Quitting Job to start new business. Funds available?

djburchgrove

Hi Guys,

I'm currently working in a great company, with great opportunity for advancements, I work in marketing (both on and offline). My boss is excellent at their job, and I'm learning all the time. I realise how lucky I am to be in such a position having recently returned from abroad.

Here's the catch:

I commute between 15 and 20 hours a week, depending on traffic. As much as I enjoy working where I work, I'm already certain, and have been for some time, that I want to work for myself. Between, the work I do for this company, and the travel involved, I find myself physically drained all the time, thus not being able to put anywhere near as much effort into my own company.

I haven't got too much stashed away, but the start up costs would be minimal (I work online, have all my equipment). However I will need money to live and help push the new company off the ground.

I've heard there are funds available for situations like this (someone told me welfare offer a 290 euro per week business start up fund??

Does anyone know of any such funds/grants, what are the circumstances to avail of these funds, and how long it will take to receive the funds?

Thanks for listening.

Mr. Loverman

I know this isn't the advice you are looking for:

Rather than quit your job, can you figure out a way to improve your energy levels and reduce your commute so you are able to put a few more hours into your business?

For example, give up booze, caffeine and improve your diet. Move closer to your job. Change your commute time so you skip the traffic. Etc.

Eoin

Thread moved; I think this is a better forum for it.

ifah

A couple of things -

What type of commute is it ? 15-20 hours commute is tough - is there any way to reduce this ?
Can you make any lifestyle changes that will reduce commute time and increase your spare hours (could be as simple as a bike ride instead of car) ?
If you start on your own you will be putting in a lot more than 15-20 hours a week extra while trying to get started

Do you have anything in your contract that prohibits you from freelancing on your own hours ?
If you did setup on your own - who would hire you, do you have a network of potential clients ?
If you're still learning all the time - will you be able to continue to improve while running a business ?

Finally on the welfare support - I don't know the details but suspect it's for people currently unemployed (which you are not).

Peterdalkey

Sorry Op, I don't get any feeling of passion from you for having your own business, just reasons. No vision and passion... no chance!, in my book.

You seem to suggest that you are in a relatively junior position in your present employment, so have only modest experience and contacts to bring to a new venture. Not a good portent at all!.

The solution seems simple enough to me, move much closer to your current job, use your new-found spare time to run your side business and build it up towards a sustainable commercial level.

If you prefer living at home and value the home comforts etc over this, you are unlikely to make it in the exposed world of the self-employed entrepreneur.

djburchgrove

@PeterDalkey I was not asking for advice in starting my own business, although am glad to receive it!

The question was asking if I have any access to funds in the beginning.

Of course I realise I have to have a network and potential clients. I have clients who I already help and ready to take on more.

Anyone who suggests if you're tired from a 15 - 20 hour weekly commute, then I won't be prepared to put in 70 hours plus obv hasn't got their own business or has never worked for themselves. When you work for yourself, all you want to do is work mostly, and that's how I feel.

I have a limited window to do this as this is a means to a larger venture I am working on with some partners.

Thanks for the replys. Sacrificing more of my life to move closer to a job I know that I want to leave seems completely wrong option.

djburchgrove

Peterdalkey wrote: »

Sorry Op, I don't get any feeling of passion from you for having your own business, just reasons. No vision and passion... no chance!, in my book.

You seem to suggest that you are in a relatively junior position in your present employment, so have only modest experience and contacts to bring to a new venture. Not a good portent at all!.

The solution seems simple enough to me, move much closer to your current job, use your new-found spare time to run your side business and build it up towards a sustainable commercial level.

If you prefer living at home and value the home comforts etc over this, you are unlikely to make it in the exposed world of the self-employed entrepreneur.

I wasn't trying to give the reasons and why I'd love to start my own company, and why I think it'd be successful. That's a conversation for another day.

I should point out that all my clients I work with ATM and potential clients are very close to where I live, so If I were to move closer to work then I'd be moving far Away from current and potential new business for my work.

ifah

djburchgrove wrote: »

I should point out that all my clients I work with ATM and potential clients are very close to where I live, so If I were to move closer to work then I'd be moving far Away from current and potential new business for my work.

But they're not your clients .... they are clients of the company you work for. Poaching these if you start up on your own is a great way to alienate yourself in the industry, as well as the legal challenge.

djburchgrove wrote: »

Anyone who suggests if you're tired from a 15 - 20 hour weekly commute, then I won't be prepared to put in 70 hours plus obv hasn't got their own business or has never worked for themselves. When you work for yourself, all you want to do is work mostly, and that's how I feel.

