Business Advice (Group Meeting)

Report
Business Advice Briefing
First Stop Shop
The Innovative City
Local Enterprise Office Dublin City
OVERVIEW
1. Setting up the business
2. Sole Trader, Partnership
or Limited Company
3. Business Plan & Funding
4. MFI and other sources finance
5. Dept. of Social Protection
6. Supports for Business
7. Training for owner managers
8. Mentoring
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1. Setting up the business
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2. Sole trader / Partnership / Limited Company
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SOLE TRADER
Most appropriate route when setting up
No audit required
Taxed as individual make returns as self employed can deduct
expenses from profits
Easy to wind up and turn business into limited company at
later date
But
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•
Liable for losses of the business
Creditors entitled to personal possessions
How ?
Register with Companies registration office
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cro.ie
https://www.cro.ie/Registration/Company/Required-Steps
https://www.cro.ie/Portals/0/Company%20Forms%20-%20Popular/A1%20v2.3.pdf
http://www.allbusiness.com/business-planning-structures/business-structures/2514-1.html
http://www.mhc.ie/uploads/Irish_Tax_Review_Gavin_OFlaherty_Muireann_Brick_April_09.pdf
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Obligations of a sole trader
Legally obliged to register the
name IF
trading name is not carried
on under his/her own name.
Obligated to maintain proper
bookkeeping and accounts
records.
Legally obliged to register as
a Sole Trader for tax
purposes with the Revenue
Commissioners
www.revenue.ie
Must register for VAT where
annual sales turnover
exceeds €37,500 in the
supply of services and
€75,000 in the supply of
goods.
Must Register as an employer
if employees are hired and
operate a payroll for such
employees.
Sole trader operating
business with full and total
personal liability and
responsibility for any an all
outstanding debts of the
business
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Partnership
Whenever two
or more people
carry on any
form of
business
together with a
view to profit
without
incorporating
as a limited
company they
form a
partnership
“
It can exist
as a limited
partnership
With
separate
legal entity
or general
partnership
Which is
unlimited
Partnership
is legally
obliged to
register the
business
name
if
it varies
from
partners
names
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Advised to have a
Partnership
agreement
drafted between
the parties to the
partnership
setting out each
partners
responsibilities,
duties, profit
divisions etc.
Limited Company
Business is seen
as separate legal
entity from the
people who run it
Ltd means your
liability to pay the
company’s debts
is limited
Ltd co. must have
more than 2
directors &
company
secretary
Must be
registered with
Companies
registration office
www.cro.ie
http://www.legalzoom.com/lp-guide/creating-limited-partnership.html
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Limited companies qualify for 12.5 % corporation tax
Need to submit the following along with the registration
fee, to the companies registration office:
Memorandum of Association
Articles of Association
Form A 1
To set up company download the forms above from the
companies registration office website at CRO.ie.
3. Funding
What will it cost to start a business?
• Start up costs
• Overheads
• Licences
• Rent/Rates
• Salaries/Wages
What will you charge?
• Price
• Fees
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3. Business Plan
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3. Business Plan – Route Map
Template
www.localenterprise.ie/DublinCity/Start-or-Grow-yourBusiness/Knowledge-Centre/General-Business-Issues/Writinga-Business-Plan/
1.
2.
3.
4.
5.
6.
7.
8.
Executive Summary
Introduction
Market
Market Strategy
Organisation & Management
Production & Operations
Costings & Finance
Financial Statements
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3. LEO - Funding supports
LEO Dublin City
Financial support for microenterprises with:
 1 – 10 employees that are Dublin City Council area based
not getting financial support anywhere else
 Must be Manufacturing or International traded services
or Services with overseas customers (not retail, trade or
professional service)
Types of grants: All grants cover 50 % of 3rd party costs
excluding Vat based on 100% proof of payment
Feasibility for product development or market research
Goes to 50 % 3rd party costs of patent, prototype or
Consultancy, market research
Innovation Voucher from Enterprise Ireland for Ltd
companies might be an alternative
http://www.enterprise-ireland.com/en/Research-Innovation/Companies/Collaborate-with-companies-researchinstitutes/Innovation-Voucher.shortcut.html
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LEO FINANCIAL SUPPORTS
Priming Grant
for businesses
< 18 months
Business
Expansion
Grant
> 18 months
Must include 1
new F.T. job
Must include
1new F.T. job
Eligible costs
Salary €10k
Eligible Costs
3rd party
consultancy
Capital Items
Salary
Capital
Consultancy
Export
Grant
For exhibiting
overseas trade
fairs, travel,
accommodation
& for marketing
material
Max. €3,500
50% costs
Need 3 quotes
for each item
Online
trading
voucher
For est.
