What is an endorsement?
The "genuine entrepreneur" test requirements have been replaced by the endorsement letter as part of the criteria of the Innovator visa. Rather than a Home Office Entry Clearance Officer with no specific experience making judgments about potential business ideas, it now falls to government-approved endorsement bodies. The amount of money to invest in business has been reduced from £200,000 to £50,000, but instead, the possibility of doing business in the UK must be accepted by the endorsing bodies as new and innovative.
Criteria for obtaining an endorsement
There are three specific criteria set out in the Immigration Rules that the business plan should meet:
- Innovation
- Scalability
- Viability
Innovative Business Idea
The applicant must have a genuine, original business plan that can meet new or existing market needs and/or create a competitive advantage.
Business ideas should be new and exciting and offer completely new products or services that do not exist in the UK market, or a new approach to existing products or services such as collecting new data. Applicants should be able to clearly explain why business ideas differ from similar businesses that already exist. Evidence of performing an important market gap analysis to meet these criteria and how a business or product can address this difference must be demonstrated.
Business Scalability
It is very important to have new and innovative business ideas. However, it may be difficult to get the endorsement of this business idea is not able to scale up. Endorsing bodies will be looking for evidence of its capacity for growth.
The areas of scalability that need to be addressed in business planning should be shown to have organized planning, job creation, and international growth potential. It should include plans for the company's growth in terms of strategic location and customer acquisition (e.g., marketing strategies and financial planning and public relations strategies). In particular, if you want to get a Start-Up visa and switch to the Innovator route, you should aim to show that there are possibilities of expansion over the next few years.
Viability
Applicants who bring business ideas must have the knowledge and skills to run the business. In the business plan for an Innovator visa, you should show that you as a founder will be at the forefront of your business and heavily involved in the day-to-day management of operations. Therefore, applicants must demonstrate that they are penetrating the potential market for the business through their ability to set achievable and measurable goals and outcomes for the business (experience and transferable skills) with proper education and training.
How to put ideas in business plans is the key to the success of applying for an Innovator visa. If you submit a business plan that shows innovative business ideas, business scalability, and viability with a logical and consistent structure, the potential endorser will be much more likely to see your possibility.