Funny statement - you're going to meet some very hard working committed self employed business owners on here. And I guarantee that we spend alot more than 70 hours per week working.

The suggestions about lifestyle changes while you startup part time were valid - if owning your own business is something you are passionate about then preparing for that big move and planning for success is an obvious starting point. You will benefit from the fact that you can start in a bedroom with a laptop and a good internet connection - that's your starting point, plan your business, set out your stall and see how it goes, while maintaining the backstop of the day job to finance your startup. Then you can measure how successful you may be before going it alone.

My commuting question still stands - can you reduce this ? For example I commute across Dublin on a motorbike - a car commute would take approx 60 minutes on a standard day (90 on a rainy day) while incurring 6 euro tolls and 10 euro parking - my motorbike is a 30 minute trip, no tolls and free parking. Savings are even higher when I'm in the City centre for client meetings etc.

Atomico

OP you won't be able to set up this new business working your existing day job. Sure, you can do bits and pieces here and there, but there is no way you can scale up a business whilst working for someone else. Usually the way you would do this is become pretty certain that the new venture has potential (building client list, sales, investment, etc), and then make the leap.

It sounds like you might be beginning to approach that stage now, so it is a case of figuring out whether you actually want to pursue the venture, or stay in your job. You can't do both if you decide you want to build a business.

Mr. Loverman

Atomico wrote: »

there is no way you can scale up a business whilst working for someone else

Not sure I totally agree.

I worked full-time, was doing a masters at night, and running my own online business. I scaled up and was able to stop working...

Maybe I'm an exception though.

bizzyb

As far as i am aware but maybe i am wrong, but the only way to access 'funds' is be on social welfare for 12 months and then apply for the Back to Enterprise Allowance.

Atomico

Mr. Loverman wrote: »

Not sure I totally agree.

I worked full-time, was doing a masters at night, and running my own online business. I scaled up and was able to stop working...

Maybe I'm an exception though.

Ah yeah, I think an online business is fine, where only a certain level of ongoing input is required and you can basically manage all or most of it yourself. Then as you see it really scaling up you can stop working. I mean more in relation to businesses which would require an entire team, multiple players in place, etc - and it seems like the OP is looking to build something fairly elaborate.

Atomico

bizzyb wrote: »

As far as i am aware but maybe i am wrong, but the only way to access 'funds' is be on social welfare for 12 months and then apply for the Back to Enterprise Allowance.

Yes I highly doubt you get state support to just give up a full-time job to pursue something else There are lots of supports and funding options out there for startups that are worth exploring though.

RainyDay

Check out the Revenue Seed Capital scheme
http://www.revenue.ie/en/tax/it/leaflets/it15.html

djburchgrove

ifah wrote: »

But they're not your clients .... they are clients of the company you work for. Poaching these if you start up on your own is a great way to alienate yourself in the industry, as well as the legal challenge.



Funny statement - you're going to meet some very hard working committed self employed business owners on here. And I guarantee that we spend alot more than 70 hours per week working.

The suggestions about lifestyle changes while you startup part time were valid - if owning your own business is something you are passionate about then preparing for that big move and planning for success is an obvious starting point. You will benefit from the fact that you can start in a bedroom with a laptop and a good internet connection - that's your starting point, plan your business, set out your stall and see how it goes, while maintaining the backstop of the day job to finance your startup. Then you can measure how successful you may be before going it alone.

My commuting question still stands - can you reduce this ? For example I commute across Dublin on a motorbike - a car commute would take approx 60 minutes on a standard day (90 on a rainy day) while incurring 6 euro tolls and 10 euro parking - my motorbike is a 30 minute trip, no tolls and free parking. Savings are even higher when I'm in the City centre for client meetings etc.

My clients Are my clients, that I've been doing work for outside of my 9 to 5 job for months.

I said 70 hours plus. That is the minimum I would think anyone with their own business would and should be putting in.

With ref. To commute yes I could get a motorbike, like everyone else on the road.

ifah

djburchgrove wrote: »

My clients Are my clients, that I've been doing work for outside of my 9 to 5 job for months.

This is new information that you haven't shared before - all previous posts read as if you're going to start from scratch.

djburchgrove wrote: »

I said 70 hours plus. That is the minimum I would think anyone with their own business would and should be putting in.

