Having the Entrepreneurial Spirit

Jeste li ikad imali ideju za novi proizvod ili uslugu koje su zatim neki poduzetnik ili etablirana tvrtka uistinu razvili? Put od ideje do zarade nije lak, a mogućnosti financiranja novih ideja i poduzeća još su uvijek mnogo veće vani nego kod nas.

No matter how much we might complain about our job and our insufferable boss, there are few among us ready to embark on an adventure called entrepreneurship. It is not only a matter of spotting a market opportunity – you need to be able to develop a strategy, raise finance, set up and manage the company, etc. And that is where the distinction between an entrepreneur and a manager lies. Entrepreneurs are often dreamers, college drop-outs bursting with great ideas and with enough drive and courage to put them into action. Once they build a company from nothing, they hire an experienced manager to run it, usually well-educated and a born organiser, so they can be free to move on in the quest for new ventures. Typical examples are Steve Jobs and Richard Branson.

Whether you are a business wunderkind like Steve Jobs, or just an ordinary person fed up with working 10 hours a day for someone else and wanting to run a business of your own, the starting point is always the same – a business plan. Begin by investigating your industry, your market, your product and your financial situation. Then put together a business plan, setting out how you intend to operate your business (strategy, competition, management, etc) and including all essential financial forecasts. A credible business plan will not only direct and guide your entrepreneurial undertaking, but it will also help you explain your business to a bank and other potential investors.

Now all dressed up in a smart suit and with a nicely presented business plan, you are ready to start looking for finance. Of course, you should put up some of your own money; otherwise it would be difficult to borrow from a bank or attract other potential investors. The easiest way to do it is to use your savings, but if you do not have any, you will have to consider other possibilities, such as borrowing privately from friends or family, getting a loan or selling some assets. If your own money is not enough to finance all aspects of your new business, you need to bring in outside investors. Let’s consider a few options open to entrepreneurs in the UK.

If you are an entrepreneur starting a business for the first time, with no trading history whatsoever, it’s very unlikely that you’ll get a bank loan. Instead, try the private investor route. Private investors or business angels are wealthy individuals ready to contribute money and experience to early stage investments. If you are looking to raise more than a million pounds, go to a venture capitalist, a professional investor who is managing a fund and is looking for suitable investments for that fund.

Since there is no venture capital in Croatia at the moment, most prospective entrepreneurs rely on their own capital combined with bank loans. If you are setting up a business in a disadvantaged area (Areas of Special State Concern – Područja posebne državne skrbi), you may apply for a government grant in the form of a subsidized loan or a micro credit. Institutions such as the Croatian Bank for Reconstruction and Development also offer various loan programmes and incentives for small and medium enterprises.

FEASIBILITY STUDY – a careful study of how a planned activity will work, how much it will cost, and what income it is likely to produce. We carried out a feasibility study to see whether it is worth investing in the project they proposed.