the innovative city business advice briefing first stop shop local enterprise office dublin city
TRANSCRIPT
O V E R V I E W
1. Setting up the business2. Sole Trader, Partnership or Limited Company3. Business Plan & Funding4. MFI and other sources finance5. Dept. of Social Protection 6. Supports for Business 7. Training for owner managers8. Mentoring
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DECIDE ON BUSINESS STRUCTURE
SOLE TRADER or PARTNERSHIP or LIMITED COMPANY
1. Setting up the business
2. Sole trader / Partnership / Limited Company 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• Liable for losses of the business • Creditors entitled to personal possessions How ?
Register with Companies registration office 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.
Legally obliged to register as a Sole Trader for tax
purposes with the Revenue Commissioners
www.revenue.ie
Obligated to maintain proper bookkeeping and accounts
records.
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 limitedpartnership
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
Advised to have a Partnership
agreement drafted between the parties to the partnership
setting out each partners
responsibilities, duties, profit
divisions etc.
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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
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http://www.legalzoom.com/lp-guide/creating-limited-partnership.html
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 – Route Map
Template www.localenterprise.ie/DublinCity/Start-or-Grow-your-Business/
Knowledge-Centre/General-Business-Issues/Writing-a-Business-Plan/
1. Executive Summary2. Introduction3. Market4. Market Strategy5. Organisation & Management6. Production & Operations7. Costings & Finance8. Financial Statements
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3. LEO - Funding supports
LEO Dublin CityFinancial 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 researchInnovation Voucher from Enterprise Ireland for Ltd
companies might be an alternative http://www.enterprise-ireland.com/en/Research-Innovation/Companies/Collaborate-with-companies-research-
institutes/Innovation-Voucher.shortcut.html
Business Expansion
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LEO FINANCIAL SUPPORTS
Priming Grant for businesses < 18 months Must include 1 new F.T. jobEligible costs Salary €10k3rd party consultancy Capital Items
Business Expansion Grant> 18 monthsMust include 1new F.T. jobEligible CostsSalaryCapital ConsultancyNeed 3 quotes for each item
ExportGrant
For exhibiting overseas trade
fairs, travel, accommodation & for marketing
materialMax. €3,50050% costs
Online trading voucher
For est. businesses
trading over 12 months To promote
online sales Max €2,50050% 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
Set up by the Government to provide loans up to €25k to newly
established or growing microenterprises, with
commercially viable proposals that do not meet the conventional risk
criteria applied by commercial banks
MFI is ‘additional’ lending which
would not otherwise be
provided by banks. Co funded loans with
banks also available
Loans to top up bank credit may be
available where it is clear that the business
would not go ahead without MFI
Eligibility <than 10 staff Turnover / or balance sheet less than 2mMay 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
D I R E C T
Send completed applications with supporting documentation direct by post to
Microfinance IrelandJefferson HouseEglinton RoadDonnybrookDublin 4.
www.microfinanceireland.iehttp://microfinanceireland.ie/faq/
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To avail of the 1% discount on interest rate or
to get assistance with the application process
Drop in to Dublin City LOCAL ENTERPRISE OFFICE
www.localenterprise.ie
LEOs (Local Enterprise Offices)
Other Sources of Finance
Working Capital, Long term financeSources 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/Funding-Your-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.
On reviewing application, the Credit Review Office will provide the bank with an opinion on whether it agrees with the lending decision or not.
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 allowanceWhen 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-
timeEnterprise 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-Self-Employed.as
px
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Jobsplus www.jobsplus.ie Incentive from the Department of Social Protection to encourage& reward employers who offer employment opportunities to thelong 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/wEmployers must be compliant with Irish tax and employment lawsRecruits 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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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 • Tourism Marketing • Training Services• Product Development • Market Research www.failteireland.ie
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Agencies
3. Arts CouncilNational agency for funding , promoting and developing the arts in
Ireland www.artscouncil.ie
4.Irish Film BoardDevelopment agency of the Irish industry www.irishfilmboard.ie
5. Enterprise Ireland rResponsible for supporting Irish businesses in the manufacturing and
internationally traded service sectors. Over 10 employeeswww.enterprise-ireland.com6. 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…
Entrepreneurs starting companies with an
ability to compete in world markets
Ambitious co’s with the ability to scale & achieve significant
success
Manufacturing & Internationally Traded services companies
employing ten or more
Irish-basedfood and natural resource
companies that are overseas owned or controlled
High PotentialStart-up’s
Scaling
Established SME’s Multinationals
Potential Exporters
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
Research Community
Patents, Trademarks & Copyright www.patentsoffice.ie
Patents Contract between society & inventor
New useful & not obvious
TrademarkDistinctive sign to id
products and services of a business
Copyright exclusive right given to creators of artistic
or literary works
Patent can cover Ireland , EU , Single Country or international. Annual renewal fees must be
paid
Application Fee 70 Renewal fee 250
1 application covers 28 countries
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.aspxhttp://www.trademarkdirect.com/help/about-trademarks#what-is-allowed-as-a-registered-trade-markhttp://www.esatys.com/all-you-need-to-know/patents2.phphttps://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 networksPLATO Dublin 3- 80 employees www.platodublin.ie Dublin Chamber www.dubchamber.ie/ Food Academy:
https://www.localenterprise.ie/DublinCity/Enterprise-Development/Food-Academy-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.ieDocklands Innovation Park www.boltontrust.comTerenure Enterprise Centre www.terenure-enterprise.ie Digital Hub Development Agency www.thedigitalhub.com Ballymun Enterprise Centre www.ballymun.orgLiffey 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 keepingManagement 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 Authoritywww.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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