The next steps

Thursday I met with the local business consultant to fill out the forms to register the business. After reading through my business plan, he felt I may qualify for government financial aid for start-ups. The government is promoting women in business and my project promoting domestic products and export should interest them. These funds wouldn't be a loan, but direct aid. It would result in needing a lesser amount in an ICO loan.

The consultant will call when he has the day and time in the notary, so that I can open a business bank account beforehand and deposit the legal minimum business capital, 3K€ here. This money can be used right away for business expenses, but it has to be in the bank before they can register the business. I'll probably go with the same bank that has my current online business account, but I'll close that one and open a new one to make the accounting simple. I'll need to pay off a few suppliers early to be able to clear the account, It's on next week's to do list even though they aren't due for a while.

It's time to start thinking about the next steps, supposing I do get funding. The machinery should be ordered first since delivery time is 3 - 4 weeks. In the meantime Commercial space can be found. Shop decoration and remodeling make take a couple weeks.

Here things get a little complicated for a couple reasons. First off, after renting for a year in a little town while my plans got settled, now that plan is emerging. I'm wondering if it wouldn't be wiser to return to the city, where I still have all my social ties and where I used to live and own my place.

Secondly, my rental contract ends May 1, and I really need to move out. My current apt. has major issues: Hot water that comes on only sometimes (Brrrr), electricity wiring that cause daily circuit breaks (toaster AND portable heater on) and non existant wall insulation that makes the place impossible keep warm making for a horrendous heating bill even as I have to keep my coat on indoors. It was nice and cool in summetime when I moved in of course.

Some things I'm thinking about are:

1. Should I rent space in the city and commute until I find an apt. to buy?
2. Should I buy an apt. there now and look for rental space too?
3. Should I set up here in rental space, find another rental apt. and move everything at a later date, and if so when, after 3 months, a year?
4. What about the cost of decorating and remodeling the commercial space here,and then moving the business equipement as well as myself after a few months?
5. What about the time and effort put into establishing a business presence here and then leaving to start again elsewhere?
   
   I definitely don't want to buy an apt here. The town is too small, has none of the social life at all, no movies, no gym, no theater, and is too far from the city for regular commuting. Also, buying something here would have much less resale possibilities than in town. I don't want to keep renting which is a waste of money long term.


6. If I'm going to move anyway, isn't this the chance to move back to the city where I used to own my place, set up the business there and position myself where I want to live from the start?
7. What about the financial burden of the double operation?
8. Would setting up here and then moving the whole operation and myself before year-end be very costly and unreasonable?

A registered business name, it's mine, woohoo

It seems like ages since my last post. No wonder. The local business advisor that had solicited the business name forgot to get my phone number and couldn’t reach me when the name registry was complete. Yeah. Anyway, I finally called them to find out. Wow, I have a registered business name. Step one complete!

Today I met with my EU new business consultant to go over his comments on my business plan. He said everything looked financially sound and reasonable. He found all the figures to be very accurate and realistic. He did say that I didn’t properly amortize a few things, not enough years, like R& D and machine purchase costs. He said that was good because the financials should look even better to a bank. This afternoon he e-mailed me the revised financial plan which I printed right away. It actually looks better than the original and has the EU business consulting office logo on it. I also reprinted the cover to my marketing plan to reflect the registered business name.

The consultant also spoke to me about government backed financing and said he felt I should be able to get approved for such a business loan. The loan, the ICO, comes through a bank but the money comes from the government. Banks offers may differ some but basically the loan will have a lower interest rate than the regular bank business loan. 2007 funding for this loan by the government credit bank will not be available until Spring, so he suggested I get a relay loan in the interim that would convert to ICO loan as it becomes available.

Finally, he said that the registering should be a matter of a few days. As soon as I get the business registry papers, I’ll meet with him again to register my business in the EU Business forum and exchange. The club gives access to free business courses as well as opening up member business contacts.

Now, the next step is to register the business through a notary. I have an appointment tomorrow morning to fill out the business registration paperwork.