We agree then

djburchgrove wrote: »

With ref. To commute yes I could get a motorbike, like everyone else on the road.

Just an example that works for me - I'm not the only one who has suggested that you look at your commute for alternatives. You don't supply much information that people can base any advise on - for example if you pop over into the commuting forum you will see vastly varying commute times for very small distances. I've seen people have a commute of 1.5 hours to travel 10 km due to public transport constraints. I have mates who run that distance in < 1 hour or cycle in < 25 minutes.

Anyway - this is not to question your commute - all previous posts were based on the info you supplied - commute killing you, working for someone else and would like to startup on your own.

Seems like you have started on your own, have a reasonable client base and potential to grow more and the question you really need to ask is whether you can go it on your own or not.

A business plan and some projections should answer some of those questions. I can't as I have no details about how many clients you have, how much they pay you, what overheads you need to cover to live on etc. ....

HelenT

Your best bet is to contact your local enterprise board. They will point you in the right direction. Best of luck with the business!

DubTony

It's amazing how many people come on this forum looking for me and everyone else to fund their self employment. Entrepreneurs me arse. Get a bloody bank loan.

:mad:

Quote of the month :pac:

djburchgrove

DubTony wrote: »

It's amazing how many people come on this forum looking for me and everyone else to fund their self employment. Entrepreneurs me arse. Get a bloody bank loan.

:mad:

Sorry I offended you so much. I never would have thought of a bank loan...

Banks ain't seen exactly handing em out these days.

phormium

There are to the best of my knowledge two welfare schemes for starting your own business. One is not going to be relevant, the back to enterprise allowance as you have to be on SW for a year and basically on jobseekers allowance which you can then keep getting for the first year of business and 75% for the second year. That is at full rate €188 p.w.

Second one and the most relevant is the short term enterprise allowance, this can be applied for as soon as you start to draw jobseekers benefit, however to get that you need to be available for and looking for work, also if you leave your existing job voluntarily you may be disqualified for up to 9 weeks before being paid your claim.

Then if you are getting the jobseekers benefit you can apply for the STEA, you submit business plan etc and if approved it means that your jobseekers benefit is converted to STEA, same thing different name. It is again €188 p.w. and only lasts for the same time the jobseekers benefit would have lasted, 9 months or so.

Other than that try the enterprise boards for any funding that might be available.

djburchgrove

phormium wrote: »

There are to the best of my knowledge two welfare schemes for starting your own business. One is not going to be relevant, the back to enterprise allowance as you have to be on SW for a year and basically on jobseekers allowance which you can then keep getting for the first year of business and 75% for the second year. That is at full rate €188 p.w.

Second one and the most relevant is the short term enterprise allowance, this can be applied for as soon as you start to draw jobseekers benefit, however to get that you need to be available for and looking for work, also if you leave your existing job voluntarily you may be disqualified for up to 9 weeks before being paid your claim.

Then if you are getting the jobseekers benefit you can apply for the STEA, you submit business plan etc and if approved it means that your jobseekers benefit is converted to STEA, same thing different name. It is again €188 p.w. and only lasts for the same time the jobseekers benefit would have lasted, 9 months or so.

Other than that try the enterprise boards for any funding that might be available.

Thanks for that. Yes I think the STEA is the one I was referring to. I may not require it at all, and I am not looking for others to "FUND" my business.

I look at it this way:

Yes I was abroad briefly, but have been paying PAYE, PRSI and other working taxes for the best part of a decade. I think this entitles me to a little bit of a helping hand if I need it at the start. I would hope and nearly expect my company to grow into one that creates jobs for other Irish citizens. If I need a helping hand at the start then I am not too proud to take it.

With reference to people saying have your own capital, work and save for your business costs etc.; yes, in the right circumstances I'd agree with this for the most part. However, where I envision my company and its product going, I need to strike now, while the iron is hot, so to speak.

Thanks for everyone's contribution to this thread, both positive and negative. It is good to hear from both sides.

I look forward to receiving (and giving ) more helpful advice in this section of Boards in the future.

smcgiff

You may qualify for capital grant funding from your council that may partially help purchase assets like computers etc.

If you mean money to support you personally to leave a paid job and start off your own business then I think you are out of luck.

EirSurvey

Been there and done that...

