Building 38, Cranfield University, Education Services
www.brc.org.uk Aswath Damodaran -
Cranfield, Bedfordshire MK43 0AL Building 45, Cranfield University,
http://pages.stern.nyu.edu/~adamodar/
• British Safety Council - Cranfield, Bedfordshire MK43 0AL
www.britsafe.org • Enterprise Investment Scheme (EIS) - EntrepreneurVisa@cranfield.ac.uk
www.hmrc.gov.uk/eis/index.htm m.o.ali@cranfield.ac.uk
• British Standards Institute -
www.bsigroup.co.uk/ • European Venture Capital Association -
www.evca.eu
• Business in the Community -
www.bitc.org.uk • Guide to term sheets -
http://admin.bvca.co.uk/library/documents/
• Chartered Institute of Marketing -
Guide_to_VC_Termsheets.pdf
www.cim.co.uk
• Knowledge Transfer Partnerships -
• Confederation of British Industry -
www.ktponline.org.uk/
www.cbi.org.uk/
• Seed Enterprise Investment Scheme (SEIS) -
• Freelander -
(www.hmrc.gov.uk/seedeis/index.htm)
www.freelancer.com/
• The British Private Equity and Venture
• Health and Safety Executive -
Capital Association -
www.hse.gov.uk
www.BVCA.co.uk
• Non-Executive Directors’ Association -
• UK Business Angels Association -
www.nedaglobal.com
http://www.ukbusinessangelsassociation.org.uk/
• Odesk -
• Crowdfunding platforms:
www.odesk.com
• Abundance - www.abundancegeneration.com
• Starting a Business -
www.hmrc.gov.uk/startingup/index.htm • Buzzbank - www.buzzbnk.org
• The Law Society - • Crowdcube - www.crowdcube.com
www.lawsociety.org.uk/ • Crowdfunder - www.crowdfunder.co.uk
• Trading Standards - • Funding Circle - www.fundingcircle.com
www.tradingstandards.gov.uk/
• Indiegogo - www.indiegogo.com
• UK Patent Office -
• Kickstarter - www.kickstarter.com/
www.ipo.gov.uk/
• Seedrs - www.seedrs.com
• UKTI -
www.ukti.gov.uk
Useful Cranfield Databases
http://www.som.cranfield.ac.uk/som/p17862/Knowledge/Home- MIRC/MBA/MBA-Module-Support/
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