Q.
Where can I go for information or help in starting a businesses?
A.
The Donegal County Enterprise Board has a Business Information Service located in its offices at the Enterprise Business Centre, Ballyraine, Letterkenny, County Donegal which as well as providing information for both start up and existing businesses also has a dedicated Business Executive who offers direction and support.
You can arrange for an appointment by ringing Lo-Call 1890 607000 or 074 9160735.
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Q.
How do I find out about suppliers/manufacturers/ distributors?
A.
A prime source for finding suppliers is the Business Information Service of the Donegal County Enterprise Board, which has access to trade magazines and databases of manufacturers by categories and geographic area. Trade shows are also good sources of getting suppliers and looking over competing products, the Business Information Service of the Donegal County Enterprise Board can also provide you with information on trade shows and exhibitions.
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Q.
Do I have what it takes to own/manage a small business?
A.
You will be your own most important employee, so an objective appraisal of your strengths and weaknesses is essential. Some questions to ask yourself are:
o Am I a self starter?
o How well do I get along with a variety of Personalities?
o How good am I at making decisions?
o Do I have the physical and emotional stamina to run a business?
o How well do I plan and organize?
o Are my attitudes and drive strong enough to maintain motivation?
o How will the business affect my family?
What are my legal obligations in becoming an employer?
Under each of the headings indicated below there are legislative requirements, for information on these requirements access www.basis.ie or request a copy of Your Business and the Law from the Business Information Service of the Donegal County Enterprise Board on Lo-Cal 189060700 or download from the publications section of this website.
• Contracts of Employment
• Recruitment and Equality
• Health and Safety in the Workplace
• Maternity, Parental and other types of Leave
• Dismissal
• Registering as an employer with the Revenue Commissioners and tax and social welfare obligations.
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Q.
How much money do I need to get started?
A.
Once you have taken care of your building and equipment needs you also must have enough money on hand to cover operating expenses (working capital). These expenses include your salary (drawings) as the owner and money to repay your loans. One of the leading causes of business failure is insufficient start-up capital. Consequently, you should carefully estimate your cash flow needs and make adequate provision for same.
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Q.
How can I finance my business?
A.
Committing your own funds is often the first financing step. It is certainly the best indicator of how serious you are about your business. Risking your own money gives confidence for others to invest in your business. Banks are an obvious source of funds. Other loan sources include Donegal County Enterprise Fund and First Step. Depending on the type of business or your personal circumstance you may also be entitled to grant aid or eligible for Back to Work Enterprise Allowance. For further information or to check on your eligibility contact our Business Information Service on 1890 6007000.
How do I get a loan?
Initially, a lender will ask three questions:
o What the loan is for?
o How much do you need to borrow?
o How will you repay the loan?
o What security can you offer?
When you apply for a loan, you must provide projected financial statements and a business plan which supplies the name of the firm, location, production facilities, legal structure and business goals. A clear description of your experience and management capabilities, as well as the expertise of other key personnel, will also be needed.
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Q.
How do I register for Tax?
A.
You are obliged to notify the Revenue Commissioners through your local tax office of the establishment of your business and to provide them with the information required to register your business for the relevant taxes.
You must complete one of the following forms depending on your legal structure:
-Form TR1, if you are a Sole trader or Partnership
-Form TR2, if you are a limited liability company
-Form Prem Reg-Employers (PRSI/PAYE) Registration Form
Do I need to register for VAT.
Taxable persons are obliged to register for VAT (Value Added tax) where their annual projected turnover exceeds or is likely to exceed:
• €51,000 for goods/products
• €25,500 for services
To register for VAT, you must complete Form TR 1 for Sole traders/ Partnerships and TR2 for a limited liability company.
What does marketing involve?
There are four basic aspects of marketing, often called the "four P's":
• Product: The item or service you sell.
• Price: The amount you charge for your product or service.
• Promote: The ways you inform your market as to who, what and where you are.
• Provide: The channels you use to take the product to the customer.
As you can see from the above, marketing is much more than just advertising or selling. For example, a major part of marketing involves researching your customers: What do they want? What can they afford? What do they think? Your understanding and application of the answers to such questions will play a major role in the success or failure of your business. To request a copy of ‘Marketing Your Business’ from the Business Information Service of the Donegal County Enterprise Board ring Lo-Call no. 189060700 or download in pdf format from the publications section of this website.
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Q.
Does my businesses need insurance?
A.
When you commence in business, it is advisable to consider both personal and business insurance. The main business insurances are:
• Employers Liability Insurance-Coverage against claims from staff.
• Product Liability Insurance-Coverage against loss relating to defective or dangerous products.
• Fire-To cover against loss due to fire.
• Burglary/theft-to replace stolen or damaged goods.
• Public Liability-Coverage against claims made by the members of the public.
• Motor Insurance-Coverage against motor accidents.
What is market research and how do I go about it?
Market research is the principle of determining what market share your business is likely to have. First determine a customer profile (who) and the geographic size of the market (how many). This is the general market potential. Knowing the number and strength of your competitors, and then estimating the share of business you will take from them, gives you the market potential specific to your enterprise.
How do I set the price of my product/service?
The price of a service or item is based on three basic production costs:
• Direct materials,
• Labour
• Overheads.
After these costs are determined, a price is then selected that will be both profitable and competitive.
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Q.
Are some locations better than others?
A.
Time and effort devoted to selecting where to locate your business can mean the difference between success and failure. The kind of business you are in, the potential market, and the number of competitors already in the area all determine where you should locate your business.
A profile of Workspace available in Donegal is available from the Business Information Service of Donegal County Enterprise Board on Lo-Call 1890607000.
Can I operate a business from my home?
Yes – you can operate a business from your home. The use of a private residence, or part thereof, for business use is usually subject to planning permission and is known as ‘change of use planning permission’. In most cases, local authorities will not deny planning permission where there is no impact on neighbouring properties. Conditions for planning permission vary from case to case and you should contact Donegal County Council planning department directly on 074 9172222.
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Q.
Do I need a business plan?
A.
The importance of a comprehensive, thoughtful business plan cannot be overemphasised. Much hinges on it: outside funding, credit from suppliers, management of your operation and finances, promotion and marketing of your business, and achievement of your goals and objectives.
Before you begin writing your business plan, consider four core questions:
• What service or product will your business provide and what needs will it fulfil?
• Who are the potential customers for your product or service and why will they purchase it from you?
• How will you reach your potential customers?
• Where will you get the financial resources to start your business?
Guide in the preparation of a Business Plan is available in the Business Information Section of this website in the Starting Your Business Section.
I am a non EU citizen. What must I do before starting a business in Ireland?
• A non EU citizen who plans on setting up a business in Ireland must apply to the Department of Justice, equality and law reform with:
• Evidence that you have finance of at least €300,000 to fund the business
• Details of professional/trade qualifications and experience relevant to the business
• A Business Plan with financial endorsment by a certified Accountant
• A certificate of character’ for the police from your home country with confirmation that you do not have a criminal record.
• You must also employ two non family members, both of whom are EU nationals.
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