Starting your own business can be a daunting prospect, even during prosperous times. There is some debate over the percentage of business failure, although there is a common consensus that 80% of businesses fail within the first five years - which is not the greatest encouragement to give to entrepreneurs. But there are, at least, better supports available now than at any other time in our past history - so, theoretically, new businesses have a better chance of survival than they would have had had they started a few years ago.
Of course, while there is a greater level of support these days, there is also a greater level of things to do for a business to successfully operate in today's economic climate.
For example, companies a decade ago did not have to contend with a web presence - which is something of a necessity in the modern business world. Indeed, even during the dotcom boom, the concept of "e-commerce" was seen as something of a clever add-on. At present, e-commerce is just part of the everyday running of a company, no matter how small or non-technological the core business actually is.
With these additional pressures (and costs) on companies, it is hardly surprising that there is still a high failure rate among start-ups. Businesses fail for a number of reasons. "Fail to plan, plan to fail" is a cliché which has some resonance in the business community, and it is certainly true that poor planning can leave a business directionless and ultimately doomed to failure. But other issues, such as lack of financial capital, bad location and basic poor management can also contribute to failure - which is why careful consideration and proper planning should always accompany the entrepreneurial zeal associated with getting a business up and running in the first place.
But it all has to start with an idea. Without entrepreneurs, without visionaries, without people with some get-up-and-go, there would simply be no businesses in the world. The trouble is that many ideas-people are not necessarily the most naturally well suited to running a business, which is why some start-ups will need all the advice that they can muster if they are to survive in a competitive world.
A good starting point for many would-be magnates is the local County Enterprise Board. Prior to 1993 and the establishments of the 35 CEBs around the country, Irish entrepreneurs were not well supported. Of course, it did not help that the financial outlook for the country in the preceding years had been poor, and that that, coupled with an unfavourable economic landscape punctuated by high interest rates, meant that it was difficult to secure a loan. But times have certainly changed, and the CEBs offer both financial and non-financial support aimed at helping indigenous Irish businesses at the most vulnerable stages of their existences.
It is an interesting fact that when most entrepreneurs first approach their local CEB, it is the financial supports that are first and foremost in their minds. This is perhaps because seed capital can be the most elusive element from the outset, but whatever the reasons, the reality is that an Enterprise Board can offer much more than just money - it can offer training, mentoring and networking opportunities which are at least as valuable for a fledgling company if it is to remain in business.
That is not to say that the financial supports are not more than welcome. From the outset, CEBs can offer feasibility grants, while employment grants (up to Euro7,500 per person, up to 10 people) and capital grants and loans (up to Euro75,000) can be very useful to get a business over any initial hump.
But it is the skills that people can learn through the Enterprise Boards (skills such as financial knowhow, marketing and IT) that will stand the business better in the long term. It is like the old adage of giving a man a fish versus teaching a man to fish.
But the CEB route will not be open to, or viable for, everybody. As supporters of micro-enterprise, it can only support companies employing 10 people or less, so a more ambitious start-up will be outside of the remit (and under the remit of Enterprise Ireland). But there are also companies which will not be suitable for state-aided support, and which will have to go down the private route.
Again, though, finance houses in general are better disposed to lend their support for start-ups. This was facilitated in recent years by an historically low interest rate regime, but even at a time of climbing rates, the foundations for success have already been laid, and our thriving economy is as great an incentive for banks to trust in the entrepreneurs as any favourable economic climate.
Indeed, Bank of Ireland (for example) has expanded its role beyond that of a simple finance-provider, and into the realms of a quasi-enterprise consultant. Its start-up package has just been revised as of January of this year, and not only includes offers from both BOI and from relevant thirdparties, but also includes guides and advice on a host of start-your-own-business issues.
The list of incentives is a long one. From a business banking point of view, BOI offers free current account services for two years, as well as concessions on its on-line business banking service. It waives the initial fee on its VISA card, and waives the set-up fee on leasing/HP services, as well as offering reduced fees on invoice discounting for any company with a turnover of less than Euro500,000.
From an information perspective, it has launched a comprehensive guide entitled "Starting Your Own Business - A guide to building your own business".
In terms of hard cash, Bank of Ireland can offer a small business loan of up to Euro200,000, at very competitive rates - a loan between Euro25,000 and Euro60,000 is charged at 7.15%, while a loan of over Euro200,000 is charged at 6.15%. And last week, the Bank launched a new business development loan of up to Euro25,000 at a special rate of 6.2% - with no security required.
But, in addition to this, Bank of Ireland has negotiated a number of exclusive offers with a range of thirdparty suppliers. For example, if you go through Bank of Ireland to establish a business, you will get access to an hour's free consultation with one of 200 ACCA accountants. There is also a consultation with a company called "Company Formations", which will help with the initial set-up, and Euro30 off Palo Alto business software.
Other supports include reduced rates on O2 business packages, 20% off HP products, fee-free listing with ISME and the SFA and a percentage off the standard fee with the Internet Association.
But perhaps the most valuable support that Bank of Ireland gives to start-up businesses comes in the shape of its Small Business Advisors. Every branch in the country has one of these advisors, who meet people at the beginning of their business journeys every day.
These ensure that people have access to dedicated start-up advice when they most need it.
The entrepreneurial golden rules When the question is posed most people will say that, ideally, they would like to start their own business.
Unfortunately most new enterprises fail before they even get off the ground due to lack of experience. Below are seven rules which aspiring entrepreneurs should try to live by.
1.Go into business because you are excited by the idea - not because you think that it will make you rich. And follow your dream based on its ability to fulfil a gap in the marketplace - research into markets will tell you a lot
2.A crucial element for any business is a good business plan - you need to be realistic and accurate in your planning if you hope to survive, so real ideas on goals, needs, problems and solutions are required
3. Recognise where your strengths and weaknesses lie - as a new businessperson, you may lack certain skills in areas such as marketing, finance and HR.
Learn what you will need or hire or outsource to obtain relevant expertise
4.Never underestimate the amount of working capital that you will need to ensure that your business is a success - and remember that you could need capital to overcome the first couple of years that it may take before the business can start to support itself
5.Location is a prime consideration for many businesses, and the greatest idea could be let down by a bad location, so do your research on the locality as much as on the general market
6.Don't get ahead of yourself - allow the business to expand at its own rate
7.Learn from your mistakes - build on earlier failures rather than letting those failure defeat you
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