Webinar: Financing your business in the Netherlands

Webinar: Financing your business in the Netherlands

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If. You are a foreign, entrepreneur, in the Netherlands you can benefit from a variety of, financing, options for author from the Dutch government banks. And private. Agencies in, this. Webinar, representatives. Of several organizations. Will tell you about these options and experienced. Entrepreneurs, will share their experiences, before. We start a conversation, I would, like to point out to, our viewers that, a team of specialists, is available, now to answer your questions so, do you have a question, then use the live chat option. On the near the video screen and one of our specialists, will get in touch with you, this. Webinar tells you what you need to know about the Dutch financing. Landscape, how. Do you prepare yourself to get funding which, forms, of funding can you find and how, do you sell your plan to your funders these. Are the topics we will be discussing in the next 60 minutes but, first let's, take a look at this video, the. Royal Kingdom of the Netherlands, is strategically, located at, the North Sea coast between, the United Kingdom and the first mainland, of Europe. The, country offers you a friendly investment, climate a highly, developed infrastructure, and the population, with an average spending, income of over 30,000. Euros a year. Every. Year more, businesses, from all over the world decide to start their business in the Netherlands you are, certainly not the only one the. Dutch government welcomes. These developments, however. Preparation. Is the key to, success. We. Will start this webinar with an introduction of the Dutch financing, landscape, I'm joined by an accomplished, from the Netherlands Enterprise Agency, clear, clad unions from the Dutch banking association, and get, at Naugle co-owner, term our Shenko good. To have you all here in the studio. Well. To. Start off with you an a you, are the coordinator for, small, and medium, enterprises, at, the Netherlands Enterprise Agency, could. You say that entrepreneurs. From, other, countries are welcome here in the Netherlands they. Are very welcome in the Netherlands, to, give an example we, we. Provide. Services. To. 350. Foreign companies, a year. That. Brings. Forth. 10,000. Extra. Jobs, in the Netherlands and. Also. Those. Companies, invest, for a total, of around two, and a half billion euros. Extra. Upon. The Dutch, economy, Wow. They're, very welcome, so. I can hear yeah and on which steps does an entrepreneur have, to take when he wants to apply for finance. In the Netherlands yes, first of all you have to have a visa and. The residence, permit and, later, on in the process you. Have to register your company at the Netherlands, chamber of commerce and you. Have to finance your business, and. That is of course very important, so that's, mostly, the time the. First step that you take to, get your finance, in order, and. Then later on at the chamber of commerce you can register your company in a few weeks okay. Hmm so.

If You are not from a European Economic, Area and, need advice and information about your fees or resident permit please. Watch, the on-demand webinar, starting, a business in the Netherlands on business, golf Dardanelle slash webinars. So. Rene what, does an entrepreneur have, to know when you wants to apply for funding. First. Of all they, have to prepare themselves very, good. The. Financing. Is never on your blue eyes or just. To talk with with, an employee at a financial institute, you, have to really prepare, yourself and, come. Up with good plans good. Figures, and, well. You have to really, have. Your details in place. Okay. Well we'll talk a bit more about that later but, first, I would like to welcome here, cleanliness who, is a policy, advisor with the Dutch Banking Association welcome, clearance thank you can. You give off you as a short description of the Dutch financing, landscape, yes. Well the vast majority of businesses they, will start their orientation, process with the bank so, they'll that's to make most straightforward, regular. Type of financing and they'll, either go for a normal. Loan or over, to our facility, but, the options are widening so, businesses, can use leasing. For instance where they, use a machine or, vehicle, that. Stays in ownership, of the leasing. Party. We're, also factoring, whether you can sell your invoice in, order to free up working capital, or. For, instance credits, which provides microfinance. With a. Form, of coaching, as well and for, more the risk type oriented, forms, of capital, you, can go to business, angels, private equity venture capital, which. Is also available in the Netherlands lots, of options yes for sure and it involves, lots of paperwork I presume always. It's. In the benefit of the the investor, the bank and, the entrepreneur as well because if you provide. A good plan upfront, you won't make sure that you have the right type of financing, for the kind, of businesses, that you are running which is most important, okay. Well. I would also like to welcome clear ad Nago and. You started a burger bar imported, erm in 2013. And now, you run four of them so, I would like to start at the beginning how, did you end up here in the Netherlands I was, contacted by my Dutch, friend. In 2013. He had met a young. High potential, with an idea to start up a restaurant, and. The. Team, needed some founding, the team needed a financial. Know-how. And so I came aboard. And. What, was your idea of the Dutch financing, landscape before you came here didn't. Really know about it but banks. Financing. Institutions, pretty. Much the same everywhere around, the world, yes, really is it exactly the same in well for instance your home, country, Austria, principally. Yes it's all about the risk no. Financing, institution, no bank wants, to lose their money so, will they will go through a very diligent process, with. You to make sure they understand, the business plan and they find it viable okay. But what's the difference between Austria, there. Is. Of, doing. Starting, up a business in the Netherlands. Is. Probably. Better. And faster than. In many other countries oh. That's. Good good reason, to be here it's a very good reason, okay. And you started with three Dutch partners, did that help to get funding I. Think. It helps we, talked before well, what about if it would be for Austrians, flying, and I think we would. Run a higher. Risk of, failing with four people. Not knowing the country, you need no clue how in, in running a restaurant, you need to know the market it's good to speak the language yeah. And, did, you apply well while you were already in the Netherlands so were you still, abroad I was, at the time still abroad it. Was just a business, idea. At. Inception, phase and I, was working with our commercial, partner, on writing. A business plan. To. Ask funds from, a local bank okay, and Renae. Do you have to be present. In the Netherlands, to apply for funding or is, it possible to apply online for example, yes, at. The, government.

