Financing a startup company

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gc2006

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Hi there - I'm been working for someone else all my life, so this might sound like a stupid question, but I just have no experience with it at all. How difficult is it for a private individual to get funding / bank loans to setup a business idea from scratch?

The idea I have is quite novel, I have completed some market research into it, developed a business plan, and feel it is an idea that would be successful. I would be looking for money to research this idea further, and set-up the business. The idea is something that would involve pro-typing an "invention" and marketing it. The "invention" would be a disepensing machine. The idea being to get these machines installed in various key locations. I can't get into the specifics, but the idea would be that c.50-100 of these machines would be installed as the business grew.

Like most people I have not got much money to invest personally myself. I would be planning on keeping my current job until such times as this business idea was successful enough to warrant me working at it full-time.

My estimates are they somewhere in the region of €90k-€120k would cover the research, pro-typing, marketing, creation and installation of the first 15 machines, which at capacity would generate a profitable business.With the market research, a good business plan, and some key people saying that they would be interested in installing such a machine, should it exist, how difficult would it be to obtain the money to get this business off the ground - from banks, investors etc ?

Cheers
 
If the product has export potential then get in touch with Enterprise Ireland. If it doesn't then don't bother.
There are venture capital funds that cater for this sort of thing. There are also schemes where an established entrepreneur buys a share in the company (your seed capital) and mentors you through the first year or so in business. Have a look at the Dublin Chamber of Commerce web site or contact your local enterprise board about this.
You can also go to your bank for a loan but they will want to secure it against something.
 
My advice would be to contact your local enterprise board who will be able to advise you on how to proceed and even award a grant or low cost premises.
 
Yes the idea would be to import. The invention lends itself as much, if not more to other European countries. I will investigate getting aid from Enterprise Ireland. Thank you!
 
Do as much homework as you can before you talk to them. I'd go and see your local enterprise board first. I'd also run your business plan by a few informed people as well.
 
is it patentable .. maybe you should speak to a solicitor so that your idea is registered and not whipped by someone else..

a good sufggestion i think is to have a look at the Dragon's den on Thursday nights on BBC ... you can pick up a few ideas business wise on that show usually as the Dragon's ask the questions that you will be asked by anybosy lending you money..
also what about an equity release on your house,if you are in that position
 
therave said:
is it patentable .. maybe you should speak to a solicitor so that your idea is registered and not whipped by someone else..
Click to expand...
Seal the design in an envelope and post it to yourself (registered). This will prove it's your design with a date stamp (don't open it).
Registering IP can be very costly so take advice from your enterprise board or EI on that one as well. There may be grant aid available.



therave said:
also what about an equity release on your house,if you are in that position
Click to expand...
That's what a business loan will be secured against.
 
Purple said:
Seal the design in an envelope and post it to yourself (registered). This will prove it's your design with a date stamp (don't open it).
Registering IP can be very costly so take advice from your enterprise board or EI on that one as well. There may be grant aid available.
Click to expand...

Or maybe having it stamped and dated by a Notary or Commmissioner for Oaths?

Purple said:
That's what a business loan will be secured against.
Click to expand...

Probably at a higher rate of interest though.
 
Hi. If it's of any help, you need as many devil's advocates as possible when considering a patenteable idea.

Have a look in the patent database at all the ideas and concepts that have been patented and ask yourself why so many have not made it to market. Alot of the time (bar the rope-less skipping rope) it's down to the investment needed to market something, which could very easily swallow up a re-mortgage. Advertising and sustaining it costs a fortune.........believe me.

After following the steps given by other posters regarding idea protection, it might be best going down the route of speaking with a venture capitalist (very often people who have been through the process), and taking advice from them.

Also, if at all possible, hold down the day-job, as long as possible.

Hope this helps..........
 
Thanks for all of that advice. Sounds like I should:
1) do lots of research, put together a tight business plan
2) talk to VC's, look into investment
3) research into patents, and maybe try and secure the idea a bit
 
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