businesses
trading over
12 months
To promote
online sales
Max €2,500
50% costs
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Application Process
Identify what type of grant & eligible business expenses you are
applying for and get 3 quotes for each item,
identify possible candidates for the new job(s)
You will need to have the finance to pay for the items above since
the grant covers 50% excluding VAT based on the proof of
the 100% payment. No retrospective payments
Submit; Application Form, C.V., Feasibility proposal and quotes
Submit; Application Form, C.V., Business Plans (LEO Framework)
and quotes for Priming & Business Development Grant
12 month projected cash flow, 3 year projected Profit & Loss A/c,
plus most recent Management Accounts (Audited A/cs for larger
loans)
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4. Microfinance Ireland
MFI is ‘additional’
Set up by the Government to
provide loans up to €25k to
newly established or growing
microenterprises, with
commercially viable proposals
not meet the
conventional risk
criteria applied by
that do
lending which
would not
otherwise be
provided by banks.
Co funded loans
with banks also
available
commercial banks
Eligibility
Loans to top up bank
credit may be
available where it is
clear that the
business would not
go ahead without MFI
<than 10 staff
Turnover / or
balance sheet less
than 2m
May be a start up
OR an existing
business
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MFI Loan Assessment based on
Adverse credit history / absence of credit history will not
preclude a loan provided there if full disclosure and evidence
that debts have been dealt with honourably
A realistic business plan
including cash flow projections
Proven business models with prospect of near term cash flow
The number of
new jobs and social impact
taken into
account
An interview (may be by phone) to assess skills, character,
viability of the plan and commitment to the business
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How to apply for a Microfinance Loan
LEOs
(Local Enterprise Offices)
To avail of the 1% discount
on interest rate
or
to get assistance with the
application process
DIREC T
Send completed applications with supporting
documentation direct by post to
Microfinance Ireland
Jefferson House
Eglinton Road
Donnybrook
Dublin 4.
www.microfinanceireland.ie
http://microfinanceireland.ie/faq/
Drop in to Dublin City
LOCAL ENTERPRISE OFFICE
www.localenterprise.ie
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Other Sources of Finance
Working Capital, Long term finance
Sources of Funds
 Yourself
 Family & Friends
 Grants/Loans
 Banks/Credit Unions/VCs
 Investment
 Crowdfunding – Grid Finance, Linked Finance, Fund It
 Business Angels
https://www.localenterprise.ie/DublinCity/Financial-Assistance/FundingYour-Business-Development-Presentations/
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CREDIT REVIEW OFFICE www.creditreview.ie
To help SME borrowers who have had an application for credit of up to
€3m declined or reduced, and who feel that they have a viable
business proposition.
Where borrowers feel that the terms and conditions of their existing
loan, or a new loan offer, are unfairly onerous or have been
unreasonably changed to their detriment.
This is a strictly confidential process between business, the Credit
Review Office and bank.
Credit Review Office will
provide the bank with an opinion on whether it
agrees with the lending decision or not.
On reviewing application, the
Bank responds to this opinion and confirms next steps in response to
the recommendations set out by the Credit Review Office.
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5. DEPARTMENT OF SOCIAL PROTECTION
Back to work enterprise allowance
When setting up a business you can keep % of social welfare allowance for
up to 2 years
Short-Term Enterprise Allowance (STEA) gives support to people who have
lost their job and want to start their own business.
To qualify you must be getting Jobseeker’s Benefit.
No qualifying period.
Will not qualify if you are getting Jobseeker’s Benefit and working part-time
Enterprise Support Grant if approved for above financial support for costs of
setting up business max 950 over 9 month period
Apply with social welfare local office.
More information on www.gettingbacktowork.ie
• http://www.welfare.ie/en/Pages/Short-Term-Enterprise-Allowance.aspx
• http://www.welfare.ie/en/Pages/Enterprise-Allowance-SelfEmployed.aspx
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Jobsplus www.jobsplus.ie
Incentive from the Department of Social Protection to encourage
& reward employers who offer employment opportunities to the
long term unemployed. Grants of €7,500 and €10,000 available.
Value set at two levels biased in favour of the more long term
unemployed • recruits unemployed for more than 12 months but less than 24 months:
€7,500
• recruits unemployed for more than 24 months: €10,000
Payable monthly in arrears, over a two year period – while employee
retained.
Jobs must be ‘full-time’ at least 30 hours p/w spanning at least four
days p/w
Employers must be compliant with Irish tax and employment laws
Recruits must have been unemployed for a period of at least 12
continuous months
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Jobbridge
www.jobbridge.ie
Internships for 6/9 months duration
Keep those on the live register at all skill levels close to the Labour
Market
Provide an opportunity to gain quality work experience
Give employers opportunity to assess potential employees
€50 top-up internship allowance and customer maintains their
current SW entitlement
Paid by Department of Social Protection by EFT to Interns
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AGENCI ES
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Agencies ctd.
