When it comes to launching a brand new business in the Netherlands, one of the first things you are going to need to do is to create a business plan to understand how your new business is going to potentially run, and what the start-up costs are going to be for your new business.
Without a business plan, you won’t have a firm grip of your business expenses, or how profitable your business is going to be. It may feel like a waste of time, but it will hold you in good stead and in some cases can help provide a reality check and give you an indication of what foundations you will need to make to get your idea started.
When you first start a business, especially if this is the first time, it is common for entrepreneurs to underestimate the amount of money (known as seed capital) that they will need to start their business.
If you need to rent an office or a space for your business in one of the popular cities such as Rotterdam, Utrecht, Eindhoven or Amsterdam which are all popular locations for start-ups and business in general, then you’re likely going to need a lot more money than you might imagine.
In addition to this, don’t forget all the equipment you are likely to need, other expenditures like utility bills, and business taxes that you might need to pay. Will there be staff or outsourcing costs? These costs and expenses can quickly add up.
Once all this has been paid for you will also need to leave some cash for marketing your business, which can also be expensive. A lot of entrepreneurs overlook marketing and promotion, but for most businesses it is an important aspect.
Ultimately, business funding can be difficult to achieve without outside involvement, which is why a lot of start-up companies look to business angels to help get the enterprise off the ground.
Forming a partnership with a business angel can be one of the best ways to get your business started, especially if you are having trouble raising seed capital out of your own finances. When a business angel invests in your idea or start-up, they will negotiate for a stake in the business. This means that you will have to give up a part of your business ownership to the angel in return for investment.
Some of the most popular and active business areas in the Netherlands are banking, technology, media, digital and more traditional industries such as agriculture. Often, you’ll find that these sectors can attract a lot of interest from business angels, since these industries have a proven track record. However, that doesn’t mean that if your business falls outside of these sectors that you won’t attract funding. Business angels are always looking for exciting projects to invest in. Often, you’ll find that a business angel will focus on sectors that they have experience in, so you may find support from an individual who knows your business area well.
Teaming up with an investor who knows your specific industry can be a great idea, as often the business angel will want to take an active roll in your company. This can take the form of either business support, advice or even mentorship. Often, if a business angel has experience in your sector, they can introduce you to contacts and open doors to help expand and grow your business quicker than you could if you went it alone.
If you’re an investor who is looking to team up with a business angel, then the Netherlands Investment Network can help you achieve your goals. When you sign-up to our network you will have access to business angels and investors located close to home in the Netherlands, but also further afield. One of the great things about the Netherlands Investor Network is that it is a truly global enterprise and investors all around the world use it to connect to entrepreneurs and projects globally. Sign-up today to add details of your business and start the journey of finding investors interested in your business.