Instruments. You can apply, online, most. Of the instruments are applied. Online so. You don't have to be in the Netherlands before, you apply but. Later on in the in. The face of your. Application. You, will have to talk to someone in, life. Being. There so you. You have to be in the Netherlands to finish, your your application, I believe or to meet you yes of course yeah, and does this apply to all types of financing, yeah. Actually it does yeah it is not. An. Instrument. Of financial. Supports. That you can apply online and. Well. Not. Seeing anybody, and. Start your business that's not possible okay, it's, so personal, yes, it is person. Okay. The, economy is doing well but, financing. Is still a little bit of an issue and what's. Important, for Dutch, banks, yes. Well in the the credit application process. And the risk, analysis, the bank is going to to make they, will always look at whether an entrepreneur, will be able to make money mm-hmm, because if you make money you can pay back your your loan and interest payments, so, and in that that part it's very, important. For the bank to make sure that you have cash flow and. And, also that you are able to absorb. Losses so, you bring in a little bit of your own equity your, own capital and. That you can provide guarantees, that if if in, the end something would not work out that, you will be able to pay, back the bank with collateral. And. Get, out you also if yesterday yourself, didn't you I can absolutely confirm, what Haiti say the. Bank is managing, risk so, they want to see you bring on some, own equity because, if you don't believe in your own plan so why would they. And. It. Is very important. Too. On, your business plan not only on the numbers but on the supporting, story. The numbers in the story they, have to build a unity. And support each other yeah but, was it well, did, the bank, actually ask you to, invest. Yourself or, was it your own idea, it's. A prerequisite. Okay, the bank is. Demanding. 20 to 30 percent equity. Otherwise. They would not found you okay. And. How, did how much did you invest. For. Our first small, tomash. Bergerbar, we needed two hundred thousand euro.

And. We put our own equity in which. Was nearly eighty thousand, at the time okay. And. What. Are the other demands of the, bank's, they. Want, to. See some. Private. Personal. Guarantees. So. You also have. To sign with with your private wealth. Onto. That loan and i. Response was a private person as well yes. So. It is a little bit of a risk it's. Definitely a risk and, that's, why it's so important, to do the homework when. You prepare the business plan it's not an exercise for the bank it's. An exercise to. To, check if. It's possible to to, make a profit are the cash flows coming out from. That business proposal. And. Here's. Other types, of businesses, that are more likely to, get funding, than others and well. Maybe even the other way around are the types of businesses, that are less likely to succeed, in getting money Oh as, a general, rule no, any. Business, that comes through the bank like will, get the same treatment of like will you be able to pay back the loan. But, there are types of like, it depends also on competition, or which. Kind of market are you in is, it business to consumer or business to business and, there, are types of businesses, for instance like clothing, construction retail. Tailor. Directly, also to consumers. That, might be more susceptible to. Economic, downturns, making. It more risky, you know there are examples, where the bank will for, instance have different, questions about guarantee, stand. For. Instance machinery, construction. Or production, companies, so, you it is safe to conclude that the higher the risk the, more of your own money you have to invest usually. Yes okay. Rene, you've already told us that international. Entrepreneurs, are more than welcome here. Is. There a way that the Dutch government actually, contributes. To encouraged, a Dutch, financing. Landscape, oh yes certainly. For. Instance we have SME. Guarantee, schemes, we, have all kind of subsidies, we. Have, risk. Capital, available, for startups. We. Also do a lot of advisory. Work I, advise, about three hundred three, thousand companies, a year with my unit, we. Work together a lot with the Chamber of Commerce, and.

We Do a lot of. Activities. Together to. Reach out to to the startups, and the new company companies, in the Netherlands so yeah, we do a lot together yeah it seems so and you entrepreneurs actually make use of this yes. They, do and. We try to reach, out ourselves as, well. We, are visible on our website, but. We also work, together with the, Chamber of Commerce with. Business, gov, dot NL. And. We try, to attend to as much as, events. As possible, we, are also. Available. On, a lot of places. Where entrepreneurs. Come together like. Incubators. Or special. Buildings, for starting companies, so. Yeah we have a lot of interaction. And that's basically our main job good. Well. To recap entrepreneurs. Are more than welcome in the Netherlands there, is a wide variety of funding available, if you've got very well prepared a simple, handshake won't, do and before, you apply for funding make sure you have a cell at residence, and working permit oh I, see, we have a few, us question, and it's for you that art um is. It necessary, to know people, in the nedelin when you want to apply for a loan. Yeah. I think, it's it's, good. It's helpful if. You have local, people. Who know, the language no, no, the ways it's absolutely, supportive, in your plans. Good. To know well, I would like to thank, all, three of you Renee here are cleared for all your experience, and expertise, thank you for sharing if. You want more, information please, take a look or business.gov, don't, know or ask your question to our chat to you. The. Most important, condition, for getting funding, for your business is, preparation, an essential. Part in this is writing a professional, business plan this, plan has to meet requirements I, will, talk about these requirements with, Michelle, McLain business, advisor at Netherlands Chamber of Commerce clear. Tardiness policy, advisor corporate, service actor Dutch Banking, Association and, here, at Mackel co-owner, to Marsh echo welcome. Good to have you all here, I'm. Sure you've. Seen a lot of business, plans to your career can, you tell us which, components. Should be in a business plan it's. A bit of a triangle, first, you start with your personal, belongings and your personal. Skills. Being an entrepreneur, whom, are you as at the preneur what are your skills your education, the experience and, why do you want to start a business well.

