Whether you’re an Irish entrepreneur looking to get a new business off the ground, or looking to expand your business into new areas then you’ll have to consider business capital, which is the money that you need for your venture. When a new business has limited business capital then it can be very difficult to launch it successfully and many businesses fail because of a lack of funds, whether that is due to low initial business capital or on-going cash-flow.
Often an entrepreneur will have an idea for a business and use their own capital to launch the business. This can work out, but in many cases the entrepreneur doesn’t have access to enough capital to make the business work. Generally speaking, businesses cost a lot more money to set up than most people realize and with escalating costs comes a reduction in cashflow, which can significantly stifle the growth of a new business.
If your business will require an office, warehouse or retail outlet in Ireland then you’ll also have to pay for property rent and expenses. All these costs can add up quickly. This raises the question how much money do you actually need to launch a new business in Ireland?
The first step to understanding the finances required to launch your business is to write a business plan.
Writing a comprehensive business plan will help you work out just how much business capital you should need to make a success of your business venture and this initial planning is the corner stone of success for many businesses. However, if your business plan is telling you that you need to generate more business capital then you’ll need to explore what options that you have.
Whilst there are a lot of ways to raise business capital some of these ways such as grants, or loans can be difficult or unlikely to succeed due to the restrictions imposed by the organisations providing the business capital.
Traditionally Irish businesses might have considered going to their bank for a business capital loan, but banks have become stricter on their lending criteria and are less likely to loan money to an entrepreneur who has not got a perfect or long track record.
Luckily, business owners do have other options open to them, such as private investment and in many cases this option makes more sense for a new business in the long term. Whilst any investor will expect the business that they are investing in has a solid plan behind it, entrepreneurs may have a better chance to gain the vital business capital that they need. Irish entrepreneurs may also gain other advantages such as making strong business contacts or getting advice and help from their investors, which many traditional lenders will not be able to provide.
If you’re an Irish entrepreneur with a great business idea or have a start-up that you would like to expand and find individuals to invest in, then you can leverage the Irish Investment Network. You can sign-up to our global investment network to find global investors and high-net worth individuals who are looking to invest in Ireland and Irish businesses. Because the Irish Investment Network is a global company you can attract investment from overseas investors which can help open up a whole new source of income.