Business start up advice

Jostef

Myself and my girlfriend are dead set on setting up our own business. We have both quit our fulltime jobs so that we can focus entirely on the project. At the moment neither of us know much (make that nada!) about the business world, but I reckon a few months of trial and error should sort that out. We have a few ideas for our own business but we are also looking into the idea of a franchise...one or two look very interesting, especially for learning the ropes. One major problem is that we have absolutely no personal capital( had been living in spain for a few years and are starting totally fresh in Ireland). Can anybody give us advice on business start up. Is it possible at all without a penny in the oul' pocket? At this early stage I would really appreciate any information at all. Thanx!

gerrycollins

good luck to ya i can help kinda but there are loads of questions needing answers? whats the business?what are you going to do for your own personal cash for the mo?
Business plan?
what bank are you with?how long with?
have you looked at venture capitalist but dont forget you need business plan?

Mr. Presentable

Jostef wrote:

Is it possible at all without a penny in the oul' pocket? At this early stage I would really appreciate any information at all. Thanx!

Short answer, yes, but......

I did it a couple of years ago. You need starting capital, borrow from a bank and you need collateral (are you a homeowner?). You will also likely be required to expose a cash risk. I borrowed 5k from a credit union and showed the bank that.

Alternatively, if your idea is really good you may be able to get private investment for a share of the profits.

Finally, some industries (mushroom farms for example) get startup grants from the govt.

is_that_so

Here you go.

1. Before you jump into anything decide what you want to do by doing lots and lots of research.
2. Start thinking about a business plan - most important of all. Without one you will certainly get no money at all.
3. Contact your local Enterprise Board and get on their SYOB course.
4. Work out what type of structure suits you. Company or sole traders. Again Enterprise Board could be useful there.
5. Assume that you will probably make next to no money out of it for 18-24 months.
6. Talk to people who know the business you want to get into, especially franchises.
7. Do it full-time, part-time doesn't work although part-time doesn't exclude the second job you might have to take to see you through some more difficult times.
8 . Be prepared for plenty of hard work - average hours can be in the order of 60-70 per week.
9. Believe in it!

Best of luck.

Jostef

1. One idea is to sell spanish property...A couple of friends own estate agents in Spain and we could work alongside them.
2. I have been with B.O.I. for about 15 years.
3. We are going to do part time jobs to keep us going.
4. We are not homeowners...renting.
5. Need more info before starting on actual business plan.

xha1r

http://www.bplans.com/index.cfm

That site worked great for me. Good luck by the way, if you're entering the property market, beware that it is a highly competitive market. There are large companies, then the ones ran from home. If you have a website, make sure its a professional job, a website says alot about who you are.

jetsonx

Jostef wrote:

2. I have been with B.O.I. for about 15 years.

This means sweat fa. Bankers are not a sentimental bunch.

Re: your idea - as the other posters have recommended you need to do
indept research. There are loads of property companies that can invest
in Spain for me - but what unique angle will you have in bringing your service to market?

Are you prepared to work 18 hr days for the next 3-4 years working on a
minus pay figure every week. Can you give it this sort of conviction ?

Do you know the hard figures and facts ? - growth rates for your specific market in this case "irish leisure and investment buyers in spain" ? are you familiar with ROI figures for spain ? are you familiar with the financial terms and ratios which investors and their accountants will be looking for ?


Your idea is viable. There are lots of investors out there at the moment. Spain
is a stable country which the Irish are familiar with. I am sure with hard work
and a focussed well executed strategy you could do quite well.

Obelisk29

Jostef wrote:

Myself and my girlfriend are dead set on setting up our own business. We have both quit our fulltime jobs so that we can focus entirely on the project.

Mistake - you're going to need an income whilst the new business is in the early stages.

Starting a business is going to expose you to all sorts of costs - company formation, advertising, stationery, telephone bills, insurance, web-site, etc. - and with no income coming in how are you going to meet these?

Not being harsh but it's a mistake I made myself and it lead to a substantial drop in my standard of living for quite some time.

If you have a few ideas, try to work out what is the one with the most likely chance of being a winner. If you're trying to launch two or three, possibly disparate, ideas at the same time you'll lose focus and it'll be hard to make any work.

Eliminate the weaker ones and concentrate on the best. If it doesn't work out you can always try one of your other ideas - and if it does then it may provide the capital to try out other ideas.

You do need to put together a business plan - even if you just use it yourselves as a reference point.

If you're ever looking at getting in extra capital then nobody will talk to you without a business plan.

Most franchises will require a fair amount of capital and without something concrete to bring to the table as security you may have difficulty getting anything from the banks.

A lot of the franchisers have good relationships with the banks and they may be able to put you in touch with the Franchise units that most of the major banks run.

Best of luck with the venture but be careful (and one of you get back to work!!).