The Second chapter is the marketing, and the marketing strategy, why, do you want to start this kind of business with these activities. Who. Are your clients. What. Will what's. Their what are their needs and. Why. Are you starting, this marketing strategy and your purpose and the. Third part it's the most difficult part is the financial, plan and that. Requires, your, revenues, your investments. Your financial, plan your, loans and your. Return on investment hmm. Well. In order to improve your understanding of. The importance, of a business plan please, watch the following video. You. Have a brilliant idea, and gap in the market, an amazing. Product, an indispensable. App, you. Are enthusiastic, about this you see opportunities but. Here, you get it done you. Are motivated and, just want to go go go stop. That's. Not smart, your, idea deserves better. Would. You just start pouring concrete if you want to build a house of course not you. Are the architect of your own success and just. Like an architect you built better easier. And faster, with a blueprint, and do. You know how you can be successful in business by. Having a business plan as your blueprint it. Provides insight, in a feasibility of your idea and at, the same time it's a step-by-step plan, it. Gives you control during hard times it's. An exploration of, the future, during the building process it. Forces you to describe the foundation. And which, walls are going to support the success it. Teaches, you what is necessary to shape your visionary idea, in. Your business plan you will list your own plans you, will answer questions like, what. Do I want to do exactly where. Am I going to establish myself which. Legal, form am I going to choose is. There a market for my product how, do I find customers, how, much money do I need to get my plants off the ground often. The design will change a bit during this process you. Discover what is and isn't possible, by, asking feedback from friends family and experts, you'll, discover construction, force and how to prevent them. In. The end you know how beautiful your success can be and, how you can achieve that, with as much purpose, as passion, and as, much motivation, as inspiration. For, business plan the, foundation, for business success and financing, your idea is I. Shall. How, do I fill out the financial part knowing, that entrepreneurs, find this the, most difficult part of a business plan the. Most entrepreneurs, finding the most difficult part I think, it's the most boring part for, the financial, plan okay, at. First you make four budgets the first one is two investment, investment budgets, and that's, all the stuff and articles, you need to, start up your company put, it on the left side of your sheets it's going to be your dream so, it's gonna be invent, a venturi the mission area transport. All the stuff we need to start up your company on, the right side it's gonna be your worst nightmare so, you, ask yourself where do I get the money from and there are several possibilities, first, it's just bringing in your own money. Like. Your, own savings or. Subordinated. Loan from, family or friends and. The other possibility, to, get a loan or credits from outside, capital like. A bank or crowdfunding. But. Also an informal, investor so. Those two. Financial. Budgets, are your opening, sheet, your opening balance so they must be equal the. Third one is the, the budget most, entrepreneurs. Forgot to make because it's, your private budgets. Oh you have to put that into it yeah because how much money do you need to earn for. Your only things for your own fixed costs or expenses yes. So that's a very difficult one the, fourth one is the operating, budget and, it's most. Budget. The the bank's like. Because, that's the budget how you, for. Instance determine. Your hourly, rate. Your. Purchase, and that's, also your revenues, so the. Bank will know how much money will you earn to. Pay us back and to get your return on investments, okay. So and you make three four the one is for the, realistic, one the, second one is for the future and third one is to grow with your company, ah okay, get, art when you started your business did you know how to make a business plan I did. And. I like general, saying that the number part is the most boring part I'm a finance. Professional oh I. Like. The numbers part but. That's why I wrote, my business plan with my commercial, partner she, also finds it more boring yeah yeah yeah so it's very important, that story. The commercial, story is. In line Tango's, with, the numbers, it should be one story. So. Don't, write it on your own team. Up and and. Make it perfect towards. The bank I like that a tango, it makes it a less boring at least yeah. So. What are the most components, of a business plan the most important, two components. Well. If. I might start. Yes it. Starts with the idea with. A passionate, idea. You. Translate, it into the first numbers, in, our case in the tomash, burger, restaurant, how many burgers are we gonna send on a Monday on the Tuesday on a Saturday, you have, a profit and loss account you, put a balance, sheet you make a cup --ax overview.

A Capital, expenditure. List what you need the, kitchen the tables. How. Much money I gonna create will, you be able to pay back the financings. Agencies. The banks as you, said mm-hmm. Yeah. But the most important. Chapter. Of the business plan is, the entrepreneur, itself okay, because the. Intrapreneur, is someone. With a motivation with a passion to start a company we, say you can make or break the company, so. When. There is confidence without, the outside capital. From the bank or any formal investor. The. Owner the. Entrepreneur, is, the only one who. Makes it grow mmm. Sustainer. Confirmed that when we went to the bank they, didn't jump on the numbers they didn't jump on the story said who are you yeah, you, get on with each other how you complement. Each other will, you still be friends. In five years time or the risk if it breaks out yeah realistic. Question, yeah yeah. Well, that's good to know as well and. And. Banks. Want guarantees how, can you show that you are a safe bet in. The business plan. To. Have a good idea to, know what. Kind of nish you want to to, act in because. Almost. Almost all branches. Are really done, here in Holland so, you must find something, unique to. To. Cooperate. Or to working. And. You. Almost bring your own capital and that must, be your, own bank. Account or savings but. Also you. Must look if there is a possibility to, do, the bootstrapping, of your own company to, say I'm also in risk not only the outside capital but I want, to invest also for my own company and I, will take some risk to invest, in the company okay. Do you agree with this cleared yes I think entrepreneurs. Like naturally, they are optimistic and, banks, are naturally, looking at the rich side of the business and, I think you should meet each other in the middle because. There's the financial, plan that is also, helping the entrepreneur, structure. The business and the way the business is going to to, run so, the bank really wants to know like you want this amount of money like as a loan for me how are you gonna use it are you gonna use it for building are you gonna use it for car, for, often, are you gonna use it for the salary payments, of your employees, and the, more you can, provide insights, on how exactly are you gonna spend the money also. The better, overview. I have as an entrepreneur yourself, on the the way your business will run, and, maybe. To add unlike, the the risk side of the business like the bank will ask for guarantees onto the loan so, they they, want collateral, and that can be a house that, you house. The F yourself, or the building that you bought as a business, and. If with. Nobody hopes of course but it happens like the company goes bankrupt you, can put that mind that's house, or building up as collateral for the loan that. You initially, got. From the back just. Mentioned something very important, he said the. Entrepreneur, is very optimistic the, bank is more pessimistic when. I go to the bank I have both scenarios, we me okay, have a. Realistic. Positive, scenario but what could possibly go wrong I also, have a very, down-to-earth scenario. How much buffer is there so that's the worst nice make you a mensch yeah yeah and when, we see the. Business plan and with the financial plan. We. Usually kept, the cost and the expenses, the same decrease. The, turnover, about 450 percent okay, and we look is it useful to start a company and how, was your turn on investment, do you get to refuse, and will you be able to pay the bank back from, the loan you, rented yeah yes, much, agree like the first costs that you have they remain the same it's always the same amount that you spend, on a building on your staff your your. Income and the interest to the bank yeah the turnover, you you're making that's, where you actually make profits. And. Usually when. You sell some services, yeah I will rates will be, about. Hundred euros but, you only work the, half of the, hours, you can work every, year so, the, rate must be very high and must, be really, calculated. To, earn the money yeah yeah, okay.

