Funding options


Published on Friday, July 27, 2018 by Michelle Greene
Got an APP idea? What to do next……………..


Many entrepreneurs have created genius ideas for Apps but without funding that is where the journey stops. Square Root Solutions would like to take you further on that journey by looking at some of the funding options that are available to you.

The first step for any entrepreneur looking for funding is talk to your Local Enterprise Office (LEO for short!) They will be able to point you in the right direction by providing you with information regarding your supports and programmes that are available to you.



LEOs have a variety of financial supports available through the 31 offices across the country. The only issue with the LEO grants is that the grants only cover approximately 50% of the costs which can be a challenge for many early-stage businesses.


Now let’s start by looking at some of these options;


This is an annual competition for the young Entrepreneur of the Year. (Under35) 


What’s involved? It has 3 categories, with the “Best New Idea” ideal for where you currently are in your project. The competition is run at a local level first, typically at a county level, then regionally and eventually nationally. The local level offers an award and funds to put towards your idea, each Local Enterprise Office may alter the funds per section but typically its worth 7.5-10K.


What does it entail? Each entrant must prepare a Business plan and present in a Dragons Den style presentation. Before that you would attend a weekend of workshops offering advice upon how to prepare a business plan and get one to one mentoring time from experts within the industry who will look at your business plan and offer impartial advice. 


Why do it? This is a great competition, with very little time commitment on your end, with a great prospect for reward at the end of it. Obviously, the fund is brilliant but also its then an “Award Winning Business” getting free coverage and all the recognition of such.


What is it all about? New frontiers is an Enterprise Ireland program which is far more hands on and long term. Very much suited to someone who has a business idea with great potential but may benefit from a structure around its growth. There are two phases to this Phase 1 and Phase 2. 


What’s involved? Phase 1 is typically an evening set of workshops across a duration of about 8 weeks, its good but not a huge amount of one to one support and more of a college style lecture/tutorial. 


Phase 2 which is over 6 months and typically requires attendance at least once a week at the designated venue.


So why do it? This programme offers 15k over the 6 months (2.5K/month) its tax free, with the program designed to set your business up to be able to be making at least that 2.5k/month while leaving the program.


Downside of the programme you would need someone to attend either yourself or someone on your behalf! Great though to be progressive and learn through hands on experience!


Upside; This also leads onto the Competitive Start Fund which is a presentation for 10% of your business for 50K, there’s a few hoops to jump through for this but it can be a great opportunity for the right business.


The NDRC program is something I’ve been hearing about a lot lately. I’m not entirely sure how it compares to the New Frontiers but from what I gather its very similar, only the successful candidates get a larger amount in funding but in exchange for a percentage of the business. It’s worth looking at. 

 

Finally, other options outside of programmes and competitions.


Microfinance Ireland

This is a good option for those looking to get lending options for their Startup or SMEs with loans ranging from €2,000 to €25,000. Microfiance Ireland is set up by the government which a not-for-profit lender.


Did you know that you can also get income tax relief on investments of up to €150,000 per annum? Relief is set at 30%, with a further 10% after three years once the company still meet the criteria. Take a look at this relief; Employment and Investment Incentive (EII) scheme https://www.revenue.ie/en/starting-a-business/initiatives-for-startup-businesses-and-smes/the-employment-and-investment-incentive-eii-for-companies.aspx
                     

So now you have all the options in helping you bring your App idea to a reality, why not give Square Root Solutions a call to today to discuss your App development. Call us on 01-9081982 or alternatively why not pop us an email to discuss on info@squareroot.ie