1. Bord Bia Irish Food Board. Dedicated website for start ups in food
productionwww.bordbiavantage.ie
Food Academy
Food Academy initiative from LEOs, Bord Bia & SuperValu to provide
integrated supports and training to start up and existing food companies
Bord Bia Market Information Department: a library of research and
leading-edge marketing literature which is available to all food
businesses
2. Failte Ireland :National Tourism Development Authority of Ireland
Supports tourism enterprises in 4 ways
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Tourism Marketing
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Training Services
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Product Development
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Market Research www.failteireland.ie
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Agencies
3. Arts Council
National agency for funding , promoting and developing the arts in
Ireland
www.artscouncil.ie
4.Irish Film Board
Development agency of the Irish industry
www.irishfilmboard.ie
5. Enterprise Ireland r
Responsible for supporting Irish businesses in the manufacturing and
internationally traded service sectors. Over 10 employees
www.enterprise-ireland.com
6. New Frontiers Docklands Innovation Centre www.dit.ie/hothouse/
7. National Digital Research Centre – for digital start ups www.ndrc.ie/
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Enterprise Ireland work with…
High Potential
Start-up’s
Entrepreneurs starting
companies with an
ability to compete in
world markets
Scaling
Ambitious co’s with
the ability to scale &
achieve significant
success
Established SME’s
Multinationals
Manufacturing &
Internationally Traded
services companies
employing ten or more
Irish-based
food and natural resource
companies that are overseas
owned or controlled
Potential
Exporters
Research
Community
Established SME’s
currently focussed on the
domestic market who
have the ambition to
export
Developing links with Irish
enterprise, MNCs to support
research collaboration,
commercialisation of publicly
funded research, and access to
FP7, ESA
Patents, Trademarks & Copyright
www.patentsoffice.ie
Patents Contract
between society &
inventor
Trademark
New useful & not
obvious
Distinctive sign to
id products and
services of a
business
Patent can cover
Ireland , EU , Single
Country or
international.
Application Fee
70 Renewal fee
250
Annual renewal
fees must be paid
1 application
covers 28
countries
Copyright
exclusive right
given to creators
of artistic or
literary works
Lasts for lifetime &
70 years Copyright
takes effect as
soon as the work is
put on paper, film,
or other fixed
medium
http://www.patentsoffice.ie/en/patents-frequently-asked-questions.aspx
http://www.trademarkdirect.com/help/about-trademarks#what-is-allowed-as-a-registered-trade-mark
http://www.esatys.com/all-you-need-to-know/patents2.php
https://oami.europa.eu/ohimportal/en/trade-marks
6. Supports for Start ups : Networks
Networking puts you in contact with like minded people can help in
helping you solve the day-to-day problems of business
Within networks, there are shared experiences and opportunities to
develop your business, make sales or find new suppliers.
In LEO Dublin City:
Business Network for Start Ups (part of Start up LEO package)
Dublin City Enterprise Network for Women
LEO Dublin City Business Network www.localenterprise.ie
Dublin Food Chain an initiative between the four Dublin LEOs, all types of
food producers, hospitality www.dublinfoodchain.ie
Other networks
PLATO Dublin 3- 80 employees www.platodublin.ie
Dublin Chamber www.dubchamber.ie/
Food Academy: https://www.localenterprise.ie/DublinCity/Enterprise-Development/FoodAcademy-Training-Programme/
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Supports for start ups: Incubation Centres
Incubation centres offer start up business the chance to avail of small
units at affordable rates, with access to shared knowledge,
resources and equipment.
Give Flexible rental agreements -no long leases ;
Networking opportunities;
Access to business consultancy and mentoring support;
Guinness Enterprise Centre www.gec.ie
Spade Enterprise Centre www.spade.ie
Docklands Innovation Park www.boltontrust.com
Terenure Enterprise Centre www.terenure-enterprise.ie
Digital Hub Development Agency www.thedigitalhub.com
Ballymun Enterprise Centre www.ballymun.org
Liffey Trust www.liffey-trust.com
Full list on http://www.dcebenterpriseguide.com/
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7. Training Supports
LEO Training
Ideas Generation Workshop – explore if idea is feasible
Start Your Own Business (training, network & mentoring)
Helps to get your business started and develop a Business Plan
Upskill Workshops; Social media, Taxation , Marketing , Book keeping
Management Development – Accelerate & Hi Start
www.localenterprise.ie/DublinCity/Training-Events/
Skillnets
Subsidised training for employees www.skillnets.ie
Management Works
www.managementworks.ie/
Solas Further Education and Training Authority
www.solas.ie/
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8. Mentoring
LEO Mentoring
One hour one-to-one session €20
6 hours one-to-one Mentor programme €100
Starts with an extra one hour business needs
analysis
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Twitter @LEODublinCity
Facebook: Local Enterprise Office Dublin City
Web:
www.localenterprise.ie/DublinCity
Q&A
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