All The cost all those insurances. Yeah and Gerard what was the most difficult part. Well. I hear, that the, numbers, are the most difficult part for people being. A finance, guy the, numbers are not the most difficult part for me easy for you. The. Most, difficult part is, that don't underestimate the, paperwork, it definitely, is a lot of paperwork. It, starts with the story with, the compassionate, story commercial. Story market. Research and the numbers have to complement, it and. Be prepared or get someone into the team to, follow up on the paperwork on on setting. Up establishing, your company, the, paper I work for the banks, and many other things before in, our case before we sell the first hamburger. Mm-hmm. There's, a lot of red tape involved of course red tape how can, you explain that red, tape a lot of paperwork, can, you explain, some, certain rules maybe you had to think of with that paperwork. The, business plan itself and we talked, about it. Has a very nearly. Rigid, structure, and and a minimum. Set of requirements, were, the bank or any one. Else who reads. Business plans who, would look for. And. And. The rest is very specific. To the business in our case setting up a restaurant you've, got permits, you've got get, a liquor license. You've got very clear rules if. You have a terrace, where, to put the chairs and what is the space to be able to walk through and that's, all good. To go in the, in the request, for. That permit. And there's many more things to consider, yeah yeah lots of work you, apply for a banking, loan and did you consider any other type of financing. Yes. We did and as we discussed before. The. Bank, financing, is, it's. The cheapest, form you managed, to convince the bank you. Have a viable business plan. It's. It's its best way in terms of cost if, you go to crowdfunding, of any of the other mentioned, ones your, cost will increase so. I think, the. Bank is your. First stop for, possible financing, of your business okay, oh I just heard that there is a another. Few MERS question it's for you in art and what, should everybody know when applying for finance. What. Should everybody know that. Well. It's. It's it's a, rigid. Process, that, you have to follow. It's. A process where, you can so get support online. As we've, heard from many institutions. And. It's. It's it's, a story you have to develop together. With your commercial business, partner, it's. A kind of you you dance a tango it's. A commercial number. Tango, they both have to support each other one, is not enough without the other what's. Your view well, I mean for. Me it's it's do your homework so make sure you have the right plan and, another tip I would like to give to entrepreneurs is. Take the outside perspective. Like would I invest, in this business if it was my own business and, because, SN spear n spinner you are in love with the company your founding or that you started and you're growing but. Make, sure that is like think. Like a bank or as an outside investor, and what you still put in the money that, you're asking somebody else okay using your own money well. I'm. Sure what I would like to know is a business plan obligatory no. You're not obliged to make a business plan but, when, you're searching, for a loan then. You're obliged to make a business plan because the bank look. For all the chapters, within. The company, so yeah, then, it's obliged but, it's easy to make a business plan for yourself it. Look if you, you. Can look to the purpose, you make the focus and it makes, transparency. For the company and, when. It's out of your mind and it's on paper if you also. Relax. Tear up the company yeah can you imagine yeah but it's not static it moves on with you okay yeah it's, a good process to go through right in your business plan it, makes. You focus, on all these aspects, and you will probably find out things, that you, would, have forgotten maybe, if you wouldn't have gone through this process, gives. You some structure, as well yeah. Where, can people, find information rising. Their business plan yeah you can raise on one beer. It's. A very good idea like a burger. It. Combines, with a pyramid. Some. Templates, I think. Every Dutch bank has a template. For making, a business plan but they're also other, organizations, like credits. For micro financing, they have also, tablets. Templates, to make a business plan okay, yeah do, you have any tips. Well. In this sense like what I said like make sure that you you do your homework. Like. Seek advice so if you if you unsecured, about like parts, of your business plan like if you're not the best at marketing, or you're not the best at the, financial, plan like make sure that you ask your bookkeeper, or an external, financial.

Planner Advisor to, help you with it still. Make sure that you understand your self because you are the entrepreneur, like you have to run the business so you have to understand, your finances. And, she help from other entrepreneurs like, go-to people. In the same business, or like a totally, different business who basically. Went, through what you are going through, and. And, make, sure that you keep their advice in mind, anything. To answer that just. Before you go pitch it to the bank. Indeed. Pitch, it to to other people you, get feedback and you'll be much more secure. And and, good, in presenting, to the bank then yeah it's, also possible to pitch it at a Chamber of Commerce be done you don't lend money but, you want to help you to go, further with your company yeah hmm, okay, for, more information, please have, a look on the website business, Goff, dot NL, well, I would like to thank all of you I shall. Clear, out and here thank you so much for sharing your expertise, and experiences. An. Essential. Part of your business plan is choosing a type of financing, suitable, for your business in the, Netherlands there are many types of financing but which one do you choose I, will. Talk about this fit Rene compost from the Netherlands Enterprise Agency current. Income account, manager at the crowdfunding platform. Healthful. Car voice, bit director, of credits and Claudio, she allowed the owner of pizzeria. Before. We start our conversation let's. Take a look at an overview first are, you looking for ways to finance your business. Consider. The different possibilities, and combinations if, you, only approach one financing institution, eg a bank then, this party is unlikely, to lend you the entire amount. The, bank namely, wants you to invest a part of your own capital or. Find other investors. Eg. Family, friends. An informal. Investor, an, investment, fund or. Crowdfunding. By. Investing, capital yourself, you can convince the bank to give you an additional loan the. Government can also contribute, eg. By guaranteeing, financing. Or by bringing you into contact with suitable financing, parties. Combining. Multiple ways, of financing is, called a financing. Mix a, financing. Mix will ensure that you find the most suitable investor, for different parts of the total investment. With. The financing, mix you can get the capital needed, to execute your plans. Welcome. Claudia daddy, hello, how, did you find out about the, different types of financing. At. The beginning I started. To do some research on, the web mm-hmm, then, I, asked. Some. Friends and. Other people, who were already running out of business and. Also, received, some. Info. From the chamber, of the commerce can, i start. Up when I register, myself in, their company. Okay very good and you've started your own business fit, said yeah here in the Netherlands why here. So. I work in a horican field since 10, years and, I, discover. Different places in, Italy, and in, Europe as well I. Went, in London before to be in the Netherlands. But I I. Didn't. Like the English, laughs lifestyle, and, a suggestion, of a friend I. Choose. To came in Amsterdam, in the 2015. And yet. For me was. Nice. Surprise. Okay. You see that in. The Netherlands, the lifestyle. It's. Way. Better, oh yeah, other. Countries. That I already tried. So. For me was kind of also first law if we can say like that let's, take a look at your company. Fitz, area and the way you find I said we have a video to take a look at nice. I'm curious, Metiria, is a new, mobile catering concept, and it.

