High Potential Start-Up Businesses

John O’Dea

May 2010

STARTING A GREEN BUSINESS

Sources of Help

What I will cover …

• State support for Start-up businesses

• Green business start-ups

• Typical challenges in the start-up phase

• Enterprise Ireland

Eligible Manufacture or internationally tradable service;

High Potential• Usually based on technological innovation;• Export oriented;• Sales > €1m and 10 employees within 3/4 yrs;• Involving industry experienced team

Micro-enterprise

Projects the State and EI invests in

A world of Green Business

Product or Service?Products Green building products Green waste management

products Alternative energy products Energy efficiency products Natural, environmentally friendly

food / clothing / household products

Recycling equipment Recycled products

Services Energy efficiency Energy management Environmental compliance Ecotourism Installation and servicing of

renewable energy systems Retailing green products Importing and distribution Retailing green products Insulation; install / retrofit

Sell to consumer?

Sell to business?

Recent High Potential Start-ups

How Many? What sectors?

Sector Software

26%Telecoms 11%Cleantech 10%Electronics 8%Food 7%Engineering 7%Medical devices 6%Digital media 6%Pharmaceuticals

6%Consultancy 3%Other 10%

Dublin 50%BMW 20%South, East, M-west 30%

70 per year

Outcomesannual sales : €1,480mTotal employment : 11,000

The Business Plan

The Market for the Product or service Competition Product or service technology Financials The management team

Indicators of Success

Experienced management team Excellent product / service Clear route to market Well-funded or with access to funding.

Experienced management team

Industry experience and contacts / relationships Mix of skills Importance of being revenue-oriented Experienced sales and marketing professional in the team.

Mentors

•Pick your mentors wisely – ask around about them

•Learn from fellow entrepreneurs

•Learn from customers

Excellent Product / Service

Absolute focus on clear value proposition from the outset Consider the total product and service Offer based on clear technological advantage.

Common issues; Product development takes longer and costs more [Substantial

redesign required due to failure to get customer traction]. R&D people develop technology – Sales and marketing people define

products.

Clear Route to MarketClear Route to Market

Common issues: Failure to Understand the value chain and customer purchasing

process CEO lacks selling skills Failure to qualify sales leads / pipeline

NB 1st CUSTOMER REFERENCE SITE

Sales skills trainingTrade fairs, fact finding missions etcBusiness Accelerator Programme

Well FundedWell Funded

Issues; Always takes longer and costs more. - Contingency

plans!! Focus on key milestones to leverage next round of

funding

Sources of Start Up FinanceFriends, Family •Sales•Seed Capital Scheme / BES•Debt [Bank loans, overdrafts, invoice discounting]•Private Investors [Wealthy individuals, Business angels]•Venture Capital•Development Agencies

EI assistance

The support you can get from us depends on where you are.

1. Validating the Business Idea

2. Get to Investor Readiness Build Business Plan

3. Raising investment

4. Growing the Business

Motivation and Encouragement Contact EI or CEB Enterprise Start1

Challenging the Business Idea

[Where motivation and encouragement meets realism and structure] Have I got what it takes? What am I Selling and who will buy? Technology – Build or Buy Funding Next Steps - Stop Go Output – Clear business proposition and roadmap to progress

Validating the Business Idea

Enterprise Start1

Enterprise Start2

EI funding for High Potential Start-ups

Funding to ‘explore new opportunities’- Small grants

Funding towards ‘establishing a HPSU’ -Equity

The level of EI funding is determined by the potential exports and job creation;

Get to Investor ReadinessBuild Business Plan We offer a range of supports

Mentor

Feasibility Study

Trade FairsMarket information

Innovation VoucherValue Proposition Workshop

BES Certification

Seed CapitalCertification

Introduction to Business Angel Network

Assistance with First SaleReference Site

Patent / IP Advice

Technology Assessment

Introduction to VCs

Investor Ready Workshops

Access to Overseas Offices Don’t lead with the

money question!

Raising Investment

Enterprise Ireland Innovative HPSU package

Involves: Assessment of the Business plan Management team and skills R&D Plan Market Analysis Commercial Evaluation of the Project

The level of EI funding is determined by the potential exports, the job creation and the cash needs of the business

EI Investment in early stage projects is 100% equity package

We co-invest – never more than 50%

Talk to US …….

www.enterprise-ireland.com