Why do I need a business plan? We chose to start our own hair salon That’s right, let’s make a business plan for it! (Finnish abbrev: LTS) Could you briefly explain what a business plan is? (Finnish: “LTS” stands for “Liiketoimintasuunnitelma”, business plan) A business plan is a company’s “handbook” of its operations including detailed plans, products, processes etc. It’s like the company’s ABC book It’s also worth keeping the business plan up-to-date. When your business plan is ready. contact the Finnish Enterprise Agency in your area and book an appointment with a Business Advisor Your Business Advisor will use the plan to evaluate your business idea and its viability. At NewCo Helsinki we annually advice approximately 4000 clients of which approximately 1500 companies are established. Sometimes at the initial advisory discussions with an experienced business advisor it becomes apparent that the business idea isn’t viable, risk is too high or timing is off. Funding Usually when starting a company external funding is needed. You can invest your own savings in the company.
If you don’t have enough savings of your own, external funding is needed You can ask for a loan/investments from a family member, relative or a friend It’s also possible to apply full external funding for example from a bank As a starting entrepreneur you can also apply for Finnvera’s Start Guarantee on your business loan from the bank. Finnvera’s Start Guarantee can cover maximum of 80 % of your business loan The business can be attached to the loan application It’s also possible to apply for a business loan directly from Finnvera Finnvera is a specialised financing company owned by the State of Finland Companies and starting entrepreneurs can apply for loans on various grounds The business plan needs to be attached to the loan application to Finnvera Risk funding If you’re planning to establish a growth company with your team, funding from a traditional financial institution might not be enough In this case you need to find private investors You can pitch your business idea to angel investors They might invest either money or their skills to your company It’s also worth finding out whether crowd funding would be suitable for your company Crowd funding means that anyone can invest even small sums into your business/product/service In return the crowd investors might get a product earlier or get discounts later Startup grant Before starting a company it’s possible to apply for a personal startup grant from the Employment and Economic Development Offices (TE Services) A startup grant is a personal, discretionary grant for a starting entrepreneur Attach your business plan to your personal startup grant application Business advisors of Finnish Enterprise Agencies write startup grant statements upon request to the Employment and Economic Development Offices. The decision of the startup grant is always made by the Employment and Economic Development Offices. How to create your own business plan? Online NewCo Helsinki offers a free-to-use tool for business plan creation, www.liiketoimintasuunnitelma.com It’s not even difficult, let’s see how it works! Signing in is very easy You don’t need any external credentials such as banking credentials etc. Let’s fill in the following fields:
Username, password, email address, postal zip code and a user description Let’s get rocking! Entrepreneurship empowers!