Works For private, catering and events. This new concept brings, Pizza. Everywhere, and for everybody I'm Italian I'm a pizza love it and I, know how real food tastes like, i. Sat. In. 2017. This, new concept I was looking to build up on ecologic, food, truck to build up new. Cutting-edge, service and build. Up the phiiiy when I start the project, this special, bike was. Still, a prototype so, was. Not on the market luckily. I find, it one, day on the street and, and, then, I find the name of the company the, first steps was, to. Calculate. The. Cost for. The entire project and with. Some. Money save, it on my own, I start, to buy some, machinery, I calculate, that I need a extra. Budget for, end up. Destructor, I've wrote a business, plan i. Download. Credit, form, of the business plan and when. I did, the log in Freddie's gives to me all, the necessary, tools, to. Build up a stable, business plan to, do a rider search after. Some researches, I, figured. Out that there, were different. Ways on, how to, get my money one. Was the bank way the other, one was the crowdfunding and. Then. The micro, financial, the first step was to. Asking. Around to. People, who were. Already running business, some. Tips due, to the fact that my. Budget was not that Thai I choose. For the micro, financing. Because, was, the easiest and the first way to for my money I'm working, as a freelance. Pizzaiolo. And I'm, developing, catering. Service, and festivals. Moreover, I'm working, to build up a new structure for the pizzeria and try to make. It a franchising. Royce. Bates your company credits believed, in the idea of cardio. Why. I think, Claudia really, prepared himself he, went to the Chamber of Commerce. He had a viable business plan he. Send in the right, documents. So he, had a location, scan of the Chamber of Commerce he, made. So. That was first in first, main step to meet him so, with, all the documents, or loan at Pfizer made an appointment with cloudy and then we really thought okay this is the man who's, making pizzas but we saw it in the film so no, doubt about that Claudio are already, making a living with the fits area, no. Because. Pizzeria. Is still, an ongoing prototype. We are on the last phases of the project so. In. The meantime I, am working as a freelance, Paseo lo I'm, doing. Some. Consultancy. Italian. Yeah pizzaiolo, in, that, you can say pizza backer so you're doing this, job, together, with the pizza Yolo and the feeds in here together yes. Let's, say that fit Syria is a is, a project to follow and, I'm. Almost done, to. Put the structure, and product, on the market ready, for. For. Other people, but. In the meantime yeah, I'm working, as. A pizza. Or what. I said and. I'm. Doing some consultancy. On the side and when. I get opportunity, to do some catering or, events, I'm. Also. Right. I was wondering, you your company especially as in microfinance. What. Is microfinance. Well. Microfinance. Actually is - we started, in 2009, as. A micro, finance company. And that, means we are a foundation and, as a foundation, we. We. Help entrepreneurs start, and an existing, entrepreneurs, with the loans up to 250, thousand euros but. Microfinance. Is not only about loans it's also also, about mentoring, supplying. The right tools for example Claudia who you our template, to write a business plan or, a, learning's how to write a business plan so microfinance. Is more than just a loan it's all about mentoring, tools. And credits. Okay. And what's, the main difference between credit sender, Bank well. The main. Difference is that we are a foundation and. For the banks with shareholders, and we talked a lot about shareholders. Value but shareholders, are important for a bank so profit is, very. Important, for a bank and, that makes, it very hard for a bank to make these, small loans profitable, and, for us as a foundation, that's not our main main.

