The Innovative City

Business Advice BriefingFirst Stop Shop

Local Enterprise Office Dublin City

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

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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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A G E N C I E S

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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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