Is the UK space industry ready for commercial investment?

The first all-British radar satellite launched recently, and Britain’s very first spaceport is due for completion by 2020 – the UK’s space industry is flourishing. But is it ready for commercial investments? The government has set out its intentions to secure 10% of the world’s space market over the next 12 years. This will hold an approximate value of £40 billion, which is triple today’s size.

A growing sector

The global space market is expanding rapidly, driven primarily by increasing demand for small satellites in recent years. The data they collect and transmit to Earth is being used in all manner of ways, making the whole industry an increasingly valuable commodity. Estimations from the UK Space Agency suggest that as much as 40% of all small satellite systems in orbit were built in Britain. Our manufacturing strength is opening the door to entrepreneurial private operators in the UK. With Brexit forcing the UK out of access to the EU’s Galileo Navigation Satellite System, there is further impetus for Britain to invest more in satellite manufacturing.

Obstacles to success

Despite this significant momentum and the growing potential for investment in the industry, there are still challenges ahead for a ‘British Space Age’. Manufacturing capacity is still lacking in comparison to the demand for small satellite parts/services, which could prevent costs from dropping. The UK industry has a solid reputation for high-quality manufacturing; a factor that needs to be balanced with increasing scale and speed demands in the market.

Prosperity for the UK?

If the UK is to strengthen its market share, it will need to expand its manufacturing capability and access rocket engine technology. A great example of a company with tremendous potential for investment is Orbex, which has developed an innovative launcher technology using British-built parts/equipment using bio-propane as a propellant. This will reduce carbon emissions, making it a particularly appealing prospect for the future.

The UK space industry is in exciting times, both for newcomers and those that have already established their reputation in the market. With sufficient commercial investment and a favourable outcome from Brexit, the government’s ambitions for expansion in the sector could become a prosperous part of the savvy investor’s portfolio.

Investment tips for small business owners

Running a business is never easy, but when capital is low, it becomes even more difficult. Is now the time to consider investing? If you want to take your company to the next level, then it probably is. Nowadays, it can be relatively straightforward to start a company from scratch without any huge overhead costs. But you can never progress your business if you don’t have the funds to do so. With that being said, read on for some top investment tips for all small business owners to consider.

 

Keep time on your side

There is only one place to begin, and this is with timing. Don’t invest when it is too late. Investing is not a get-rich-quick scheme; if it were, we would all be doing it. Investing is a long-term process, and you will need to be patient to experience results. This is why you need to give yourself plenty of time when investing for your business.

 

Make sure your investments are aligned with your business goals

There is a lot to consider when choosing an investment and it is important to recognise that this is something that should be enhancing your income, not supplementing it. You should never take cash that is required for another part of your business. This is why it is vital to look at everything from your business plan and business goals to financing and debt load.

 

Start with mutual funds

If you are new to investing, a mutual fund is always a good option to consider. This is because the risk is a lot lower. New investors should never dive straight into a high-risk strategy. The risk of losing money in mutual funds is very low, as hundreds of stocks are combined in one place, and money is put into the fund to enhance the rate of growth. As your stocks will grow at a slow rate, you will learn all about the market and you will be better prepared for riskier investments.

Diversify your investments

You may have heard of the following saying before: ‘don’t put all of your eggs in one basket.’ This could not be truer for investing. You minimise risk by diversifying your investments – if one investment fails, you still have the chance to make a profit with one of your other investments. No matter how good an opportunity seems, you should never merely rely on one investment option.