Target, Our main target is to help the entrepreneurs and, and, and to be to be sustainable, I think that's, the main difference okay. And, Claudio. You chose micro financing, why, did you think this was the best way, for. You I. I. Was. Looking to get a small. Amount of money I also take, a look into the crowdfunding process. But, I told, that for. A crowdfunding. Process, you, need a bigger. Plan, and, also, the time for our crowdfunding, process. Is way. Longer, than, what. Micro. Financing, process. Can. Can. Be okay. So then yeah I choose it for credit. Because. That's, what they told it was the easiest, and fastest. Way, for. My money okay well you talked about crowdfunding so John you know everything, about crowdfunding and, it's. A concept like claudio's feeds, that are interesting for crowdfunding yes it is it is we. Have to make an appointment after, the show. Yes. It sure is what sort of basics, of crowdfunding the. Basics, are that, you. Get small amounts of funding by a large amount of people so. For, example if you need twenty five thousand zeros we, can get a hundred people who all do two, and fifty euros and then you get a large. Pot of money and we can help entrepreneurs get, that capital for, what kind of companies is crowdfunding an, option well. It's suitable for all kind of enterprises. But. The, most of the projects, we do for small to medium-sized enterprises, it's. Essential. That the. Entrepreneur, has good business plan and. Decent. Track records. As, crowdfunding, you have to convince, investors. To invest in. Your proposition. Mm-hmm so that's, the track record then the business case has to be good and a. Lot, of a. Lot of people think that, crowdfunding. Is just a donation, form, for. Social, projects it is but, you have multiple options because. Like. 70%, of, all. Crowdfunding. Projects, are socially. Related but. Like. 90%. Of the money invested in crowdfunding is, for enterprises, okay, I didn't, know that if, you're to know if crowdfunding, is suitable for your company, you're welcome to take the crowdfunding scan, at Bizness don't golf Dardanelle slash crowdfunding. So. Research. On, how. Do people. Companies. Reach out to you I. Think. Most of the smaller, enterprises. Just. Have a look on the internet like, louder your dates. Google. Is your best friend when you come to the net and. There, you see multiple options so I think it's a lot through. The internet but we see a lot of, professionals. Helping, startups. Like, accountants. Bookkeepers. Or. Other professionals, or consultants, and they also have a great. View of the. Alternative. Finance landscape, so they, can also help you but for the smaller amounts we see love people looking. On the Internet okay and how do you know if an idea is viable. Well. That's a good question we, think that we have to meet Claudio to everything yes but. As I said before it, starts, with sending. In a viable business plan or the documents, like, Ed Young said you know you really, need documents. To get an idea if it's, wise to face it. Applicant. So it. Starts, with sending, in and really, think through what. You're sending in we see that 40% of, all the applications. Are without any documents. Now and, then, you can be a good entrepreneur but, it doesn't help you to make the first main step and to have, a visit, from one of our loan officers, yeah, carry on crowdfunding. As, means, of financing, is growing. In stature do you have any idea why. This is happening well. The crowdfunding market. Really matured over the years when, we started with, Kel for a car in 2011.

It, Was the first crowdfunding. Platform in the Netherlands and it. Was all new for, investors. And for entrepreneurs and now, it's more, known. And. When. Banks. Offer. Low. Interest, on savings, investors. Want to look for other options low, accessible, easy, accessible. Options and, that's. Why investors. Like. To invest, in entrepreneurs and. For. The entrepreneur. They. Look for capital and we bring those two together okay. And and, there are different, types of crowdfunding, and which, types are there exactly I'll. Do five for. Its. You, have to donation-based a model like I said earlier. Then, there's no reward for the investment, you do. Then. You'll have an reward. Based model. Mm-hmm, that's like, you get a t-shirt or a pen or a glass yeah but also like Kickstarter, that you get, to product for the investment, you make. Then. There is an equity, based so for, your investment. You get share. Of the company or. True. A convertible, loan yeah and. There's the loan based model and the loan based model is like, it says it's a mini loan which. You helped us on entrepreneur. And, you get repaid and interest, for it okay, and which type is used most often the, last one okay it's it's, really clear, and simple. For. The investor, they know they get repaid, and they, get, return. On their investment, like interest, and. Entrepreneur. House for, the duration of the, loan I have, pay this, amount every. Month or monthly basis including, interest okay and is a combination of, crowdfunding and, micro, financing, is that common, it. Happens at a moment. We go, live with. A project that is started, with microfinance, and, it. Has matured over, the years and now. We're scaling up and they, come to us and we do a crowdfunding campaign mm-hmm. I see, you nodding Roy you agree yeah it is possible but. Let. Us not make it too. Too. Fancy because there's also. Some. Difficulty, in combining, and s that we all want to have some collateral and, I, think it's very hard to combine the same type of finance, like crowdfunding, banks. And credits yeah up, to 250, thousand euros the smaller amount it's harder than the bigger amounts, to combine we, see a lot of combinations. With other types of, alternatives. Like. When. You talk about leasing. Or factoring it's, easier to combine different, kind of alternatives. Than the same kind of alternatives. Because then it comes, to collateral. And we all want to have some collateral so then what, Roy says is totally true about the collateral mm-hmm, but there are. Entrepreneurs. Who, look, for crowdfunding because, there is a second, advantage and. That's the marketing, aspect of it of course because every investor, investing, is a, promoter, for your company, if, I invest $1,000. In a bakery I will, tell all my friends and family to go buy a bread at that place yes of course that's, the marketing, and publicity effect. That, a lot of entrepreneurs, like about crowdfunding yeah, and it, works and. What kind of loans US credits offer, actually. We have three types of loans it was quite easy we, have micro loans it's up to 50 thousand euros then we have SME loans for the medium enterprises, up to 250, thousand euros and we have a flexible, loan a flexible, loan is more for working capital and it's, up to 225. Thousand, euros so, that these are the three types of loans we have okay, and how. Does that work exactly. To, do an application or, the, type of loan yes yeah at the time well, it's a we, only have loans that you repay. Within between, one and ten. Years and we also do mortgages, and these, are up to twenty years so. If, you want to buy a property for your business that's also possible then it's up to twenty years there's, also a branch very difficult, for banks at the moments and the properties, for businesses, but. Most of our loans are about, the, repayment within, four or five years so that's the the typical loan I don't know what kind of loan you had but.

