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Money for nothing and your kicks for free
By Jonathan Moules
Published: March 5 2010 17:51

There might be no such thing as a free lunch, but there is certainly a lot that a savvy business owner can get for nothing.

Business-class flights, office space, professional advice, advertising, stationery, employees – and even money itself – can all be obtained gratis, if you look hard enough. And freebies like these could make the difference between success and insolvency for cash-strapped companies.

When Jonathan Yates started his vitamin business Santeau, he was able to get both the product formula and an initial development supplier for free. He says that ignorance about whether or not to pay for something can be a blessing.

“When I started, I had no idea what to do,” he admits. “So I flew to Germany for a trade show and, in the first hour after arriving, I found a vitamin and mineral supplier who gave me a formula. I suppose it was a bit of pre-sales for the supplier, although I never needed to use his services again.”

Back in the UK, Yates sent his idea to the development arms of three large manufacturers. Among the people he contacted was the development head for soft drinks at Tate & Lyle, who agreed to make the first batch.

Again, Yates believes that Tate & Lyle did this for free in the hope that he would use its services again. However, he also thinks that suppliers can share a passion for a good idea.

“When you show people something exciting, it does set them alight a bit,” he says. “It is important to go to the right people, but it is also about the approach that you take with them.”

Begging and borrowing help is all very well when starting a business, but should you be doing this when your business is turning over millions of pounds?

Yates believes you should. “Once you realise that there are lots of opportunities to maximise your cash flow by getting things for free, it is difficult to get out of that mind set.” To Yates, getting free stuff is the epitomy of entrepreneurship.

Entering competitions is a popular way to get free publicity for a business, but it can also provide more tangible benefits.

Six Degrees, a PR agency, was among 100 small businesses that won 12 free business-class flights over 12 months from British Airways.

Jennifer Jansen, a director in the business, found out about the competition from an e-mail. “We apply for grants fairly regularly but this was much more attractive because it was not just money,” she says.

At the offices of Ipswich-based website developer A Recipe for Success, the shelves are already groaning under the weight of business prizes won.

Co-founder Jeff Hume estimates that his company, which employs nine people, has notched up over 50 gongs over the years. Awards are not just a matter of kudos or prize money, they are a means to free publicity, Hume argues.

“Really, computers are as dull as ditch water, so it helps to have a reason to get your name in the papers,” he says.

Universities are another source of free support for small businesses. University College London, for example, offers companies in the capital free consultancy and research & development (R&D) support from its pool of academic and postgraduate students.

This R&D costs the college money, but the tab is picked up by the London Development Agency.

Businesses can also tap UCL for free labour, through a service that matches its graduates with businesses for short periods of work experience. However, competition is fierce.

This year’s programme has not even been announced and the college has already received expressions of interest from companies, according to Tim Barnes, executive director of UCL Advances.

For those in the PR, entertainment, events, publishing, advertising, marketing, broadcast and digital media sectors, another source of free manpower is recruitment consultant Pathfinders.

In addition to its conventional consultancy service, Pathfinders matches graduates to companies for temporary posts. Using the service is free for both clients and candidates and Pathfinder claims to place about 1,200 temporary staff every year.

One of those who has benefited from Pathfinders is Clare Rodway of Kysen PR. The service has been useful both for beefing up the headcount during busy periods, as well as filling permanent roles, according to Rodway. “I have 12 members of staff, half of them through Pathfinders,” she says.

Bill Liao, a serial entrepreneur who co-founded social networking site Xing, claims to have got free web hosting, free time from a PR agency and free office space for his start-ups in the past.

When he set up WeForest.com, an organisation to promote re-forestation as a means of combatting global warming, he obtained free studio time and voiceovers from broadcaster Stephen Fry and television producer John Lloyd.

However, the flow of free services is a two-way process for Liao, who provides coaching and business ideas to others for free. The process of getting free stuff is usually more simple than most people believe, according to Liao. “You just have to ask.”

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