My advice would be to forget about social welfare benefits or state support - you won't get social welfare if you leave a job and start up grants will be difficult to secure and will take an eternity to process so you wouldn't want to be relying on this as part of your income.

If I was doing this again, I would build up some seed capital myself from freelance work, savings, potential investors or backers and ensure that I had 12 months cash available to finance the venture including my living expenses.

Then you can concentrate 100% on establishing your business and enjoy it!

Saucy McKetchup

DubTony wrote: »

It's amazing how many people come on this forum looking for me and everyone else to fund their self employment. Entrepreneurs me arse. Get a bloody bank loan.

:mad:

Why do you personally fund all these new businesses? :rolleyes:

Saucy McKetchup

Saucy McKetchup wrote: »

Why do you personally fund all these new businesses? :rolleyes:

Through your pension cuts Saucy?

Saucy McKetchup

Deleted User wrote: »

Through your pension cuts Saucy?

Successful business persons won't need government pensions

Thats not got anything to do with it really, not sure you understand the point being made

Saucy McKetchup

Deleted User wrote: »

Thats not got anything to do with it really, not sure you understand the point being made

So why don't you just answer the op instead of trolling? Answer the op's question instead of trying to have a go maybe?
I clearly understand what you're trying to say and you're wrong

Just because you can't add 2+2 doesn't make me a troll. I agree with with Tony. I don't blame the OP for going this route since the government have provided it, but I think its the wrong mindset for an entrepreneur starting off. Sometimes the pain and the lack of cash are the very things that drive you that extra mile to make the business a success.

djburchgrove

I'm not sure If I'll be going for it, it's just nice to know what's available to me if **** were to hit the fan.

Firehaze

My understanding is you can with approval of your local enterprise board ( you need an approved business plan) use social welfare payments from stamps built up to be diverted to pay you a payment equivalent to the dole while you set up your business .

This is a scheme aimed at folk who are unemployed trying to start a business.

However like the other comments if you have a job you have a better chance of success if you make mistakes and adjust your business while having a regular income.

It takes a fair amount of time to reach a viable position with any new business.

Saucy McKetchup

Deleted User wrote: »

Just because you can't add 2+2 doesn't make me a troll. I agree with with Tony. I don't blame the OP for going this route since the government have provided it, but I think its the wrong mindset for an entrepreneur starting off. Sometimes the pain and the lack of cash are the very things that drive you that extra mile to make the business a success.

So pensions come into that how?

Saucy McKetchup

Saucy McKetchup wrote: »

So pensions come into that how?

The government funds these plans through taxes, yet government pensions have been cut numerous times. Given your avatar and handle I thought you might be a pensioner thus the comparison!

Saucy McKetchup

Deleted User wrote: »

The government funds these plans through taxes, yet government pensions have been cut numerous times. Given your avatar and handle I thought you might be a pensioner thus the comparison!

Don't assume
For every failure there's a success, hence why your comment is uninformed and troll worthy
You've yet to come back with any kind f intelligent response and I doubt you're going to start now

Saucy McKetchup

Saucy McKetchup wrote: »

Don't assume
For every failure there's a success, hence why your comment is uninformed and troll worthy
You've yet to come back with any kind f intelligent response and I doubt you're going to start now

Nonsense, according to bloomberg and forbes 8 out of 10 businesses fail within 18 months. I'm not sure whats so difficult for you to grasp about all this.

Axwell

Saucy McKetchup wrote: »

Don't assume
For every failure there's a success, hence why your comment is uninformed and troll worthy

That statement right there is uninformed and troll worthy. The numbers arent even remotely close. The number of startups is growing, the number of successes is a completely different story.

Saucy McKetchup

Deleted User wrote: »

Nonsense, according to bloomberg and forbes 8 out of 10 businesses fail within 18 months. I'm not sure whats so difficult for you to grasp about all this.

We're not talking about international businesses

Saucy McKetchup

Axwell wrote: »

That statement right there is uninformed and troll worthy. The numbers arent even remotely close. The number of startups is growing, the number of successes is a completely different story.

I'm not trolling at all, funny how no one who has replied can back up their answer with links and most importantly facts

pedroeibar1

Saucy McKetchup wrote: »

We're not talking about international businesses

That comment (and those posted earlier by you) shows a total lack of knowledge of the start-up business environment. Look at the failure rates on new companies in any market. Export or domestic, there is not much difference. Look it up, do your homework before you make an idiot of yourself here.