I Have the micro, financing. Loan and I I will pay back the, entire, amount, in three years three, years yeah, most, of the times we have a grace period you. Know for the startups, it's it's. It's better to only, pay interest in the first five, or six months so think you can build up yeah. And thank you you can build up your business get. Some cash flow and then, you can pay it back three. Four or five years but only up to ten, years, the flexible, loan then. You can you, don't have a repayment, so, within, the twenty five thousand, euros you, can repay, and, you can withdraw oh, so it's like sort of a bank account exactly, exactly, okay. And how do you apply do. You do it digitally or, a person, yeah. Well we we still get some post but. Ninety nine percent of all the applications. Come through the internet you get some posts actually yes. Real. Paper yeah. But. But most of them are come through the internet so it's only three four steps you know the preparation. Is everything if you have the documents, within, five minutes you can do an application I think also at health for okay if you have the documents, it's, not so hard to do an application and is it the same for crowdfunding yeah, we are online based company, so it goes through our website, but we do. Discover. The possibilities by. Phone by mail or in person with an entrepreneur, or with, an accountant, or advisory, like Royce at all it earlier, yeah, first. You apply online, basically, it's online and. When. The financing, proposal is ready we publish, it online and investors, invest, online, I would like to involve Renae again, welcome. Back Renae thank, you. And, can, the government offer help. Maybe, like subsidize, yes. Of course. We. Have a, lot of. Financial. Instruments, available, for entrepreneurs. It's. It's not always. Like. Crowdfunding. Or microcredits. Alone. But. We offer a lot of, instruments. That fill in the gaps in the. Financial, landscape that's. Basically, also the the. Main goal of the government, and. We also have. A lot of subsidies, in place, to. Achieve. Some. Stimulation. In the economy, on, certain, points, something, that is very relevant. At the moment is energy, saving, and, new. Energy, projects. And there, are subsidies, available for, these investments, and, what are the conditions, for getting a subsidy well. They're they, differ a lot because, subsidies. Differ. Also, in the. Goals that they that, they have to meet, but. In, general. You. Just have to fill in forms, for, a subsidy, that describe. Where. You are going to use the money for and. What. The, investment, is going to be where, you apply the subsidy, for and, what are the achieve misunderstandings. Concerning, subsidies. Well. The. The, biggest mistake. That people have in their heads about, subsidies, is that they think that every, financial. Instrument, from the government, is a subsidy, it's. No. It's not and it's even less, than for instance then ten years ago there are less and less subsidies. Available, and instead. You will find. Instruments. Like loans like. SME. Guarantees, where, we, provide. A guarantee, to, a bank loan where. There is not enough collateral. For the bank in, that case we can provide the, collateral, that the bank needs to, to. Provide the loan. But, we also have. Equity. Programs, and. Well. Proof. Of concept funding, we, do a lot of different. Kind of instrumental. Projects. Well. I want to get back to her John and Roy what, would you say are the risk or well let me rephrase it the pitfalls, for entrepreneurs. Well. I come, back to the subject, transparency.

It's. Quite important, also in the plan what we see is a lot of entrepreneurs most, of them have only the best case scenario, and it's very good because they are an entrepreneur and, they, apply for a loan because I think you, know I really. Have this, this plan that it can only succeed, but. Reality is different you know anything. Can happen illness. Divorce. So. Also, think about what, what will happen in the worst case scenario when. Turnover. Isn't that good or whatever. You know just, think about it and write something, about it in your plan do, we have a partner with income. All. These subjects, are important, for us as a finance, Institute. To, know how your how. Your reaction, is when, you get in in trouble, so the first, that's very important, to know and write, it down in your business players mode most applications. Don't, have, anything. In their plan about this so I really would, recommend to do that yeah good, tip Thanks. And did, you think about the pitfalls when, you started, your feets idea yes. Yeah, luckily. I. Have. Really. Nice job. Job. As a pizza Hollow is well-paid, so in the case that my. Supposition. Would. Go on a bed way I still, got, my job and. I can pay back the loan. Oh yeah, and you discuss, this with credits, as well when you are. And. You talked about it with the Chamber of Commerce I saw and the, location, scan so you did quite some preparation, yes I have to say that I receive, a lot of help from, the phone, assistant, of credit and the Chamber. Of Commerce really they helped me how the lot and I. Just show. Off one question they, fill. My brain with a lot of. There. Is a question for you now to fill your brain with. What. Did you underestimate. During the process it's a fewest question, yes. What, I underestimate. I. Underestimate. The. The. Fact that a good. Plan can. Save you time and in business time or money so. I. Developed. The project. Together. With the job on site so. Supposed. To be back and restart again I, will. Focus more, on, planning. Of the whole project. Well. We have another question for you from reviewers. If. You had to start the financing, process again, what. Would you do differently. First. Adam, an important, point for me is, to. Understand. How to split, the, business from. Your private, life hmm, because, this, for me was really a big. Problem at the end okay cuz when you start you. For. Me was anything new so. All. My focus was, on my project, and I, understand, that people might, be annoyed that I, were, talking, about my pizzeria. Always. Anytime and. You. Can lose some friend did. You yeah. I did, but. Doesn't. Matter that means that this, friend was, not really, important, thank you so much gentlemen for sharing, your information with, us, summing. Up there are many possibilities to get funding. The kind of business you have and the amount of money you need no. You have to be able to give detailed, information. And you have to be able to pay back thanks. Again. Be. To the point don't arrive late and look neat, these, are only a couple of elements of the perfect pitch I will talk about how you can present yourself best in front of an investor we, have clarity on the income account manager of the crowdfunding platform, health worker or. Spitz director of credits and Claudio yet at the owner, of a pizzeria. Claudio. Hello. How, did you your, presentation, go did it go well for, me was. Easy. To gather a line to, follow so, what. I have to put this heifer. To find the right info and. How did it go for yourself will. You relax or, stress I was a bit stressed okay. It's rest but at. The end I, was, sure that the. Idea got. A good, value value, sir, okay, so that relaxed you a little bit yeah that was my, con. Point yeah, and how did you prepare exactly, I. Wrote. Down business. Plan it was not that big just three, pages I put.

Into The business plan, some, numbers, about a, provision. I. Also, included some picture of the bike because on the time people couldn't. Never image how pizza. Bike look. Like. That. Also. I. Something. About my private life what was my, income. On the moment which, we, job I was doing on, the time and yeah, so. It was very complete, and, what. Important. Tips did you receive from the Netherlands Chamber of Commerce and credits I receive. A, lot of important. Tips, from. These two entities. First. One and the most important, was a. Right. Form of business plan. From. The Chamber, of Commerce I receive. Marketing. Research. Which was, a specific. One for my field. Moreover. I I. Receive. Tips. On how to deposit, my trademark because. Was, my. Biggest. Problem. How, to protect, my idea as, such, of new idea hmm, they. Ask me a lot so. They direct. Me to the another. Association. Which is which is the boy, and. They. Helped me also. On. How, to. Edit. The. Trademark, deposit, okay, and did, you also get tips like if. You had to BBV. Or, not yes. Yes this, was another important, question on the time yes, I was working as a as, a payer and. I. Asked if for, the pizzeria I should make a buffet. But. Luckily. They suggest, me to continue. On this on that way and then. If, they. The, fish area will, get, value. Then, you can transform it in a baby, yeah. And Roy, what does a good presentation, consists of well. Let's. Say we visit, all our most, of our applicants. We visit them when, it's an existing business we visit them at their business and when there are startup. We visit them at their home so, it's very important, important, for us to visit, the. Applicant, in their own environment. Yeah, what, we see and I wouldn't recommend this to open the door in your sleeping. People. Do that. Clean. Up the house and. Make a cup of tea or coffee and, add, pictures, like cloudy days and and, let us feel that you really want to do this and that not, that you're on social benefit, as well anything. Else I could do so let's. Start up a business we, have to feel that you fit the business that we want to want, to have so, that's. Actually, the main advice I can give be. Yourself it's, a good tip yeah. And do you have anything to add to that yeah. Well at crowdfunding, the presentation. Is online and you, presents. To investors, so. An investor. Decides, like in five minutes, if they gonna invest or not mm-hmm, so the story has to be very clear and very simple, if you have a very, difficult. Or, complex. Product, than, make a video and add, some pictures and in. That way an investor, can easily. And quickly decide. Whether, they want to invest or not and. Is it also about the loca bility of the entrepreneur, yeah it's very much about likability. Its. Investors. At crowdfunding. Are. About. Profit. And are about. Returns. On their investments. But, also is, it a nice entrepreneur. What's the background what's, the motivation, behind it and. Eventually. Do. I have a good feeling what. The guy I'm going to invest in yeah. Even. If you get goodies, as well right, when you yeah, we do. Advise. To use incentives. Like a discount. Or a part, of the product. You're. Willing. To offer to your investor, Netherlands. Chamber of Commerce has also lined up some practical tips for pitching. Personalize. Your presentation. Every. Investor, is different. Explain. Why you, want to start your business what's. Your passion. Stick. To the essence of your story. Practice. Your pitch but friends, or acquaintances, and or, in front of the mirror. Keep. It short and simple. So, hi John, in, what way does a digital, presentation differ, from a presentation, in person, well. A digital, presentation. You can't. Discuss. Or get, a reply to. Your investors, so. The, story has to be very. Clear very simple, like you just said but, also, must, not raise any questions, what. Makes your bike unique my. What. Makes my back unique my bike is unique, because it's the biggest bike. On. The market, biggest. Pizza bike. Yeah. You you can find by. Capable. To bake 200, Pizza, only. Getting. Your bike cycling, around stop on the spot, move. Up your structure structure and then you can bake 200 pizzas, and the structure is attempt, as well yeah. Is a hand. Craft, tent, how the system. Is I have. Built it on my own Wow, holy, hell why. God for build up the structure was. From. Welder. And from. My father very good well that sounds unique Roy. When entrepreneurs present. Their plans at credits which. Is most important, is it numbers. The story or the entrepreneurs, ourselves. Okay. Well when we had the plan and we we. Read the plan we really want to know who's the entrepreneur, who's the man or woman behind the plan so the entrepreneur comes first we. Get curious because we want to know who is the man who, had a plan for a pizza. Pizzeria. That's. The most important, thing so the story and to know the story we have to meet cloudy or we make a video call and it's also very, common, to speak. People on a whatsapp. And. Then the numbers so but, you, talk about the number she talked about the financial plan and I, we really, would recommend to also to to put, some effort in the financial.

Plan Because, we see a lot of people, telling, a lot, about the story but. They. Don't have the skills to write a financial, plan and how do you actually. Find. Out who, you can work with or not no job well, a good entrepreneur knows, what, he's talking about he knows his market, he knows his branch he knows his bike he knows everything, yeah and, it, really comes with passion, and a. Convincement. In, their story and their, business plan and. What. If you're not so good at pitching what, then, well. At a health worker we. Help. The, entrepreneur. To get a good pitch for. The investors, mm-hmm, so. Videos. Pictures. And, a really nice presentation. But. I. Think. It's. Not, a very difficult. Way. To get. Some help if you're not really. Dead too good about, it. Do, you agree. You. Know what we want to do is we want to know is that we meet Claudio in his own environment if, he's a good pizza bake and if he has the right skills, like hospitality, to. Sell them and pitching. Is you know I think for crowdfunding it's more important, than for us but I think you also help people with writing a pitch that's not a problem and let's, be honest for a bricklayer it's, not the most important, thing to have a good pitch yeah but, if you are a consultant and we really look at how you pitch yourself but, that's not a another, thing I think just, a small part of the market it's, very important, to have a good pitch you give tips for that as well exactly. Yeah so, do you want to know from entrepreneurs who, want to start a business in the Netherlands why they actually want to do it here, yes. We will always ask them we. Want to know why they're here do, they have relatives, or family over here what's, the reason they come over here because, we also want to know what's the risk that they go back with a loan so, we, ask these questions and, we want to have straight answer on that yeah. And, did, you practice your, presentation Claudio. And how did you do it. Yeah. I, practiced. My presentation. But, only, on. Side. Of my business plan because forest, was, quite, natural for me because, I build, up from the first screw, yeah, and. Yeah, I mean I'm. A pizza lover and with. Pizza is something, in, my blood you can't say like there it is so that part wasn't difficult for you know hmm, and what would you have done if, you hadn't, succeeded did. You have a plan B or a plan C even yes, my plan, B was, just, to come, back on my, old job start. To doing pizza again and pay. Back, my. Debts that. Was it might. Be a plan, sounds. Like a good plan B yeah yeah, it is well, thank you so much for being here gentlemen, and sharing your expertise, and experiences. We. Have come to the end of this webinar thank, you for watching, for, more information please visit business, gov. Dot, NL. You.

2019-04-03 00:50

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